Ruairi Quinn (Dublin South East, Labour)
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Question 425: To ask the Minister for the Environment, Heritage and Local Government if he has seen the contract for an incinerator (details supplied) in Dublin 4; the way he came to the figure of €18 million if Dublin City Council cannot meet the required tonnage of wastage if he has not seen the contract; and if he will make a statement on the matter. [42675/09]

John Gormley (Dublin South East, Green Party)
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As previously advised the Attorney General sought and received on my behalf, on a confidential basis, a copy of the agreement in respect of the public private partnership between Dublin City Council, acting on behalf of the Dublin local authorities, and Dublin Waste to Energy.

The figure of €18 million was arrived at on the basis of a desktop exercise to assess risks associated with the Dublin waste-to-energy project either proceeding or not proceeding. An evaluation was made on the basis of circumstances, or a combination of circumstances, which might result in Dublin City Council not being in a position to meet the volumetric contractual commitment which forms part of the public private partnership agreement in respect of the facility and thus being required to meet the cost of the capacity not then being availed of. The projection was based on an assumed shortfall of 180 ktpa and an assumed penalty of €100 per tonne to arrive at a potential exposure of €18m per annum assuming that the shortfall continued indefinitely and/or it proved impossible to re-negotiate the provision in the agreement or sell-on some or all of the capacity to a third party at a rate which might offset in whole or in part the liability which would have arisen.