Bilfinger writes off prison project
The insolvency of the Ararat Prison project company in Australia has forced Bilfinger Berger to write off its equity investment of €15m (£12m) in the scheme.
Bilfinger Berger said that it continues to expect a significant increase in earnings and net profit for the group this year despite the project’s impact on its concessions business.
Bilfinger Berger is a shareholder in the project company which has undertaken to complete the Ararat Prison public-private partnership project in the Australian State of Victoria. Since the concession was awarded in May 2010, the project has suffered significant delays and additional costs, particularly in recent months. These have led to the insolvency of one of the construction partners in this project and to the stoppage of work on site.
The affected project parties have not been able to agree on a joint way forward and the project company thus appointed a voluntary administrator.
Bilfinger Berger holds a 50% stake in the project company. The group will write off its equity investment of €15m.
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This article was published on 14 Jun 2012 (last updated on 14 Jun 2012).