I propose to take Questions Nos. 29 and 32 together.
First, I would like to put on record my total commitment to this project which is essential for the future of the peat industry. I want to assure the House that my Department is developing the necessary arrangements as quickly as possible. I am confident that the project will be completed by the end of the decade as originally planned.
This is the first time we have had a competition like this. It is an extraordinarily complex matter and an enormous volume of documentation must be prepared for the first time. For example, there must be a power purchase contract, a contract for the sale of peat and a detailed agreement describing the function of the national grid and the responsibilities of any large independent power station connected to it. In the past the ESB was responsible for all of the electricity system and purchased peat from another State company so it was never necessary to set out these details in contractual legal form.
This project is the first opportunity to bring competition into the mainstream of electricity generation in Ireland. It is absolutely essential that the arrangements I put in place have the full confidence of all bidders.
My Department has been working intensively over recent months to find a fair and transparent arrangement which would allow the ESB to bid and which will also have the confidence of other bidders. It is essential that the arrangements are not open to challenge under Irish and EU competition law. A successful challenge would almost certainly delay the project by several years and could result in the State or the ESB paying very heavy damages.
To avoid that problem I have taken detailed legal advice, as a result of which, I am taking steps this week to employ independent experts to run the competition in a totally impartial manner. This is the only course of action which will enable the competition to be completed early in 1997 in order to meet the objective of having the power station completed by the end of 1999.
As I stated previously in the House, the precise location for the station will be a matter for the developer — the winner of the competition. It will be up to the developer to decide where, within the east midlands region, the new station will be situated. In deciding where to locate it, the developer will take into consideration general site suitability, proximity of suitable peat supplies, transport and other infrastructures.