"Unaffordable": Shepway Sports Centres Project Killed as PFI funding withdrawn

Shepway Council have been formally notified that the £9.8 million PFI credit for new sports centres in Folkestone and Hythe has been withdrawn. Shepway Council have poured over £1 million in consultancy fees into the project, money now wasted after the rejection of the project by the Government as "unaffordable".

Councillor Neil Matthews has been a strong supporter of the Sports Centre project, and is disgusted by the news. He said:

"It's shameful that due to the mismanagement of this project by Tory run Shepway Council, Folkestone and Hythe will lose these much needed sports facilities. Over £1 million of public money for preparation work has now gone down the drain. How are they to justify this?"

The damning full letter text to Alistair Stewart, Chief Executive of Shepway Council dated 7 March from Cathy Page, Head of Private Finance at the Lottery, Communities and International Division reads:

"Thank you for your letter of 1 March following our meeting of 19 February. At that meeting it was established that the project as presented in the OBC submitted to DCMS on 31 January was not affordable and that there were still unresolved deliverability issues.

"DCMS gave a period of 10 days for the Council to come back to the Department with suggestions on how the outstanding issues might be resolved. No suggestions have been forthcoming; the project remains unaffordable and there are no signs that the key issues related to the Heads of Terms will be resolved.

"Therefore, it is with regret that DCMS formally withdraw the allocation of £9.821 million PFI credit with immediate effect.

"We understand that this is disappointing but DCMS must ensure that projects allocated PFI credit can deliver an affordable and viable project, meeting HMT criteria.

"May I wish you all success with taking forward any future plans for sport and leisure facilities on Folkestone and Hythe."