Report on plan for IFSC centre now complete

THE Government has received a report on the £130 million aquarium, eco centre and retail development being proposed by financier Mr Dermot Desmond for the IFSC. The report, drawn up by economic consultant Dr Peter Bacon, is not believed to have made a firm recommendation on the viability of the centre, but to have said that a number of assumptions would need to be realised for the project to be financially successful.

The Government must now decide whether to take the project further, as the initial financing cost would fall on the Exchequer. The Custom House Docks Development, Authority delayed a competition on proposals for the huge vacant Stack in the IFSC, the proposed site for Mr Desmond's development, until Dr Bacon's report was completed.

Mr Desmond's proposal involves a transparent pyramid higher than Liberty Hall which would contain an aquarium, other ecological displays and a retail centre. The initial project cost would be substantial for the Exchequer, as it is unlikely to qualify for EU funding, and Dr Bacon's report undertakes an economic appraisal of the main issues.

Mr Desmond has put the project forward on the basis that it would be a major "millennium, project" for the State, it would act as a central tourist attraction and would also provide a new and missing dimension from the IFSC.

Bord Failte is understood to have backed the idea of the aquarium and centre becoming a potential major tourist attraction, which could assist in marketing Ireland as a centre for family holidays.

The initial investment by the State would not be recouped directly from the centre's revenue and the report examines its likely value in terms of attracting tourists, as well as looking at the project's potential as a millennium project.

Another key consideration is whether the revenue generated could cover the ongoing running costs of the centre. Mr Desmond is understood to have offered to underwrite the running costs to some extent.

Dr Bacon's report examines the forecasts drawn up for Mr Desmond and Bord Failte's own tourist projections, and underlines that realising these targets would be central to the success of the project. The consultant examined the work done by Mr Desmond on the proposal, evaluated the tourism potential and looked at the contribution the project could make to the IFSC.

Another key issue is the additional traffic and activity which the project would generate around the centre.