THE Government appears determined to push ahead with the construction of a new £120 million peat plant in the Midlands, whether it is part funded by the EU or not. Sources said yesterday that the plan was of strategic importance to Ireland's energy supply and thus would go ahead.

EU consultants have recommended that EU funds should not be made available to fund the plant, according to a report in the Sunday Business Post, because of a delay in appointing consultants and tenders for the project. Government sources said yesterday that they were not aware of the consultants findings, but that the project would go ahead in any case.

The contract for construction of the plant is expected to be awarded by the end of the year.