Lower than expected traffic through the Limerick Tunnel is likely to cost taxpayers up to 200 million euro.
The state has already paid out 34 million in compensation to the operators of the tunnel, under the terms of a Public Private Partnership contract.
A Transport Infrastructure Ireland Official has now told the Dáil’s Public Accounts Committee that payments of at least 150 million euro will be required over the course of the contract, which runs up until 2041.
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This cost has been described by Labour TD Alan Kelly as “insane” but the Irish Times reports that the TII has rejected this, saying risk-sharing forms part of the contract, and that investors need a “floor” for traffic volumes to encourage them to invest.
