LDRSAmbitious plans for a new multi-million pound museum and library in Peterhead have been put on hold over rising construction costs.
The vacant Arbuthnot House on Broad Street was due to be brought back to life as a state-of-the-art Museum of Aberdeenshire.
Its transformation forms part of the £20m Peterhead Cultural Quarter Project, but it has hit a stumbling block amid a cash crisis.
The project will need to be reassessed before it can continue.
Meanwhile, contractors are yet to be appointed to get the development started.
An update on Aberdeenshire Council’s financial performance will go before councillors next week.
As June came to an end, the local authority spent £4.778m of its capital plan that was approved during the budget process in February.
It is forecasting an under-budget position of £12.109m.
Of this sum, around £8.762m relates to the Peterhead Cultural Quarter Levelling Up Project.
The first hub North Scotland Limited tender exercise resulted in a construction programme that would be longer and come in over budget.
Therefore, the project has been re-tendered in a bid to find a cheaper solution while ensuring the development can go ahead.
However, this means the project will be delayed.
Council chiefs had hoped construction work on the museum would be done by 2026 and opened the following year.
A report to go before full council next week revealed the new tender returns are expected to come in at the start of October.
Regular updates on the cost and timescale for the museum works will be given through the coming months and reported back to councillors.
A spokesman for Aberdeenshire Council said: “Some capital projects require re-tendering so the council can demonstrate value for money and ensure public funds are spent responsibly.”
A more detailed update on all Levelling Up Fund projects will be brought back to council in November.
This will include the latest on the renovation and extension works being carried out at the Macduff Marine Aquarium.
The Peterhead museum delay will be discussed at a meeting of full council on Thursday.
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