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Construction company Dawnus owes £1.5 million to the Welsh Government

The Welsh Government had given Dawnus a £3.5 million loan to help with cashflow problems. Credit: Google Maps

Troubled construction company Dawnus owes £1.5 million to the Welsh Government, according to Wales' Economy Minister.

During Wednesday's plenary, Ken Skates AM, said the government had given Dawnus a £3.5 million loan in order to help the business with their cashflow problems.

Last week it emerged the Swansea-based construction company, which employs hundreds of workers, had gone into administration.

The Welsh Government has given the Swansea-based construction company £3.5m. Credit: Plenary

The AM said he was "confident" the money would be repaid in due course "I make no apology for supporting the company in the past to make sure they could deliver projects to ensure they could go on employing 700 people."

Commenting on the news, Shadow Minister for Economy, Russell George AM said: "This brings into question the Welsh Government’s approach to business lending practices."

Dawnus were the contractors on the £12m project in Swansea's Kingwsay. Credit: Google Maps

On Wednesday, Swansea Council announced a new contractor lined up to complete the £12m Kingsway transformation project.

Welsh civil engineering contractor Griffiths will re-start work on the city centre construction site soon.

Council leader Rob Stewart said: “It’s great news that we’ve been able to find a way through and get work back on track so quickly after main contractor Dawnus called in the administrators."

We’re anticipating all the legal approvals, financial and technical issues can be resolved very soon, enabling Griffiths to get on and complete the Kingsway project we’ve all been looking forward to.

This transformational scheme will make The Kingsway more people-friendly and better than ever for road users – it’s a vital step in our on-going plans to regenerate the city and local economy. We will ensure the scheme is delivered.

– Rob Stewart, Council Leader

The council stepped in when it became clear last week that Dawnus was planning to go into administration. Details of the final cost of completing the scheme are still being finalised.

When completed, the Kingsway will be transformed into a city park, incorporating new public areas, with much green space, street trees and enhanced pedestrian and cycling routes.

The existing two-lane one-way vehicle route will become two-way on The Kingsway and Orchard Street, with some neighbouring streets also becoming two-way.