Newcastle Council and the state government say, they're each on waiting on one another, to get started on a new nourishment program for Stockton Beach.
The federal government announced the project in October, funding most of the $6.2 million, alongside a council contribution.
But there's now a stand-off as to whether the City or New South Wales is responsible for managing the works and getting the wheels in motion.
The Port of Newcastle has also raised concern, revealing it doesn't have a permit to dredge the harbour for sand nourishment works.
The Port's Chief Commercial Officer Simon Byrnes, told Newcastle Herald, they do not have "necessary provision to provide sand nourishment or perform dredging operations that are not required for maintenance purposes."
Newcastle MP Tim Crakanthorp, said the project is proving to be frustrating for both residents and council.
"This is ridiculous. This grant application was completed by the state government, naming one of their own agencies as playing a part, who are now trying to back-track," Mr Crakanthorp said.
"The money is there. It should not be this difficult to get this project moving, and I have attempted to discuss this with the Hunter Central Coast Development Corporation (HCCDC) on a number of occasions."
HCCDC was identified as the operation's project manager on the original application.
Mr Crakanthorp said the delays need to stop, and sand needs to be put back on the beach.
"This project needs to be project-managed from start to finish, and HCCDC are the allocated government agency to do so. They need to start that process immediately."
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