COUNCIL RETURN TO BANKS TO PAY OVERRUN ON SEAMUS QUIRKE

Date Published: 06-Dec-2011

City council negotiations on the delayed Seamus Quirke road project have been described as 'shambolic'.

It's as Galway city council is forced to return to the banks to seek an extra 3 million euro to pay for the over-run on the new roadway.

Following a rigorous debate at last evening's city council meeting, it was unanimously agreed to increase the city council loan for the scheme from five million to eight million euro.

This means that the scheme, when added to Government funding allocations, is now running at 16 point 5 million euro.

That's over 6 million more than the scheme was costed at just over a year ago.

The city council loan of 8 million euro loan, taken out over twelve years and at current interest rates, will cost the taxpayer 10 point six million euro.

Director of services Ciaran Hayes told the meeting that further claims for the road had yet to be agreed on by both contractor and city council, and that he was determined to contest and minimise the cost to the council.

However speaking at the meeting, Councillor Peter Keane described negotiations on the delayed road project as 'shambolic'