Alberta gives troubled Carillion Canada $8.9M for highway maintenance

The Alberta government will provide nearly $9 million in temporary funding to help financially troubled Carillion Canada continue its highway maintenance operations and pay its employees.

In a news release Wednesday, the province said it will make up to $8.9 million available to the company, which is responsible for maintaining 43 per cent of the provincial highway network.

The funding will help Carillion maintain its Alberta highway operations until April 30, the government said.

The money will also help the company cover outstanding amounts owed to vendors for bills incurred during the winter maintenance season, the government said.

Carillion Canada’s parent company, British multinational Carillion PLC, went into receivership in January.

The cash injection means there will be no disruption in highway maintenance, including plowing and sanding, the government said.

Keeping highways safe year-round is “our top priority,” Transportation Minister Brian Mason said in the release.

“This funding ensures that snow-plowing, sanding and other maintenance will continue on all of our highways,” Mason said. “It also means Carillion’s employees and suppliers will continue to be paid.”

Carillion Canada recently sought an order and stay of proceedings from the Ontario Superior Court under the Companies’ Creditor Arrangement Act.

Carillion has more than 300 snowplows in Alberta, roughly half of the snowplow fleet in the province. The company employs about 300 people in Alberta during the winter and up to 500 in summer, the government said.

Carillion’s three contracts for maintenance of Alberta highways cover the following areas:

  • Stettler, Three Hills, Drumheller, Hanna, Coronation, Provost and Oyen. Information on Alberta Transportation’s website says the contract is due to expire July 31, 2022.
  • Fort McMurray, Boyle, Smoky Lake, Cold Lake, St. Paul, Lac La Biche, Vegreville, Tofield, Lamont, Lloydminster, Wainwright, Vermilion, Camrose, Viking and Killam. Contract expires July 31, 2023.
  • Slave Lake, Wabasca, Swan Hills, High Prairie, Kinuso, Sherwood Park, Morinville, Gibbons, Barrhead, Westlock, Athabasca, Leduc, Warburg, Drayton Valley and Stony Plain. Contract expires July 31, 2019.

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