RISING construction costs remain a real concern for the £1.24 billion city deal for the Swansea Bay City Region, the programme’s director said.

The city deal comprises nine projects covering energy, advanced manufacturing and health and well-being, among others.

It has and will result in new buildings, including a £60 million marine energy facility at Pembroke Dock.

Jonathan Burnes, the city deal’s director, told a committee meeting that construction costs were a high risk, with the Pembroke Dock Marine Project a case in point.

Monthly construction cost impact assessments were taking place, he said, and extra funding sought from the Welsh European Funding Office because more money was now needed to deliver the projects.

Other “red” risks were a shortage of the expected contribution of £625 million-plus from the private sector during the 15-year city deal, and how future flood mapping and associated requirements could affect projects.

Dr Burnes said 13% of the £1.24 billion had now been spent, with 500 jobs – including construction jobs – created.

Cllr Darren Price, the leader of Carmarthenshire Council, said these benefits were what mattered.

He said the public “frankly, do not give a hoot” about decisions and governance reports. What they wanted to know, he said, was what was being delivered in terms of jobs, investment and gross value added – or productivity.