SOMBA K'E/YELLOWKNIFE - The main builder involved with the territorial government's largest project to date is going back to the New Brunswick government for loan guarantees it can't get by itself from the banks.

On Wednesday, the province's premier, Shawn Graham, confirmed his government was in discussions with ATCON Group - a company based out of Miramichi, N.B., - about a loan guarantee.

In August 2007, ATCON signed a $132-million contract with the Deh Cho Bridge Corporation to build a bridge across the Mackenzie River. Currently, four piers are sticking out of the water on the south side of the river, with construction recently begun on the four north side piers.

A spokesperson for the company was mum with details on how much the company was looking for and where the money would go.

"These discussions with the province of New Brunswick are not unlike other large corporations who meet with government who look at assisting them with accessing capital," said Dorothy Innes, spokesperson for the ATCON group.

"We are discussing a loan guarantee which would help us to access capital. The government is not going to open up it's purse strings and give ATCON money. It's going to guarantee a loan that we access from other sources."

Innes said the loan would finance projects the company is hoping to get off the ground, although she would not name them. She said if discussions with the government fell through, it would not affect the bridge project.

"There is no connection between what we are proposing to do - while it's still at the discussion stage - and the Deh Cho Bridge project," she said.

Asked why the company would not go directly to the loaning sources, but government assistance instead, she pointed to the global credit crunch.

"Financing is very tight so corporations of our size, to do the work we do, we need to have assistance," she said.

Currently, the steel used for the bridge is manufactured in New Brunswick and then assembled in the Northwest Territories.

The province's opposition leader, David Alward, has said the loan the company is seeking is in the neighbourhood of $50 million.

Ryan Donaghy, a spokesperson with Business New Brunswick - the provincial government's economic development agency - said that number was "only rumours."

Donaghy said there was no deal in place and discussions, which began last fall, were still ongoing.

The private company has twice gone to the New Brunswick government for help with the $165 million bridge project.

In August 2008, the company received a $13,362,845 loan guarantee from the New Brunswick government "to undertake work required to begin and complete" the bridge project, according to a Business New Brunswick press release dated Aug. 5, 2008.

On Sept. 26, 2007, ATCON received more than $7 million in provincial loans and contributions to build a steel fabrication facility to support the Deh Cho Bridge project.

"We've stepped up to help ATCON with regard to that project in the past, because they needed to build a facility to construct the steel," said Donaghy.

Andrew Gamble, project manager with the Deh Cho Bridge Corporation, said he would not comment on ATCON's actions until he knew all the facts. He said any speculation on ATCON's financial troubles was premature.

"I'm not going to speculate on that because if I do, you're going to imply that they are going bankrupt," he said. "If they go bankrupt, obviously that will affect us."

He said the bridge corporation is protected in its contract, although he would not go into specifics.

"We're well protected. They've been paid for what they've done. We do have some security and hold-backs and what not. So the contract is designed to protect us for any eventuality like that," said Gamble.

While the territorial Department of Transportation is confident the project will come in on budget, late last week, department spokesperson, Earl Blacklock, said if the bridge does go over its $165 million maximum price, the government would cover the cost of the overrun because it is the project's guarantor.

However, that cost would then be billed back to the project manager, the Deh Cho Bridge Corporation.

Innes said the ATCON group of companies currently has projects in Alberta, Newfoundland, New Brunswick and does plywood manufacturing in Sweden.

She said the Deh Cho Bridge is "certainly up there with the most important projects the ATCON group is currently undertaking."

Innes added the company is looking forward to making announcements on upcoming projects in the near future, including, potentially, some in the NWT.

"We certainly hope to make announcements on projects in the Northwest Territories," said Innes.

Yellowknifer reported in December that former premier Joe Handley signed on as a consultant with company to help them find business opportunities in the North.