An estimated cost of building a gondola and tourism centre on the slopes in the Mourne Mountains has increased to close to £50 million, according to a government evaluation.
Newry, Mourne and Down Council has also not yet formally delivered an outline business case to Tourism NI, it has also emerged.
Tourism NI is the lead agency tasked with signing off and unlocking £30m in central funding for the project to build the gondola from Donard Park in Newcastle, Co Down, up the slopes of the mountains to what is now a disused quarry.
The cost of the Mourne Mountains Gateway Project has increased by approximately £6m from the widely cited figure of £44m, the Department for the Economy has told council officials.
But Newry, Mourne and Down councillors have not yet been officially told of the new estimate, calculated by Department of Finances officials and delivered last November.
“Newry, Mourne and Down District Council cost estimates of the project have not increased,” a council spokesperson said.
“However, there are ongoing discussions about the allowance that should be built into the project budget to cover possible future construction inflation and other risks and that has not been agreed at this point.”
The council said a report on the project costs and budget is due to be presented at the next Mourne Mountains Gateway Project Board meeting, likely to be held some time in mid-February 2024. The board, , made up of councillors, officials and representatives of government agencies, last meet in October.
Patrick Brown, South Down Alliance MLA, said it was always known the widely cited figure of £44m was going to rise as this estimation dates from 2019.
But Mr Brown questioned why the council has not revised its costs estimates or delivered a business case given £1.85m has already been earmarked in the next financial year to pay consultants.
Mr Brown is further asking why the council has failed to reveal to councillors, and other local representatives, including MLAs, the new estimate which the MLA said was delivered on November 13 last year.
Under the project plan, £30m will come from Belfast City Region Deal (BRCD) funding while the council will pay the remainder, up to whatever the final cost.
In a letter to Mr Brown, the DfE stated the £30m will not automatically be lost if the gondola plan is scrapped, or changed substantially.
The department said “it will be for the BRCD Programme Board, which includes NMD Council, to submit an alternative proposal”. The department also confirmed an outline business case has not been submitted.
Alliance is opposed to the project, but the two largest parties on the council, Sinn Féin and SDLP, are supportive, though individual members have expressed some reservations.
There is also opposition among local activists, including environmentalists and those who believe Newcastle does not need and cannot handle an influx of more visitors.
Following questions to Sinn Féin councillors, including ones on a revised cost, a party spokesperson replied: “The Mourne Gateway project has the potential to be transformative for this district.
“There must be robust engagement and consultation on the project with residents, workers and businesses within the district and a project board has been set up to steer through the challenges and processes as is the case with other capital projects in council.
“All possibilities for the Mourne Gateway project must be considered so we can maximise the opportunities it presents to us a district.”
