Stroud canal restoration overspend revealed

The project aims to restore the Stroudwater Navigation and the Thames and Severn Canal

A shortfall in funding of almost £780,000 for a scheme to restore a section of the Stroudwater Canal in Gloucestershire has been revealed.

A report by Stroud District Council's canal project manager shows work at Wallbridge Lower Lock overran by three months, leading to the overspend.

The shortfall is expected to be paid for from the council's capital reserve.

It was reported to be £450,000 last July, but a review of costs has shown it to now be £777,193.

The total predicted cost of the scheme to connect Stonehouse to Brimscombe Port near Stroud is just over £20m.

Project manager Dave Marshall said the work overran when contractors unexpectedly uncovered 18th Century buttresses, had difficulty accessing the site and had to deal with a high voltage cable.

"The total cost of the project is expected to exceed the available budget by £777,000 - this represents a 4% overrun and compares with construction industry inflation over the same period of 20.7% - most of which we have contained, " he said.

"I think most project managers would give their right arm to achieve a 4% overrun on a project lasting 6 years."

He said the project had brought in £100m of private sector investment.

A bid for Heritage Lottery funding for a second phase of the project, to connect Stonehouse to Saul Junction, is to be made by the Cotswold Canals Trust later this year.

It is part of an ongoing project that aims to restore the Stroudwater Navigation and the Thames and Severn Canal, to link the River Severn with the River Thames.

The figures are due to be discussed at Stroud District Council's strategy and resources committee later.