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Government plans to regulate against large-scale incineration
will have no impact on the potential multi-million euro liability
faced by Dublin’s four councils if they fail to provide enough
waste to the Poolbeg incinerator.
Sources familiar with the contract between the councils and
US energy giant Covanta told The Sunday Business Post
that the move would not invoke a 'change of law' clause,
although one is contained in the agreement.
Under the deal, Dublin’s councils have a ‘put or pay’
agreement with Covanta to supply 320,000 tonnes of waste to
the 600,000 tonne facility. Councils will have to pay for
every tonne they fail to supply below that amount.
However, the contract does include a provision that Covanta
should make every reasonable effort to source the waste elsewhere.
The councils also stand to share in any profits which are
generated from the facility under the deal.
It is expected that the council would challenge any government
move aimed at discriminating against incinerators based on
their scale.
Dublin City Council, on behalf of the four local authorities,
recently sought a compulsory purchase order (CPO)
to acquire a piece of land which Covanta says it needs to
build an air ventilation system for the plant. The lands are
located on the foreshore at Poolbeg Peninsula.
Covanta’s European president, Scott Whitney, last month accused
environment minister John Gormley of delaying the project
by failing to grant a licence to construct the vent on the
foreshore.
Mr Gormley has said he is against the size of the incinerator,
which is earmarked for his Dublin constituency. Whitney returned
to Ireland last week and held several high-level meetings
aimed at advancing the project.
Mr Gormley is awaiting delivery of a report by barrister
John
Hennessy, on the potential exposure to the taxpayer
based on certain scenarios, such as a collapse in waste levels
and any other event which could trigger compensation payments
to Covanta.
Source - The Sunday Business Post
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