Torbay drops regen PPP
20 April 2012
Torbay Council has abandoned its £500m regeneration joint venture PPP, after negotiations with a bidder broke down for a second time.
The announcement was made by Torbay mayor Gordon Oliver following the agreement of party leaders on the council. Torbay Development Agency had been conducting the negotiations and is believed to have concluded the joint venture company was no longer the best way forward.
Chief executive of the TDA Steve Parrock said: "It is disappointing that we did not receive acceptable bid, one that we felt confident would deliver all the objectives we set out to achieve. However, we have to recognise changed economic circumstances and look for solutions."
The joint venture company, West Midlands-based Hawkstone, would have been owned 50/50 by the council and private business In October developer Sir Robert McAlpine pulled out of a similar deal citing economic uncertainty. Local reports at the time claimed that changes had been demanded by the council's new political leaders.
Discussions will continue with other bidders. The council is also considering works related to the South Devon Link Road.
