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Poolbeg incinerator funding is coming through Luxembourg

The Dublin Waste to Energy project is a public-private partnership between the four Dublin local ...
Newstalk
Newstalk

11.39 23 Jun 2015


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Poolbeg incinerator funding is...

Poolbeg incinerator funding is coming through Luxembourg

Newstalk
Newstalk

11.39 23 Jun 2015


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The Dublin Waste to Energy project is a public-private partnership between the four Dublin local authorities and the US company Covanta, after a series of delays the controversial project is due to be complete in 2017.

Dublin's local authorities have spent approximately €100m on the project and Covanta is due to invest €500m.

The Irish Times reports that filings in Luxembourg show that Dublin First WTE, was incorporated in September 2014, and was entered into a stakeholder loan agreement with an Irish company called Dublin Waste to Energy (Holdings), for €75m - charging an interest rate of 13.5pc on the loan.

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This means that taxable profits recorded in Ireland by Dublin Waste to Energy (Holdings) will be reduced by the cost of servicing this debt.

Setups like this are a staple of controversial tax avoidance structures used by firms registered in Luxembourg as detailed in last year's LuxLeaks documents.

The company in Luxembourg has no employees according to 2014 accounts.

When asked to comment a Dublin City Council spokesperson told the paper that, “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.”

The incinerator will process waste from the Eastern and Midlands waste region, it is part of a broader effort to meet landfill diversion targets.

 


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