Wednesday 21 March 2018

Funding for Poolbeg incinerator coming from Luxembourg company

An artist’s impression of the proposed Poolbeg Incinerator
An artist’s impression of the proposed Poolbeg Incinerator

The funding for the controversial Poolbeg incinerator project is coming from a company in Luxembourg with a similar structure to those that featured in the recent Luxleaks controversy, according to media reports.

According to the Irish Times the company, Dublin First WTE, has entered into a stakeholder agreement with Dublin Waste to Energy (Holdings) for €75m and is charging an interest rate of 13.5pc on the loan.

The arrangement means that the profits recorded in Ireland by Dublin Waste to Energy (Holdings) will be reduced by the cost of servicing the loan. One of the features of the Luxleaks controversy was companies creating entities that reduced their profits in certain jurisdictions while not producing similar taxable profits in Luxembourg.

Covanta is due to spend about €500m developing the incinerator, with the four Dublin local authorities having already spent over €100m on the project.

Dublin City Council had not immediately responded to a request for comment. However, a spokesman for the organisation told the Irish Times that all subsidiaries of the Dublin Waste to Energy are Irish-domiciled companies.

"Dublin First WTE is not part of the Dublin Waste to Energy Group, it is a wholly-owned subsidiary of one of the funders of the project,” he said.

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