Date lodged: 19 November 2018
To ask the Scottish Government whether the terms of the contract for completion of the Aberdeen Western Peripheral Route (AWPR) state that it is not required to remunerate or borrow further funds to cover remuneration if acceptance of completion is delayed.
Answered by: Michael Matheson 29 November 2018
As is standard in Non Profit Distributing (NPD) contracts, the contractor will only receive payment for sections of the road when opened to traffic. Consequently, the contractor is receiving payments for the sections of road which have been opened to traffic at Balmedie to Tipperty, Parkhill to Goval and Craibstone Roundabout/Dyce Drive.
The costs of any remedial works and the ongoing costs of maintaining a construction workforce rests with Aberdeen Roads Limited and will not impact on the public purse.
An NPD contract by its nature means that the construction is privately funded. As such, a capital value of £530 million was borrowed by Aberdeen Roads Limited.