The successful tenderer, VMS, will relocate their dredge from Port Coogee to Port Geographe next week to re-establish design depths to the navigation channel by mid February.

The Department of Transport will supervise the work.

However, the shire does not know where future funding for the removal of seagrass at Port Geographe will come from and the onus is likely to fall on the State Government.

When asked when work on reconfiguring the groynes to try and resolve the seagrass problem at Port Geographe would start, the shire’s director of finance and corporate services Matthew Smith said: “This will depend on the availability of funding and the co-operation of the bank/administrators.

“Neither the State nor the shire is responsible for undertaking and/or funding the reconfiguration. They have been the driving force behind researching, modelling and designing a long-term solution, but the implementation is subject to a number of factors and is the subject of ongoing negotiation and dialogue with the bank.”

Though the developer provided a $3.5 million bank guarantee for the removal and bypassing of the seagrass and the State Government contributed an additional $500,000 toward the works in 2011, funding is now exhausted.

“Responsibility for ongoing coastal management under the development deed still rests with the developer, as does the obligation to replenish the bank guarantee,” Mr Smith said.

“However, in reality, as they are in administration, there is no cash flow and no realistic expectation of funding by the administrators.

“Due to their involvement with the development deed and the recent bypass works, the State Government (in particular the Department of Transport) is aware of the need to source funding for this year’s works.”