Old Nurses Home to cost £2 million more than planned

Total cost of scheme expected to be £11 million

It's now going to cost £11 million to redevelop the Old Nurses Home on Westmoreland Road in Douglas.

The Treasury Minister's revealed the figure in response to a written question.

In his answer, Dr Alex Allinson says he's been given the information from the Manx Development Corporation, which is overseeing the project.

While originally expected to cost just under £9 million when first budgeted in 2022, inflation, an increase in construction costs and changes to the designs have been blamed for the rise in price.

The £11 million is said to be inclusive of the cost of acquiring the land and existing buildings, enabling works, design costs and the main refurbishment works.

The building itself was bought for £950,000.

The question, submitted by Douglas North MHK John Wannenburgh, also wanted to know whether all the work is being carried out in accordance with the conditions of the Lloyds Bank Green loan scheme.

Dr Allinson confirmed that it is. 

A request to provide the agreed cost of the contractors, NK Construction, was withheld as its commercially sensitive and represents only one component of the total cost.

However, it was revealed that since the original contract was signed in March last year, changes made have seen the cost of those services increase by 1.75% in response to instructed variations or changes that have been agreed during the work.

Dr Allinson adds the project is expected to provide a positive return to the shareholder.