FURTHER PROBLEMS on the Dublin Port Tunnel and other inherited projects have forced contractor Carillion to write off a further £90M, following its £313M takeover of Mowlem in February.
The £303M project, is being built by a Nishimatsu/Mowlem/ Irishenco joint venture.
It has been plagued by a series of contractual and technical issues since it started in 2001 (NCE 30 September 2004).
This week Carillion said it was increasing this write-down after Mowlem's 2005 accounts showed that key contracts had deteriorated more than expected. .
'Since completing the acquisition of Mowlem, it has become clear that prior to acquisition the position on a small number of large contracts had deteriorated further, particularly the Dublin Port Tunnel and Exeter Schools projects, ' it said in a statement to the Stock Market.
'As a result, the provisional fair value adjustment of £45M relating to contract write-downs is now expected to increase by a further £90M.
'This reflects a firm view of the expected outturn for these contracts.
In the event that actual writedowns are different from expectations, full visibility will be provided of the amounts involved.'