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Léargas has informed the Department of Justice that more than 25 banks originally willing to fund the development have withdrawn from the process and will not now extend any line of credit.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
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
Saturday, 1 November 2008
No Tower yet on U2's horizon
UNCERTAINTY in the world financial markets has resulted in the flagship U2 tower planned in the Dublin Docklands being delayed by at least a year.
Negotiations between the Dublin Docklands Development Authority (DDDA) and Geranger Ltd -- a consortium made up of the band and developers -- have been suspended for at least 12 months until financial markets improve.
The €200m 36-storey skyscraper is designed by Norman Foster, and is planned for Hanover Quay in the docklands at the mouth of the River Liffey -- the site of the band's existing studio.
But yesterday it emerged that although "significant progress" had been made on the project, and the DDDA had "full confidence" it would go ahead, it was decided to suspend negotiations on the development.
Assuming it goes ahead, the tower will soar 120 metres above the docklands. It includes a public viewing platform at 100 metres, a public amenity area at the base and 34 social and affordable housing units.
At the top, the U2 studio is located in a suspended egg-shaped pod while an 'energy centre' sits at the top.
The building -- one of two landmark towers which will form a gateway to Dublin -- has been approved by planners in the DDDA. The second tower, to be called the Point Village Tower, is beside the renamed O2 arena -- formerly the Point Depot -- at the opposite side of the Liffey.
Yesterday the DDDA said that Geranger was selected as the provisional preferred bidder to design, construct and finance the U2 Tower and neighbouring Britain Quay Building late last year but "intervening market events" had made progress more difficult.
"The Docklands Authority continues to have full confidence in this landmark project for an inspirational U2 Tower building, which is an important element in the master plan for the area," the DDDA said in a statement.
"The objective is to see this landmark project completed. However, given the current unfavourable economic environment, more time is needed at this juncture.
Geranger is made up of U2 and its management, Sean Mulryan's Ballymore Properties and developer Paddy McKillen, who co-owns the Clarence Hotel on the Dublin quays with band members Bono and the Edge.
The Clarence Hotel redevelopment -- also a Norman Foster design -- will go ahead.
The project has not been without controversy. The DDDA served a compulsory purchase order on U2's Hanover Quay studio, but the band concluded a deal which allowed them to have the top two floors of the new landmark tower.
But a complicated system used to ensure the impartiality of the process meant the DDDA could not identify the first winning entry, and a "twisted tower" design from Irish firm BCDH was chosen instead.
This was later overturned in favour of the design by Norman Foster, the architect behind the iconic 'Gherkin' building in London's financial district.
The band recorded much of their new album, rumoured to be called 'No Line on the Horizon', at its Hanover Quay studios earlier this year.
Paul Melia
www.buckplanning.ie
Negotiations between the Dublin Docklands Development Authority (DDDA) and Geranger Ltd -- a consortium made up of the band and developers -- have been suspended for at least 12 months until financial markets improve.
The €200m 36-storey skyscraper is designed by Norman Foster, and is planned for Hanover Quay in the docklands at the mouth of the River Liffey -- the site of the band's existing studio.
But yesterday it emerged that although "significant progress" had been made on the project, and the DDDA had "full confidence" it would go ahead, it was decided to suspend negotiations on the development.
Assuming it goes ahead, the tower will soar 120 metres above the docklands. It includes a public viewing platform at 100 metres, a public amenity area at the base and 34 social and affordable housing units.
At the top, the U2 studio is located in a suspended egg-shaped pod while an 'energy centre' sits at the top.
The building -- one of two landmark towers which will form a gateway to Dublin -- has been approved by planners in the DDDA. The second tower, to be called the Point Village Tower, is beside the renamed O2 arena -- formerly the Point Depot -- at the opposite side of the Liffey.
Yesterday the DDDA said that Geranger was selected as the provisional preferred bidder to design, construct and finance the U2 Tower and neighbouring Britain Quay Building late last year but "intervening market events" had made progress more difficult.
"The Docklands Authority continues to have full confidence in this landmark project for an inspirational U2 Tower building, which is an important element in the master plan for the area," the DDDA said in a statement.
"The objective is to see this landmark project completed. However, given the current unfavourable economic environment, more time is needed at this juncture.
Geranger is made up of U2 and its management, Sean Mulryan's Ballymore Properties and developer Paddy McKillen, who co-owns the Clarence Hotel on the Dublin quays with band members Bono and the Edge.
The Clarence Hotel redevelopment -- also a Norman Foster design -- will go ahead.
The project has not been without controversy. The DDDA served a compulsory purchase order on U2's Hanover Quay studio, but the band concluded a deal which allowed them to have the top two floors of the new landmark tower.
But a complicated system used to ensure the impartiality of the process meant the DDDA could not identify the first winning entry, and a "twisted tower" design from Irish firm BCDH was chosen instead.
This was later overturned in favour of the design by Norman Foster, the architect behind the iconic 'Gherkin' building in London's financial district.
The band recorded much of their new album, rumoured to be called 'No Line on the Horizon', at its Hanover Quay studios earlier this year.
Paul Melia
www.buckplanning.ie
Twists and turns in bid to design capital landmark
THE 2003 international architectural competition to design the U2 Tower was mired in controversy because the winning entry couldn't be identified.
A mix-up saw the Dublin Docklands Development Authority unable to match the number assigned to the entry with a name, and instead "a stunning twisting tower design" by Blackrock-based BCDH Architects was chosen.
But the building was just 60 metres high, and in 2006 the Grand Canal Docks Planning Scheme was amended which saw the height raised to 120 metres.
The DDDA held another competition which saw four firms submit bids, including Geranger -- made up of U2 Ballymore Properties, and developer Paddy McKillen -- the Riverside Partnership, Mountbrook Homes and Treasury Holdings/Sisk.
Irish Independent
www.buckplanning.ie
A mix-up saw the Dublin Docklands Development Authority unable to match the number assigned to the entry with a name, and instead "a stunning twisting tower design" by Blackrock-based BCDH Architects was chosen.
But the building was just 60 metres high, and in 2006 the Grand Canal Docks Planning Scheme was amended which saw the height raised to 120 metres.
The DDDA held another competition which saw four firms submit bids, including Geranger -- made up of U2 Ballymore Properties, and developer Paddy McKillen -- the Riverside Partnership, Mountbrook Homes and Treasury Holdings/Sisk.
Irish Independent
www.buckplanning.ie
U2 Tower project suspended for a year due to downturn
PLANS for Ireland’s first skyscraper — the U2 Tower — has become the latest victim of the economic downturn.
The €200 million design by renowned architect Norman Foster was to house the rock band’s egg-shaped recording studio at its peak.
But Dublin Docklands Authority said it was suspending the massive project for a year because of the crumbling property and financial markets.
The authority insisted it was committed to rolling out the ambitious development, which will soar 120m above the capital.
A statement read: “The objective is to see this landmark project completed.
“However, given the current unfavourable economic environment, more time is needed at this juncture.
“The Docklands Authority will review all of its options on an ongoing basis,” it said.
A consortium including the U2 band members and property developers Ballymore, headed up by tycoon Sean Mulryan, had been in talks with the Docklands Authority over the massive scheme for the last year.
Mr Foster, whose notable projects include the Gherkin in London and the Millau Viaduct in France, was chosen as the design winner in 2007.
As well as the band’s recording studio, the iconic building would have included a public viewing platform at 100m.
There was also to be a public amenity area at the base, hotel, retail and residential accommodation, including a fifth for social and affordable housing, according to the plans.
The Docklands Authority said it was suspending negotiations for up to 12 months to allow for the property and financial markets to improve.
“The Docklands Authority continues to have full confidence in this landmark project for an inspirational U2 Tower building, which is an important element in the master plan for the area,” it said.
“The authority is confident that these economic uncertainties are short to medium term and that the Docklands will continue to be a vibrant and positive regeneration project for the city of Dublin.”
Irish Examiner
www.buckplanning.ie
The €200 million design by renowned architect Norman Foster was to house the rock band’s egg-shaped recording studio at its peak.
But Dublin Docklands Authority said it was suspending the massive project for a year because of the crumbling property and financial markets.
The authority insisted it was committed to rolling out the ambitious development, which will soar 120m above the capital.
A statement read: “The objective is to see this landmark project completed.
“However, given the current unfavourable economic environment, more time is needed at this juncture.
“The Docklands Authority will review all of its options on an ongoing basis,” it said.
A consortium including the U2 band members and property developers Ballymore, headed up by tycoon Sean Mulryan, had been in talks with the Docklands Authority over the massive scheme for the last year.
Mr Foster, whose notable projects include the Gherkin in London and the Millau Viaduct in France, was chosen as the design winner in 2007.
As well as the band’s recording studio, the iconic building would have included a public viewing platform at 100m.
There was also to be a public amenity area at the base, hotel, retail and residential accommodation, including a fifth for social and affordable housing, according to the plans.
The Docklands Authority said it was suspending negotiations for up to 12 months to allow for the property and financial markets to improve.
“The Docklands Authority continues to have full confidence in this landmark project for an inspirational U2 Tower building, which is an important element in the master plan for the area,” it said.
“The authority is confident that these economic uncertainties are short to medium term and that the Docklands will continue to be a vibrant and positive regeneration project for the city of Dublin.”
Irish Examiner
www.buckplanning.ie
Toxic waste dump ‘no threat to public’
EXPERTS have made several recommendations to reduce the risk from vast quantities of toxic waste dumped close to the Irish naval headquarters in Cork Harbour.
However, the toxic materials at the former Irish Steel plant do not pose an immediate risk to naval or civilian staff based at Haulbowline, a report has found.
The Environmental Health and Safety report was carried out by RPS Engineers on behalf of the Department of Defence. It was ordered after the Irish Examiner revealed in July the full extent of the environmental disaster on the former steelworks site alongside the naval base.
Up to 500,000 tonnes of toxic waste are dumped on the site, which was described by experts as one of the country’s worst environmental disasters. Most of it is piled in an area known as the “east tip”.
RPS conducted soil and air tests at various locations at the naval base and around the steelworks site.
Their report, seen by the Irish Examiner, says elevated levels of potentially hazardous substances were recorded in some areas, in particular the north-east of the naval dockyard and close to the chapel.
“The concentrations are not sufficient to present an unacceptable risk to site personnel considering the low likelihood of exposure in these areas,” the report reads. But as a precautionary measure, further investigations are being undertaken.
Tests to establish the risk to staff from wind-blown dust found that there were no breaches of Heath and Safety Authority limits.
However, the report did state that the levels of airborne dust could increase after an extended dry period, followed by an easterly wind, and if waste material is excavated.
Dust samples at each of eight test locations were well below the Environmental Protection Agency (EPA) daily concentration limit. Just one single high result was recorded, and it was still below the World Health Organisation guideline. All other results were considered moderate.
However, the report did say that dust levels could have been higher had it not been for record rainfall in August — 183% higher than the 30-year average at Cork Airport.
Irish Examiner
www.buckplanning.ie
However, the toxic materials at the former Irish Steel plant do not pose an immediate risk to naval or civilian staff based at Haulbowline, a report has found.
The Environmental Health and Safety report was carried out by RPS Engineers on behalf of the Department of Defence. It was ordered after the Irish Examiner revealed in July the full extent of the environmental disaster on the former steelworks site alongside the naval base.
Up to 500,000 tonnes of toxic waste are dumped on the site, which was described by experts as one of the country’s worst environmental disasters. Most of it is piled in an area known as the “east tip”.
RPS conducted soil and air tests at various locations at the naval base and around the steelworks site.
Their report, seen by the Irish Examiner, says elevated levels of potentially hazardous substances were recorded in some areas, in particular the north-east of the naval dockyard and close to the chapel.
“The concentrations are not sufficient to present an unacceptable risk to site personnel considering the low likelihood of exposure in these areas,” the report reads. But as a precautionary measure, further investigations are being undertaken.
Tests to establish the risk to staff from wind-blown dust found that there were no breaches of Heath and Safety Authority limits.
However, the report did state that the levels of airborne dust could increase after an extended dry period, followed by an easterly wind, and if waste material is excavated.
Dust samples at each of eight test locations were well below the Environmental Protection Agency (EPA) daily concentration limit. Just one single high result was recorded, and it was still below the World Health Organisation guideline. All other results were considered moderate.
However, the report did say that dust levels could have been higher had it not been for record rainfall in August — 183% higher than the 30-year average at Cork Airport.
Irish Examiner
www.buckplanning.ie
City officials will oppose plans to reclaim part of Dublin Bay
DUBLIN CITY management is to oppose Dublin Port Company’s plan to infill 21 hectares of Dublin Bay to expand its operations.
The port company has applied to An Bord Pleanála for permission to reclaim the land using the Strategic Infrastructure Act, the “fast-track” planning legislation which allows developers of major infrastructure projects to bypass local authority processes.
However, Dublin City Council will next week submit to An Bord Pleanála that the application is “premature”, without adequate justification, and could cause flooding.
In a report to be put before city councillors on Monday, assistant city manager Michael Stubbs says the proposal contravenes the city development plan and is premature, pending the outcome of studies from the Department of the Environment and the Department of Transport.
It also contravenes the council’s own Dublin Bay study, Mr Stubbs states.
“It is the opinion of the Planning Authority that the long term vision and potential of the Dublin Port area is that outlined in Option 7 of the Dublin Bay study – ie a full relocation of the port,” his report says.
The council has concerns in relation to the water, drainage, natural heritage, visual impact and transport effects of the development. Its drainage division in particular feels the proposal “will have significant impacts on flooding risk”, Mr Stubbs points out.
The city management does not need the imprimatur of councillors to lodge an objection with An Bord Pleanála. However, the submission is likely to find favour with the majority of councillors, who have already endorsed the council’s Dublin Bay study.
Councillors and local TDs including Finian McGrath are among more than 100 objectors who have made submissions to An Bord Pleanála on the application.
Fine Gael councillor and chair of Dublin Bay Watch Gerry Breen welcomed the council’s opposition to the development.
“This proposal in its various forms, going back some 40 years, is unwarranted and has more to do with vested interests achieving land gain and nothing to do with the core port activities,” he said.
In his own submission to An Bord Pleanála, Mr Breen said the port company claimed port capacity was reached in the 1970s. The tonnage shipped through has increased dramatically since then without causing problems, he said.
“The recent CSO figures show that the tonnage for the first six months of 2008 has declined versus 2007. This downward trend is unlikely to be reversed in the next few years.”
Mr Breen also pointed out that Minister for the Environment John Gormley was shortly to ratify an order designating the lands at issue as a Special Protection Area to protect wild birds.
Dublin Port Company said the increase was essential to ensure it can fulfil its statutory duty to handle port trade. Measures would be introduced to address possible negative impacts, it said.
The Irish Times
www.buckplanning.ie
The port company has applied to An Bord Pleanála for permission to reclaim the land using the Strategic Infrastructure Act, the “fast-track” planning legislation which allows developers of major infrastructure projects to bypass local authority processes.
However, Dublin City Council will next week submit to An Bord Pleanála that the application is “premature”, without adequate justification, and could cause flooding.
In a report to be put before city councillors on Monday, assistant city manager Michael Stubbs says the proposal contravenes the city development plan and is premature, pending the outcome of studies from the Department of the Environment and the Department of Transport.
It also contravenes the council’s own Dublin Bay study, Mr Stubbs states.
“It is the opinion of the Planning Authority that the long term vision and potential of the Dublin Port area is that outlined in Option 7 of the Dublin Bay study – ie a full relocation of the port,” his report says.
The council has concerns in relation to the water, drainage, natural heritage, visual impact and transport effects of the development. Its drainage division in particular feels the proposal “will have significant impacts on flooding risk”, Mr Stubbs points out.
The city management does not need the imprimatur of councillors to lodge an objection with An Bord Pleanála. However, the submission is likely to find favour with the majority of councillors, who have already endorsed the council’s Dublin Bay study.
Councillors and local TDs including Finian McGrath are among more than 100 objectors who have made submissions to An Bord Pleanála on the application.
Fine Gael councillor and chair of Dublin Bay Watch Gerry Breen welcomed the council’s opposition to the development.
“This proposal in its various forms, going back some 40 years, is unwarranted and has more to do with vested interests achieving land gain and nothing to do with the core port activities,” he said.
In his own submission to An Bord Pleanála, Mr Breen said the port company claimed port capacity was reached in the 1970s. The tonnage shipped through has increased dramatically since then without causing problems, he said.
“The recent CSO figures show that the tonnage for the first six months of 2008 has declined versus 2007. This downward trend is unlikely to be reversed in the next few years.”
Mr Breen also pointed out that Minister for the Environment John Gormley was shortly to ratify an order designating the lands at issue as a Special Protection Area to protect wild birds.
Dublin Port Company said the increase was essential to ensure it can fulfil its statutory duty to handle port trade. Measures would be introduced to address possible negative impacts, it said.
The Irish Times
www.buckplanning.ie
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