Settlement puts Port Tunnel cost at €789m

THE FINAL cost of the Dublin Port Tunnel has emerged as €789 million after Dublin City Council settled a legal claim from the construction consortium that built it.

Nishimatsu-Mowlem-Irishenco had sought the extra payment for additional costs associated with the completion of the 4.5km route, including the resolution of leaks.

According to sources with knowledge of the agreement, a number of different claims were submitted by the contractor, with one of the most recent seeking a sum close to €100 million.

It is understood the claim was finally settled in recent weeks for approximately €37 million, bringing the final construction cost to €639 million.

When the €100 million spent on acquiring land and €50 million on planning, insurance, legal fees and related costs, are included the overall cost rises to €789 million.

Mowlem was taken over by British company Carillion Plc in recent years and it pursued the claim on behalf of the joint venture. A spokeswoman for Carillion yesterday declined to comment on the settlement.

The consortium’s claim was considered by a review panel comprised of engineering experts appointed with the agreement of both sides. The panel made recommendations which were accepted.

A spokesman for the National Roads Authority (NRA), which was a notice party to the case because of its role as the funding agent, said the claim had come to an “appropriate conclusion”.

In early 2008, the NRA initiated legal action for compensation from the consortium after technical failures resulted in the closure of the tunnel.

This action was withdrawn following the replacement of some of the tunnel’s electronic systems.

According to the NRA, an average of 16,100 vehicles use the tunnel during weekdays, based on the most recent readings in the first week of August this year.

Of those, 6,250 were heavy goods vehicles (HGVs). At weekends vehicle usage falls to 9,500 with 1,650 HGVs.

The figures show that HGV traffic in the tunnel has remained static since 2007, when it averaged 6,000 during weekdays, out of a total of 13,000 vehicles using the route daily.

This suggests private car usage has increased following a reduction in toll prices for cars in 2007.

The twin-bore tunnel opened in December 2006 following a six-year build. It was designed to bring heavy goods traffic from the M1 motorway to Dublin Port while avoiding the city centre.