Planned 63 housing scheme for Sligo placed on hold as Minister queries costs
The houses in Sligo were due to be built at Rathellen, Finisklin. Sligo is one of six areas affected in a total of 500 homes across the country.
The social housing developments were understood to be near shovel-ready and were to be delivered under a public private partnership (PPP) scheme across six sites.
Councillors have been forwarded a letter from the Department of Housing, Local Government and Heritage outlining how Dublin City Council were the lead local authority for PPP Bundle 3 which comprises 6 sites: Dublin (3) Sligo (1) Kildare (1) and Wicklow (1).
The email from the DHLGH outlined how after careful evaluation of the costs associated with the 486 homes which were to be delivered under PPP Bundle 3, the Department has decided not to proceed with contract award
It also states that the Department, the NDFA and the relevant Local Authorities remain fully committed to delivering the social housing that PPP Bundle 3. It said these social homes were very much needed and remain a priority for Government, the Department and the relevant Local Authorities.
These 486 homes will instead be delivered by way of an alternative procurement and delivery strategy.
Sligo County Council's Housing Capital Team are reviewing the options available for an alternative procurement and delivery strategy for the Rathellen site. This will require the agreement of the department.
Housing Minister James Browne said: 'After careful evaluation of the costs associated with the 486 homes which were to be delivered under PPP Bundle 3, the Department has decided not to proceed with contract award on a value for money basis,'
The decision by the Minister for Housing not to proceed with the project has been described as as a serious setback by the Cathaoirleach of the council, Cllr Declan Bree.
'There are in excess of 1,600 households on the Council's housing waiting list and in this context the delay in proceeding with the 63 units in Finisklin is unacceptable.' he said.
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The first phase of the project was to include 63 units including 18 Duplexes, 39 new houses, and 6 converted units in the existing Rathellen House.
'Given the failure of the Minister and his Department to deliver this public private partnership deal we now need to see the Minister and the Government provide the necessary funding directly to the County Council so as we can deliver the scheme in a speedy and efficient manner.' Cllr Bree said.
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