Multi-million-pound coastal defence scheme overspent by £4m

Bruce Sinclair, local democracy reporter

A recently completed multi-million-pound coastal defence scheme has been overspent by £4m, potentially leaving the local council to foot the bill

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.

The scheme, approved in 2023 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.

A report for members of the December 8 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.

“It is envisaged that a fuller report on the scheme will be presented to the Thriving Communities Overview & Scrutiny Committee as part of its forward work programme in the new year,” the report for members said.

Speaking outside the meeting, local county councillor for Aberaeron Cllr Elizabeth Evans said: “Every project has an element of overspend, yet the Aberaeron project is clearly significantly over budget.

“I know that Ceredigion are in discussion with Welsh Government and they also have questions to answer. From the outset, the delay by Natural Resources Wales in sanctioning the scheme meant that there was an immediate impact on the cost of delivering the project even before it started. It was not a project where corners could be cut, however.

“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.”