Dublin City Council has disputed Tánaiste Michael McDowell's claim that the plan to build an incinerator at Poolbeg in Dublin has collapsed.
Assistant City Manager Matt Twomey said that the project was still going ahead and that changes to the commercial arrangements were being discussed.
Dublin City Council said Danish Oil and Natural Gas (DONG Energy) wished to make changes to the commercial arrangements that were agreed in 2005 and said discussions were ongoing.
DONG now owns Elsam, the company selected to design, build, operate and finance the Dublin plant.
Earlier Fine Gael Councillor Lucinda Creighton also insisted that the proposed incinerator was still on track.
Ms Creighton accused Mr McDowell of 'blatant electioneering' and of misleading the public.
McDowell claims new partner sought
A spokesperson for Mr McDowell said the Department of Environment had confirmed that Dublin City Council was looking for a new partner for the public private partnership project because the existing partner did not want to proceed.
The spokesperson said it 'was therefore fair to say the agreement has collapsed'.
Mr McDowell's earlier press release stated that the Danish company involved in the partnership to build the incinerator had been taken over by a new parent company which had signalled that it had no further interest in the project.
The Tánaiste welcomed the decision and said it represented a victory for local democracy.
Local Labour TD Ruairi Quinn has called for an explanation of how Mr McDowell, who is also a TD for the Dublin South East Constituency, got the information before Dublin City Councillors were informed.
Deputy Quinn also welcomed the decision, but said it was 'most unusual' that Minister McDowell was informed before anyone else.
He called on Mr McDowell and the Minister for the Environment, Dick Roche, to explain how the information came to the Tánaiste before councillors were informed.
