CORNWALL Council has been ordered by the High Court to pay back more than £2.1-million of funding concerning the award of a contract for the construction of a bridge over the A30 at Chiverton Cross.

The contract was awarded, without advertisement, to the contractor already delivering the adjacent A30 dualling scheme.

The council was also penalised for being “discriminatory” when it came to a separate tender which included a requirement for Cornish sub-consultants. It was ruled that bidders without established local networks were placed at a disadvantage.

In a judgment handed down last week at the High Court, Hon Mrs Justice Steyn dismissed Cornwall Council’s challenge to a decision requiring the repayment of more than £2.1-million in European Regional Development Fund (ERDF) support.

The decision requires two sums to be “clawed back”.

First, £2,110,882.18 which was paid by the council to Costain Jacobs Partnership (CJP) for the purpose of constructing a walking, cycling and horse-rising bridge over the A30 at Chiverton Cross.

The court noted that the council made a direct award of the contract to CJP without advertising the contract, which the Secretary of State for Housing, Communities and Local Government determined did not comply with relevant procurement rules.

Secondly, the sum of £10,549.48 which was paid by the council to MWJV Limited in respect of a competitive award of a project management services contract. The invitation to tender for that procurement included a requirement for Cornish sub-consultants, which the Secretary of State determined was discriminatory and in breach of equal treatment.

A spokesperson for the council told us: “We are extremely disappointed at the decision from the High Court.

“The ERDF bid for the Chiverton Bridge project clearly set out the council’s procurement strategy and was supported by the Ministry of Housing Communities and Local Government (MHCLG) team at the time.

“As with any ERDF-funded project, this scheme was rigorously scrutinised and audited – indeed, the findings of an audit by MHCLG in September 2023 found no issues with our procurement approach.

“We believe the funding was spent appropriately, following the required processes to deliver the project within the timescales set out by MHCLG as fund administrators. We are considering our options for appeal.”

Cornwall Council received ERDF funding for the Chiverton Bridge project in February 2021.

The bridge provides a link for walkers, cyclists and horse-riders over the busy A30 and forms part of the St Agnes to Threemilestone Saints Trail. The delivery of the bridge fulfilled a commitment made by the council for the A30 Chiverton to Carland dualling scheme.

Due to ERDF funding requirements, the bridge could only have been built during the same construction period as National Highways’ project to dual the A30 between Chiverton and Carland Cross.

The council spokesperson said: “We looked at all available procurement options to meet the ERDF timescales. The only practical choice was to use the existing A30 contractor.

“The council carried out full due diligence, value-for-money checks and sought legal advice before awarding the Chiverton Bridge contract directly to the A30 contractor. This was done with MHCLG’s knowledge.

“Our ERDF bid clearly explained this approach and MHCLG even extended the original funding deadline from June to December 2023 to support the bridge’s delivery. MHCLG consistently supported the use of ERDF funds for this project.

“However, in September 2024, a second audit by the Government Internal Audit Agency (GIAA) raised concerns about the procurement process and demanded the return of £2.1m in ERDF funding.

“We responded to the audit explaining the technical reasons for our procurement strategy, but the demand for repayment was re-issued.

“Legal action was a last resort, but, in our view, the unique circumstances of this project and our efforts to comply with regulations had not been properly considered.”