Negotiations continue on Loreto school
THE Department of Education and the National Development Finance Agency are continuing to engage with the Dutch Infrastructure Fund to ensure that a replacement contractor is appointed as soon as possible to five new schools, including Loreto Wexford, which were halted due to the collapse of UK construction company Carillion.
In a letter to Minister of State with responsibility for Defence Paul Kehoe, a departmental official said negotiations between DIF, the project funders and a bidder are well advanced.
‘Work is also progressing on alternative options’, Deputy Kehoe was told. ‘ To this end, DIF, the lenders and the Nationl Development Finance Agency met with interested works contractors (over a week ago) and these contractors are currently undertaking due diligence surveys of the existing works with the aim of submitting a cost proposal to DIF.’
‘By way of further developments, DIF have terminated the agreement that they had with Sammon in relation to the care and maintenance of the sites, and have subsequently put their own security and building management measures in place to ensure the continued safekeeping of the facilities’.
A meeting took place on May 16 between senior officials from the Department of Education and Skills, the National Development Agency and representatives from the management of the five schools and one further education college included in the Bundle 5 programme, as it is called.
The Department and the NFDA gave an update which included the news that an examiner was appointed to contractors Sammon Ireland Ltd which introduced an additional level of compexity to the process of securing a replacement contractor.
DIF had tendered for a replacement contractor for the completion of the buildings and for management services. Tenders were due back on April 5 and on that same day, a court appointed an examiner to the Sammon Group, including Sammon Contracting Ireland Ltd
The Department of Education official said DIF and the project funders are aware of the urgency and are continuing to target for the opening of all the schools in time for the beginning of the new school year. The schools that are closest to completion, including the Loreto which is ready to open, remain best positioned to be opened by September.
‘ The Department is endeavouring to be as upfront and as transparent as possible but also needs to be cognisant that information provided by the private side is commercially sensitive’, said the official, adding that ‘ The Department must ensure that the State’s long-term interests and contractual rights are not compromised’.
At the meeting, managements of the schools expressed the growing frustration of students, parents and staff and highlighted the importance of clarity in the communications from the Department and greater assistance in dealing with media queries. They also asked Department officials to visit their existing facilities.
The official said the Department of Education is aware of reports that some sub-contractors of Sammon have not been paid for work already undertaken.
‘ While we appreciate the very difficult situation faced by sub-contractors in this situation, neither the Department nor the NDFA are party to, nor have visibility of, the contractual and payment arrangements or transactions between Sammon and its sub-contracotrs we do not have authority to intervene in those matters. The examiner has been engaging with Sammon’s creditors’.
Minister Kehoe said he is ‘absolutely determined’ that everything is done to get the Loreto school up and running.
‘ The level of frustration felt by staff and families is completely understandable. I will continue to liaise with my colleague, Education Minister Richard Bruton, with a view to getting a speedy and satisfactory resolution’.