Power station investment plan

BORD na Mona hopes to negotiate a shareholding in the new peat fired power station to be built in the midlands.

Mr Donal Clarke, head of corporate affairs. said Bord na Mona would seek to negotiate a share holding equal to the "£1 million to £2 million" which the company had invested in the project.

The Department of Transport, Energy and Communications had informed Bord na Mona that it could not compete for the building and operation of the station, a spokesman for the department said. This was because Bord na Mona's closeness to the project would be seen to be contrary to EU criteria on competition.

However, he added, the department would not, in principle, have any objection to Bord na Mona, once the competition is over, taking a small shareholding in the company which made the winning bid. "They would have to show it was a good decision economically and was practical."

Mr Clarke said it was Bord na Mona which decided to withdraw from the competition for building and running the station. He said the company had been aware of the issues involved and had had discussions with the department.

"Our concern would be to have a shareholding. The participation of the fuel supplier would facilitate the smooth operation of the station," Mr Clarke said. "It is only our position but it is our strongly held position."

A shortlist of five consortiums has been drawn up to bid ion the competition to build and operate the new power station. A decision is not expected until the end of the year.

The station could cost £100 million or more. EU funding of £21 million has been assigned to the project. and the EU would be concerned that there be a separation between the supplier of fuel to the station and the owners of the station.

It is understood Bord na Mona is likely to be contracted to supply one million tonnes of peat a year for 15 years to the new station which is due for completion by 2001. The company spent money developing the project, commissioning prefeasibility and feasibility studies, and buying land to be used as a site for the station.