Contractors bidding for the Royal Navy’s £120m Portsmouth Naval Base’s Project Prime have been left high and dry after the project was shelved amid security fears.
Amec, Berkeley, British Land, Galliford Try, Linden Homes, Redrow, RW Thames and Vinci had their hopes sunk after they were shortlisted for the scheme.
A Navy spokesman told CJ that Defence Estates’ six-strong team decided to end the project to build accommodation and leisure facilities in listed buildings in Portsmouth docks as it would cause security problems when the base becomes home to Type 45 destroyers and two new aircraft carriers.
Alongside Project Prime, the team was working on plans for a £200m regeneration scheme to dredge channels and improve dock facilities for the ships.
The spokesman said the team decided to favour the regeneration scheme over Project Prime, despite spending £1.8m over the last four years working on proposals for residential, commercial and leisure facilities.
He said: “Project Prime was the lesser project and the more important thing was that Portsmouth needed to operate as a competent naval base. When it came to the crunch, there was no competition and Project Prime needed to be halted.
“It would have been foolish to continue with it fearing what we feared about it and unfair to the companies to proceed, only to conclude at a later date that it wouldn’t be allowed to run
any longer.”
The spokesman said the Navy has stepped up its security provisions in developing its bases. He said: “There’s no doubt that security has always been important, but there’s a keener edge to it recently. There was no confidence that Project Prime would not prejudice the safety of the ships and we had to call a halt.”
Despite scrapping the project, the Navy is working on proposals to develop an alternative scheme.
The spokesman said: “I’m sure Portsmouth Naval Base will develop and move forward. We’re now looking at possibly a part Prime or another kind of scheme that we feel won’t endanger the security and operation of the base.”
The shortlisted bidders declined to comment on the Navy’s decision.