The Premier has disclosed further details on the $60 million cruise ship dock, saying "a slew of contract variations caused the project to escalate".

Dr. Ewart Brown, Tourism and Transport Minister, admitted: "There are lessons to be learned from the management of this project and those lessons will be embraced fully."

The new cruise ship pier was tendered to contractor Correia Construction. Engineers Entech Ltd. were appointed project managers and the Ministry of Tourism and Transport was responsible for monitoring costs and payments.

Last week The Royal Gazette published our findings from an investigation into how costs for the new dock rocketed from an original budget of $35 million to $60 million.

The investigation was prompted by figures released by Government to explain why measures to protect animals at Dolphin Quest "dolphin mitigation" cost taxpayers an extra $3.7 million.

Both the United Bermuda Party and Bermuda Democratic Alliance have demanded answers from Government on how the new cruise ship pier costs have soared to $60 million.

On Thursday, Dr. Brown admitted he was "not proud" of the dock rising 70 percent over budget, but blamed design changes and Government inefficiency.

The next day he told the House of Assembly: "As accurately reported in the media, I am not proud of the new cruise ship pier's final cost, however, such is the reality of construction.

"There is no Government malfeasance associated with the Heritage Wharf project."

He said comparing the finished product to the original design was like "night and day".

Dr. Brown said the initial contract was revised due to delays from "dolphin mitigation" (the birth of three calves at Dolphin Quest in May/June 2007), Planning approval, and "resultant design and construction methods" to meet the start of the 2009 cruise ship season.

"The initial revision set the contract value at $46,319,170," said the Premier.

"Itemised costs included overdrive piles, the terminal building, civil water and sewer, the North Arm Bridge, landscaping and finishing work.

"What is clear is that the estimate of $35 million did not consider all of the elements associated with the project.

"Once the project was underway a slew of contract variations caused the project to escalate.

"These variations included a number of items inclusive of dolphin mitigation, shipwreck assessments, additional elements to complete the fast ferry dock, pre-cast inspections and redesign amongst other things."

The Premier said the Ground Transportation Area (GTA) was widened by 6 ft to ease turning movements of buses and taxis.

The North Arm Drive was increased by 5 ft, while the 18 ft wide floating dock for tour boats was replaced with "a rigid concrete dock", to act as a breakwater against storm surge.

Dr. Brown said the reinforced concrete beams and slabs of the main dock were changed in design due to a switch in construction methods, from cast-in-situ to pre-cast.

"This was necessary to keep the project on schedule," he said, following "dolphin mitigation" and Planning delays.

The walls of the dock were also altered from a straight configuration into a saw-toothed design. And the elevation was raised 3 ft above the high water mark, "to contain the waves caused by the advanced thrusters on newer ships".

Commenting on the thruster wall design changes, Dr. Brown said Bermuda Pilot Service seamen recommended the south wall be lengthened from 63 ft to 300 ft "to permit ships to berth both starboard and port sides".

The Premier said: "The documentation on this project is in pristine order and the Ministry of Tourism and Transport has effectively managed the oversight.

"The Ministry was diligent in its review of monthly payment certificates as reviewed, checked, and recommended for payment.

"Timelines, design changes, pregnant dolphins and development approaches all combined to result in increased costs."

He said: "I am not proud of the escalating costs associated with this project, however I am proud that as a result of the decision to move the project forward a segment of Bermuda's tourism industry was safeguarded.

"In 2006 Bermuda stood to lose a significant amount of revenue if cruise ships were no longer able to dock in St. George's and Hamilton by the beginning of the 2009 cruise season.

"As a result of the Heritage Wharf project, cruise ships visiting Bermuda in 2010 are projected to contribute $73 million to Bermuda's economy, an increase from the $65 million projected for 2009."

Dr. Brown concluded by stating: "I wish to assure Honourable Members and the people of Bermuda that this Government is serious about safeguarding the taxpayers of this country."

Among the findings of our investigation were that:

l Rental fees for a crane quadrupled from subcontractor NMI's original quote, from $8,000 a month to $10,000 a week;

• Two vibratory hammers to drive the pile foundations of the dock were billed as an extra under "dolphin mitigation";

• The design of the thruster wall a barrier against sediment surge from ship propellers — changed four times, according to contractor boss Dennis Correia, tagging millions of dollars onto the project;

• The terminal building doubled in price to $3.9 million on design changes, prompting Mr. Correia to quip: "They got the Taj Mahal".