Engineering firm NMCN was awarded the design and build contract to replace the existing system at Bellozanne in 2018, and had since been working alongside a number of subcontractors to complete the multi-stage project.
However, the company recently went into administration after a planned refinancing of the business fell apart.
Infrastructure Minister Kevin Lewis said: ‘The Government of Jersey is aware of the position of its main contractor for the sewage-treatment-works project. This is something that has been tracked for many months and has been the subject of many conversations between NMCN and the Government of Jersey.
‘We are currently assessing our contractual and legal position while the formal administration process becomes clearer. It is the government’s intention to continue with the sewage-treatment-works project and to continue relationships with the supply chain, especially those involving local companies.’
He added: ‘We have systems in place for such eventualities and these processes will now commence. I hope to be in a position by the end of next week to provide greater clarity as to our next steps. Until then, our business on the project continues.’
The works, which were due to be completed by the end of 2022, have already been impacted by Covid-19 travel restrictions and supply-chain issues. Once completed, the new system will reportedly be capable of providing waste-water treatment for a population of around 118,000 people.
It is the second time that the wider redevelopment of the Bellozanne site has run into such a problem. During the phase to build a new sludge platform, another UK-based contractor went into administration, leaving many local sub-contractors significantly out of pocket. It is not clear whether Island-based firms have been paid for work as sub-contractors for NMCN.