The QEII Marina gates will be repaired or replaced at a cost of up to £10.7 million.
The current entrance to Guernsey’s largest marina was built in the 1980s.
The gates are designed to rise and fall with the tide, allowing access and maintaining enough water to keep boats in the marina afloat, even at low tide.
However, the age of the gates and their deteriorating condition have, at times, affected operations.
A condition survey carried out in 2022 found there was a 'significant risk' of the gates failing permanently, and a second survey earlier this year identified further structural defects.
The States Trading Supervisory Board (STSB) says a failure beyond repair would have “significant economic and reputational implications” and leave hundreds of boats grounded.
The Board has put forward several options to repair or replace the gates, with estimated costs ranging from £5M to £10.7M.
Under the proposals, the STSB would borrow half the cost and repay the States loan through harbour charges, with the remaining funding coming from reserves.
STSB President, Deputy Mark Helyar, said:
"We currently do not have sufficient berths to meet demand for moorings, and if the QEII gates were to fail that situation would become much worse.
"It would seriously impact the provision of facilities for local boat owners, and the effect of that will be felt more widely within the island’s marine services sector."
If approved by the States Assembly, contractors will be invited to submit their own solutions, with the successful bidder responsible for both the design and construction of the project.

'Arrive at work feeling more positive'
Profits rise at CI Co-op
New pontoons in St Peter Port Harbour
Guernsey's latest crime trends revealed
Man arrested over 'threats to kill' in Guernsey
Jersey and Guernsey both lift trophies in Siam and Muratti weekend
Men pretending to be police arrested for £10K Guernsey convent fraud
Channel Islands' 10 wealthiest residents revealed