Senior Pembrokeshire councillors are expected to back a near-£12m ‘levelling up’ project to rejuvenate parts of Pembroke, with £1.2m of council funds, next week.

At the January 13 meeting of Pembrokeshire County Council’s Cabinet members are asked to approve the signing of a memorandum of understanding for a UK Government Levelling Up Fund 3 award for the £11,715,141 Pembroke town Westgate to Eastgate project.

The project has attracted a grant award of £10,543,627 towards the project, which needs a commitment of £1,171,514 match-funding from the council to comply with the grant offer requirements, some 10 per cent.

Applications for ‘levelling-up’ funding for this part of Pembroke have a history going back several years, with a June 2022 bid for the second round of levelling up funding unsuccessful; a third round bid based on an amended version of that scheme later backed, with final confirmation in November.

The project delivery period – if approved – is planned to run from April 2025 until March 2028, consisting of three works packages, a report for councillors states, warning that inflationary pressures since the original proposal will lead to “adaptations and reductions to the 2025 project”.

The three planned works packages consist of, firstly, connecting The Commons to Westgate and Main Street, including an improved pedestrian connection into the town centre running from Common Road, via the Parade to Long Entry and exiting onto Westgate Hill and public realm improvements, improved lighting and public art.

The second package, Eastgate, is described as “both the principal investment and the critical path to the overall programme,” with the works seeing “selective demolition and making good to the elements of the school building, which encroach, onto [a] projected highway corridor, and for construction new retaining walls as necessary,” along with “An enabling contract to ready East End School for development to shell and core, readied for development for currently undetermined use”.

The third work package, ‘Connecting Townscape, Landscape and Soundscape’ includes: “Pembroke’s network of public realm and green infrastructure will be enhanced along Main Street and connect through underused route ways to its flanking green space of The Commons and the Upper and Lower Mill Pond,” along with “Support for the renovation of St Mary’s bells that are a locally distinctive feature of Pembroke’s soundscape and a source of local pride”.

In the report, Director of Resources Jon Haswell says the scheme would be in addition to the approved capital programme, the business case having to reflect the entire project rather than a phase-by-phase approach.

He adds: “Work package 2 will develop East End School to shell and core in readiness for an undetermined use. Unless further works are undertaken at the expense of other parties, a phase 2 capital bid will be required to develop the site further and unless external funding is secured, there is a risk that this scheme will require additional borrowing.

“It is also noted that the schedule of works is subject to an ongoing scoping review to meet the grant award cap. This review must ensure that the project still provides value for money. It is essential that the economic returns that were approved as part of the original bid submission are considered as part of this exercise.

“Failure to deliver the approved economic returns could impact on the grant allocation.”

Members are recommended to approve the scheme and the match-funding element along with the signing of the memorandum.