FALKLAND ISLANDS GOVERNMENT
22 February 2023
ExCo approves for FIPASS works
On Tuesday 21 February ExCo approved two papers relating to port facilities in Stanley. One gave authorisation for remedial and improvement works to FIPASS to ensure operational capability for at least five more years. The second gave the go ahead for tendering for phased replacement of the floating barge system, with a return to ExCo after tendering for a formal decision on costs and detailed proposals. This work follows the decision by ExCo in September 2022 not to proceed with the BAM Nuttall designed New Port Facility (NPF).
This decision also covered access to the current and any future floating barge system, authorising a complete assessment of access road and causeway locations and design options, including how the proposed causeway will interface with the New Port Facility (NPF), with timescale for delivery.
Tenders will now be invited for the phased replacement of the existing FIPASS barges, with the reinstatement of 300m of berthing face by replacing the north west barge being the initial priority (phase 1). Tenderers will be instructed to provide a proposed timetable for the complete phased replacement of the existing structure by December 2027 (phase 2). As part of the tender contractors will be invited to propose engineered solutions for the best configuration of barges – including looking at options of having fewer than the current 6 barges - to achieve the functional requirements defined by ongoing engagement with all current port users and the greatest level of cost efficiency over the lifecycle of the new structure.
Portfolio Holder for Development and Commercial Services, MLA Mark Pollard said: “The decision to approve these papers follows five months of work to provide detailed information on how we can ensure that FIPASS can continue to serve the Islands until we put in place a longer-term solution. FIPASS has served the Islands for decades and ExCo is confident that the decision today to tender for a phased replacement of the floating barge system now represents the most prudent way forward. We continue to remain responsible for ensuring a sensible balance between maintaining our financial reserves, and moving forward with other vital capital projects, the break clause in the BAM Nuttall contract has proven we can retain control on important projects and not invest further public money in a project that is not to our satisfaction. I would like to thank the team at Development and Commercial Services for all the work they have undertaken so far. They have been working to ensure, following engagement with industry, relevant FIG and regulatory teams, and local contractors that everyone has an opportunity to be part of this work.”
Tenders will be separated for each of the central specialties as appropriate to the phases: i. replacement of barges and decommissioning old barges, and ii. access road and causeway construction. This is to improve the attractiveness of tendering to a range of contractors and in particular to open up opportunities for on-Island companies to tender. It is not necessarily the case that all tender packages will be opened at the same time; the Port Project Team remains happy to meet and discuss tendering with any interested party.
To require the successful contractor(s) to include the provision of either; a partnership delivery agreement with a Falkland Islands-based company, or, a permanent agent based in the Falkland Islands for the duration of the contract to be approved by FIG.
The selected contractor(s) will be required to work in conjunction with Stanley Services Ltd (SSL) on the technical requirements for fuel delivery and bunkering.
FALKLAND ISLANDS GOVERNMENT
28 September 2022
ExCo decides not to proceed with Phase 2 of the new port facility
On Tuesday 27 September ExCo considered a paper on whether or not to proceed with moving to building a new port facility (Phase 2). Following consideration of all the facts, ExCo has decided not to proceed with Phase 2 of the new port facility.
All agreed that the Falkland Islands need a working, well maintained port facility, and that determination has not changed. Honourable Members have also repeatedly said they will not provide this at any cost, and certainly not at the expense of the wider Islands economy. As such the high cost of the fixed price construction and wider work programme means this decision is in the best interests of the Islands as a whole at this time.
FIG chose a contracting strategy that specifically provided these gateway decision points, so that decisions on whether or not to proceed are made on the basis of firm information, not projections or estimates. This ensures that the Falklands does not invest further public money in a project that is not to our satisfaction and where the costs could escalate through the build process.
All involved in this work are committed to the continuing provision of appropriate port facilities for all industries that make use of the current port. A contingency plan is already in place focusing on remedial and improvement works to FIPASS to ensure operational capability for at least five more years.
FIG will own or have the right to use all the designs, surveys and other intellectual property associated with phases 1a (Basis of Design) and 1b (Detailed Design) of the project so far. Whilst there have been costs in reaching this point, the work to date is a sound investment which places FIG in a strong position to revisit all options using accurate, detailed technical information.
Chair of the Legislative Assembly, MLA Roger Spink said: “The original goal was to design and build a new port facility for between £50-70m. The detailed costs we have received associated with the current design would be in the region of £157m, excluding costs FIG would incur, which is considered by Members to be un-fundable. We are responsible for ensuring a sensible balance between maintaining our financial reserves, not taking on excessive national debt, and moving forward with other vital capital projects such as the new power station. I would like to thank the team at Development and Commercial Services for all the work they have undertaken so far. They have been working incredibly hard on this project to ensure that members were provided with all the information to take this decision.”
The Port Project team in DCS will continue to work on options, and will consult widely with stakeholders as part of this work, before returning to ExCo with viable next steps in February 2023. This is not merely another options phase, but a working up of deliverable models known to be truly viable, taking into account the information now available on financing options and scale of acceptability. All previous ideas will be reviewed as part of the next steps, viewed through the prism of the stakeholder engagement work and financial situation of the present day. No option is considered off the table, but the work carried out to date provides a set of criteria to narrow down and identify the best next steps.
FALKLAND ISLANDS GOVERNMENT
14 September 2021
New Falkland Islands port gets green light to proceed as part of ambitious programme of investment in infrastructure
On Friday 10 September 2021, the port project received ExCo approval to proceed to Stage One B, Detailed Design, which will take place over the next 13 months. Stage One A began in July 2020 and involved an extensive series of stakeholder workshops, surveys, demand studies and environmental assessments in order to produce the initial Concept Design for the new facility.
Stage One B will involve further stakeholder engagement, surveys and assessments, to progress the Concept Design to Detailed Design, together with initiating the stockpiling and production of quarry materials. At the end of the Stage One B process, the final plans for construction will be presented to the next Legislative Assembly in 2022. As identified in the 2017 update to the Falkland Islands Economic Development Strategy, the port is an essential enabler for the Falkland Islands economy, and the new port will support future growth across all business sectors, including fishing, tourism, transportation, science and research, and marine industries. The construction of the port will also offer many opportunities for Falkland Islands businesses, including haulage and logistical support.
The new port project is part of the Falkland Islands Government’s overarching capital programme, which covers a range of initiatives including the development of a power station and government housing, investment in new sporting facilities and education, as well the government estate, the 1,000km road network and the extensive system of ramps and jetties throughout the Islands that form part of the national transport infrastructure.
Construction works for the new facility for vulnerable residents, Tussac House, will begin later this year and is due to be completed in 2023. Tussac House is intended to be an asset for the entire community and will be located at the east end of Stanley.
Examples of other investments in vital community facilities and assets include the progress being made with new sports facilities; a project which is being funded by FIG and delivered by the National Sports Council. The project has delivered initial Concept Designs and is due to go to ExCo before the end of September for approval to proceed with further design and enabling works. Another new aircraft for the Falkland Islands Government Air Service is also due to finish production in 2022, increasing the fleet to six planes after the arrival of the most recent new plane in December 2020.
The Islands-wide waste management solution with the MoD is also progressing, with plans for the new waste management facility returning to the Planning Committee on 20 September 2021. This project will receive substantial MOD investment. It is expected that construction will begin on the project in early 2022.
Housing construction contract negotiations are also nearing completion and it is anticipated that works will commence on site, in Bennett’s Paddock, before the end of the year. This will see the delivery of at least 40 new government properties over a period of 36 to 48 months.
Deputy Portfolio Lead for Development and Commercial Services, MLA Mark Pollard, said: “The approval to proceed to the next stage of the port programme is another step towards delivering on the commitment we made in The Islands Plan, to ensure the development of a port facility that supports industry. This decision is a pivotal one which will support our ambition to create the right conditions for economic growth.”
Director of Development and Commercial Services, Catherine Silva Donayre, said: “The new port is an essential part of our national infrastructure and supports so much of our economy, in particular the fishing, marine and tourist industries. Investment in the project and this agreement to proceed through to Detailed Design also reflects the significance of the Falkland Islands as a key gateway to Antarctica and the South Atlantic; a position which has grown in prominence in recent years. Our ongoing and significant investment in our capital programme reflects the extent of the government’s ambitions to continually improve our national infrastructure and community facilities for the benefit of all residents, both now and in the future.”
Despite the ongoing challenges presented by the Covid-19 pandemic over the past 15 months, the Falkland Islands Government has continued to make significant investments in vital infrastructure and key community assets. Our ambitious 10-year capital programme has plans for approximately £300m of investment, with over £30m invested in 2020-21, and a further £53m planned in 2021/22. These investments are underpinned by the government’s strong financial position, as evidenced by the A+ credit rating awarded by S&P Global in May this year.
FALKLAND ISLANDS GOVERNMENT
26 August 2020
Update on Port Development Activity
On Wednesday 19 August four members of BAM Nuttall Ltd arrived in the islands ahead of their extensive stakeholder engagement programme, which is due to take place in the first two weeks of September, after the team complete their 14 day quarantine.
They will be meeting with industry sectors across the Falkland Islands to gain a better understanding of local business’ requirements and how the new port can help to facilitate further economic growth.
Director of Development and Commercial Services, Catherine Silva Donayre said: “Since the project started up in July 2020 a lot of work has already taken place, and I would like to thank the team here in the islands and at BAM for all their efforts so far. The stakeholder engagement will be important so that we can all better understand how the new port can support economic growth for the islands.”
BAM is completing procurement for upcoming initial works, and a number of local suppliers are being awarded contracts. This includes Ajax for a topographic survey, Atlink and Stanley Services for support and logistics services, Martech for marine equipment and SAERI for environmental work. Enviros Ltd has been commissioned to carry out an unexploded ordinance and hydrographic surveys and BAM’s in-house engineering teams will be arriving in the next few weeks to carry out the ground and site investigations. All those arriving from the UK will be subject to the two week quarantine period.
Development and Commercial Services Portfolio Holder, MLA Barry Elsby said: “The progression of the port is key to our economic development so it is reassuring that, despite the disruption caused by the pandemic, everyone is working hard to move this project forward. I am looking forward to meeting the team and to seeing the outputs from their stakeholder sessions, which will help shape more detailed plans for the port development.”
FALKLAND ISLANDS GOVERNMENT
13 February 2020
Falklands announces partner to develop new port
The Falkland Islands Government (FIG) has selected a development partner to design and build a new port in Stanley Harbour.
After an extensive global procurement process, FIG is pleased to announce that it has agreed BAM Nuttall Ltd as its development partner, subject to successful conclusion of contract. The aim is for the contract to be agreed and signed by the end of March 2020.
FIG Chief Executive Barry Rowland said a new port is an indispensable asset to support the economy and enable ongoing future economic growth in the Falkland Islands.
“As is well known, the existing FIPASS facility is fast approaching the end of its life. Today’s exciting news is the first step in designing a new facility that can handle both our current needs, and our projected future demands.”
Development and Commercial Services portfolio holder, MLA Dr Barry Elsby, said there have been studies and reports into future port options over the past 20 years.
“I am therefore delighted that this Assembly has taken the decision to build the new port, and so deliver on the commitment in the Islands Plan.”
Martin Bellamy, Managing Director of BAM Nuttall Ltd said: “We are excited to be part of such a critical national infrastructure project for the Falkland Islands and we look forward to working together with the Falkland Islands Government and our team in designing and constructing the port that will serve as a new gateway to the Falkland Islands. It is our collective ambition that this project suits the needs of everyday life on the islands and can provide longer-term economic benefits.”
Tenderers were asked to review the most suitable location for a new port and propose their location as part of their tender returns. The new facility will be in the vicinity of the current port, offering new facilities that will benefit key users in the fishing, tourism and shipping sectors, as well as many other parts of the economy.
Early contractor involvement will allow designs to be developed collaboratively from the outset, involving the contractor from an early stage in seeking the best solutions to meet current and future demand.
The project will be split into three stages, with decision gateways between each stage. Upon successful agreement of the contract, the first stage will include stakeholder engagement, surveys, a demand study and Concept Design.
At the end of Concept Design, FIG Executive Council will review plans for detailed design stage and be asked to approve the costs and activity schedule for the next stage. The second stage will see agreement of Detailed Design, ending with another decision gateway for FIG to approve costs and plans for construction. The third stage will see a phased construction of the port.
Construction will be carefully programmed, and operations at FIPASS will be transferred to the new port part way through this stage, in order to ensure the port remains operational at all times. The project will conclude with de-commissioning and removal of FIPASS.
A public meeting is planned for when the BAM team arrives in the Islands, so that people can get an overview of the project, outline timescales, and the initial design proposals. Further details of this meeting, and stakeholder sessions, will be made available in the coming month.
FALKLAND ISLANDS GOVERNMENT
31 May 2019
FIG issues tender for new port facility
Today the Falkland Islands Government has issued an Invitation to Tender (ITT) to the global construction market to select and appoint a preferred development partner for the design and construction of a new port facility.
The tender will remain open for three months before closing on 30 August 2019.
This is the latest step in developing new port infrastructure for the Falkland Islands and enabling long term economic growth for Falkland Islands’ industries.
The procurement approach has been adopted to ensure that the Government can work with a preferred partner from the outset on the details of design, cost and planning processes.
It will also provide FIG with decision gateways so that designs and costs are reviewed at key stages before a final commitment to build is made.
Speaking of this latest development, Iain Robertson, Director of Development and Commercial Services, said: “We have been working closely with our technical advisors to make sure that our procurement method meets the highest standards of best practice and will give us the best possible opportunity to secure a partnership that not only understands the unique requirements of the Falkland Islands, but also the size of the opportunity.
“This development will be one of the largest in the history of the islands, which is why it is vital that we carry out all aspects of the procurement journey in a carefully managed way. This is an exciting step forward and one which will is vital to the health of our economy as it supports the growth of our fishing, imports and exports, tourism and scientific research.”
FALKLAND ISLANDS GOVERNMENT
20 March 2019
ExCo approves the procurement process and issues tender for the appointment of a preferred development partner for a new port facility
Today the Executive Council has approved a formal procurement process to issue an Invitation to Tender (ITT) to the global construction market to select and appoint a preferred development partner for the design, construction and potentially the operation of a new port facility. The tender will also invite bidders to submit funding options.
This follows a soft market test, completed in 2018, which aimed to draw interest from organisations interested in partnering with Government to develop new port infrastructure, possibly in phases, to meet the future economic demands of the Falkland Islands.
The procurement route will be to issue an ITT ‘Early Contractor Involvement’ process which involves selecting and engaging with a construction partner from the outset and throughout the development process. This approach will ensure that industry best practice, engineering, construction, technical knowledge and experience, are all factored into the design and cost planning processes at the earliest possible opportunity. It will also provide FIG with decision gateways so that designs and costs are reviewed at key stages before a final commitment to build is made.
Speaking of this development, MLA Barry Elsby, portfolio lead for Development and Commercial Services said: “This is a concrete step forwards in terms of progressing the delivery of the new port facility, essential to support the economic development of the Falkland Islands. This will be one of the largest capital projects in the history of the islands; for this reason we need to make sure that we understand the scope of the challenge as well as the opportunity ahead. To do this we have engaged with our professional experts and have chosen a recognised method of procurement that means we will be collaborating in a close partnership arrangement from the outset. I look forward to seeing the results of the procurement exercise in the months ahead.”
The aim is to issue the ITT in May for a 90-day tendering period. The procurement process will be managed by the Development and Commercial Services directorate.