Vol. 417 No. 2
3 Miss Flaherty asked the Minister for Energy if, in view of the ESB's withdrawal from participation in the gas interconnector project, he will outline the current situation in relation to financing and managing of the project.
Bord Gáis Éireann are currently putting together a financing package to fund the construction of the gas interconnector. I presume the Deputy is referring to the management of the operational phase of the project and she will be aware that my preference is that there should be a stand-alone company with majority participation by BGE. The financial package will be determined in part by the eventual format of this joint venture.
Will the Minister confirm or deny that the ESB were given one month to finalise their investment decisions in relation to this project and, consequently, due to other considerations had insufficient time to consider it adequately?
I believe that like everyone else the ESB were, of course, aware of this for the past 12 months or more. I am not sure when the proposal was first mooted but I think it was at least that long ago. Of course, the ESB had ample time to put forward proposals regarding their participation in the project. They finally put forward a proposal which was not acceptable to BGE. They have been invited to amend their proposal if they so wish.
May I ask the Minister——
Perhaps a final question, Deputy Flaherty.
——to clarify whether the withdrawal of the ESB from the project means that the full burden will have to be carried by BGE by way of direct borrowings? Will he indicate the current estimated cost of the project which will have to be borne by BGE?
I am not sure, for the reasons I have already stated, that the Deputy is correct in referring to what she described as the withdrawal by the ESB. I do not think that is correct. BGE will be the principal partner in the joint venture. It is envisaged that there will be other partners. Whether or not the ESB choose to be a partner is a matter for them. Presumably the funding will be arranged by the joint venture consortium in proportion to the equity holdings of the various partners in the consortium. As the Deputy knows, many of the project costings will be borne by Community funds.
May I——
A very brief question, Deputy. Let us not forget the other four questions.
I have two very brief questions. First, can the Minister indicate whether discussions are being held with other interested parties on the ongoing projects? Second, has the Minister changed his mind, which I hope he has as a result of EC Directives, in regard to direct access to the supply for large-scale users of electricity?
As I understand it, there are ongoing discussions with a number of potentially interested parties. On the question of direct access to the supply, the Deputy will appreciate that that is an entirely separate question. This question relates to the structure of the joint venture consortium.
Management of the projects.
It is a separate question on which, in the absence of specific information being made available to me by the Minister and the Department, I would hesitate to venture an opinion.
