Poolbeg contract may be abandonedMonday 13 January 2014 21.57
The Poolbeg incinerator contract may be abandoned by Dublin City Council even if it survives an EU investigation.
Dublin City Manager Owen Keegan said this evening that a decision on whether to proceed with the Waste to Energy project will be made following the determination of two complaints to the EU.
The complaints allege that the public-private partnership contract with the company Covanta breached EU rules on state aid and procurement.
Mr Keegan said the complaints were due to be decided in the first quarter of this year but little progress has been made.
He said if the project emerges "unscathed" from this process a report will be given to councillors outlining the options available.
He also confirmed at this evening's monthly council meeting that the contract with consultants RPS will be terminated at the end of the month.
The EU upheld a complaint that the contract with RPS did not conform with procurement guidelines.
The RPS contract was originally estimated at €8 million but cost over €30m as the project encountered a series of delays lasting ten years.
The EU ruled that the contract should have been put out for tender again in the meantime rather than being left with RPS.
Sinn Féin Councillor Micheál Mac Donnacha was one of number of councillors who complained about the amount paid to RPS who he said were one of the consultants who shared €50m from Irish Water.
The Poolbeg incinerator contract had already cost over €90m with most of the money spent on land acquisition.