Plans for the development of Merimbula Airport are expected to take longer than originally planned after it was revealed that there is a $4.4 million shortfall in the funding requirements.
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At the council meeting on September 19, councillor Robyn Bain asked where there were funding shortfalls to planned projects such as the airport.
In response council’s general manager Leanne Barnes said there were two funded programs for the airport.
“The first is state funded for the runway and my understanding is it is in the order of $1.2m short in terms of its funding requirements and in relationship to land side development it is several million dollars short. The total shortfall for the airport projects is $4.4m,” Ms Barnes told the council meeting.
The airport has received funding for three projects, just under $1 million from the state government for water upgrades, which have now been completed, $4.4m from the state government to bring the runway to a standard where it can accommodate the Dash 8/Q400 and ATR72 aircraft and $1.2m from the federal government for screening facilities.
The terms of the federal government funding meant that it had to be matched by council supplying $1.2m which is to be a loan serviced from airport user fees.
Ms Barnes said the terminal was originally a $2.4m project but was “going to cost more”. She said the runway would now cost $7.4m.
The issues were, Ms Barnes said, the passage of time, as it was three years on from when the grants were given and costs had increased and confirmed that $4.4m was needed to finish the works.
She also pointed to costs associated with “environmental requirements”
One such issue is the need to get special dispensation from CASA (Civil Aviation Safety Authority) particularly for the northern extension of the runway. Requirements for a certain amount of clear air space around the runway will be infringed by the proximity of Arthur Kaine Drive and the traffic travelling along it.
Councillors are expected to receive an update on the airport funding requirements soon.
“The job appears to have got much larger,” Cr Robyn Bain said.
“My take on it is for the job to be completed either the Commonwealth or state have to find the extra money. We don’t have it; we don’t have the money or the borrowing capacity,” she added.
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