A new partner is being sought to ensure plans for an integrated housing and health centre in Tregaron proceed, as project chiefs warn that costs could increase by 20 per cent.

The joint health board and council project – with Welsh Government support – Cylch Caron has been delayed after housing association partners pulled out but there was assurance from project lead Peter Skitt that there is “no intention of slowing down or stopping – this project is moving forward.”

Mr Skitt told members of Ceredigion County Council’s overview and scrutiny coordinating committee on Wednesday, 15 September that following the “divorce” of Barcud from the Cylch Caron project a new developer was being sought with an event for interested parties next month.

Cylch Caron will see a GP surgery, community pharmacy, outpatients clinics, community nursing and social care facilities as well as extra care housing in Tregaron as an “integrated model of community care and housing” as replacement for Tregaron Hospital and Bryntirion residential care home.

Following that a formal tender process will be held, which along with a review of the business case, will identify cost increases including the impact of Covid and Brexit.

On other projects he led on Mr Skitt said in response to a question from Cllr Elizabeth Evans have been “circa 20 per cent”.

Cllr Evans also asked about the development of the health centre without the housing element which Mr Skitt said could be possible as in Aberaeron and Cardigan but the Tregaron project was a “holistic arrangement” and he would be “reluctant moving forward in a split way.”

He told the committee that the housing element was a significant part of the project and the “interdependency” of the health elements.

Committee chairman Cllr Rowland Rees-Evans added: “This has been on the table a long time, it’s a shame things have happened as they are.”

The Cylch Caron scheme has been a long-held ambition, with the project’s outline plan - agreed two years ago - scuppered last year over whether it would be financially viable due to the cost and affordability of the housing element of the project.

The long-mooted project was suspended just before Christmas after Barcud housing association said it was “not possible to achieve a financially viable scheme on the current proposed site.”

The partners said in December that “despite considerable effort in recent months to consider alternative size and design options, it has not been possible to deliver a proposed extra care scheme for Tregaron which is financially viable within the available capital and revenue finance.”

Mr Skitt said at the time the suspension of the scheme was “deeply regrettable”, but “a necessary step now so that we can all re-focus on an achievable solution for the community in Tregaron and the surrounding area.

Eiion Evans, Ceredigion council chief executive, and Steve Moore, chief executive of Hywel

Dda, both said they remain committed to the scheme as a new partner is sought.