DUBLIN City Council yesterday signalled its intention to stick with its proposed partner for the development of the Poolbeg incinerator, despite the contract running out yesterday.
The local authority signed a deal with American company, Covanta, on September 4, 2007, to build the planned incinerator, only for the project to become stalled in the intervening period.
Members of the council will be updated about the situation at a meeting tonight, but in a statement at the weekend Dublin City Council said it remained in a contractual position with the company Covanta for the provision of a ‘Waste to Energy’ facility.
A Primetime report on RTÉ last week suggested that under the terms of the contract Dublin City Council would be entitled to walk away from its deal with Covanta if certain conditions were not met
However, it could also extend the initial deal, or renegotiate.
However, the local authority said in the statement that the idea of it being able to “walk away with no cost” from yesterday was “factually incorrect”.
“The four Dublin local authorities alone have spent substantial sums to date in land acquisition, statutory processes and client representative costs etc,” it said in a statement.
“Further major expenditure is committed arising from the compulsory purchase order (CPO) on part of the original site. These monies have or will be expended in implementing Government policy on waste disposal.
“This does not take into account any compensation that might be payable to the public private partnership (PPP) company should the contract be terminated. The PPP company will also have incurred substantial costs.”
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