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Carillion PPP partner reveals contract transfers

An investor that worked with Carillion on public-private partnerships has confirmed the majority of contracts it held with the firm have passed to new suppliers.

International Public Partnerships Limited (INPP), a publicly listed infrastructure investment firm, had a stake in 24 facilities management service contracts provided by Carillion.

INPP announced that 22 of these deals had now been transferred to new providers, 14 of which were on a permanent basis.

The company said the remaining eight had been passed over on an interim basis but were expected to become permanent “shortly”.

The official receiver overseeing Carillion’s liquidation is ensuring services continue at the remaining two facilities, with INPP stating that it had agreements in place and was awaiting consent from the local authority to complete deals on these as well.

INPP said the difference between the value of its contracts with new suppliers and their market value was around 3 per cent, adding that the cost of Carillion’s collapse to the company would not be more than the £1.5m it had previously announced.

No deal has been completed for replacement contractors on either of Carillion’s two major PPP hospital contracts: the £350m Midland Metropolitan Hospital and the Royal Liverpool Hospital job.

Redundancies have continued to be announced on both projects and new contractors are understood to have been lined up, with Skanska poised to take on the Midland Hospital job and Laing O’Rourke set to complete the Royal Liverpool.

Last month, West Midland metro mayor Andy Street called on the government to fast-track Skanska’s appointment on the Midland Metropolitan Hospital.

Royal Liverpool and Broadgreen University Hospital Trust’s chief executive Aiden Kehoe said in March that it was close to agreeing a contract with a new construction firm to manage the completion of the scheme, but an announcement has yet to materialise.

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