Ceredigion Council Hopes for £4m Coastal Defence Scheme Overspend

Ceredigion County Council is hoping a £4m overspend on the recently completed Aberaeron coastal defence scheme won’t see it having to cover that in full, councillors heard.

The-then £31.59m Aberaeron Coastal Defence Scheme was funded through the Welsh Government’s Coastal Risk Management Programme, with a £4.74m contribution from Ceredigion County Council, meaning 85 per cent was funded via Welsh Government and 15 per cent by the council.

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The 2023-approved scheme included the construction of a rock breakwater extending out from North Pier, refurbishment and re-building of pier head of South Pier, construction of flood walls, construction of flood gate at Pwll Cam inner harbour and improvements to the existing defences on South Beach.

The scheme, with BAM Nuttall Ltd the construction contractors, reached practical completion at the end of September, with a final sign-off in October.

However, the final bill for the scheme has increased beyond what was budgeted, by some £4m, with the council currently liable for all of that.

Rising Costs Highlighted in Report

A report for members of the December meeting of Ceredigion County Council’s Corporate Resources Overview and Scrutiny Committee, said there were 175 individual variations in costs of the projected figure, some up and some down, with four that individually exceed £500,000: Pwll Cam (including matters relating to the new inner harbour gate and works around the Hive building), the River Aeron Wall grouting and utilities apparatus on Quay Parade.

It said costs were also incurred with an extension of the initial time to complete, from December 2, 2024 to September 30, an overrun of some 43 weeks.

At the meeting, Corporate Lead Officer and Section 151 Officer Duncan Hall reiterated the full cost of the overspend currently falls with the council, but it was hoped the overspend would be funded 85 per cent by Welsh Government, as the project itself, leaving the 15 per cent, equating to roughly £600,000, to potentially be council funded.

Local Councillor Concerned at Overspend

Speaking after that meeting, local county councillor for Aberaeron Cllr Elizabeth Evans said: “There is no denying that it was a complex project with many different elements which were unforeseen, or not factored in. This is public money, and any overspend quite rightly attracts significant interest, including my own questions.

“It is important now that Ceredigion Council continue to engage with Welsh Government regarding their contribution to the overspend. When those discussions are complete, I have sought the assurance, that a de-brief will go before the relevant scrutiny committee.”

At the December meeting of the council’s Thriving Communities Overview & Scrutiny Committee Duncan Hall gave an update on the situation, saying the council was making the case for Welsh Government to pick up the 85 per cent tab for the overspend, with other sources of funding being investigated.

Members heard a further report would be presented to a thriving communities committee in the new year when it was hoped a fuller picture on the situation was known.