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Dáil Éireann díospóireacht -
Wednesday, 3 Jul 1996

Vol. 468 No. 1

Written Answers. - Trans-European Networks.

Bertie Ahern

Ceist:

223 Mr. B. Ahern asked the Minister for Transport, Energy and Communications if he will list the projects in the transport field submitted by Ireland for possible European Union financing under the transEuropean networks programme; and the reason there is no provision in the energy field for an electricity interconnector between Ireland and Britain. [14610/96]

Funding in support of projects within the trans-European networks may be sought from a number of EU sources, including the Cohesion Fund and the trans-European networks budget line of the EU Commission. The Cohesion Fund may provide up to 85 per cent in aid to a project. The trans-European networks budget line is much more restrictive, providing support through feasibility studies, loan guarantees or interest rate subsidies, and only providing for direct project support in very limited circumstances. The aid rate for the trans-European networks budget line is normally of the order of 10 per cent. Further, I should point out that, in general, aid from one EU source cannot be combined with aid from another EU source on the same project.

Trans-European networks projects in the transport areas for which I am responsible, and for which EU aid has been sought from the Cohesion Fund, include rail network improvement, rail track renewal equipment, Rosslare harbour development, DART extensions and a freight village at Dublin Airport.

In addition, assistance from the trans-European networks budget line has been sought for three technical development projects, in the air traffic management area, provided by the Irish Aviation Authority, and designed to improve voice communications services over the North Atlantic region, extend radar coverage to the north-west of Ireland and facilitate the evaluation of ground/air data link messages in the Shannon/oceanic area.

I should point out that financial assistance for other transport projects both within and outside the trans-European networks, is being sought from the EU Structural Funds.

As regards trans-European network support for electricity, the ESB has examined the feasibility of an electrical interconnector to the United Kingdom. While there is no technical difficulty in such a connection, the economics are unacceptable. The most recent estimated costs of an interconnector lie between £370 million and £450 million and there is, at this time, no decision to proceed with the project, or to seek EU assistance. It is clear from the figures available that a large power station, up to 500MW, could be built and located in Ireland with local value-added and employment here, for less than the cost of an interconnector in the UK.
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