COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

south dublin county council crest

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, November 14, 2011

QUESTION NO.4

QUESTION: Councillor J. Hannon

To ask the Manager to update the Council in relation to the proposed Incinerator at Ringsend, with particular reference to the possible extent of financial exposure by SDCC?

REPLY:

Under Section 18.8 Energy Recovery, the current Regional Waste Management Plan provides for the construction of a Waste to Energy facility through a public private partnership. This plant has been taken successfully through the various statutory processes required to a point where construction can be commenced.

A Project Agreement is in place between Dublin City Council, acting on behalf of the four Dublin Local Authorities, and Dublin Waste to Energy Ltd for the provision of the facility however, a number of items have, for various reasons, yet to be finalised in relation to proceeding with construction.

The Government has indicated that it intends to bring forward a revised Waste Policy statement before the end of 2011 with legislation to follow. With this in mind, the period for discussion of the outstanding items between the parties to the Project Agreement has been extended on a number of occasions and it is currently extended to the end of November 2011.

As part of the discussions between the parties, regard is being had to the exposure of the Local Authorities. Under the Project Agreement, the Authorities were responsible for a number of elements, including the acquisition of the site and ancillary costs. Under the terms of the Project Agreement these costs will ultimately be recouped through a revenue sharing arrangement in relation to energy produced by the facility. In this way, the investment by the Councils will be recouped over the period of the contract.

It is anticipated, based on the analysis of waste arisings/production within the Region, that the facility will operate above the level required for optimum operation and that commitments in relation to “put or pay” clauses will not therefore apply.

It is expected therefore that the facility will ultimately be self financing and that the diversion of waste from landfill, improvements to the carbon footprint of the Region and the energy and heat generated will provide a significant environmental benefit.