Gov't not worried over new Atcon contract dispute

Gov't not worried over new Atcon contract dispute
Miramichi Leader - Miramichi,New Brunswick,Canada
It emerged last week the dispute over payment, between Atcon and the Deh
Cho Bridge Corporation in the Northwest Territories, had halted work on in
the ...
<http://miramichileader.canadaeast.com/news/article/709238>

[excerpt]
FREDERICTON - Business New Brunswick is "assured" the contract dispute
between Atcon and the company building a $165-million bridge in the far
north is being resolved, a spokesman said Monday.

"It's certainly not uncommon, I would say, that this type of a dispute was
to arise in a project of this magnitude," Ryan Donaghy said, although he
added the government only became aware of the dispute late last week.

It emerged last week the dispute over payment, between Atcon and the Deh
Cho Bridge Corporation in the Northwest Territories, had halted work on in
the massive bridge being built over the MacKenzie River, on which Atcon is
a subcontractor. Donaghy said Business New Brunswick, which recently
agreed to three loan guarantees worth $50 million for Atcon, was made
aware of the work stoppage only on Thursday.

He said the public-private partnership agreement signed to build the
bridge included "very clear" ways to resolve disputes between the Deh Cho
Bridge Corporation and its contractors.

"They're working through that process now," he said. "In the end, this is
an issue between the contractor and their client, and we're assured that
it's being resolved."

However, when asked if the company's government loan guarantee would be
affected if the dispute isn't resolved, he stressed the loan was only
agreed to "in principle" at this point.

"There is no actual formal agreement, we're working on that right now," he
said. "Certainly we do have a close eye on this, but it is our
understanding that things are being resolved."

Other conditions for the loan guarantee state Atcon has to provide a
creditors' list to the province...."

"...Earl Blacklock, a spokesman for the Transportation Department in the
Northwest Territories said the dispute arose sometime in the last couple
of weeks.

He said the territorial government's role is mainly to provide
"assistance" in the bridge company's relationship with its various
lenders, leaving the company to take the lead in the event of contract
disputes.

"We meet with the lenders to ensure that they are kept up to what they
require for information," he said. "Because we're the guarantor of the
loans."

In a statement released yesterday, opposition leader David Alward said it
was troubling how work on the bridge stopped shortly before the loan
guarantee was announced.

"The government should have done due diligence and ensured this company
was a good investment for our tax payers' money," he said. "We need to be
assured that this company and government can be trusted with such an
outstanding amount."..."