ABERGAVENNY'S Brewery Yard project is half a million pounds over budget councillors learned this week.

The scheme, planned as a central part of the regeneration of Abergavenny, was originally intended to cost £3.2 million and transform a section of the town centre used as a car park, and by Market Traders, into a vibrant events space.

Now, "unforseen site works" have sent the cost of the project soaring by £500,000, according to council officers.

Councillors agreed to increase the funding by £250,000, with £322,000 of the overspend covered by an additional Welsh Assembly Government grant.

Among the reasons given fot the soaring costs were changes to the way the surface was laid which cost £268,000 and a requirement to purchase new stone which cost £120,000.

Objections from Welsh Water also required the council revise their piling methods, costing £138,000.

The Chronicle reported last month that MCC had promised the site would be ready for use during the annual Food Festival.

As well as modernising the area there will be art on display with the inspiration for the artwork has taken from the history and culture of the site and wider town, with contributions from local school children.

The artwork currently under construction includes a retaining wall 'frieze' - a band of 70 metres of bilingual text created by the renowned poet Menna Elfyn who worked with pupils from King Henry VIII School to develop themes of brewing and market activities.

Councillors were told that the project's board did not want to reduce the quality of the scheme, and feared doing so could hit the potential success of the Brewery Yard as an improved markets and events venue.

Councillor Bob Greenland, MCC's cabinet member for regeneration, said, "Both Monmouthshire Council and the Assembly have agreed that cutting the Brewery Yard's quality would be to the detriment of the town and we are determined to deliver a high quality market and events space."Councillors were told that the project's board did not want to reduce the quality of the scheme, and feared doing so could hit the potential success of the Brewery Yard as an improved markets and events venue.

Councillor Bob Greenland, cabinet member for regeneration, said, "Both Monmouthshire Council and the Assembly have agreed that cutting the Brewery Yard's quality would be to the detriment of the town and we are determined to deliver a high quality market and events space."

Steve Greenslade, Corporate Director for Regeneration, Environment and Resources said "The Brewery Yard Scheme is over budget in excess of £500,000, however we have recently secured additional funding of £323,000 from the physical regeneration fund of the Welsh Assembly Government.

"The Brewery Yard Regeneration Project Board has received consultant reports confirming cost pressures on the budget of £3,229,213 allocated to the scheme. Projected project costs are now reported as £3,802,194, which is £572,981 in excess of the budget currently available.

"The projected increase is predominantly attributable to increased construction costs, which have risen as a result of a combination of unforeseen circumstances and necessary design adjustments since construction commenced in October 2008."