REGINA – The Saskatchewan government needs to tell the public whether the construction and full contract obligations of the Saskatchewan Hospital North Battleford are in jeopardy after news of the collapse of UK-based Carillion, whose Canadian branch Carillion Canada Inc. is a half partner in the consortium awarded the public-private partnership (P3) contract to construct and maintain the new Saskatchewan Hospital in North Battleford. Following the yet-to-be completed construction, Carillion was to be responsible for building maintenance and lifecycle obligations under the thirty-year P3 privatization contract.
“Entering into P3 privatization arrangements are always a risk despite the sales pitch,” said Tom Graham, President of CUPE Saskatchewan. “P3s are more costly than traditional public procurement. If the private sector company goes bankrupt, it’s the public sector that ends up picking up the expensive pieces. We need to know what will happen with Carillion’s project in North Battleford and what it’s going to cost us,” added Graham.