Update on Port Replacement Project Contractual Negotiations

Following a detailed review process, the Falkland Islands Government (FIG) have decided to cease further contractual negotiations with Harland and Wolff regarding the port replacement project. This decision was made following the sitting of an extraordinary Executive Council (ExCo) on Thursday 1 August 2024.

Harland and Wolff were initially identified as the preferred bidder for the marine-side tender in early 2024. However, despite productive discussions, FIG and Harland and Wolff were unable to reach a mutually acceptable commercial position. FIG acknowledges the effort and commitment demonstrated by Harland and Wolff throughout this process.

After careful consideration, it has been determined that proceeding with an alternative partner will best ensure the project’s successful delivery within the required cost, schedule and risk parameters. During the pre-contract negotiations, no monies have been paid to Harland and Wolff.

FIG remains committed to the timely completion of the port replacement project, with the original timeline for the replacement barges, causeway, and access road remaining on track for delivery by the end of 2027.

Portfolio Holder for Commercial Services, MLA Mark Pollard said: “Despite this setback, we remain fully committed to building the port and will continue to progress the project. While this development is unfortunate, we are confident in our path forward and look forward to achieving this vital project, so important to the future of our economic activity.”

The Falkland Islands Government extends its appreciation to Harland and Wolff for their engagement in this tender process and looks forward to their continued contributions to the industry.