The second stage of building Haverfordwest’s near-£19m transport interchange has been backed, with senior councillors hearing it could cost the council more to not support it.

The transport interchange, which includes an integrated bus station and construction of a new multi-storey car park, is part of a wider series of regeneration projects in the county town.

The total cost of the scheme in the approved budget is £18.881m, £1.987m from Pembrokeshire County Council; the remainder, £16.894m, from an already-awarded Welsh Government grant.

To date, £3.425m has been spent on advanced works, including the demolition of the old multi-storey car park and a temporary bus station.

Members of Pembrokeshire County Council’s Cabinet, meeting on April 22, were recommended to approve the award of the Stage 2 construction contract for the Haverfordwest Transport Interchange.

The report for members listed two simple options for Cabinet, to authorise the award of a contract, recommended, or to not.

For the latter it warned: “It is envisaged Welsh Government will withdraw the funding awarded and the council would need to repay grants received to date; £10.322m has been received to date of which £3.376m has been offset against expenditure.”

It added: “Cost to cease this project could cost PCC more in terms of grant repayment and any capital work required to make good. PCC match contribution for the project is forecast as £1.987m of the £18.881m.”

Planning permission for the interchange was granted in 2022, with a temporary bus station constructed that year and the old multi-storey building demolished in 2023.

Western Telegraph: A temporary car park is to be sited on the demolished remains of Haverfordwest’s multi-storey car

That year, members of the county council’s Cabinet agreed a temporary car park will be sited on the demolished remains of the old multi-storey car park until the Haverfordwest Public Transport Interchange – delayed as no compliant tender had been found at the time – is built.

Speaking at the meeting, Deputy Leader Cllr Paul Miller said: “The interchange is an important part of the regeneration of Haverfordwest, it will not regenerate Haverfordwest on its own, it is part of a wider process. The alternative to us being engaged is we simply allow it to decline and fail.”

He said the interchange was about “making it easier to visit Haverfordwest,” making parking provision “really straightforward, making it easy and convenient as possible”.

Cllr Miller said not progressing with the scheme would risk the grants already obtained, meaning the council could potentially foot the bill for costs to date, at a greater level than progressing.

He said the cost options were a near-£2m subsidised council involvement for the whole scheme or the £3m-plus spent to date if the scheme was ended, which would leave the car park as it is now.

“It’s pretty reasonable that if they give us the money and we don’t build a transport interchange they’ll be looking for that money back,” Cllr Miller said.

He said previous figures from parking revenue – back in 2019 – amounted to £100,000 a year; and could be expected to at least double on a “like-for-like” basis following the increase in parking charges.

Members, after a private and confidential session over the actual contract details, agreed to proceed with the scheme, awarding the contract to Kier Construction Western and Wales.