“The contingency budget allocated to the reinstatement of the horse tram tracks has been ‘significantly increased’.
The Department of Infrastructure says it’s followed a Treasury recommendation because of the ‘volatile global financial climate’.
It’s now estimating that it will cost £3 million to relay the tracks so they run along the full length of Douglas Promenade.
A business case is due to be debated in Tynwald when the court sits later this month.
The DoI says the design proposed was undertaken in 2023 and detailed cost estimates were made with a ten percent contingency.
These were ‘refreshed’ in June last year to reach £1.89 million.
The costs were reviewed again in April and incurred a ‘significant increase’ due to inflationary pressures caused by recent global events.
In a statement, provided to Manx Radio, the DoI adds: ‘After a review from Treasury the contingency on the project has also been significantly increased in line with Treasury’s suggestions and the volatile global financial climate.’
The department will ask Tynwald to note the draft business case for the reinstatement of the tracks from the War Memorial to the Sea Terminal.
It follows special permission given to the department by the President of Tynwald after it missed two deadlines to have the matter brought to the court.”