Firms pull out of big Basildon regeneration projects (From Echo)

Firms pull out of big Basildon regeneration projects

6:00am Friday 28th November 2008 in

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MOST of the consortiums battling for Basildon’s three biggest regeneration projects have pulled out of the race.

Only one of three development groups are still interested in creating a £35million sports village for Basildon Council in Gloucester Park.

Meanwhile, three out of four consortiums have dropped out of the bid to deliver the £150million Wickford town centre masterplan.

As the credity crunch bites, two of the four fighting for the contract for the £1billion Basildon Town Centre masterplan have also pulled out.

The Tory-run council maintains it will still be able to complete all three projects and said contracts would be signed by the spring.

However, the revelation has sparked criticism from opposition councillors, who claim they should have been warned earlier about developers dropping out, and they believe the regeneration schemes are now in serious trouble.

Nigel Smith, former Basildon Labour group leader, was on the cabinet when the plans were first unveiled. He expressed concern at the time, claiming the proposals were wildly optimistic.

He is also worried that in terms of the sports village and Wickford contract, with no other developers competing, those still in the race could hold the council to ransom.

He said: “Even if they are the best developer, the company should be tested against other competitors. What guarantee is there they will see the project through?

“You have to ask why the other companies are no longer interested. Is it the contracts may not be viable, and are a case of ambition exceeding common sense?

“I have asked for several updates on these projects and been told everything is still on track.

“Again, we have to rely on the Echo for important information about the council. It should have been honest and told us when these firms pulled out.”

The news emerged during a talk by Basildon Council on how regeneration projects can weather the recession at the Thames Gateway Forum yesterday.

The council said it was “positive news” there were still consortiums interested in the projects while 70 similar schemes across the country had been scrapped by local authorities after developers pulled out. He said: “This is actually positive news. Not a single scheme has been aborted and we are still on track for delivering all of our objectives.”

Meanwhile, the council says the successful developers for all three contracts will be confirmed by the end of March.

Council leader Malcolm Buckley said it was disappointing to see firms pull out, but with only one group bidding for the sports village and Wickford, the authority could have more influence over its plans.

He said: “The contract will dictate the timetable, so a developer would not be able to sign up then say it was not ready to build.”

Mr Buckley said details of the firms pulling out had not been made public because a strict EU procurement process had not allowed it.