Costs for the Douglas Promenade scheme continue mounting as Infrastructure minister Tim Baker predicts the cost of Covid on the scheme will be £1.5 million.
Mr Baker admitted this figure could not be finalised until the scheme has finished.
During his delivery of a statement on the project during the final sitting of Tynwald’s current administration on Thursday, Mr Baker said the Department of Infrastructure would go to the Treasury for support.
He said: ’Once the full cost of Covid on the scheme has been calculated according to the contract we will seek Treasury support for contingency funds - even our harshest critics would not seek to lay the blame for Covid at DoI’s door.’
With work scheduled to be completed by September, the minister highlighted the efforts taking place to ensure this deadline is met and how the total spend is expected to exceed budget by £3m.
Mr Baker continued: ’In the end, the project will cost more than originally planned.
’I am not at this point asking for a supplementary vote.’
He said he has secured the support of the Treasury to use £1.69m of funds from other Department of Infrastructure (DoI) highways capital budgets that they were struggling to spend due to ’pressure on the construction sector.’
’We chose to add to the cost of some elements of the prom and it is right that we find money for that,’ Mr Baker added.
His statement covered the history of the scheme, explaining the challenges faced by a number of his predecessors and paid tribute to those who helped deliver it.
Mr Baker said: ’I acknowledge that businesses on the Douglas Promenade have suffered as a result of the scheme.
’Additional staff were engaged to liaise with businesses, and the Department for Enterprise put in financial and marketing support packages.
’I am grateful to those who kept their eye on the value that the finished scheme would add to their business and their town.
’I am also pleased that units in the Villa Marina Arcade are now reported to be in great demand.’
He explained what has been done ’has been done in the full glare of public scrutiny’ more than any other scheme and that they have worked in the ’very heart’ of the island to provide a ’new front door that will welcome visitors’.