The government is seeking assurances from the consortium selected to build the Thornton Hall super-prison that it will be able to finance the €400 million project.
Amid growing concerns about the future of the landmark project, the state has sent a letter seeking ‘‘full and frank’’ financial information from Léargas, the Bernard McNamara-led consortium selected to build the public private partnership (PPP) project.
The letter was sent after more than 20 banks withdrew from the funding process in recent weeks. There is also increasing unease in the cabinet over the future of the project.
Formal contracts between the government and Léargas have yet to be signed, almost a year after the consortium was selected as the preferred bidder to build the prison.
Under the terms of the PPP, the consortium is due to finance and build the scheme and will then receive a contribution from the state over a 25-year period.
Both sides are believed to unhappy with the current agreement, and Léargas has told the state that it will have to contribute more funds to the project if the PPP is to go ahead.
However, the Department of Justice has been told to rein in spending and has allocated just €100,000 next year towards the prison, from its €52 million prison building budget, according to new figures obtained by this newspaper.
The state is now seeking formal assurances that Léargas has access to capital to complete the prison, and that a line of credit is in place. The Léargas consortium includes McNamara, Barclays Private Equity and GSL, the international prison operator.
Léargas has informed the Department of Justice that more than 25 banks originally willing to fund the development have withdrawn from the process and will not now extend any line of credit. The remaining five banks in the process are charging a higher rate for the capital due to the high cost of capital on the global markets.
They include Barclays, British bank Lloyds and Dexia, a European lender that specialises in public finance.
Sunday Business Post
www.buckplanning.ie
Showing posts with label thornton hall. Show all posts
Showing posts with label thornton hall. Show all posts
Sunday, 2 November 2008
The government is seeking assurances from the consortium selected to build the Thornton Hall super-prison that it will be able to finance the €400 mil
The government is seeking assurances from the consortium selected to build the Thornton Hall super-prison that it will be able to finance the €400 million project.
Amid growing concerns about the future of the landmark project, the state has sent a letter seeking ‘‘full and frank’’ financial information from Léargas, the Bernard McNamara-led consortium selected to build the public private partnership (PPP) project.
The letter was sent after more than 20 banks withdrew from the funding process in recent weeks. There is also increasing unease in the cabinet over the future of the project.
Formal contracts between the government and Léargas have yet to be signed, almost a year after the consortium was selected as the preferred bidder to build the prison.
Under the terms of the PPP, the consortium is due to finance and build the scheme and will then receive a contribution from the state over a 25-year period.
Both sides are believed to unhappy with the current agreement, and Léargas has told the state that it will have to contribute more funds to the project if the PPP is to go ahead.
However, the Department of Justice has been told to rein in spending and has allocated just €100,000 next year towards the prison, from its €52 million prison building budget, according to new figures obtained by this newspaper.
The state is now seeking formal assurances that Léargas has access to capital to complete the prison, and that a line of credit is in place. The Léargas consortium includes McNamara, Barclays Private Equity and GSL, the international prison operator.
Léargas has informed the Department of Justice that more than 25 banks originally willing to fund the development have withdrawn from the process and will not now extend any line of credit. The remaining five banks in the process are charging a higher rate for the capital due to the high cost of capital on the global markets.
They include Barclays, British bank Lloyds and Dexia, a European lender that specialises in public finance.
Sunday Business Post
www.buckplanning.ie
Amid growing concerns about the future of the landmark project, the state has sent a letter seeking ‘‘full and frank’’ financial information from Léargas, the Bernard McNamara-led consortium selected to build the public private partnership (PPP) project.
The letter was sent after more than 20 banks withdrew from the funding process in recent weeks. There is also increasing unease in the cabinet over the future of the project.
Formal contracts between the government and Léargas have yet to be signed, almost a year after the consortium was selected as the preferred bidder to build the prison.
Under the terms of the PPP, the consortium is due to finance and build the scheme and will then receive a contribution from the state over a 25-year period.
Both sides are believed to unhappy with the current agreement, and Léargas has told the state that it will have to contribute more funds to the project if the PPP is to go ahead.
However, the Department of Justice has been told to rein in spending and has allocated just €100,000 next year towards the prison, from its €52 million prison building budget, according to new figures obtained by this newspaper.
The state is now seeking formal assurances that Léargas has access to capital to complete the prison, and that a line of credit is in place. The Léargas consortium includes McNamara, Barclays Private Equity and GSL, the international prison operator.
Léargas has informed the Department of Justice that more than 25 banks originally willing to fund the development have withdrawn from the process and will not now extend any line of credit. The remaining five banks in the process are charging a higher rate for the capital due to the high cost of capital on the global markets.
They include Barclays, British bank Lloyds and Dexia, a European lender that specialises in public finance.
Sunday Business Post
www.buckplanning.ie
Sunday, 15 July 2007
Thornton Hall case set for end of July
A full hearing of a local man's High Court bid to halt the development of the proposed new prison at Thornton Hall in north Co Dublin will take place later this month.
Michael Kavanagh, who has lived in Kilssallaghan, Co Dublin, all his life, is also seeking an injunction to prevent the awarding of a tender for the construction of the €29 million facility.
Mr Kavanagh, a grandfather and retired Aer Lingus worker, told an earlier hearing of the court that he had lived beside the proposed site for more than 60 years. He said he first heard of the Government decision to build the prison on the radio and was "truly astounded and shocked" because there had been no prior consultation with the local community.
The proposed new prison will mean that some 2,500 people, including prisoners and workers, will be located in a purely agricultural area of Dublin, he said.
When the matter was before Mr Justice Thomas Smyth yesterday to deal with issues of discovery of documents, the judge fixed July 24th as the date for a full hearing of the case.
Martin Giblin SC, for Mr Kavanagh, strongly resisted the decision to have the full hearing on that date on grounds that his side were not ready.
Mr Justice Smyth responded that he had been asked to deal with the matter urgently and urgency had been given to it.
Mr Giblin continued to protest at the decision and said he understood that no application for an early date had been made.
The judge said an application was made for an early trial. All he could do was what the justice system required - deliver justice as soon and as expeditiously as he could for the litigants that come before the court. Mr Giblin said he feared there was a grave risk that justice would not be done. The judge said Mr Giblin could take whatever course he wished.
© 2007 The Irish Times
Michael Kavanagh, who has lived in Kilssallaghan, Co Dublin, all his life, is also seeking an injunction to prevent the awarding of a tender for the construction of the €29 million facility.
Mr Kavanagh, a grandfather and retired Aer Lingus worker, told an earlier hearing of the court that he had lived beside the proposed site for more than 60 years. He said he first heard of the Government decision to build the prison on the radio and was "truly astounded and shocked" because there had been no prior consultation with the local community.
The proposed new prison will mean that some 2,500 people, including prisoners and workers, will be located in a purely agricultural area of Dublin, he said.
When the matter was before Mr Justice Thomas Smyth yesterday to deal with issues of discovery of documents, the judge fixed July 24th as the date for a full hearing of the case.
Martin Giblin SC, for Mr Kavanagh, strongly resisted the decision to have the full hearing on that date on grounds that his side were not ready.
Mr Justice Smyth responded that he had been asked to deal with the matter urgently and urgency had been given to it.
Mr Giblin continued to protest at the decision and said he understood that no application for an early date had been made.
The judge said an application was made for an early trial. All he could do was what the justice system required - deliver justice as soon and as expeditiously as he could for the litigants that come before the court. Mr Giblin said he feared there was a grave risk that justice would not be done. The judge said Mr Giblin could take whatever course he wished.
© 2007 The Irish Times
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