Troubled Harland & Wolff has suffered another significant setback after a potential £120 million of work was suddenly removed by the Falkland Islands Government.
In March, following a competitive tendering process, H&W was selected as preferred bidder for the Falkland Islands Port Replacement Project (FIPASS).
Subject to agreeing final contract pricing and concluding commercial negotiations, directors at H&W said at the time that they believed the project could generate total revenues of up to £120 million, with work expected to begin later this year.
But it has now emerged that, following a detailed review process, the Falkland Islands Government (FIG) has decided to cease further contractual negotiations with Harland & Wolff regarding the lucrative project.
In a statement, H&W said: “Despite productive discussions, FIG and Harland & Wolff were unable to reach a mutually acceptable commercial position.
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“FIG acknowledges the effort and commitment demonstrated by Harland and Wolff throughout this process.”
This is the latest body-blow to H&W Group Holdings, which in recent weeks has sacked John Wood as group chief executive, confirmed that it will wind down ‘non-core business lines’, and also axed a new fast ferry service planned between Penzance and the Isles of Scilly with immediate effect.
It comes as the future of the company is in crisis after the UK government refused to guarantee £200 million of loans because of the “very substantial risk taxpayer money would be lost”.
And just days ago the Irish News revealed that two executive directors of the company were paid close to £3 million in wages and bonuses in the two years after they headed a successful take over of H&W.
John Wood and Arun Raman, both now gone from the company as chief executive officer and chief financial officer respectively, were both paid more than half a million in bonuses in the seven months after the Belfast shipyard was purchased for £5.25m in 2019.
Mr Wood was paid £448,000 in wages for the year ending July 2020, while Mr Raman was paid £390,000, according to accounts filed by InfraStrata, the company that took over H&W. They received bonuses of £554,000 and £519,000 respectively.
