THE discovery of asbestos has ramped up the cost of a borough council redevelopment project in the centre of Basingstoke.

The potentially deadly insulating material was found in columns and panels at Loddon House – one of two office blocks being demolished in the Basing View business area.

It is estimated the discovery could add as much as £370,000 to the £6million cost of the project and push the completion date back by a further three months.

The Health and Safety Executive has been notified but bosses behind the scheme say there was no need to inform residents and businesses neighbouring the site.

Basingstoke and Deane Borough Council is demolishing Loddon House and neighbouring City Wall House as part of a scheme that has already suffered one setback.

The project stalled after Armoury Group – the company that was originally awarded the contract to carry out the work – went into administration at the end of last year. Kent-based Erith Contractors is now completing the project.

A report to the Cabinet at Basingstoke and Deane Borough Council said the asbestos find, in the grouting of Loddon House, is “likely to affect all or the majority of 264 pre-cast columns and 698 cladding panels”.

Bosses say there will be no health impact from the find due to dust-suppression methods being used and strict guidelines on removing the asbestos from the site.

Councillor Ranil Jayawardena, Cabinet member for finance and property, said: “It was impossible for anyone to have detected the asbestos in the structure through the original surveys, and it was only when demolition started that it was found. The contractor has acted quickly in revising the plans to complete the demolition, ensuring there is no risk of public safety.”

Bosses claim that even with the additional costs, the project will come in under budget. The site could now be handed back to the council in November, while City Wall House’s demolition should be completed by September 1.

The borough council’s Cabinet is set to release the extra money when it meets this week.