An internal Department of Transport document has revealed that the Board of Waterford Airport needs to do a lot more on their business case before money can be considered from the government.
WLR has obtained the crucial analysis which department officials have given to Minsters Eamonn Ryan and James Lawless.
It states also that the lands at the airport generate no income at present and are deemed to have a nominal value of €10.
The document is officially known as the “Assessment of Waterford Airport’s Development Proposal” and hasn’t yet been given to the airport board or other Ministers.
The 18-page dossier outlines in detail the timeline of the past year, the department’s view of the business case and what needs to be done next.
It doesn't recommend the government gives €12m to the airport at present, which was requested by the board.
Surprisingly, the board hasn’t yet seen the document.
Department officials assess the request for money which was submitted last December and clarified during the summer with more documents.
They examine if money can be given to a private venture in suggested criteria under what are known as the ‘Infrastructure Guidelines’.
The Department says that the current business case does not represent what they describe as ‘an approval gate’ under the guidelines. There are three ‘approval gates’ which must be met.
It also refers to the proposal by the Airport board that the Council lands leased to the Airport be sold to the Airport for a nominal sum of €10.
It states the department have been advised by the board that it’s impossible for them to determine market value for the lands as there is no comparator. The Airport advised that the lands are poor agricultural land and were purchased over 40 years ago for the specific purpose of providing an airport. The documents states: “The Airport is of the view that the lands generate no income and thereby could be deemed to have only nominal value.”
The Department says the land is in the ownership of Waterford Council, that it doesn’t appear on the Airport’s Asset Register/Balance sheet and that the airport lands were entered in the Council’s Fixed Asset Register in 2003 with zero value.
In relation to the proposed €5m investment by government (agreed by cabinet in 2019) the document states that particular exchequer funding was to target safety and security related projects only.
As part of the current proposal, the department says the Airport board is also seeking €3m investment from local authorities, with €2.2m from Waterford Council, €400k from Kilkenny and €400k from Wexford.
The document outlines the financial statements of the airport over the past number of years, planning permission requirements, comparisons with other airports.
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