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Minister Gormley appoints senior counsel to examine financial risks of proposed Poolbeg incinerator

05/03/10

The Minister for the Environment, Heritage and Local Government John Gormley T.D. has appointed Mr John Hennesssy as an authorized person to carry out an independent report in relation to the various risks and implications of the proposed incinerator to be located on the Poolbeg peninsula.

Mr Hennessey, a senior counsel and qualified accountant, was  appointed pursuant to Section 224(2)(a) of the Local Government Act 2001, to prepare a report for the Minister relating to the nature and extent of the financial and related risks and consequences which may be faced by Dublin City Council in connection with its participation in the public private partnership to build the proposed facility.

Mr Hennessy is being asked to assess the financial risks should Dublin City Council and the three other Dublin local authorities be unable to meet the volumes of waste committed to in the ‘put-or-pay’ clause of the contract.

The Report should identify, explain and quantify the financial  and related consequences for both the DCC, and the PPP Company associated with the Project proceeding in a range of different scenarios, including:
• Household waste volumes remain static.
• Household waste volumes fall by average 1% per annum over the period.
• Household waste volumes increase as projected in the EPA Waste Report 2008.
• Recycling rates commence at current recycling rates and remain static.
• Recycling rates commence at current recycling rates and increase by varying rates such as an average of 1%, 2%, 3% per annum over the period.
• Loss of of varying levels of market share.
• A combination of  any of the foregoing.


The Report should also identify, explain and quantify the financial risks and consequences for DCC associated with the alteration or abandonment of the Project in a range of scenarios.

It is expected that  Mr Hennessy will report back to the Minister in six weeks.

Minister Gormley said: “There have been a wide range of claims regarding this project, its financial viability, and the financial consequences of either proceeding with or abandoning it. I believe a proper and full independent examination by a qualified expert is required to bring clarity to these issues.”

Ends

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