Chinese firm off Swansea Bay Tidal Lagoon

The client said CHEC’s designs had “limited workability” after it conducted a review into the project’s advanced works packages.

A Tidal Lagoon Power spokeswoman added that the decision was made to deliver “optimal value-for-money to investors and to consumers”.

The company is now on the hunt for a new partner and will retender the major package of works soon, with an interest in attracting “global” companies.

CHEC, one of the world’s largest marine engineering contractors, was originally chosen in June 2015 to build the 9.5 km seawall for the project.

Tidal Lagoon Power had hoped the appointment of CHEC would help to bring in Chinese investment for the project. In addition, the deal saw a partnership struck between Tidal Lagoon Power and CHEC to develop similar projects together in Asia.

It has also emerged that the lagoon’s engineering and construction project director Andrew McNaughton has left the company.

He has been replaced by Tidal Lagoon Power’s delivery director Mike Unsworth.

Mr McNaughton, who was previously Balfour Beatty’s chief executive, joined Tidal Lagoon Power last May to head up the construction at Swansea Bay as well as five other planned lagoons on the west coast of the UK.

Tidal Lagoon Power said Mr McNaughton may return to the company in an advisory role.

The company stressed the changes would not affect the construction timetable or the other firms working on the project. 

Laing O’Rourke was chosen as preferred bidder for the £200m of civil works on the project last May, with General Electric and Andritz Hydro selected in February for the £350m operation and maintenance contract.

Alun Griffiths is currently carrying out the £35m ancillary works.

Commenting on Mr Unsworth’s appointment, the Tidal Lagoon Power spokeswoman said: “Having joined Tidal Lagoon Power last summer, Mike Unsworth has been appointed as director of engineering and construction and will lead the delivery of the Swansea Bay Tidal Lagoon.

“He brings over 30 years of experience to the role, including the delivery of some of the UK’s largest renewable energy infrastructure projects.”

The £1.3bn Swansea Bay tidal lagoon project was set to be the first of its kind in the world after energy secretary Amber Rudd gave it the green light last June.

Construction was due to begin in April but has since been delayed after the government and Tidal Lagoon Power failed to reach an agreed strike price.

It is understood that a strike price of £96 per MW hour over a period of 90 years is currently being considered.

The government has now launched a review into the cost-effectiveness of tidal power in the UK, with former energy minister Charles Hendry heading up the work.