You can just replace the bearing cap on this engine. The bearing caps and the block side of the cap are machined
If you need to replace the bearing cap you have to line bore the crankshaft bearing caps. Volvo Penta does not
sell the bearing caps separately. In Volvo Penta's view, if a bearing cap is bad (or spun which is what most times
happens), the block is considered ruined.
I can supply you with a good used complete block (with all the bearing caps) for $4,250.
I am sorry I can't give you better news.