The government of the Falkland Islands has sacked Harland & Wolff as its preferred bidder to build a new £120million floating port.
The Belfast shipyard that built the Titanic was granted in March the “preferred bidder status” for the new project, subject to agreeing on final contract pricing.
But, following a detailed review, the government of the British Overseas Territory has now decided to stop any further contractual negotiations with Harland & Wolff.
In a statement to the stock market, the company said: “Despite productive discussions, FIG [Falkland Islands Government] and Harland & Wolff were unable to reach a mutually acceptable commercial position.”
The two-year project included the construction, transport and installation of four new 90-metre floating pontoons.
While it is unlikely the Falkland Islands Government will ditch the £120m floating port, as the project has been in the making for several months, Argentina may be breathing a sigh of relief at a potential delay as it opposes the plans.
Shortly after it was announced Harland & Wolff had been given “preferred bidder status” for the floating port, Argentina summoned UK ambassador Kirsty Hayes to allow Buenos Aires officials to voice the “concerns generated” by the visit carried out in late February by the then UK Foreign Secretary Lord David Cameron as well as by the “initiatives and the announcements made” since, according to a statement issued at the time by the Argentinian Foreign Ministry.
One of the thorniest issues for Argentina at the time was the new planned port for the Falklands.
A report by the news outlet PERFIL suggested earlier this year that Argentina’s concerns with the port may be linked to the economy, as the facility could make the Falklands a major competitor of the facility in Ushuaia, an Argentinian resort town, and an attractive gateway to Antarctica.
Argentina has been laying sovereignty claims on the Falklands for decades – and in 1982 it launched an invasion of the archipelago, prompting the Falklands War.
Javier Milei, the president of Argentina who took office in December, has pledged his country won’t launch another attack on the islands, but stressed Buenos Aires is not giving up on his sovereignty claims.
In January, Mr Milei suggested a Hong Kong-style agreement which would see the UK hand sovereignty of the islands.
But the UK’s position remains that, in accordance with the 2013 sovereignty referendum held on the islands, the Falklands are a British territory.