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Plans to redevelop Alderney Airport and runway could be scrapped as the projected costs have soared to £37million - up £13m from what the States of Guernsey agreed could be spent on the work.
The project - including work to the runway, terminal building, and fire station - has long been described as vital to Alderney's future.
In December 2022, Guernsey's deputies agreed the islands could spend £24.1m on the work, with the majority coming from Guernsey under the terms of the 1948 Agreement, and Alderney contributing millions of pounds too.
Since then work has progressed with planning permission being granted and the tender process opening.
This morning it was confirmed that "the best and final offer received for the project as currently scoped (known as Option C+)... is £37m".
Guernsey's Policy and Resources Committee; which has oversight of capital projects in Alderney as well as Guernsey, and the States Trading Supervisory Board; which has been leading on the project in its role overseeing Bailiwick ports, now both agree that more affordable options need to be looked at.
"With such a large difference, the Committee agrees with STSB that the project no longer meets its objectives under the original business case. The Committee’s view is that it is unviable and unaffordable based on the tender response," P&R said today.
P&R is keen to communicate that the project is not being scrapped entirely at this stage and that it still backs the concept of refurbishing and improving both the runway, terminal, and fire station at Alderney Airport.
"...the Committee recognises the importance of maintaining suitable airlinks to Alderney and therefore proposes to revisit options for a smaller scale and more affordable solution that meets safety requirements and provides resilience," P&R said.
Immediately after the £13m cost increase was confirmed, the States of Alderney said they are "disappointed" with the situation but are looking for a "constructive solution" to ensure the work can still go ahead at the island's airport.
The costs have risen beyond the project budget, the States of Alderney acknowledged, and the island's leaders are working with Guernsey's P&R to find a way forward.
Pictured: Nigel Vooght, Chairman of Alderney’s Policy & Finance Committee.
Alderney Airport's runway and terminal are in "such poor condition" that the work must go ahead if a viable alternative can be found, said the States of Alderney today.
“We are extremely disappointed that the tender process has resulted in such a high project cost because this will inevitably cause further delays to the rehabilitation of our runway," said Nigel Vooght, Chairman of Alderney’s Policy & Finance Committee.
“We welcome P&R’s offer to explore options with us to find a possible solution. We will of course work constructively with them to find a more affordable option and funding solutions because the States of Alderney is unanimously agreed that the project is absolutely vital to the future of this Island and the Bailiwick economy.”
A spokesperson for P&R confirmed the committee is also keen to keep things moving on the airport project and suggested that new plans and a new budget could be agreed within months.
"Once more detail on a more affordable option and funding solutions are established, the Committee intends to return the matter to the States for debate before the end of this term. In the meantime discussions will be ongoing with the States of Alderney," said the P&R spokesperson.
The States of Guernsey agreed to back Option C+ which was put to the vote in December 2022 through an amendment lodged by Deputy Peter Roffey in his role as President of the States Trading Supervisory Board.
Option C+ was described as including the "restoration of the existing pavement surfaces of the runway, including its re-widening and extension, and the redevelopment of the terminal building and other building alterations to secure improvements to enhance service provision".
Pictured: Option C+ proposed that Guernsey spend £24m on Alderney's airport and runway while Alderney committed previously to contributing £3.5m towards the project.
At the time, Option C+ was given a budget of £24.1m.
Most of that money was going to come from Guernsey, with the States of Alderney pledging £3.5m towards the budget. In addition, it was expected that costs of the Public Service Obligation operated by Aurigny and funded by Guernsey would be considerably reduced.
With the tender process now resulting in Option C+ costing £37m, P&R and STSB have withdrawn support for that model and have said more affordable options need to be looked at.
They also want to find out if Alderney can contribute more money to the project in light of its rising costs.
"...the Committee wishes to explore further with the States of Alderney options for Alderney to contribute financially to the rehabilitation of the runway in addition to the terminal. This would allow the States of Deliberation to understand the maximum amount that could potentially be available for the overall costs of any option that is pursued going forward.
"Once more detail on a more affordable option and funding solutions are established, the Committee intends to return the matter to the States for debate before the end of this term. In the meantime discussions will be ongoing with the States of Alderney."
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