Gov plans to take on £75m Bellozanne project after contractor collapse

Wednesday 13 October 2021

The Government has confirmed it is planning to take control of the £75m sewage treatment works upgrade after the main contractor’s collapse.

NMCN fell into administration last Monday after struggling financially for more than a year and all activity on the Bellozanne site ceased that day, leaving local contractors concerned that up to £200,000 of their money could be lost.

Galliford Try then bought NMCN’s water arm in a £1m deal last week, leading to questions over whether it would take on the project. 

But Infrastructure Minister Deputy Kevin Lewis confirmed today that his department’s contract with NMCN was officially “terminated” yesterday, and that the Government would be taking the “necessary steps” to become “principal contractor” following discussions about the project’s future with advisors and stakeholders. 

He added that his department remained “committed” to ensuring the “vital infrastructure asset” is completed “within expected budgets, quality, and timescales”. 

Discussions with subcontractors will be taking place this week and next, with an announcement on the next steps to follow later in the week, Express understands. 

The project to upgrade the island’s 62-year-old waste water processing facility began in November 2018, with an original end date of 2022. When it emerged over summer that the project had fallen behind to October 2023, the Government gave the project a £1.5m boost to prevent further slippage.

However, just a fortnight ago, the Environment Minister said the end date was now in 2024. 

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