Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Public projects need post construction management says Wales Millenium Centre report

Equal attention needs to be paid to the funding of a capital project after construction as during construction, said a report released this week into the funding of the Wales Millenium Centre (WMC).

The report by the Auditor General for Wales said that the Welsh Assembly Government did a good job overall in managing the risks it faced as a key funder and that the construction phase was managed well, but it was not on top of the continuing risks once the WMC had opened.

The report, published yesterday, said the Welsh Assembly Government was not fully alert to the risks until the WMC reached a financial crisis and requested additional public funds. In late 2006, the WMC reported that it was running at a loss. In November 2007, the Assembly Government agreed to pay off the WMC’s loan, which had risen to £13.5 million, and to increase its annual revenue funding from £750,000 to £3.7 million.

In all, the project cost just over £109 million and has required more public money than originally expected.

The Wales Millennium Centre was opened in November 2004 and is situated in Cardiff Bay. It is an iconic building, clad in local slate and houses seven resident organisations including the Welsh National Opera.

The Auditor General for Wales, Jeremy Colman, said:
"The Wales Millennium Centre was a high risk, complex, project and, although the public bodies funding it followed good practice in many areas - particularly through joint monitoring - there were some fundamental weaknesses. The project would have been better served if the Welsh Assembly Government had paid equal attention to addressing the risks involved in funding a successful business as they did to addressing the risks in funding the construction, and my recommendations focus on these areas."

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.