Dáil Éireann Debate, Tuesday - 2 April 2019
613. Deputy Micheál Martin asked the Minister for Culture, Heritage and the Gaeltacht if her attention has been drawn to the fact that Cork City Council may be providing a loan to assist the commencement of the Cork convention centre; if this will come from central funds or unspent moneys in its allocation; the way in which the loan will be set up; and if she will make a statement on the matter. [14845/19]
View answerThe Cork Event Centre project is being led by Cork City Council with the development company BAM, having been selected by Cork City Council as the preferred tenderer. BAM in turn has engaged international events company Live Nation as the preferred operator. The project is ultimately being developed and managed by Cork City Council. This means that Cork City Council has responsibility for its delivery.
The latest financial projections provided by Cork City Council to my Department indicates an increase in the original cost of project compared to when the project tender was issued in December 2014, which had an estimated cost of €50 million. The cost is now estimated at some €80 million. A significant part of this increase is accounted for by a redesign of the facility since the original tender to allow for an increase in the capacity of the venue.
In light of this cost increase, Cork City Council wrote to my Department seeking additional funding of €10m for the project from the Exchequer. This would bring the Exchequer contribution to €22 million and total public funding to €30 million.
Following detailed consideration and in light of the additional works which are now required for the Event Centre, my Department considers that, in accordance with public procurement rules, the total public funding for the project may be increased by €10 million to €30 million, made up of grant aid of €21 million and a repayable loan of €9 million.
Officials in my Department wrote to Cork City Council on 21 December 2018 regarding the provision of additional public funding for the development of the Event Centre. Furthermore, officials in my Department met with Cork City Council officials in January and March to discuss all aspects around the public funding elements of the project.
Cork City Council and my Department are continuing to engage on the funding requirements for the project, including any repayable elements.
