Estimated costs of new Craignure Pier reach almost £100m
Council officers have revealed that the estimated costs for the new Craignure pier and ferry terminal have almost doubled since they were set five years ago.
In 2020, it was projected that the project would cost the council £50 million to build.
But following the pandemic, delays, rapid inflation and the staggering increases in the cost of raw materials, that figure has almost doubled to £96 million.
The information was part of a report to update councillors on the pier’s progress, and was brought to them at today’s meeting of the Argyll and Bute Harbour Board.
The preferred option for the new structure will be larger than the current one so it is able to accommodate larger boats, more vessels and more people.
It is estimated that over the next two years, the council will spend £3 million on getting the project to the construction stage.
That money will go into completing business cases, environmental impact assessments, design and tendering.
The cost will be met initially by prudential borrowing, to be paid off through the income generated from piers and harbours fees and charges.
But in the meeting today, councillors questioned if the pier was still affordable.
Councillor Andrew Vennard asked: "How is that going to work in practice? Is there any additional source of funding beyond the fees and charges that could ultimately fund some of the work?"
Kirsty Flanagan, the council’s Executive Director, said that a review of the programme was required to see if it is still fit for purpose. She said this review could be ready for later in this financial year.
She also revealed that the council intends to have conversations with Transport Scotland, which sets the policy for the ferries on the network to see if they can explore other avenues of funding.
Ms Flanagan concluded: "I’ve raised the whole programme situation with the executive leadership team, we had a discussion about it earlier this week.
"So, the plan would be to come back later in the year with the report to members on that."
Councillor Vennard responded to this positively, saying options such as Transport Scotland were worth "having a look at" as Craignure’s ferry is a lifeline service.
Councillor Maurice Corry agreed "wholeheartedly" that a review is needed - and said that the council was "duty bound" to do so.
He suggested trying to access the Levelling Up Fund from the UK Government as another funding method to tackle the £46 million increase.
Ms Flanagan said: "As part of the review we’ll be exploring any other avenues where we could seek some funding. So if there is another Levelling Up Fund from the UK Government or any other funds that may come along we want to be in position.
"That’s why we want to continue with what we’re doing just now, so that we get to a fully designed case, that we’re ready to access any other funding streams that may come up in the future."
The project was sent through to the next phase without any dissent.
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