Vol. 547 No. 1
204 Mr. G. Reynolds asked the Minister for Public Enterprise if the viability report which her Department sought regarding the extension of a gas pipeline from Bullathomas, Ballinaboy, County Mayo, to areas of the north-west will be made public within the next month; the timeframe for the development to take place; and the cost of the scheme. [1701/02]
The Government decision in principle to extend the gas transmission system to Sligo via Ballina from the proposed Mayo to Galway pipeline, and to Letterkenny from Derry, recognises that these extensions would not be viable on the basis of anticipated gas demand and that considerable grant aid would be required. The provision of such grant aid raises issues relating to EU State aid and procurement rules. My Department has already been in touch with Commission officials on this matter.
The next step in moving the projects forward involves carrying out detailed engineering and planning work, in order to establish a firm estimate of the capital costs. This work is usually undertaken by specialist consultants and normally takes about six or seven months to complete. The process of tendering under the EU procurement rules for a task such as this could be expected to take about five months. Once this phase is completed and a firm estimate of the capital costs has been established, the Government will be in a position to make a decision on grant aid.
Bord Gáis has written to me with proposals for carrying out the detailed engineering and planning. Given that there are competition and state aid issues involved, I am concerned to ensure at the outset that the approach taken to the next stage of the project does not create difficulties which might result in the project being delayed at a later stage. Therefore, I have sought the advice of the Attorney General in relation to the best approach to be taken.
