Newport City Council has agreed to pay the extra costs for the Transporter Bridge transformation project after the original contractors went into administration.
The council has now agreed to underwrite the extra costs that have occurred following the re-tendering process due to increased costs and labour shortages.
The council has agreed to underwrite £2.922m of project costs in order to appoint new contractors for the visitor centre and the bridge restoration elements of the project.
It has also successfully applied for an extra £1.95m in funding from the National Lottery Heritage Fund and has identified £684k of savings in the project.
A statement from the council said: 'The council will continue to seek additional sources of funding for this important project, which will preserve one of Newport’s most prominent heritage structures for future generations to enjoy. Any further funding secured will reduce the amount that the council is required to underwrite out of its capital budget.'