The estimated cost of delivering two city deal projects in Belfast has soared by at least £25 million in the space of just a few years, Queen’s University has said.
The south Belfast academic institution is the lead partner for three Belfast Region City Deal initiatives, which are receiving £170.8 million in public funding.
But the cost of delivering two of those projects has soared in the inflationary environment.
And with no increase in the contributions from London or Stormont, it means the university is largely being left to make up the funding shortfall.
Alongside the new £98m Advanced Manufacturing Innovation Centre (AMIC) in Newtownabbey, Queen’s University is the lead city deal partner for the Institute of Research Excellence for Advanced Clinical Healthcare (iReach) project at Belfast City Hospital and the Global Innovation Institute (GII) in the Titanic Quarter, now rebranded ‘Momentum One Zero’.
When the former Economy Minister Gordon Lyons announced the £170.8m city deal funding package for the three Queen’s University-led projects in March 2022, the total estimated delivery cost stood at £203m.
According to the university, the total cost is now £228m, with the original £46.6m estimate for iReach rising to £64m, while the £58.4m Momentum One Zero scheme will now cost an estimated £66m.
A spokesperson for Queen’s University said the original cost estimate for iReach reflected prevailing market conditions at that time.
“Since then, the Covid-19 pandemic, Brexit, and the war in the Ukraine have contributed to market volatility, impacting negatively on construction inflation and inflation generally.
“Queen’s University will absorb this inflationary pressure given its desire to see the key range of impacts delivered for the benefit of Northern Ireland.”
- iReach Health: Green light for Queen’s University’s £47m clinical research facility at Belfast City HospitalOpens in new window
- City deal funding package worth £170m confirmed for QUB-led innovation projectsOpens in new window
- Three city deal innovation schemes will create 4,000 jobs for north, industry stakeholders toldOpens in new window
The university also said the scale of the Lisburn Road clinical research project, which will involve Belfast Health and Social Care Trust and the HSC’s research and development division, had expanded to reflect the growth in the north’s health and life sciences sector.
A spokesperson said a strategic decision had also been taken to increase bed capacity to support more clinical trials.
Co Down construction group Graham has been awarded the contract to build the new facility, which involves 8,500 sqm in two buildings on either side of the Lisburn Road.
Queen’s University said the pre-tender cost estimate for the Momentum One Zero digital innovation hub in the Titanic Quarter stands at £66m, with tendering planned for early 2025.
However, the latest Belfast Regional City Deal annual report suggests the cost of the digital innovation hub has increased to around £68.1m.
The estimated cost of the AMIC project remains at £98m, largely reflecting the advanced stage of the 10,500 sqm scheme, dubbed the ‘factory of the future’.
Henry Brothers signed a £30m construction contract in September 2023, with work starting at Global Point Business Park in June.
The funding includes £78.8m in city deal money and £10m from Antrim and Newtownabbey Borough Council.
Partners, including Queen’s University, are investing around £9.3m.
