The cost of constructing the proposed Terminal 2 (T2) building at Dublin Airport will rise by about €3 million a month if work on the project does not begin by mid-July, according to Dublin Airport Authority (DAA) chief executive Declan Collier. Ciarán Hancock, Business Affairs Correspondent, reports.
"That wouldn't include lost revenues as a result of the terminal not opening on time," Mr Collier said.
The T2 building is currently being costed by the DAA at just under €400 million and is due to open in November 2009.
Mr Collier said that the DAA's deadline would be missed unless An Bord Pleanála gave it the green light by the end of this month. Completion of the project would be pushed out until March 2010 at the earliest, increasing the costs by at least €12 million.
Planning for T2 was appealed to the board by Ryanair and local residents' groups. An oral hearing into T2 was held in April and the board is considering its decision.
In an interview with The Irish Times, Mr Collier said that the DAA would raise up to €500 million through a corporate bond to help pay for the new terminal.
He said that the DAA's debt level would rise to about €1.2 billion over the next few years as the company sought to complete a €2 billion redevelopment of the airport complex. This would include T2 and a second runway.
The DAA's net debt stood at €136 million at the end of 2006. The DAA already has one corporate bond in issue worth €250 million, which matures in February 2011. The bond has a coupon of 6.5 per cent. The airport manager recently agreed a €300 million short-term debt facility with four banks, including Bank of Ireland and Ulster Bank. It also recently tapped the European Investment Bank for a €200 million loan.
Separately, Mr Collier said that he had written to Ryanair's chief executive, Michael O'Leary, asking him to withdraw his objection to the extension of the existing terminal building at Dublin Airport. The €55 million extension is aimed at providing extra retailing space and greater comfort for passengers.
The project was approved by Fingal County Council, but has been appealed.
"We have a ridiculous situation at the moment where the extension to terminal one, which is critical to get us through to the building of terminal two, has been opposed by Ryanair, yet that facility would not increase any airport charges," Mr Collier said. "Is this [ the objection] just for nuisance value? Is this just buggering people around?" he asked.
Jim Callaghan, director of regulatory affairs at Ryanair, said that the airline would not be withdrawing its objection. "If they're going to extend the [ existing] terminal, then it should be done on the basis of expanding capacity at the terminal and not just to build more shops," he said.
