'Work will continue as planned': HS2 to go ahead despite liquidation of key contractor Carillion

The delivery of the HS2 rail project should not be affected by the liquidation of one of its key contractors

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By

Frederica MillerReporter

15:41, 15 JAN 2018
Updated16:35, 15 JAN 2018

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The HS2 high speed rail project will go ahead despite the liquidation of one of its key contractors, Carillion , on Monday morning (January 15).

One of the UK's largest construction company's announced "compulsory liquidation with immediate affect" after rescue talks on how to deal with its debts fell through.

Carillion employs 20,000 people across the UK and holds government contracts in the NHS, education and the rail industry.

The HS2 (High Speed Two) rail project was one of Carillion's highest profile contracts and it looks set to go ahead despite the company going into liquidation.

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According to HS2, a three-way agreement between Carillion, Eiffage and Kier (CEK) means that if one of the partners drops out, the others must deliver the whole contract.

HS2 will go ahead despite Carillion collapse (Image: PA)

In the wake of Carillion's collapse joint venture partners Eiffage and Kier will now deliver the HS2 contract without Carillion.

An HS2 spokesman said: “Today’s news about Carillion is clearly disappointing for them and the wider UK construction industry.

“The CEK joint venture has provided HS2 Ltd with assurances that in the event of any member of the group being unable to deliver on its responsibilities, the remaining members, now Eiffage and Kier, would fill the gap.

"HS2 Ltd does not hold a direct contract with Carillion.

“We are continuing to discuss with Kier and Eiffage the implementation of contingency plans. Work will continue as planned with no unnecessary or additional exposure to the taxpayer.”

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