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Construction halted on Mayo power plant due to lack of funds

The biomass processing plant at Killala was only first given the greenlight in June 2015.

mrp The construction site at Killala, Co Mayo Source: MRP

WORK ON A power plant at Killala, Co Mayo, has been halted due to a lack of funding.

The plant, which was to house a biomass fuel processing facility at the old Asahi site in Killala, had only been under construction since last October.

Investment of €180 million was projected as being required when the project was first announced in June 2015.

The announcement regarding the halt in construction was made by the Mayo Renewable Power (MRP) project in a statement, saying it had suspended its main contractor due to an inability to source finance for the project.

Opposition party members have called on the government to secure and finish the site’s construction.

“This news is a major blow to over 150 construction workers and their families, as well as to the north Mayo region. This is an extremely important project which has brought employment back to the county,” said Fianna Fáil and Mayo TD Dara Calleary.

This project cannot be stalled. I am urging the Taoiseach to intervene and lead a concerted effort to work with the company to resolve the current issues.
This issue cannot be left to resolve itself.

Workers Party president Michael Donnelly meanwhile  has called on the government to finish the project utilising state bodies, saying that the private sector can not be relied upon to “deliver essential infrastructure projects”.

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“This should be a warning that the state must retain control over essential utilities such as electricity, water and the harnessing of our natural resources,” he said.

Taoiseach Enda Kenny had been present at the turning of the sod on the project last October, describing it as “a vote of confidence in the Irish economy” at the time.

It was envisaged that the power plant would eventually create 350 jobs, and supply power to over 70,000 homes in the region.

The project is still considered viable should further financing be secured, with MRP understood to be considering its options.

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