The project cost of building the proposed elite performance sports centre in Dundee has increased more than £12.5 million due to the weak pound and “current market conditions”.
Set for a site in the city’s Caird Park, the Regional Performance Centre for Sport (RPCS) was expected to cost around £21m when it was approved by Dundee City Council’s development management committee in August.
However, a report on capital expenditure monitoring, compiled by executive director of corporate services Gregory Colgan, has revealed that the centre will now cost more than £32m to complete.
Mr Colgan said the “increased scope” of the project was also to blame for the increase.
Councillors will meet on Monday at the policy and resources committee to be appraised on the council’s £350m capital plan and note the report.
Mr Colgan’s report said: “The increase in budget allowance of £12.525m is to reflect the substantially changed and increased scope of the project over the original scheme, required through ongoing design development with key stakeholders and opportunities that have arisen.”
It states these include a new £5m energy centre with district heating capability, energy efficient tensile building structures for the indoor 3G pitch and athletics building, increased floor areas, furniture and sports equipment and upgrades to the athletics track and velodrome.
The report added: “In addition, inflation over the extended period of design development, current market conditions and a weaker pound also account for the increase.
“The additional funding of £12.525m has been included in the capital plan 2018-23 and is funded from a combination of additional grant of £1m and borrowing.”
Dundee City Council leader Councillor John Alexander said: “The increase in budget for the Regional Performance Centre for sport reflects the extended scope of this ambitious project over the original scheme.
“Amenities will now include a £5m Energy Centre with district heating capability and more energy efficient building structures for the indoor 3G pitch and athletics building.
“There will be increased floor areas, upgrades to the athletics track and velodrome, and more investment in furniture and sports equipment.
“There have also been financial factors such as inflation over the extended period and a weaker pound that have affected the budget.”
Mr Alexander added: “We carried out extensive consultation with stakeholders before the revised plans were approved.
“I am sure that this centre will provide huge benefits for the city and its people and reflects our drive to make Dundee a better place for all.
“It will provide top class sporting facilities that will support athletes in their development and help improve the health of our population through participation in sport.”
Source: Scottish Construction Now!
Scotland Build is the leading and largest construction show for Scotland and takes place at the SEC, Glasgow on November 22nd & 23rd. Scotland Build is FREE to attend and features 70+ speakers, thousands of attendees, CPD-accredited training workshops, and entertainment. Book your free ticket today by clicking here