The Falkland Islands government is already in talks with a UK-based marine contractor to take over a floating port project opposed by Argentina, after negotiations with another firm fell through, it has been claimed.
KML Ltd is now in the frame to take over the archipelago’s commercial harbour replacement project, which has been tipped to be worth as much as £120million, after the Falkland Islands parted ways with Belfast company Harland & Wolff, according to Merco Press.
MLA Mark Pollard, the Falkland Islands’ elected legislator with responsibility for Commercial Services, told Penguin News that KML “has been involved in this type of development for a long time, but I can’t tell you much more about it at the moment…”.
The Islands government said it had terminated further contractual negotiations with Harland & Wolff as, “despite productive negotiations”, they “were unable to reach a mutually acceptable commercial position”.
Pollard said the decision wasn’t easy because “essentially they have difficulties and there are jobs at risk, there are people at risk and we wanted to give them every possible opportunity for financial certainty, but in the end we didn’t achieve that and also we have to think about the people of the Falklands and the project that is so important to the Falklands.”
Pollard confirmed ministers remain committed completing the new harbour project in a timely fashion, and replacement of the old structure, including the jetties, gangways and access roads, set to be completed no later than the end of 2027.
“Despite the setback, we remain fully committed to the construction of the port and will continue to move the project forward. While this has been an unfortunate development, we are confident in our path forward, and look forward to bringing this vital project, so important to the future of our economic activity, to fruition,” he added.
KML ltd and Harland & Wolff have been approached for comment.
The project has brought renewed tensions between the British overseas territory and Argentina, which has contested the sovereignty of the Falkland Islands since 1833.
Shortly after it was announced Harland & Wolff had been given “preferred bidder status” for the floating port back in March, Argentina summoned UK ambassador Kirsty Hayes to allow Buenos Aires officials to voice the “concerns generated” by then UK Foreign Secretary Lord David Cameron‘s visit in February.
The South American nation also questioned “initiatives and the announcements made” since, according to a statement issued at the time by the Argentinian Foreign Ministry.
Express.co.uk has also reached out to the UK’s Foreign, Commonwealth and Development Office and Argentina’s Ministry of Foreign Affairs, International Trade and Worship via email.
Earlier this year a report by news outlet PERFIL suggested 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.
Javier Milei, the president of Argentina who took office at the end of last year, 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 over sovereignty of the islands.
However, UK’s position remains that, in accordance with the 2013 sovereignty referendum held on the islands, the Falklands are a British territory.