Construction work stops at an Orthodox church destroyed during Sept. 11 attacks

St. Nicholas Greek Orthodox Church during construction in February 2017 | Wikimedia Commons/Concord

A Swedish-based company has stated that it had to stop the construction work that was being carried out at a Greek Orthodox church that was destroyed in the Sept. 11 attacks.

Construction work at the St. Nicholas National Shrine next to the World Trade Center memorial plaza was temporarily suspended amid rising costs and questions over management of donations, according to The Associated Press.

The shrine, designed by renowned architect Santiago Calatrava, was supposed to replace a tiny church that was destroyed after the fall of the World Trade Center's south tower.

The New York Times reported that the Greek Orthodox Archdiocese of America has failed to pay its bill despite receiving $37 million in donations for the shrine.

Skanska USA, which is part of Stockholm-based Skanska AB, stated on Tuesday that stopping the construction work was the "only viable option," but said that it is confident that the archdiocese "will find the funding to complete this work."

Thomas Perry, the director of the project, had already sent a letter to subcontractors, telling them to collect their equipment.

"Effective Dec. 5, 2017, Skanska USA has terminated its contract with the Greek Orthodox Archdiocese of America on account of GOA's defaults in making payments. Skanska is demobilizing from the project site," the letter stated.

According to the New York Times, the cost of the project was initially estimated at $20 million when the design was announced in 2013. However, the estimate had reached $35 million by the time the ground was broken in 2015, and the estimate had reached $40 million after the 50-foot dome of the shrine was completed in 2016.

This month, the archdiocese noted that the estimated cost had ballooned to $72 million or $78 million, of which $49 million had been pledged.

The archdiocese launched an investigation in November to examine how the costs had risen so high, noting in a statement that PricewaterhouseCoopers and BakerHostetler have been retained to conduct the inquiry.

"In addition, the archdiocese will re-evaluate its fund-raising strategy moving forward and will continue to explore ways to cut costs, concurrently maintaining the historic vision of the church," the statement said.

In a statement released last fall, the archdiocese, which is based in New York and represents 540 parishes nationally, revealed that it was suffering from a "severe and complex financial deficit that had been building for several years."

His Eminence Archbishop Demetrios, the 89-year-old leader of the archdiocese, said that until October 2016, he and other church officials have been unaware of the financial situation of the organization.

The archdiocese has since implemented some reforms, including reducing its expenses by 25 percent and cutting down its staff by about 25 percent.

In an emailed statement, the archdiocese said that it remains hopeful that the construction work at the site would resume as early as the spring.