State could save €177m on cost of docklands plan

THE state could save €177 million in building costs if it invests now in vital infrastructure to kickstart Cork’s multi-billion docklands regeneration.

It could save €20m alone on one of the most important projects — the Eastern Gateway Bridge — which was priced in 2007 at €80m but which could, because of the downturn, be built today for €60m.

The savings emerged following a preliminary review of providing infrastructure in docklands as part of a renewed effort by city officials to secure exchequer funding to facilitate development.

The ambitious redevelopment of the 400-acre region is one of the state’s biggest urban regeneration projects.

If it goes ahead as planned, the population of Cork docklands will increase from 500 to about 22,000 over 20 years. The regeneration is expected to create approximately 27,000 new jobs.

But state funding issues have stalled the delivery of bridges and roads which are vital to open the area up for development.

In an update briefing to city councillors on Monday, city manager Tim Lucey said a new funding mechanism will have to be found following the scrapping of the Gateway Innovation Fund (GIF).

The GIF was set up to target major projects between 2008-2010 to stimulate development in the so-called Gateway cities.

Cork City Council submitted a number of projects for consideration.

The Eastern Gateway Bridge, to link Tivoli to the south docks, and its associated approach roads, totalling some €80m at the time, were the city’s top priority.

However, as the recession deepened and the state’s finances began to collapse, GIF was deferred.

There is no mention of GIF funding in the Government’s National Recovery Plan 2011-2014.

“In view of the certainty around GIF, and the continued need to initially secure funds of about €2.5m to progress the design of the Eastern Gateway Bridge, such allocation is likely from the Department of Transport pending decisions on the innovation fund,” Mr Lucey said.

“Accordingly, I have advised that department of the need for such funding to be considered as part of their decisions on road grant allocations.

“The economic case required to support the project application to the GIF in 2007 continues to be robust, regardless of which government department considers its merits.

“Indeed, at current estimated cost of €60m as opposed to the original GIF application cost of €80m, the case for investment in this bridge, and its associated approach roads, is further strengthened.”

The Cork Docklands Development Forum recommends the state spend an estimated €615m on essential infrastructure and suggests the long-term benefits would out-weigh the short-term costs.

Mr Lucey said a preliminary review conducted by his officials, based on current and projected infrastructure development costs, shows a reduction in those costs of about €177m — or 25% — from €709m to €532m.

More sophisticated financial modelling is being undertaken by the Docklands Directorate.

Mr Lucey briefed Department of the Environment officials before Christmas on the progress the city council and private landowners have made in progressing the docklands project.

Councillors agreed to defer a debate on the manager’s update until the next council meeting in just under two weeks.