RTE News has learnt that construction of Cork Airport's new terminal is running over budget and behind schedule. The terminal was originally costed at €140m, but is now budgeted at between €150-170m.
The Department of Transport said it was aware that there were issues involving the construction of the terminal which the Airport Authority was seeking to resolve.
The newly formed Dublin, Cork and Shannon Airport Authorities are busy devising business plans to show they can survive as separate entities. If they succeed, the Department of Finance may allow each airport full autonomy and control of its assets from May 1.
Under the restructuring, Dublin Airport will absorb all the debts of Cork and Shannon to allow the two smaller airports to commence with a clean slate.
Now RTE News has learnt that construction of the new Cork Airport terminal by Rohcon is currently over budget and behind schedule.
Some sources stressed that the airport companies are protected by certain penalty clauses, and that overruns may be pulled back as the project progresses.
However, any overrun will be of serious concern to the board of Dublin Airport. The bigger the debts from Cork and Shannon, the bigger the debt millstone Dublin will inherit on May 1.
Some sources say that under any restructuring, Cork may even have to pay an annual lease to Dublin airport to defray some of the costs.
It is also understood that elements of the construction of the new terminal are also running behind schedule. The contractors Rohcon said that under the terms of their contract, they were not allowed to comment.
Neither the Dublin Airport Authority nor the Cork Authority would comment on the report. The manager of Cork Airport, Joe O'Connor, said it was too early to say what the overall outcome would be, describing the reported overruns and delays as 'speculative'.
