Wednesday 12 January 2011

New Brunswick government to cover Atcon Deh Cho Bridge project bond

Construction: Government on the hook for as much as $13.3 million to pay for any problems with major bridge project

The provincial government has quietly put up $13.3 million to pay for problems with work done by the now-defunct Atcon Group on a large bridge contract in the Northwest Territories, the Telegraph-Journal has learned.

[...]

A cabinet decision dated Oct. 19 and obtained Tuesday by the Telegraph-Journal confirms the agreement between Business New Brunswick and the government of the Northwest Territories.

The deal replaces the province's previous guarantee of a bond Atcon had put up for the Deh Cho Bridge project with the Bank of Nova Scotia for $13,362,845

[..]
The new Tory government, elected Sept. 27 but only officially sworn into power Oct. 12, could have waited for the bank to come calling for the money or dealt directly with the Northwest Territories government.

http://telegraphjournal.canadaeast.com/news/article/1370034

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