Vol. 460 No. 7
49 Ms Keogh asked the Minister for Transport, Energy and Communications the current position regarding the proposed 120 megawatt peat-fired power plant; whether the EU Commission have expressed satisfaction with the results of a cost benefit analysis by an independent expert; and if he will make a statement on the matter. [2041/96]
The EU Commission are satisfied — on the basis of the cost benefit analysis — that the proposed station will be of benefit to the Irish economy.
It was on the basis of this satisfaction that they agreed — to make available up to 26 million ECU's in structural funding — under the Economic Infrastructure Operational Programme — for the project.
The cost benefit analysis was conducted by National Economic Research Associates (NERA) — an independent London based consultancy firm. It concluded that in monetary terms alone a net benefit of around £11 million — in 1993 prices — would accrue. In addition, the station will confer diversity and security of supply benefits, which, of course, cannot be quantified in financial terms.
As I have indicated previously to the House, the Government approved the holding of a competition to build, own, operate the proposed peat station.
The competition process requires the preparation of an extensive portfolio of documentation by the ESB. Work on the preparation of this documentation is proceeding with a view to getting the competition up and running as soon as possible.
