Brian O'Shea
Question:123 Mr. O'Shea asked the Minister for Public Enterprise the proposals, if any, she has to ensure an adequate supply of electricity in west Waterford; and if she will make a statement on the matter. [18273/00]
Written Answers. - Electricity Generation.
The supply of electricity and the adequacy of such supply to any particular county including the west Waterford area is currently a day-to-day operational matter for ESB and one in which I have no function.
The existence and quality of the transmission and distribution network is what determines the quality of the supply of electricity.
I have been informed by ESB that since 1997 they have invested £4 million in upgrading the medium and low voltage networks in the greater Waterford area.
ESB have plans under way to put in place a 220kV development in west Waterford to reinforce the high voltage networks in the area. This investment is necessary to maintain adequate supplies to farming, commercial and industrial customers and to permit continued growth in the area. The budget is currently being finalised and it is expected that it will be a multi-million pound investment in west Waterford.
The proposed investment is part of the ESB capital programme for the next five years involving an overall investment in the region of £2 billion, the bulk of which will be dedicated to the enhancement of the electricity network generally.
This investment will ensure the ongoing provision of a high quality electricity infrastructure in the State to underpin continuing economic development.
Tom Enright
Question:124 Mr. Enright asked the Minister for Public Enterprise if she has received any communication from a company (details supplied) as to their reasons for selling the new peat powered electricity generating station at Edenderry, County Offaly. [18426/00]
Tom Enright
Question:125 Mr. Enright asked the Minister for Public Enterprise if a company (details supplied) have given her an assurance that the plant will open for production of electricity on schedule and that the company will obtain a guarantee from any proposed purchaser of this new station that they will purchase peat from Bord na Móna on the terms already agreed between that company and Bord na Móna. [18427/00]
Tom Enright
Question:126 Mr. Enright asked the Minister for Public Enterprise the total amount of grant-aid paid from the European Union and any other grants paid to a company (details supplied) towards the cost of building the new peat powered electricity generating station. [18428/00]
Tom Enright
Question:127 Mr. Enright asked the Minister for Public Enterprise if her attention has been drawn to reports which stated that a company (details supplied) have arrived at a valuation figure of £35 million sterling for the new station; and if, in view of the fact that the station cost approximately £120 million to erect and build, the Government would consider entering into a joint venture with some Irish company for the purchase of this new station. [18429/00]
Tom Enright
Question:128 Mr. Enright asked the Minister for Public Enterprise the view of the Government and their approach to the proposed sale of the new peat powered generating station. [18430/00]
I propose to take Questions Nos. 124 to 128, inclusive, together.
I received an advance copy of the press statement and a letter from the chairman of Fortum about their intention to divest of their power generation assets in Ireland and the UK. I am informed that following an indepth review of their corporate strategy Fortum are now refocusing their activities in the Nordic and Baltic Rim countries.
Clearly the divestment as announced will take some time to arrange. In the meantime, Fortum intend to complete construction and commence commercial operation; it is currently five months ahead of schedule. The project is being carried out by Edenderry Power Limited, a subsidiary of Fortum, and the 15 year peat supply contract is with that company and is thus directly linked to the power station. Fortum intend to continue to operate and maintain the plant after divestment.
Under the Economic Infrastructure Operational Programme, 1994-1999, EIOP, grant aid up to a maximum level of 26 million ECU has been made available towards the cost of the construction of the new peat station. The grant will pay for up to 23% of the capital expenditure on the plant and is payable on achievement of construction milestones. To date, the company has drawn down £8.8 million of the grant. The company confirmed that they are not in receipt of any other grant assistance for the construction of the station.
I have read the recent press reports quoting a valuation for the Edenderry plant. Fortum have not released any information relating to the value of the Edenderry plant. Consequently, the figure published in the press must be viewed as speculative.
In relation to the question of the Government entering into a joint venture to purchase the Edenderry plant, this is not under consideration. The indications are that Fortum intend to find a single buyer of its UK and Irish assets. My current approach is to continue to stay in touch with developments.
Based on the assurances of Fortum, I am confident that the station will come on stream ahead of schedule and that the peat purchasing contract will be honoured. The station is supported by a power purchasing agreement with the ESB. Therefore, this is a state-of-the-art project with the necessary fuel supply, technology and an assured market for its output. It would appear, therefore, to be an attractive investment opportunity for a commercial buyer.