State funding decision for delayed Cork Events Centre to be made in coming weeks, says McGrath

Multipurpose 6,000-capacity venue to host concerts and conferences planned for site close to South Gate Bridge in city

The saga of the centre first started in 2014 when a tender for €20 million of State aid was awarded to BAM Property and Live Nation. Photograph: iStock
The saga of the centre first started in 2014 when a tender for €20 million of State aid was awarded to BAM Property and Live Nation. Photograph: iStock

Ireland’s nominee to the EU Commission Michael McGrath has said that a decision on the ask for additional State funding for the much delayed Cork Events Centre will be made in the coming weeks.

The saga of the centre first started in 2014 when a tender for €20 million of State aid was awarded to BAM Property and Live Nation. The sod was turned in February 2016 by then taoiseach Enda Kenny.

The multipurpose 6,000-capacity venue to host concerts and conferences is planned for a site close to the South Gate Bridge in the city. It was expected to be completed in 2018. However, the project has been mired in controversy for some time due to lack of progress on the site.

A meeting of Cork City Council heard last December that arising out of inflation additional funding will be needed for the project. Initially BAM Property and Livenation were expected to benefit from €20 million in public funding, which was subsequently increased to to €50 million and then to €57 million.

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Cork City Council has submitted a request to Government for more funding. However, the exact figure requested has not been made public.

Speaking in Cork, the Former minister for finance said that the file is still being actively managed.

“We have had extensive contact with Cork City Council because they have been the party doing the negotiations with BAM and Live Nation.”

“It sits within the Department of Housing at the moment at Government level.

“They have carried out their own due diligence and need to be satisfied in relation to certain aspects of the project and ensure it is fully compliant with all of the normal rules and procedures that you would expect.

“I am very confident that Government will make a decision very shortly. I do expect a decision in the next few weeks – I would anticipate in July.”

When asked if penalties could be imposed on contractors who overrun on the time allocated for large state-funded capital projects, Mr McGrath said that each contract is a stand-alone contractual arrangement.

BAM is also engaged in the construction of the national children’s hospital project, which has been beset by cost overruns.

He added that the Governments wants to see the project happen.

“We are very much supportive of it, but we have to ensure when you are spending public money that you do so in the proper manner.”