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

Interserve is responsible for delivering the project but it has run into financial trouble and many of its key suppliers are facing heavy financial losses after the government outsourcer was rescued from administration by banks and hedge funds last Friday.

The takeover by debtholders enables the company’s 69,000 staff worldwide to continue working, with most suppliers trading as usual.

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

A spokesman for Hywel Dda health board said: “We can confirm that Interserve will continue to deliver both the Cardigan Integrated Care Centre and the Women’s and Children’s Phase 2 project at Glangwili General Hospital as planned.”

The new centre at Bathhouse Road is scheduled to open at the end of this year.