Here’s What Your £70m is Being Spent on

The DoI has published a breakdown of the bill taxpayers have picked up for the new ferry terminal in Liverpool.

For those who don’t recall, the gov negotiated a deal to buy a piece of land, owned by the Peel Group, for £3.5m and then set about building a ferry terminal on it to replace the old one at Pier Head. The original budget of £31.3m has since more than doubled to £70.6m.

Minister Tim Crookall, who inherited the troubled project from his predecessor Tim Baker, has said in the report, which will go to Tynwald next month, that the DoI ‘recognised from the start that this would be a hugely challenging project’.

He added: ‘Despite choosing internationally recognised businesses to support it in managing the project, the Department has faced very significant challenges, the impact of which has been to significantly increase the predicted outturn costs. When the Department returned to Tynwald in December 2021 to seek additional funding, questions were rightly raised regarding the reasons for the increase.

‘I am pleased, therefore, to present the cost breakdown of the budget as envisaged, for the timescales requested, to the extent that I am able taking into consideration commercially sensitive information in a live contract situation.’

Having bought the land back in 2019, work got underway in January 2020. Since then its been beset by a variety of issues including a delayed start due to ongoing high voltage cable (HV) diversion works and further disruption from ongoing third party works on the site. Other issues have included the pandemic, supply issues, material prices, Brexit, archeologists, additional protection of the quay wall, Changes to ground works packages including terminal building foundations and bankseat piles due to the quay wall issues, more scouring protection being needed that first though and authorities and stakeholders requirements.

So Where Has Our Money Gone?

Well all of this has contributed to a total bill, so far, of £70,675,921.

This includes:

  • A construction budget which almost doubled in just under three years from £23.2m to £46.1m
  • Professional fees, which almost doubled from £2.6m to £4.95m
  • Site investigations, which rose from £700,000 to £911,478
  • Furniture and Equipment, which rose from £750 to £1m
  • Land acquisition, which is still £3.5m
  • Legal costs, which more than doubled from £75,000 to £200,000
  • Bonds/Insurances, which we didn’t have a price for in 2019, but we know they’re now at £75,000
  • Risk register, which is now at £2.66m
  • Scouring option 1, which is set to cost us £10.4m
  • And a fuel tank, which will cost £840,425.

You can read the full report here: