COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, May 14, 2012

QUESTION NO.9

QUESTION: Councillor B. Lawlor

To ask the Manager how much this council has contributed to the pre-construction costs of the Poolbeg incinerator?

REPLY:

EU and National Waste Policy have set the context of objectives and hierarchies for the development and implementation of Dublin Regional Waste Strategies and Plans since the mid nineties. The key policy objective throughout successive Government Policies has been the diversion of waste from landfill and the ultimate replacement of landfill with the higher order treatment processes.

Irish Government Policy has been under review for a number years beginning with a process initiated by the last Minister for the Environment which was subsequently revised and re-initiated by the current Minister. The Minister has recently stated that a new National Waste Policy is imminent. It is believed to be expected in June.

In this context, Dublin City Council has recently announced a final extension of the period for a decision on whether to proceed with the construction phase of this project until 31^st August 2012. This period is agreed to allow for the conclusion of any outstanding matters once the uncertainty around Waste Policy has been removed.

The attached report from the Dublin City Council sets out a detailed history of the project and the various and changing contexts within which the project has progressed to this point. 

Local Authority Cost Apportionment:

Dublin City Council has since the inception of the project in the late nineties incurred significant expenditure. Costs associated with planning, procurement, contract and site assembly have been incurred by the City Council and these costs continue to accrue as the obligations borne by the City Council on behalf of the Region are met. 

The total cost to September 2011 is set out in the table below. As part of the Region’s implementation of Government Policy, and it’s major significance more recently in terms of national interests, the project has been supported by Government through grants totalling €7.5m. Along with these grants, other costs have also offset leaving a total balance to be apportioned between the Local Authorities of €66.5m. 

	Total Costs from start of project to September 2011 not already billed to other local authorities
Total Spent to date	Land Acquisition & Client Rep	€ 73,450,063.65
Total Spent to date	Feasibility & Public Consultation	€ 6,259,878.69
Less Commitments	Land Acquisition & Client Rep	-€ 926,742.63
	Total amount spent on WTE from start to September 2011	€ 78,783,199.71
	Less: Refunds of costs received from Dublin Waste to Energy Ltd	€ 4,537,048.00
	Less: Grants received from DOE	€ 7,562,256.09
	Less: Costs to be attributed to WWTW	€ 174,858.46
	Total amount to be split between the DLA	66,509,037.16

As with the costs of other waste infrastructure, such as the Arthurstown landfill and Ballymount Baling Station, the Dublin Authorities have agreed that the capital costs of waste infrastructure are to be recouped to the lead authority for each facility through an apportionment of costs in line with population. To date, this apportionment has been based on the 2006 Census figures and the apportionment is as follows - 

 Regional Apportioned Costs to September 2011:

To date, the amount of costs shared by the Region and recouped to Dublin City Council has totalled €43.3m. Totals paid to date by each of the Local Authorities is set out in the “Previously Billed” column of the table below while bills currently on hand to be paid are shown in the “To be paid now” column. 

Local Authority	Population %	Share of Costs	Previously billed	To be Paid now
Dublin City	42.64	€ 28,359,406.03	€ 18,438,031.50	€ 9,921,374.53
Dun Laoghaire / Rathdown	16.34	€ 10,870,570.63	€ 7,067,564.23	€ 3,803,006.40
Fingal County	20.22	€ 13,445,046.77	€ 8,741,374.75	€ 4,703,672.02
South Dublin	20.80	€ 13,834,013.74	€ 8,994,263.88	€ 4,839,749.86
	100.00	€ 66,509,037.16	€ 43,241,234.36	€ 23,267,802.80

In this Council’s case, a total of €8.994m has been paid to the City Council to date. Another invoice of €4,839,749.86 is on hand and will be paid shortly.

Projected costs: 

The City Managers Report details the Local Authority obligations that remain outstanding – eg conclusion of land acquisition compensation negotiations etc. The report refers to a projected out turn net cost to the Region will be €100m. When the agreed apportionment is applied to this figure the liability for the Region breaks down as follows -

Local Authority	Population %	Projected Contribution €
Dublin City	42.64	€   42.640m
Dun Laoghaire / Rathdown	16.34	€   16.340m
Fingal County	20.22	€   20.220m
South Dublin	20.8	€   20.800m
Total	100	€ 100m

South Dublin County Council’s liability will therefore come to a total of €20.8m at current projections. The Council has a clear financial and legal liability as a regional partner under the Dublin Regional Waste Management Plan and under the Project Agreement to cover it’s share of the costs associated with procurement, planning, contract and assembly of the site and an obligation to Dublin City Council to recoup the amounts incurred on this Council’s behalf as they arise.

It is anticipated that once the facility is operational, the entire outlay by the Local Authorities will be recovered and that the facility will ultimately provide an income stream for the Region.