THE collapse of construction giant Carilllion will not impact on a major Pembrokeshire road scheme, the Welsh Government said on Monday.

Carillion - the UK’s largest construction company which went into administration at the weekend - was named as the contractors for the A40 Llanddewi Velfrey by pass, on which work is scheduled to begin in 2019.

The £57m contract for the 5km road was awarded to Carillion at the start of last year, it was reported.

Although the Welsh Government stated at the time that the contract was for the design and build of the bypass, a spokesman told the Western Telegraph this week that the contract entered in to with Carillion was only for the design development.

He said: “The contract with Carillion for this scheme is split into three stages - design development, statutory process and detail design and construction.

“The Welsh Government has only entered into contract for the first stage, which essentially amounts to a design service for developing options to enable the publication of draft orders and an environmental statement.”

He added: “The announcement about Carillion will not prejudice the bypass - it is obviously a road which is needed and it will be going ahead as planned.”

The group, which employs around 20,000 British workers, has been struggling under £900 million of debt and a £587 million pension deficit.