Report finds flaws in the handling of £70m Manx ferry terminal

The delayed facility, which has doubled in cost, is expected to open next summer

An overhaul of the government's major capital project handling is needed after the cost of a new ferry terminal soared, a Tynwald committee has said.

Funds of £38m were approved for the Manx government's Liverpool facility in 2019, but that cost has risen to £70m.

A Public Accounts Committee report found issues with how the project had so far been managed by Manx officials.

Committee chairman Juan Watterson said the project had been "rushed", with a "hopelessly ambitious" initial budget.

The scrutiny committee has put forward recommendations to improve how large infrastructure projects would be handled in future after costs for the terminal doubled since work on the site began four years ago.

They include the use of specialist advisors during large projects, improvements to set "sufficient and realistic" budgets, and briefings to Tynwald members twice a year on projects costing more than £10m.

Spiralling costs

The facility at Princes Half Tide Dock, which is about 700yds (670m) away from the existing terminal at Pier Head, is expected to be finished next summer, three years later than the originally planned.

The project is being constructed on land leased by the Department of Infrastructure (DOI) from the Peel Group in an effort secure future passenger links to Liverpool.

The committee found the "important strategic decision" over where the terminal should be built had been "rushed" after concerns the lease of the existing terminal would not be extended by Peel Group.

It was "unclear" why alternative sites had not been earmarked earlier in the process, the committee's report stated.

Specialist advisors may have helped the DOI to identify risks which were not considered during the "complex" project negotiations, the document said.

The report found some additional costs, such as a £4m increase due to the affect of Covid and Brexit, were "unavoidable", but extra spending on protection of the quay wall at Princes Half Tide Dock may have been avoided.

Mr Watterson said although factors such as the project's location, complexity, and the impact of the pandemic were "unique", there were "definitely things that can be improved".

The committee's report and its recommendations are due to be considered by Tynwald members in February.

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