Interserve comes first in Wales stadium race

Interserve has beaten two rivals to clinch a £25m design and construct deal for a sports stadium in south Wales.

The client, City and County of Swansea, has named Interserve as its preferred contractor for the Morfa stadium, sidelining pitches from Laing O'Rourke and Sir Robert McAlpine.

The award is the last chapter in the chequered saga of the Morfa scheme, first mooted 15 years ago.

Miller Development and Ballast originally won the deal in 2000, when it was a £75m combined stadium/retail scheme. But the deal was plagued by delays, leading to the council taking back control of the stadium.

Developer Capital & Regional subsequently bought out Miller's interests in the retail and leisure aspects of the scheme. It is understood that 14 firms, both regional and national, expressed an interest in the stadium project when it was re-advertised as a stand-alone contract last April.

The centrepiece of the scheme is a 20,000 all-seater stadium and arena with a grass pitch for rugby and soccer. The stadium will be home to Swansea RFC and Swansea FC.

The deal also includes a banqueting suite for 400 guests, a conference venue for 200 people, 28 glass-fronted hospitality boxes, and food and drinks outlets around the stadium bowl.

And in a land deal struck with the council, Capital & Regional will press ahead with a mixed development on land near the stadium. It has plans for a retail and leisure complex featuring major stores, restaurants and a health and fitness club.

Work on the stadium begins in October, with the construction period set at 14 months.

The stadium, designed by architect TTH, which masterminded Sunderland's Stadium of Light, is due to open its doors in time for the 2005/2006 season.