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Scottish government 'monitoring' Carillion

Carillion carillion workersCarillion

The Scottish government has said it is monitoring the situation at troubled construction firm Carillion, which is involved in several major infrastructure projects in Scotland.

The firm is part of the consortium building the Aberdeen Western Peripheral Road (AWPR).

It also won a contract last year to extend platforms at Edinburgh's Waverley Station.

But it is struggling under £1.5bn of debt, raising fears about its future.

Carillion shares plunged on Friday following reports that lenders had rejected a proposed rescue plan for the business.

Administrators are reported to have been put on standby as talks about the English-based firm's future continue.

But in a tweet, Scotland's business secretary, Keith Brown, indicated that work on the AWPR would continue regardless.

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A spokesman for the Scottish government said: "We continue to liaise with UK government colleagues to monitor and mitigate service risks associated with Carillion's financial situation.

"We stand ready to offer what assistance we can at this anxious time for the company's employees and their families."

Transport Scotland said that Carillion had "no intention of withdrawing" from the AWPR project, and that the consortium delivering the route "remains committed to completing it in accordance with the contract".

A spokesman added: "Carillion is one of three partners delivering the route. It would be inappropriate for us to comment on any individual contractor's internal financial governance."

Projects involving Carillion in Scotland also include the electrification of the central Scotland railway line through Shotts.

And it and has several major contracts for managing public facilities, including for the West of Scotland Housing Association and NHS Greater Glasgow and Clyde.

Carillion is the UK's second-largest construction company, and is a key contractor across the UK. It employs 43,000 people globally.

Scottish Labour said it was important to know "just how exposed the Scottish government and the public purse is if Carillion were to collapse."