UCD refused extra €2.5m for Confucius Centre

The Government rejected a plea from University College Dublin for an extra €2.5 million needed to build a Chinese government-backed building on its campus, despite fears that delays could cause a diplomatic incident with Beijing.

The planned three-story "temple-style" Confucius Centre is being built for UCD's Confucius Institute, which was opened in 2006 by then Chinese vice-premier Zeng Peiyan during an official visit.

However, the UCD authorities became alarmed earlier this year that costs for the building – which is being financed by UCD and the Irish and Chinese governments – had grown sharply, from €7.4 million to €10.2 million.

UCD president Andrew Deeks wrote to Department of Education secretary general Seán Ó Foghlú in April appealing for the extra €2.5 million, according to documents released to the College Tribune under the Freedom of Information Act.

Despite “significantly increased” costs, Mr Deeks said, UCD had no option but “to proceed in order to avoid a diplomatic incident” – partly because the Dublin building is the first Confucius centre to enjoy direct funding from Beijing.

Because of that, the UCD project is “receiving considerable scrutiny at the highest levels of the Chinese Government”, Mr Deeks wrote.

"Given the exceptional circumstances of the project and its strategic importance to the Irish Government's relationship with China, I would be grateful if you would consider increasing the Irish Government contribution to the project by €2.5 million."

Matching contribution

The Beijing-headquartered Confucius Institute agreed to contribute €3 million for the building, along with a matching contribution from Dublin. In a supplementary agreement in October 2014, UCD offered €1.4 million.

A design agreement was reached between UCD and the Chinese in 2013 but problems arose last January after the university received six construction tenders the lowest from Glenman Ltd came in at €10.2 million, €3 million above expectation.

The extra costs are blamed on unforeseen design changes necessary to obtain a fire safety certificate and inflation in Irish construction. The Chinese refused a call for more funding, saying their contribution was capped.

In his reply to Mr Deeks, Mr Ó Foghlú said the State would spend €110 million over the next five years on third-level capital projects.

The Confucius Centre was “a hugely important investment”, but there are “many competing demands”, he said.

Spending decisions have to "considered carefully", he said, adding that "no final decision has been made" by the department and the Higher Education Authority (HEA).

“Given the limited funding available, we are not favourably disposed to funding a project with respect to which a contract was awarded in circumstances where the project costs were significantly above the initial budget agreed with the Department and the HEA.”