The Ministry of Defence is preparing a £500 million rebuild of Fountain Lake Jetty at Portsmouth Naval Base, with construction firms from NATO member countries eligible to compete for the work.
The Defence Infrastructure Organisation (DIO) published a preliminary market engagement notice on 12 November 2026 for the main works contract. Its estimated value is £500 million excluding VAT, or £600 million including VAT.
This is the start of a procurement process, not an announcement that a contractor has been appointed or that £500 million has already been spent.
Why does Fountain Lake Jetty need replacing?
The jetty was built in the 1950s and 1960s and provides tidal maintenance berths for Royal Navy vessels. Earlier DIO procurement information says the structure is reaching the end of its working life and must support a new generation of escort ships, which are larger than their predecessors.
The replacement is intended to provide two maintenance berths initially, increasing to three when the project is complete.
What work is planned?
The proposed programme divides the roughly 650-metre jetty into an eastern section of about 375 metres and a western section of about 275 metres. Each would have enabling works followed by demolition, reconstruction and dredging.
- Demolition of the existing jetty and construction of new piled structures.
- Dredging around the berths and approaches.
- Re-routing and replacement of power, water and communications services.
- Strengthening and raising sections of the impounding wall, alongside improved access routes.
- Associated flood defences, buildings and support facilities.
The appointed contractor would also assist with design development and obtaining a marine licence for work on the western section.
When could construction begin?
DIO expects to release a market engagement questionnaire before the end of 2026, with an industry event planned for the first quarter of 2027. The preliminary engagement deadline is 26 February 2027.
The current timetable anticipates publication of a formal tender notice on 30 June 2027. The main works contract is provisionally scheduled to run from 30 March 2028 to 31 December 2037. These are planning dates and could change as procurement progresses.
Can overseas companies bid?
Yes. The procurement notice says firms from all NATO member countries can participate under NCB+ procedures. That makes international competition possible, but it does not mean the contract has been awarded overseas. The rebuilding work itself is at Portsmouth Naval Base.
Part of a wider £26bn naval bases programme
The project sits within the wider Project Royal Oak investment programme. In July 2026, the Ministry of Defence announced £26 billion over ten years to modernise the Royal Navy’s three main bases at Portsmouth, Devonport and Clyde. The £26 billion is the broader programme figure, not the budget for Fountain Lake Jetty alone.
What happens next?
The immediate step is market engagement with contractors, followed by the formal competition. The award decision, final construction programme and any changes to the cost estimate have yet to be confirmed.
Sources
- Find a Tender: Fountain Lake Jetty main works contract, 12 November 2026
- Earlier DIO notice explaining the project need, 15 May 2026
- Ministry of Defence: £26bn naval bases investment, 14 July 2026
- Construction Enquirer: initial reporting, 13 November 2026
Follow this story: Fountain Lake Jetty updates, including the formal tender and eventual contract award.
