Poolbeg incinerator project may be scrapped

The future of the Poolbeg incinerator project has been plunged into doubt despite it already swallowing €95m in public funds.

Dublin city manager Owen Keegan sparked fresh uncertainty over the scheme by suggesting it may not survive EU scrutiny. Brussels is probing whether EU rules on procurement and state aid have been broken.

Mr Keegan told Dublin councillors that a decision would need to be taken on whether the project should continue. It is the first time officials have suggested the project could be abandoned, a move which would result in the loss of €95m already spent on consultancy fees and land purchases.

Mr Keegan said a final decision on the project would need to be made once the EU rules on two complaints before it on the initiative. But Brussels has delayed delivering its verdict. The EU has already upheld a complaint that a contract with consultants RPS did not adhere to procurement guidelines.

The contract with RPS was originally estimated to cost €8m, but delays lasting several years saw that balloon to €30m. EU chiefs ruled the contract should have been put out to tender again during that period.

The contract with RPS will end, Mr Keegan said.

Some councillors have expressed concern that money that should be used for public services has been diverted to the Poolbeg project.

Such waste initiatives have caused controversy across the country with moves to build a €160m incinerator in Ringaskiddy, Co Cork, provoking outrage from harbour residents.