New crisis for H&W as Falklands government withdraws port replacement project – The Irish News

Struggling contractor Harland & Wolff suffered another major setback after the Falklands Government abruptly withdrew work worth a potential £120 million.

In March, following the completion of a tender process, H&W was selected as the preferred bidder for the Falkland Islands Port Replacement Project (FIPASS).

H&W directors said at the time that, subject to a final contract price being agreed and commercial negotiations concluded, the project could generate total revenue of up to £120 million, with work due to start later this year.

However, following a detailed review, the Falkland Islands Government (FIG) has decided to discontinue further contract negotiations with Harland & Wolff for this lucrative project.

In a statement, H&W said: “Despite productive discussions, FIG and Harland & Wolff were unable to reach a mutually acceptable commercial position.

“FIG appreciates the effort and commitment shown by Harland and Wolff throughout the process.”

It is a further blow to H&W Group Holdings, which in recent weeks has sacked John Wood as group chief executive, confirmed it will end “non-core business lines” and also cancelled a planned new fast ferry service between Penzance and the Isles of Scilly with immediate effect.

The decision comes as the company’s future is in crisis after the UK government refused to guarantee £200m of loans due to a “very high risk of losing taxpayers’ money”.

Just days ago, the Irish News revealed that two of the company’s executive directors had been paid close to £3 million in salary and bonuses in the two years since the successful takeover of H&W.

John Wood and Arun Raman, who are no longer chief executive and chief financial officer respectively, received a combined bonus of more than half a million in the seven months since buying the Belfast shipyard for £5.25 million in 2019.

According to financial statements filed by InfraStrata, the company that took over H&W, Mr Wood received £448,000 in salary for the year ending July 2020, while Mr Raman received £390,000. They received bonuses of £554,000 and £519,000 respectively.