A tender review is underway amid concern over a funding gap in the delivery of the multi-million Alpha Innovation Centre in Letterkenny.
It has emerged that the business hub’s initial tender process was terminated after two of three interested parties pulled out.
The enterprise campus, which Donegal County Council estimated would cost €30million, is set to be built on the former ESB premises on Pearse Road and comprise an ‘Alpha’ innovation centre and ‘Beta’ business centre.
Cllr Michael McBride told a meeting of the Letterkenny-Milford Municipal District today that the building had three expressions of interest when it went out to tender earlier this year. One party pulled out quickly before a second was withdrawn shortly before the closing date, leaving one party standing.
“What I understand is there is a massive difference in the amount of money that is available for the Alpha Beta building than the tender that came in for it,” Cllr McBride said.
“It is a figure that I don’t see could be reconciled for the same building.”
Cllr McBride added: “We have a responsibility to the public and to the people of Letterkenny to deliver that building, to deliver as soon as we can, the longer it takes, the price of concrete and materials are increasing so our resources are less valuable.”
Cllr McBride has requested a workshop to discuss the delivery of the project. The workshop he says, should determine if more funding streams can be identified, if the building size needs to be reduced or if the project is feasible.
“I would hope we can get the extra funding needed to deliver the project as proposed. I think it’s time we sat down around the table and figure out what is going on because it’s a massive piece of infrastructure in Letterkenny and we can’t get it wrong,” Cllr McBride said.
In 2023, the total cost of constructing the centre was estimated at €30m, funded by a combination of Shared Island, Border Economic Development Fund and Donegal County Council’s own resources.
3D Views of the proposed Alpha Innovation Centre. Image: Donegal County Council
The project is part of the council’s vision for a state of the art Business Innovation Quarter in Letterkenny and is intended to include a seven-storey building of approx 1,625sq.m (17,500sq.ft) and office and research & development facilities – providing space and opportunities for new and existing businesses to work and network.
Mr Liam Ward, Director of Services, confirmed today that the original tender process has been terminated and there is a review being undertaken.
Cllr Jimmy Kavanagh added: “This is a huge part of the regeneration plan for the town. Given the location, it’s a hugely exciting development for the town. It’s something we want to see progress and I think it’s important we get regular updates on it.
“I would like to see the building provided as planned. It would be an absolute game-changer for Letterkenny if this went ahead.”
Cllr Ciaran Brogan welcomed the move to reevaluate the tender process, acknowledging the amount of work done to date to secure funding.
“I have every confidence that the tender review group will have a positive outcome,” Cllr Brogan said.
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