An Australian company has announced that it has been chosen to build and maintain 18 new schools in Edmonton and Calgary.

Babcock and Brown Public Partnerships, a subsidiary of investment group Babcock and Brown, made the announcement on its website Monday.

The Alberta government has scheduled a news conference for Friday.

Babcock and Brown has been heavily affected by the financial crisis in the United States.

According to media reports, the company's stock has lost 97 per cent of its value in 2008.

The company's chief executive officer and chairman both resigned in August. The company also announced last month it would lay off a quarter of its staff.

Infrastructure Minister Jack Hayden told CBC News on Thursday the province is "very comfortable" working with Babcock and Brown.

"We do a lot of work to make sure that the organizations and companies we deal with are solvent and that they are able to carry out the contract," Hayden said.

"The wing of Babcock and Brown we are dealing with is Babcock and Brown Alberta Schools with a partnership with their… company in England and they are very solvent," Hayden said.

However, D'Arcy Lanovaz, president of the Canadian Union of Public Employees in Alberta, has a lot of questions.

"What we're seeing is the provincial government handing a 32-year contract to them. The question becomes: Are they going to be solvent before the schools are even built and how long will they be around? Are they going to be around for 32 years?" Lanovaz asked.

Education Minister Dave Hancock would not discuss details Thursday in Edmonton, telling reporters they had to wait until the official announcement.

Babcock and Brown said that under the agreement, it will build and operate nine schools in Edmonton and nine in Calgary. The schools are scheduled to be built by July 2010.

There will be six public and three separate schools in each city.