Aberaeron’s multi-million-pound coastal defence scheme is due to be completed imminently but Ceredigion County Council could be facing an overspend in the millions on its own part of the scheme.

The-then £31.59m Aberaeron Coastal Defence Scheme was funded through the Welsh Government’s Coastal Risk Management Programme, with a £4.74m contribution from Ceredigion County Council.

The scheme includes the construction of a rock breakwater extending out from North Pier, refurbishment and re-building of pier head of South Pier, construction of flood walls, construction of flood gate at Pwll Cam inner harbour and improvements to the existing defences on South Beach.

The scheme itself was approved at the February 2023 meeting of Ceredigion County Council’s Development Management Committee.

A report for members at the September meeting of Ceredigion County Council’s Thriving Communities Overview and Scrutiny Committee said: “The Aberaeron Coastal Protection scheme remains ongoing with expenditure of £24.6m incurred during 24/25.

“The scheme is showing as £2.5m ahead of its budget profile as at 31/03/25, which is usually a strong indicator that some aspects could be running above budget and/or behind programme.

“During 24/25, additional funding of £2.272m has been set aside to provide potential contingency funding for the scheme.

“This is due to there being a small number of high value compensation events (i.e. contract variances) on the main construction contract, not all of which have reached a full contractual conclusion – therefore there is an element of ongoing commercial sensitivity.

“The overall final financial position, whilst regularly being updated and projected on an estimated basis, is therefore still to be determined.”

At the meeting, members heard the scheme itself was “days away from completion,” but the final financial position on the coastal defences was not available as yet, with sources of additional funding being investigated.

Cllr Marc Davies said it had been “widely speculated” there was “a big overspend” on the Aberaeron coastal scheme, asking if the council would be liable for any such overspend.

Corporate Lead Officer Duncan Hall said that “broadly speaking” the council would be liable, with any overspend coming from reserves, but options to alleviate this were being investigated.

Members were told the final financial position was expected soon, possibly by the end of October.

Speaking after the meeting, Aberaeron county councillor Cllr Elizabeth Evans said: “I think there’s a collective sigh of relief across the town now that the works will finally be completed.

“It’s been a long 18 months, but everyone in Aberaeron understood the need for these works to take place, and their patience was a result of that understanding.

“Aberaeron’s future as a town is now secured for generations to come, and we are most definitely open for business.

“It was a long and complicated project, with so many different elements involved, in different parts of the harbour.

“The works were scheduled to cost about £31m, and there is definitely an overspend, but it’s too early to give a definitive figure, but it will be made known.”