LOCAL health board officials are confident that Cardigan’s new £24m health care centre will not be affected by the financial problems of outsourcing company Interserve.

Interserve is responsible for delivering the project but there are fears over its future after it confirmed it was in rescue talks that would see retail shareholders virtually wiped out and creditors take control.

It has been feared that the company could go the same way as another contractor Carillion, whose collapse earlier this year left workers, pensioners and lenders nursing hefty losses and forced the government to step in and deliver services.

Karen Miles, director of planning, performance and commissioning for Hywel Dda University Health Board said: "We continue to work with Interserve on two projects; Cardigan Integrated Care Centre and the Phase 2 Maternity and Neonatal Development at Glangwili Hospital.

"We are confident that they will deliver the schemes we have commissioned them to carry out. Working within our project governance policy, we will continue to monitor the situation."

The new centre on Bathhouse Road is due to open at the end of 2019.