THE Opposition United Bermuda Party is calling on Government to explain how the cost of a controversial construction project has ballooned by nearly 50 per cent in just one year.

Government unveiled plans to build a new cruise ship pier at Dockyard in its 2007 Budget and estimated that the facility ¿ which will accommodate Panamax and Post-Panamax size megaships ¿ would cost $35 million and take two years to complete.

It was hoped that some funding would be provided by the private sector. Records show that Government planned to spend $20 million on the project last year ¿ but in fact ended up forking out $30 million.

It has set aside an additional $10 million to complete the project this year in readiness for the 2009 cruise ship season.

However, according to statistics released following the 2008/09 Budget statement last month, a total of $50 million of Government funds has now been allocated to the new terminal.

Building work on the facility began last April but was soon hit by controversy after it was revealed that the contract had been awarded to Correia Construction.

The decision prompted allegations of cronyism being made against Premier Ewart Brown from competing contractors. Company boss Dennis Correia is a close personal friend of Dr. Brown while his wife, Jane Correia, ran unsuccessfully for the Progressive Labour Party at last December's General Election.

Government was also accused of bypassing Planning regulations to get the project up and running after it was revealed that construction work began before Planning permission had been granted. And fresh environmental concerns were raised following the discovery last September of a wreck on the sea bed at the location of the development.

Government later confirmed that it had drafted in a team of archaeologists to examine the obstruction, but has issued no further details on developments since.

Yesterday, Shadow Works & Engineering Minister Patricia Gordon-Pamplin questioned why the cost of the project had catapulted by more than 40 per cent in just 12 months. She also questioned the original tendering process for the job and asked if the public was getting value for money.

And she noted that Government spent $30 million on the terminal last year ¿ $10 million more than originally budgeted ¿ but failed to present a supplementary for the extra expenditure in the House of Assembly.

"For a project of this scale to jump from $35 million to $50 million within the space of a year certainly gives cause for concern," Mrs. Gordon Pamplin said.

"This can be likened to the Berkeley School project, which had an original Total Allocated Funding of $70-odd million that is now $125 million and counting.

"It is of even more concern when you remember that the contract was not put out to tender. Instead, Government indicated that the contract went to the only company on the island that was capable of doing the job. But if the contract isn't put out to tender, how can they be sure of that?"

Opposition Senate Leader Michael Dunkley also expressed concerns over the contract.

"I'm having a hard time with the way in which this whole project is being handled the way it is ¿ without any form of open accountability," he said.

"Firstly, $20 million was budgeted for it for last year but they spent $30 million ¿ there's a concern at what this whole project is going to end up costing.

"Then there was the discovery of the wreck. Government said what it needed to do about that but nothing's been said since, as if the whole problem has been taken care of.

"But that's just the way this Government operates. if it doesn't want to give any answers, it simply doesn't give answers. I think it's important they remember that, while they were elected, they were also elected to be open."

The Mid-Ocean News first contacted the Ministries of Finance and Works & Engineering about the development more than two weeks ago and made several follow-up requests for information.

We also e-mailed questions to the Ministry of Transport and left messages for Mr. Correia at his company. No response to our questions was received from either Government or Correia Construction by press time last night.