TWO new schools being built in Monmouthshire will be unaffected by ongoing concerns with the firm behind the works, according to the local authority.

Reports this week suggested that the UK Government were monitoring Interserve’s financial health following the collapse of construction company Carillion.

Interserve, who are behind the new-build projects at Caldicot School and Monmouth Comprehensive, had warned of increased costs in September last year. The group then issued a profit warning in October and said that it could breach its banking covenants.

But Monmouthshire County Council say they have since been told that Interserve’s balance sheet has “since improved” and that the school projects would continue.

“The banks have subsequently reorganised the company’s debt and the company has since announced the awarding of significant contracts,” said Cllr Phil Murphy at full council on Thursday.

“The authority has a parent company guarantee in place with Interserve for the two schools [and] has had reassurances from directors that all is good and that the company has the right strategic plan in place to move forward.”

According to Cllr Murphy, the council would have enough retention to cover liability costs if Interserve were to walk away from the remaining work at Caldicot.

The school opened to pupils in September but work on the new grounds have yet to start with the old school buildings in varying stages of demolition.

With Monmouth, Cllr Murphy added that construction progress was at a point where another firm could take over work “upon any failure of Interserve”.

The school is scheduled to open this September.

Concerns were also raised at the meeting with regards to Carillion’s involvement with the A465 Heads of the Valleys Road project.

The firm completed work on the Brynmawr-Tredegar section in September 2015 - but the stretch of dual carriageway will connect to the delayed and overbudget Gilwern-Brynmawr section.

Cllr Simon Howarth said: “People within my ward are really concerned that this will have a major impact on the link. There is the ongoing issue of maintenance which Carillion would have been responsible for.”

Council leader Cllr Peter Fox agreed to write to the Welsh Government on the issue, adding: “We don’t want that project waylaid any longer than it currently is going to be.”