Welsh Government writes off £1.6m after failed Porthcawl Maritime Centre project
The Welsh Government has formally written off more than £1.6 million in public funding after a planned Maritime Centre in Porthcawl collapsed without being built.
A new report from Audit Wales found “basic failings” in the way the project was managed, concluding that warning signs and opportunities to limit the loss were missed.
The centre — planned for the harbourside — was intended to include a coastal science and discovery hub, well‑being facilities, a café and restaurant, group accommodation and events space. It was promoted as a flagship attraction to boost tourism, celebrate maritime heritage and support regeneration.
Funding and collapse
In 2016 and 2017, the Welsh Government approved up to £2.7 million for the scheme, combining European Regional Development Fund (ERDF) support with domestic match funding.
The project was led by Credu Charity Ltd, working with Bridgend County Borough Council. Between May 2016 and March 2020, £1.6 million was paid to Credu.
By August 2020, amid concerns over rising costs and slow progress, the Welsh Government withdrew ERDF funding and sought to recover the grants. In November that year, Credu entered voluntary liquidation and the Maritime Centre was never built.
A police investigation into matters relating to the project concluded in 2024 with no charges brought. Audit Wales says it is unlikely any of the £1.6 million will be recovered.
Oversight criticised
Audit Wales found a lack of clarity over roles between the Welsh European Funding Office and Visit Wales, ineffective monitoring, and late or insufficient due diligence. Public money was committed before full match funding was secured, and controls over expenditure claims were described as weak.
Auditor General Adrian Crompton said:
“While time has passed since the events described in this report, there were basic failings in this case and the lessons from it remain relevant today.”
In a written statement to the Senedd, Cabinet Secretary for the Economy, Energy and Planning Rebecca Evans confirmed the write‑off, describing the loss as a “Claims Waived and Abandoned” entry in line with public money rules. She said lessons from the case had informed stronger pre‑payment checks, earlier risk identification and tighter expenditure controls.
Political reaction
Welsh Conservative finance spokesperson Sam Rowlands MS called the loss “another colossal waste of taxpayers’ money” and said the Auditor General’s review showed the Welsh Government “did not put proper arrangements in place to manage the risks”.
The Welsh Government said it accepted Audit Wales’ conclusions and noted that “ultimate reasons for the Maritime Centre’s failure were complicated and outside the scope of this report”.
Funds originally earmarked for the Maritime Centre were reallocated to Bridgend Council for a smaller development at Cosy Corner, which has since opened to house local retail and start‑up businesses.
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