A controversial bid to construct an incinerator in the greater Dublin area is back in the news with Dublin City Council attempts to borrow more than €50m to complete the purchase of the site of the controversial Poolbeg facility blocked by councillors.

The Irish Times has reported that the Dublin City manager John Tierney sought approval to borrow €50.3m for site costs and an additional €10.8m to develop a district heating system using power from the incinerator.

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However, councillors voted by 26 votes to 12 not to allow the council management to seek a loan for the project.

Costs for buying the site for the plant has been estimated at €120m and as the contract with the US developers of the incinerator, Covanta, is under review until November, this means the entire construction project is being delayed.

The council and the other Dublin local authorities are responsible for providing Covanta with a site for the facility after a report commissioned by former Minister for the Environment John Gormley from John Hennessy SC found the council would face "very substantial" penalties if it failed to provide Covanta with sufficient municipal waste to fuel it over 25 years.

(BMcC/GK)