LONDON (ShareCast) - (ShareCast News) - Kier and Eiffage assured the government that they can step in to deliver on the HS2 project should their partner in the joint venture, Carillion, fall short of its obligations.


Carillion, Kier and Eiffage of France was one of the consortia that had been awarded contracts to build tunnels, bridges and viaducts between London and Birmingham as part of the first phase of HS2.

Last week, Carillion's chief executive officer stepped down as the group warned that its full-year sales and six-month operating profits would fall short of forecasts, citing "difficult markets".

That prompted officials to seek assurances from Carillion's partners on the HS2 project.

Transport secretary, Chris Grayling expressed confidence in the joint venture's ability to deliver the £56bn high-speed rail link project.

According to the Telegraph, he said: "They [Carillion, Kier and Eiffage] are part of a consortium."

"They are not alone in the contracts, and we have had secure undertakings from all the members of the consortium that they will deliver that contract."

Also on Monday, Carillion disclosed that it had appointed consultancy firm EY to help with a strategic review of the business, with an emphasis on cost reduction and cash collection.

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