How Much Has Terminal Cost Taxpayers?

Infrastructure Minister Tim Crookall says it still isn’t clear how much the ferry terminal in Liverpool will cost taxpayers.

Massively over budget and way behind schedule, the terminal at Princes Half-Tide Dock finally opened its doors this year.

Quizzed by Douglas North John Wannenburgh on the final cost, Mr Crookall was able to confirm that the land lease has cost £3.5m plus stamp duty totally £167,500.

However, due to the nature of the contract, it is still not clear how much the terminal, which Tynwald members chose to put in the hands of the DoI rather than leaving it to Peel Ports and the Steam Packet, will cost islanders.

Ambitious

Rather than leaving the issue to the Steam Packet and Peel Ports, the Manx government and Tynwald elected to hand it to the DoI, leaving taxpayers to pick up the bill.

In November a Public Accounts Committee report said the approved budget was £70m and described the initial estimate of  £18m was “hopelessly ambitious”.

Responding to the written question, Mr Crookall, who inherited the scheme from the last administration, said: “The final build cost (and therefore final account) of the Isle of Man Ferry Terminal, Liverpool project have not yet been fully determined.

“This is as expected at this time and is compliant with the terms of the NEC4 ECC Option C Contract. The NEC4 ECC Option C is a Target Cost Contract with an Activity Schedule where the Contractor estimates the project cost, including overheads and preliminaries, at tender stage.

“This estimate becomes the “Target” cost. Adjustments to the Target Cost can occur during the contract project through compensation events. Final payment is assessed by the Project Manager post-completion, with mechanisms in place for dispute resolution if the assessment is contested.

“Under the NEC 4 ECC contract framework, a final account is typically settled 65 weeks after construction completion, and therefore at this point in time we are unable to confirm the final cost, as the final account is still to be determined and settled.”