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The opening of the panned Cardiff Arena has been delayed after construction costs rise by £100 million.
This delay and extra costs have resulted in the venue not being ready to open its doors until 2026 due to these extra expenses being unexpected.
Originally, the venue was planned to open in 2025 yet estimates show that the costs have risen by 50% with a new total estimate of £280 million.
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The Cardiff Arena is to replace the Motorpoint arena of the city with expectations to attract over one million visitors once opened.
Since the rise in construction costs, Live Nation has confirmed that it will continue to support the project.
This new arena is part of a wider redevelopment of Atlantic Wharf which will be discussed by Cardiff Council’s economy and culture scrutiny committee.
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A report to the committee says according to WalesOnline: “Following the pandemic the UK economy has experienced significant volatility with abnormal levels of inflation and significant interest rate rises. Inflationary pressures have pushed the original design of the new indoor arena from the procured figure of £180m to close to £280m.
“The council’s financial envelope established through a public procurement process is capped and therefore Live Nation has had to take responsibility for these price increases. Live Nation remain committed to the project and has secured board level approval to cover the costs. Nonetheless, Live Nation is now working to reduce the level of the increase through a review of the arena design and reconsideration of the infrastructure requirements.”
As reported by Access All Areas, the final contract for the development is said to be signed this summer with on-sight developments expected to start in January 2024.
Becky Buckle is Mixmag’s Video and Editorial Assistant, follow her on Twitter
Written by: Tim Hopkins