Property company Melcorpo will officially open its €6 million multi-screen cinema complex at Drogheda Town Centre tonight, 18 months ahead of a rival project backed by State agency Nama.

The company has invested €6 million in converting unused retail space in the shopping centre into an eight-screen cinema with more than 800 seats in total.

At the same time, Nama is backing one of its debtors, property developer Gerry Barrett who is spending €20 million on building 50,000sq ft of retail space and eight cinema screens at Scotch Hall shopping mall.

Mr Barrett's Eye Cinema group, which was responsible for the multiplex of the same name in Galway, will operate the Scotch Hall complex.

Melcorpo has criticised the plans on the basis that public money is being used to fund a project that could leave Drogheda oversupplied with cinemas, ultimately threatening both businesses.

The Scotch Hall complex is not due to open for another 18 months.