Dublin Port Tunnel reaches settlement

16 August 2010

Dublin City Council this month settled a legal claim from the Nishimatsu/Mowlem/Irishenco joint venture (NMI) that built Dublin Port Tunnel. NMI had sought the extra payment for additional costs associated with the completion of the 4.5km route, including the resolution of leaks.

The settlement brought the final cost of the tunnel to EUR 789M (USD 1bn). The claim was settled for EUR 37M (USD 47.4M), bringing the final construction cost to EUR 639M (USD 819M).

When the EUR 100M (USD 126M) spent on acquiring land and EUR 50M (USD 64M) on planning, insurance, legal fees and related costs, are included the overall cost rises to EUR 789M (1bn).

British company Carillion, which owns Mowlem, pursued the claim on behalf of NMI. 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 in a statement that the claim had come to an “appropriate conclusion”.

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.