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Dublin City Council extends deadline on Poolbeg project

Dublin City Council has announced another extension on the €350m Poolbeg incinerator project to allow US partners Covanta more time to arrange finance.

The contract originally provided for a decision by September 2010, but this was extended a number of times and the last deadline expired at the end of August.

It has now been extended again until April next year.

The project has already cost the city council €80m, but this will be repaid by Covanta if construction begins.

The council said that the waste to energy project is central to the Dublin region waste plan, which aims to reduce landfill.

It also said it is engaged with the European Commission regarding a complaint alleging breach of State aid rules.

Opponents say the 600,000-tonne facility is too big and could leave the taxpayer with a bill because the city council has to guarantee a minimum amount of waste.

Local Labour TD Kevin Humphreys said the council has "kicked the issue down the road again" and said it is time to walk away from the plan.

Mr Humphreys said another company should be allowed to take over and build a smaller facility.