GOVERNMENT is so far refusing to explain why the cost of a controversial construction project has ballooned by millions of dollars in one year.

Last month the Opposition United Bermuda Party questioned why the cost estimate for a new mega-cruise ship terminal at Dockyard had shot up from $35 million dollars last year to $50 million now.

And no response has been given to repeated questions by this newspaper to both Government's department and Information Services and the Premier's personal press secretary, in the past four weeks.

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 spending $30 million.

It has set aside an additional $10 million to complete the project this year in readiness for the 2009 cruise ship season, although the 2008/09 Budget figures show 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 has yet to comment on that issue, although a report by a team of archaeologists who examined the obstruction, has been submitted to officials.