Isle of Man Ferry Terminal’s Final Cost Remains Undetermined

The Treasury Minister has stated that the definitive cost for the Isle of Man ferry terminal located in Liverpool is still undetermined. The facility commenced operations in June, with the expenditure borne by taxpayers escalating from an initial £38m to a minimum of £70.6m, attributed to numerous delays. Alex Allinson informed Members of the House of Keys that, despite the building being operational, the calculation of its ultimate cost is still in progress and is contingent on legal adjudication. He affirmed that the overall expenditure would surpass the previously estimated £70.6m, but conveyed to the House of Keys that the final sum might not be ascertained until the second quarter of the upcoming year. The new terminal began welcoming passengers in June, with the inaugural arrivals transported by the fast craft Manannan. Allinson stated that the ongoing legal adjudication pertains to a “range of payments” disbursed by the Department of Infrastructure (DOI) to multiple contractors, noting that certain requested payments are currently subject to dispute. He mentioned the existence of both a capital contingency and a capital inflationary contingency budget, established to “deal with” some of the “overspend that we have seen”. However, Julie Edge MHK raised concerns regarding the source of supplementary funds should the ultimate cost surpass the remaining balance of the contingency provisions. Furthermore, Chris Thomas MHK pointed out that the definitive cost might be settled subsequent to the 2025-26 budget. Allinson expressed his desire to ascertain the final cost promptly for budgeting purposes, but indicated that the legal adjudication concerning some of the contested amounts could persist for as long as 12 months following the project’s completion. He further added that the Treasury is collaborating with the DOI to “come up with a final cost”, which the infrastructure minister would subsequently present to Tynwald for a supplementary vote.