Dublin City Council has issued a letter of intent to its private sector partner, Dublin Waste to Energy Ltd, confirming its intention to proceed with the proposed Poolbeg incinerator "on agreed terms".
The firm is the successor to Elsam Ireland Ltd which was the original successful bidder for the contract to design, build operate and finance the incinerator.
The letter of intent follows concern after the new owners of Elsam sought to renegotiate the contract to build the incinerator.
Assistant city manager Matt Twomey has revealed the new owners of Elsam and Dublin Waste to Energy Ltd sought to change the manner in which the deal was financed.
Instead of providing 100 per cent of the corporate financing through its own resources, it was instead proposing to provide 25 per cent of the cost and seek the rest through third parties.
Significant changes to the original agreement had also been proposed which Mr Twomey concluded were therefore "non-compliant" with the agreement.
But yesterday's announcement by the council means the it is now attempting to hold the new owners to the original deal.
The council said it would enter into a contract on terms already agreed, to design, build, finance and operate the proposed Dublin plant at the Poolbeg peninsula.
The council said that as the nature of the negotiations was commercially sensitive, no further comment would be made.
Meanwhile, the statutory processes to provide the incinerator are continuing. A planning application to An Bord Pleanála was the subject of an oral hearing in April and May of this year and a decision is expected this autumn.
