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					 Department of Communications,
  Marine and Natural Resources



OPERATIONAL PROGRAMME FOR
 ECONOMIC INFRASTRUCTURE
           1994 –1999

            IRELAND

        FINAL REPORT
          (Original print 17-02-03)




     Updated 26 March 2003
                           TABLE OF CONTENTS



   Preface to EIOP                                                         Page 3

      Chapter 1: Delivery of EIOP                                         Page 4

      Chapter 2: EIOP Sub-Programme – Energy                              Page 26

       2.1 Peat Generation
       2.2 Energy Efficiency
       2.3 Renewables
       2.4 Cut-away Bog
       2.5 Rural Networks

      Chapter 3: EIOP Sub-Programme – Communications                      Page 71

       3.1 Telecommunications
       3.2 Postal
       3.3 Broadband
       3.4 E-commerce

      Chapter 4 : EIOP Sub-Programme – Technical Assistance               Page 99

       4.1 General Technical Assistance
       4.2 IT Awareness Campaign

      Chapter 5 : Expenditure under EIOP                                  Page 108

      Chapter 6 : Audit Dimensions of EIOP                                Page 124

      Appendix 1: European Commission Decisions for EIOP                  Page 154
      Appendix 2: Composition of EIOP Monitoring Committee
      Appendix 3: EIOP Additions and Re-allocations
      Appendix 4: EIOP Monitoring Committee‟s Report on Mid-term Review
      Appendix 5: EIOP Monitoring Committee‟s paper on Community
       Structural Assistance and Employment
      Appendix 6: Equal Opportunities for Men and Women
      Appendix 7: EU Regulations
      Appendix 8: Memorandum of Understanding regarding Peat Fired
       Electricity Generation
      Appendix 9: Energy Audit Grant Scheme
      Appendix 10: Energy Efficiency Investment Support Scheme Payments
      Appendix 11: Renewable Energy - AER III Projects Funded by ERDF
      Appendix 12: Renewable Energy – Feasibility Grant Scheme
      Appendix 13: List of rural Sub-Post Offices Automated
      Appendix 14: E-commerce Project Impact Data
      Appendix 15: EIOP Verification Group‟s Questionnaire
      Appendix 16: List of Audits
      Appendix 17: List of Irregularities




26 March 2003                                 2
                            Preface to EIOP



                          Economic Infrastructure
                          Operational Programme
                                IRELAND
                                1994-1999




Pursuant to Commission Decision C(94) 1971/2 of 29 July 1994
(as amended by C(97) 1945 of 8 July 1997; by C(1998) 2115 of
23 July 1998; by C(1999) 3779 of 26 November 1999 and by
C(2000) 1292 of 8 June 2000), concerning the granting of
assistance from the European Regional Development Fund
(ERDF),         to   an    Operational   Programme   for   Economic
Infrastructure under the Objective 1 Community Support
Framework for structural assistance for Ireland.




                           ERDF : 94.04.09.005
                          ARINCO : 94.IR.16004



26 March 2003                        3
            CHAPTER 1

Delivery of the EIOP




26 March 2003   4
                         1.1 Background to EIOP

1.1.1 This is the Final Report of the Economic Infrastructure Operational Programme
(EIOP), 1994-1999 for Ireland.


1.1.2 The EIOP was approved by the European Commission on 29 July 1994 and it
was officially launched and published on 30 September 1994.


1.1.3 The EIOP, as published, provided for investment of €320 million in energy,
postal and telecommunications infrastructure and services, of which €108 million was
to be provided by the European Regional Development Fund. While the title of the
Programme refers to the years 1994-1999, the European Commission in a Decision of
26 November 1999 extended the final date for taking account of expenditure under
the Programme‟s Measures to 31 December 2001.


1.1.4 By way of introduction, the EIOP stated that it was “…an application for
assistance in the form of an Operational Programme, the provision of which are
consistent with the EU Community Support Framework for IRELAND 1994-1999”.
The EIOP went on to state that the “…programme is designed to assist in providing
infrastructural support for EU and National economic objectives, particularly the
achievement of further substantial progress towards the National and EU goals of
economic and social cohesion and improvement of the competitiveness and efficiency
of the economy by investing in upgrading economic infrastructure on a basis which
best supports the improvement of economic activity. Furthermore energy efficiency
initiatives in this programme will help make significant progress towards the EU
objective of improving the efficiency of final energy demand”.


1.1.5 The EIOP was divided into three sub-programmes:-


                   The first concerning energy investments which contribute to the
                    cost effective supply and consumption of indigenous and imported
                    fuels;




26 March 2003                             5
                   The second concerning communications investments which are
                    necessary to    maintain   and   develop   efficient   postal   and
                    telecommunications services to industry and consumers in general,
                    and
                   The third concerning technical assistance expenditure, which is
                    necessary for appropriate management, control, planning and
                    appraisal of the Operational Programme as a whole.


1.1.6 Details of activities and developments under each of these Sub-Programmes are
set out later in Chapter 2, Chapter 3 and Chapter 4 of this Final Report. Within each
of these Sub-Programmes, a number of Measures addressed specific areas of energy,
postal and telecommunications infrastructure and services. In total there were eleven
Measures at the close of this Operational Programme.


1.1.7 The EIOP Secretariat, which is the Monitoring Authority for the EIOP, was
formerly located in the Planning Unit of the Department of Public Enterprise. It was
transferred to the Department of Communication, Marine and Natural Resources in
July 2002.




                      1.2 Economic Context for EIOP


1.2.1 When the Operational Programme was published in September 1994, annual
economic growth in Ireland was 5.8 per cent, as measured by Gross Domestic Product
(GDP). At that stage the unemployment rate was quite high at 14.7 per cent. Low
inflation and fiscal consolidation were underpinning low interest rates and exchange
rate stability and sustainable growth in investment, output and employment. As a
consequence, the period from 1994 to 2001 was one of unprecedented, sustained
growth. In that period, GDP grew by over 86 per cent at constant prices (i.e., having
excluding price changes).


1.2.2 The substantial growth that was recorded over the period was generated by a
combination of productivity growth (i.e., increased output per person at work) and


26 March 2003                              6
increased numbers at work. In 1994, the number at work had been around 1.2 million.
By 2001, this had increased to over 1.7 million; half of this increase was accounted
for by the increased number of women at work. As a consequence, women‟s share of
employment increased from 37 per cent of total employment in 1994 to over 41 per
cent in 2001. The overall increases in employment led to the unemployment rate
falling dramatically over the period of the Operational Programme, from 14.7 per cent
in 1994 to just 3.8 per cent in 2001.


1.2.3 The growth in exports has been especially marked over the period. Since 1994,
the volume of exports increased by 184 per cent. The other demand components
making up GDP also rewarded considerable increases over the period. Investment
grew in real terms by over 130 per cent; personal consumption grew by 59 per cent
and public expenditure grew by 40 per cent. As regards imports of goods and services,
they showed a growth in real terms of 170 per cent between 1994 and 2001.


1.2.4 The experience of the different sectors of the economy has demonstrated quite
different growth rates over the years 1994 through 2001. Agriculture, forestry and
fishing rose by just 10 per cent in real terms over the period. By contrast, the output of
industry (including building) rose by more than 140 per cent. There was an especially
strong increase of over 107 per cent in the real output of distribution, transport and
communications. All services (including public administration) grew in real terms by
46 per cent over the period 1994 through 2001. As a consequence of the different
growth rates, the contributions of the different sectors changed over the period, with
industry showing an increase of 10 percentage points in its share of national output.
The shares of national output for the other sectors also changed over the period, by
between 2 and 5 percentage points, in some case with increases, in other case
decreases - see Table 1.1.




26 March 2003                               7
    TABLE 1.1: SECTORAL SHARES OF GROSS DOMESTIC PRODUCT *


 Sector of Origin                                          1994 Shares               2001 Shares
  Agriculture, forestry and fishing                          8.5%                     5.0%
 Industry (including building)                             35.6%                     45.8%
 Distribution, transport and communication                 15.8%                     17.6%
 Public administration and defence                          5.3%                      3.2%
 Other services**                                          34.8%                     28.3%

 Gross domestic product at constant factor cost
                                                           100%                      100%

 * Source: Central Statistics Office
 ** Including rent, adjustment for financial services and statistical discrepancy.



1.2.5 The consumption of personal income also showed a considerable increase in the
years 1994 through 2001. As mentioned in Paragraph 1.2.3 above, such consumption
grew by 59 per cent in real terms. Two items of particular relevance to the EIOP also
recorded growth over the period –„communication‟ and „fuel and power‟. In the case of
communication, the real growth from 1994 to 2001 was over three-fold. In the case of
fuel and power, the growth was more modest, at 23 per cent in real terms. In the same
period, there was a considerable improvement in overall energy intensity, as measured
by the ratio of Total Primary Energy Requirement (TPER)) to GDP (at constant 1990
prices). The TPER/GDP ratio was reduced from a 1993 value of 83 (Base Year 1980,
value 100) to a 2001 estimate of 63, a reduction of twenty percentage points in the ratio
compared to a 1999 target value of 75.




      1.3 Decisions of the European Commission on EIOP

1.3.1 The first European Commission Decision (C(94)1971/2), approving the
Economic Infrastructure Operational Programme, was taken on 29 July 1994. Over
the period of the Programme it was necessary to seek revised Commission Decisions
to take into account re-profiling of expenditure; the Mid-Term Review of the
Operational Programme; the accommodation of additional funding under the
“deflator” process and the addition of new Measures to the EIOP. The European
Commission took four subsequent formal Decisions over the life of the EIOP. The

26 March 2003                                 8
text of all these Decisions is reproduced in Appendix 1. The detailed financial tables
accompanying the different Commission Decisions are on file in the EIOP
Secretariat.1


1.3.2 The second Decision was taken on 8 July 1997 when the Commission formally
approved decisions that had been taken by the EIOP Monitoring Committee. The
Decision included the allocation of an additional €1.678 million equally between the
Telecommunications Measure and the Postal Measure. It also formally agreed a
revised financial plan for the EIOP.


1.3.3 The third formal Decision was taken by the European Commission on 23 July
1998. This Decision endorsed the decision taken by the CSF Monitoring Committee,
at its meeting of 29 July 1997 to approve the Mid Term Review of the Community
Support Framework for Objective 1 in Ireland. It provided for the transfer of €2
million of Community assistance from the EIOP (specifically from the
Telecommunications Measure) to other operational programmes within the CSF for
Objective 1 in Ireland and reallocated €10 million from the Telecommunications
Measure to a new Measure entitled Information Society – Broadband Technology
within the EIOP. This Decision also formally approved a revised financial plan.


1.3.4 The fourth formal Decision was taken by the European Commission on 26
November 1999. The EIOP Monitoring Committee took a number of decisions in the
course of the second half of 1998 and first half of 1999 to accommodate “1998” funds
and to reprofile expenditure. In particular it decided on 29 March 1999 to reallocate
€250,500 from the Technical Measure to a new Measure entitled Information Society
(Business Awareness) and to approve the extension of the final date for taking
account of expenditure to 31 December 2001.                    The European Commission also
formally approved a revised financial plan as part of this Decision.


1.3.5 The fifth formal Decision was taken by the European Commission on 8 June
2000. In particular, it approved the inclusion of an Electronic Commerce
Infrastructure Measure under the Communications Sub-Programme and the re-
allocation of €2.5 million to this Measure from the Broadband Technology Measure

1
  For facility, the euro (€) Symbol is used throughout this Final Report to embrace both „ecus‟ and
„euros‟.
26 March 2003                                      9
within the same Sub Programme. It also approved the redistribution of funding from
the Energy Sub-Programme to the Communications Sub-Programme of €2.4565
million and from Technical Assistance Sub-Programme to the Communications Sub-
Programme of €0.419312. The European Commission also formally approved a
revised financial plan as part of this Decision.


1.3.6 The overall adjustments to the financial plans taken by the European
Commission in its different Decisions, in relation to the EIOP, are summarized in
Table 1.2 below:




Table 1. 2: Amendments to Financial Plan of EIOP
 European                     Base                  Net Adjustment      New
 Commission                   Allocations           € million           Allocation
 Decisions                    € million                                 € million
 C(94) 1971/2 of 29           108.000000            Original            Programme
 July 1994                                                              allocation
 C(97) 1945 of 8 July         108.000000            +1.678000           109.678000
 1997

 C(1998) 2115 of 23           109.678000            -1,156749           108.521251
 July 1998

 C(1999) 3779 of 26           108.521251            +2.767000           111.288251
 November 1999

 C(2000) 1292 of 8            111.288251            No adjustment to    111.288251
 June 2000                                          allocation

Change over period of 108.000000                   +3.288251           111.288251
EIOP                  original
                      allocation




1.3.7 Over the course of the Economic Infrastructure Operational Programme, EU
funds have been drawn down on a regular basis. The following table shows the
drawdown over the programme, prior to the final claim, for the ERDF funds involved,
in accordance with the decision of 8 June 2000:


26 March 2003                               10
             Year                                            ERDF Aid €

             1994                                            1,877,963
             1995                                            8,786,838
             1996                                            13,416,651
             1997                                            7,924,997
             1998                                            13,956,051
             1999 (20% of €65,325,751)                       52,260,601
             TOTAL:                                          98,223,101



The individual EU receipts which make up this total were converted at the exchange
rates in force on the date of receipt, giving the total IR£76,292,238.82.




            1.4. Monitoring and Evaluation of the EIOP

1.4.1 The Economic Infrastructure Operational Programme was subject to ongoing
monitoring and evaluation from its commencement.


1.4.2 The Monitoring Committee for the Operational Programme consisted of
representatives from areas who had a particular interest in the different dimensions of
the energy and communications sectors embraced by the Operational Programme, and
representatives of relevant Government Departments.              It also consisted of
representatives for the Social Partners, the Employers and the Trade Unions. The
European Commission was also represented on the Committee. The composition of
membership is contained in Appendix 2 to this Final Report.


1.4.3 The Committee met on twelve occasions on the following dates


                   15 December 1994
                   3 April 1995
                   15 September 1995
                   29 March 1996
                   26 September 1996
                   16 January 1997 *
                   20 March 1997
                   29 September 1997

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                    30 March 1998
                    28 September1998
                    29 March 1999
                    11 October 1999
        ----------------------------------------------------------------------------
        * Special meeting to consider the mid-term review of the EIOP




1.4.4 The EIOP Monitoring Committee first met on 15th December 1994 and then
met twice a year in the years 1995, 1996, 1998 and 1999. In the case of 1997 the
Committee met on three occasions; there were two ordinary meetings and one special
meeting to adopt the Committee‟s Report to the CSF Monitoring Committee (see
Section 1.5 below).


1.4.5 The EIOP Monitoring Committee was apprised of its duties and responsibilities
by the EIOP Secretariat, and the European Commission representation, at its first
meeting on 15 December 1994.                The duties and responsibilities of the EIOP
Monitoring Committee were consistent with those published in Section 4.3 of the
Community Support Framework, 1994-99, for Ireland (European Commission, 1994).


1.4.6 In meeting its responsibilities, the EIOP Monitoring Committee took numerous
decisions in the course of its existence; the majority were taken at meetings of the
Committee and a number were taken by written procedure. The formal Decisions of
the European Commission, in turn, reflect the decisions of the EIOP Monitoring
Committee. In particular the decisions of the EIOP Monitoring Committee involved
re-profiling of expenditure; the Mid-Term Review of the Operational Programme; the
accommodation of additional funding under the “deflator” process and the addition of
new Measures to the EIOP. The adjustments made to the amounts of EU Funds for
the EIOP, arising from the Monitoring Committee‟s Decisions, are set-out in the
excel table “EIOP Additions and Re-allocations” at Appendix 3.


1.4.7   The specific decisions, that were taken by the Monitoring Committee, in
relation to individual Measures of the EIOP, are discussed in the relevant sections of
Chapter 2, Chapter 3 and Chapter 4 of this Final Report. They deal with the specific

26 March 2003                                    12
Measures in the areas of energy, postal and telecommunications, as well as the
Measures embraced by Technical Assistance.


1.4.8 The EIOP Monitoring Committee set up two sub-committees, in the course of
the life of the Programme. They were the Technical Assistance Sub-Committee and a
special sub-committee, the „Truncated‟ Monitoring Committee, set up to deal with the
development of infrastructure for the “Information Society” in Ireland.


                   Chapter 4 deals with the Technical Assistance Sub-Committee
                    which was established in December 1994 to evaluate requests for
                    funding under the Technical Assistance Sub-Programme of the
                    EIOP and to bring such requests to the EIOP Monitoring
                    Committee for approval. It was set up specifically to ensure that
                    requests for funding would be processed in a streamlined and
                    responsive manner.


                   Chapter 3, Section 3, relating to the Information Society
                    Broadband Technology Measure deals with the „Truncated‟
                    Monitoring Committee, which embraced the development of
                    infrastructure for the “Information Society.” It was established in
                    May 1997      to   examine    proposals   for   telecommunications
                    infrastructure, from the public and private sectors, on the basis of
                    “spare” ERDF funds within the Telecommunications Measure of
                    the EIOP. It was considered by the plenary Monitoring Committee
                    that such a small sub-committee would be more manageable than
                    the plenary Monitoring Committee for the work involved in project
                    selection, as well as ensuring that conflicts of interest were
                    minimised to the greatest extent possible. The latter requirement
                    was reinforced by the request to Members of the Monitoring
                    Committee, who were being nominated to the special sub-
                    committee, to declare any personal interest in any company
                    providing telecommunications services or infrastructure in the
                    country.



26 March 2003                              13
1.4.9 Over the life of the Programme, the EIOP Monitoring Committee produced
seven Annual Reports. They relate to the years 1994, 1995, 1996, 1997, 1998, 1999
and 2000. The Annual Reports for the two most recent years – 1999 and 2000 – are
available on the Internet at http://www.irlgov.ie/tec/publications.




                       1.5 Mid-term review of EIOP

1.5.1 The Community Support Framework, 1994 –1999, included provision that all
Operational Programmes would be subject to a mid-term review, to be undertaken
with assistance of independent evaluators, agreed by the Programme Monitoring
Committees. The purpose of such reviews was:-


                      to support the Monitoring Committee in discharging their
                       responsibilities of ensuring that the objectives of the
                       Operational    Programme     were    achieved   efficiently   and
                       effectively.


                      to identify such corrective actions that may be necessary in the
                       form of adjustments to the implementation of measures to
                       ensure that the objectives of the Operational Programme were
                       achieved.


1.5.2 Indecon International Economic Consultants were engaged in the course of 1997
by the EIOP Monitoring Committee to assist the Monitoring Committee in their work.
The EIOP Monitoring Committee completed a thorough review of the Economic
Infrastructure Operational Programme, with the assistance of the Consultants.


1.5.3 The Report from Indecon International Economic Consultants was initially
considered by the EIOP at a special meeting of the Monitoring Committees on 16
January 1997. It was given further consideration at the meeting of the Monitoring
Committee on 20 March 1997. The Committee‟s considered views were supplied to
the CSF Monitoring Committee. The resultant report agreed by the Monitoring
Committee on the mid-term review is reproduced at Appendix 4.

26 March 2003                              14
1.5.4 Following its consideration of the EIOP mid-term review, the CSF Monitoring
Committee approved the reallocation of €10 million aid from savings, within the
Telecommunications Measure of the EIOP to fund a new Measure from Broadband
Telecommunications to assist the development of the Information Society.             The
provision of aid was conditional in that all of the players, including the private sector,
would be allowed to participate in tendering for the grant on the basis of criteria that
were to be set down in advance.


1.5.5 The CSF Monitoring Committee also addressed two other EIOP projects - the
new peat fired station and the renewable energy project (waste to energy station). The
Committee decided that these projects should be included in the reserve list of
projects, which were to be reviewed in the Spring of 1998, “...in respect of which
consideration will be given to decommitting funds…if sufficient funds is not
achieved”. The first project, the Peat Fired Station, made good progress in the ensuing
period and was successfully completed within the time-scale set under the EIOP. This
project is discussed in Section 2.1 of Chapter 2 of this final report. In the case of the
second project, the EIOP Monitoring Committee had earmarked €9.3 million aid
within the Renewable Energy Measure for the development of a “waste to energy”
station.   An application for grant assistance was submitted to the European
Commission in respect of the provision of ERDF aid for a “waste-to-energy” station.
The application was accompanied by a Socio-Economic Cost Benefit Analysis, as
required by the Commission.        The European Commission engaged independent
consultants to examine the Cost Benefit Analysis and to advise on the suitability of
funding for the project in the context of the Dublin Waste Management Strategy
Report.    In the event, the Commission indicated that it is not prepared to sanction
ERDF grant assistance for the project.       As a consequence of the Commission‟s
response the “waste-to-energy” project was withdrawn from the EIOP following
consideration by the EIOP Monitoring Committee.




26 March 2003                              15
   1.6 Community Structural Assistance and Employment

1.6.1 In the course of 1996, the European Commission requested each Operational
Programme Monitoring Committee to discuss Community Structural Assistance and
Employment and to report on the outcome of discussions to the CSF Monitoring
Committee. The EIOP Monitoring Committee responded to this request. The paper
that was approved by the Monitoring Committee and submitted to the CSF
Monitoring Committee is reproduced at Appendix 5.



1.6.2 It was the Commission‟s desire that all those involved in implementing
structural policies should step up their efforts to give operations financed by the
Structural Funds a greater employment content. Monitoring Committees were
accordingly asked to identify adjustments, within current programming arrangements,
which might increase the impact on growth and the impact of growth on employment.


1.6.3 The EIOP Monitoring Committee highlighted the fact that the implementation
of the Measures of the EIOP helped to improve employment opportunities through:-

Direct employment
                   the construction and physical implementation phases of the
                    different measures under the Operational Programme.




Indirect employment
                   ensuring that the postal, energy and telecommunications sectors
                    provide competitive, efficient and effective services and thereby
                    stimulating employment in the wider economy.
                   investments undertaken under the OP offering the opportunity for
                    closer integration with other CSF investments aimed at offsetting
                    the economic impact of peripherality and under-development.


1.6.4 The EIOP Monitoring Committee noted that the employment impact of the
investments under the Operational Programme was not confined to Ireland solely. As

26 March 2003                             16
well as the wider geographic impact, there was also the wider trans-sectoral impact.
The investments under the Operational Programme had the potential to lever a
number of down-stream benefits, which, while difficult to quantify, can make a
positive contribution towards increased employment in the economy. The Monitoring
Committee also noted that the investments undertaken under the EIOP contributed to
sustained economic growth, and to employment creation at a local and regional level.
However, the scale of this positive contribution reflected the fact that the investments
being undertaken under the Operational Programme were relatively small compared
to   the   total   investments   being   undertaken    in   the   postal,   energy      and
telecommunications networks in Ireland during the programming period.



1.6.5 The expenditure on the peat fired station (Peat Generation Measure) and the
Renewable Energy Measure of the Energy Sub-Programme of the Operational
Programme, recognised that there were positive externalities associated with these
developments - local and regional development, employment and income generation,
the adoption of new technologies and the use of indigenous sources. Further benefits
were expected to arise in line with the experience and expertise garnered from
participation in the renewable energy projects in the home market and as an export
commodity. In addition, the Energy Efficiency expenditures provided scope to lead to
significant direct and indirect employment as result of increased competitiveness,
increased spending power, and a switch to more labour-intensive energy efficiency
technologies. Here, too, further benefits can accrue as awareness of the benefits of
energy efficiency is increased, and as a pool of expertise in this area is developed.


1.6.6   The investments under the Communications Sub-Programme have been
producing in-direct benefits. The availability of new advanced telecommunications
services throughout the country certainly assists regional development. The
investment in telecommunications also contributes to competitiveness, which is
essential to wider economic development. The Postal Services investments have
improved An Post‟s capability to provide an efficient and affordable universal service
and the computerisation of rural post offices contributes to local development.


1.6.7 Finally, the Monitoring Committee recognised that employment in the overall
economy, arising either directly or indirectly from investments arising under the
26 March 2003                              17
EIOP, depends critically on the ability of those bodies involved with the
implementation of the OP investments :-


               Coping with increasing competition, which will become even more
                severe in the medium to long term;


               Operating flexibly and imaginatively in existing and new commercial
                markets;


               Adapting successfully to changing regulatory environments




                           1.7 Equal Opportunities

1.7.1 The EIOP Monitoring Committee addressed the issue of gender equality in the
investments being implemented under the OP on a number of occasions in the recent
past. In particular, the paper prepared for the CSF in 1998, reproduced at Appendix 6,
should be noted.


1.7.2 The Monitoring Committee was aware of the requirements of Article 4.7.4 of
the Community Support Framework concerning gender equality, but considered that
the issue of participation as understood in the context of gender equality issues had
little relevance for the infrastructural type investments to be implemented under the
Economic Infrastructure Operational Programme.


1.7.3 At a general level, the EIOP Monitoring Committee considered that there was
no discrimination against men or women or any impediments by either sex in respect
of any of the operations implemented under the OP. In the context of introducing
measures to target a particular inequality problem, it was the Committee‟s view that
the operations being co-financed under the Operational Programme did not lend
themselves to be re-orientated for the purpose of targeting a specific group which are
considered to be marginalized or to remove a particular form of discrimination or
where there is a gender inequality problem. With regard to the introduction of
measures which took into account the possible effects of cofinanced measures on the
26 March 2003                             18
respective situations of men and women, it was not possible to establish the relative
impact of cofinanced investments on either sex.


1.7.4 As regards sectoral development, the EIOP was concerned with once-off
infrastructural investments which were designed to enable new or enhanced services
to be provided for the postal, energy and telecommunications sectors. The EU
investments represented only a small part of the total investment that were
implemented by agencies in the postal, energy and telecommunications sectors over
the period of the OP. Some of the investments implemented under the EIOP -
particularly in telecommunications infrastructure - represented network enhancements
intended to benefit the entire population as a whole rather than any particular sex. All
goods and services provided by State companies in the postal, energy and
telecommunications sectors are accessible on equal terms to all citizens without
exemption.


1.7.5 The range of investments implemented under the Operational Programme only
had a very marginal and in-direct impact on work-place innovations, which is
considered to be the best forum to provide scope to increase equal opportunity
involving employee participation, positive flexibility and improvements in the
distribution of work and flexible working hours. The EIOP did not embrace any
training of workers in relation to any of the sectors covered by the Operational
Programme, In overall terms, the Operational Programme had a neutral impact on
promoting or enhancing gender equality in terms of access to and participation in the
labour market.



          1.8 Compliance with EU Community Policies

1.8.1 This Section of the Chapter discusses, in a general way, the issue of
compliance with European Community Policies across the wide range of Measures,
implementing bodies and final beneficiaries involved in the EIOP. Discussion of
compliance with such policies in the context of individual Measures is contained in
Chapters 2, 3 and 4.




26 March 2003                             19
1.8.2 Ensuring compliance with EU policies and regulations relevant to the
Structural Funds was an integral part of the responsibilities of those charged with the
implementation of the projects under the individual Measures (viz. the Measure
Leaders and the Implementing Bodies). Accordingly, the Lead Department had a
critical role in ensuring that Measure Leaders, and the Implementing Bodies reporting
to them, were fully aware of the relevant policies and regulations, were aware of their
responsibilities in ensuring the application of those policies and regulations, and were
discharging those responsibilities.


1.8.3 As part of its work in this respect, the EIOP Secretariat drew up a
comprehensive document entitled, Guide to Monitoring and Control of EU Funding,
which it issued to all Measure Leaders in July 1999. The Guide was designed to
outline the requirements on financial control and to provide a general description of
the operational procedures and the management and control systems in place to ensure
the efficient implementation of the operations being co-financed under the EIOP.
During the lifetime of the OP, the EIOP Secretariat also made Measure Leaders aware
of the various EU regulations governing eligibility of expenditure, selection criteria as
defined in the OP, reporting and claiming procedures, audit trail etc. All new and
updated regulations were circulated to the EIOP Measure Leaders as they appeared.
On a regular basis, the EIOP Secretariat held information sessions and workshops for
the EIOP Measure Leaders and their Measure Teams to remind them of their duties
and responsibilities in general, and specifically in relation to compliance with EU
policies and regulations. Representatives of the Paying Authority attended several of
these sessions, and gave presentations and dealt with queries on various issues of
particular interest.


1.8.4 As a further initiative in ensuring compliance with EU policies and
regulations, in Autumn 2000, each Measure Leader under the EIOP was required to
complete Form A of Department of Finance Circular 23/98 insofar as it related to the
Measure.      In completing that form, each Measure Leader gave unqualified
confirmation that the requirements of key EU regulations were being observed by the
relevant EIOP Measure Team and by any relevant agencies (Implementing Bodies)
reporting to the Measure Leader in relation to that Measure. Appendix 7 of this
report lists the key EU Regulations in respect of which this confirmation was given.


26 March 2003                              20
1.8.5 Of course, in addition to having to meet requirements under the EU-
determined control framework, projects funded under the EIOP also had to comply
with national legislation and have regard to national policies. In this regard, EIOP
projects were subject to provisions on a number of issues including, environmental
standards, planning requirements, equality legislation, and tendering procedures.




                      1.9 Information and Publicity
1.9.1 Following the announcement by the European Commission to provide EU
assistance towards the EIOP on 29 July 1994, the then Minister for Transport, Energy
and Communications issued a press statement welcoming the Commission‟s approval
of the OP. The Commission‟s announcement received extensive media coverage on
national television and in the print media. Copies of the Programme were circulated to
the various implementing agencies as well as other interested parties including other
Monitoring Committees and Government Departments.            Presentations concerning
investments under the OP were also made to a number of Regional Authorities.


1.9.2 Over the lifetime of the programme, the Monitoring Committee took a very
active interest in ensuring compliance with the EU information and publicity
requirements in respect of EU funded projects. All of the agencies involved with the
Programme took action to acknowledge EU assistance for the various projects. This
involved placing advertisements in the national media, erection of signs and plaques
and other media opportunities.


1.9.3 The Department of Transport, Energy and Communications initially, and
subsequently the Department of Public Enterprise, availed of every suitable
opportunity to acknowledge the assistance of the European Community in press
releases, speeches or through other media. The EIOP Monitoring Committee ensured
that agencies involved with the implementation of various projects under the OP
publicly acknowledged EU grant assistance for the projects. Steps were also taken by
the EIOP Secretariat to implement the provisions of European Commission Decision
94/342/EC of 31 May 1994 concerning information about the Structural Funds
Assistance including:-

26 March 2003                             21
                   acknowledgement of EU assistance in brochures for official
                    openings of co-financed projects; and


                   the erection of information notices at the sites of projects costing 1
                    Million euro or more, providing suitable acknowledgement of the
                    Structural Fund assistance


1.9.4 Annual Reports of the EIOP, for the years 1995, 1996, 1997, 1998, 1999 and
2000, contain a dedicated section on publicity and information. In addition, the annual
reports of the Department of Public Enterprise in recent years have included
references to the EIOP, including expenditure funded under ERDF.


1.9.5 Chapters 2 and 3 outline publicity and information activities at the level of
individual Measures under the EIOP.




26 March 2003                               22
                       1.10 Summary Data on EIOP


1.10.1 Table 1.3 overleaf is the key Expenditure Table for the EIOP, underpinning
Annual Expenditure within each Measure for each year from 1994 through to 2001.


1.10.2 Table 1.4 on page 25, sets out ERDF Expenditure for each Measure in the
same period.




26 March 2003                          23
                                                                            Table 1.3: Measure spend 1994 - 2001
Measure             Eligible     Eligible Expenditure Payments in       Payments in Payments in       Payments in Payments in         Payments in        Payments in        Payments in        Payments Total
                  Expenditure           in IR£           1994            1995 IR£ 1996                   1997     1998                1999               2000               2001
                   MioECU
                                                         IR £                            IR£                  IR £ IR£                IR£                IR£                IR£                IR£
Energy Sub-         212.198610        167,119,986.01      -
Programme
Peat Generation     111.400000         87,734,630.00                                                                      6,092,638         39,733,729         37,011,074          6,191,533          89,028,974

Energy               56.524900         44,516,976.34      843,369          1,346,276    5,143,630       11,927,559       11,173,863          6,262,058         17,644,383                 0           54,341,138
Efficiency
Renewables           29.021300         22,856,131.11                -              -            -                -                -           181,774           5,123,273         32,323,403          37,628,450
Cutaway Bogs          2.800000          2,205,179.20                -         84,999      449,010         530,886          505,161            486,024            182,181                  0            2,238,261
Rural Networks       12.452410          9,807,069.83                -       667,440     3,857,015         620,694         2,473,583          1,290,018           870,048            563,300           10,342,098

Communications      171.769124        135,279,178.37
Sub-programme

Telecom              41.792000         32,913,874.68            -         10,898,419    9,040,068        2,769,810        8,122,984          2,789,542                 0                  0           33,620,823
Postal Services      23.219124         18,286,546.17    2,121,904           696,558     5,109,562        1,638,943        1,888,506           399,285           2,055,990          2,042,553          15,953,301

Broadband            99.758000         78,565,809.51                -              -              -              -                -         13,350,765         23,340,213          7,562,738          44,253,716
E-Commerce            7.000000          5,512,948.00                -              -              -              -                -          1,745,153          2,368,675                 0            4,113,828
Technical             2.132087          1,679,154.97                -              -              -              -                -
Assistance Sub-
Programme

Technical             1.798187          1,416,187.35       31,041             31,848      112,824         208,343          475,026            112,858             15,419             48,475            1,035,834
Assistance
(General)
I.S.Awareness         0.333900            262,968.00                -              -              -              -                -           173,559             89,441                  0             263,000
TOTAL               386.099821        304,078,319.42    2,996,314         13,725,540   23,712,109       17,696,235       30,731,761         66,524,765         88,700,697         48,732,002         292,819,423




26 March 2003                                                                                           24
                                                                      Table 1.4: ERDF Expenditure 1994 - 2001

Measure             ERDF             ERDF           Payments in    Payments in Payments in       Payments in Payments in         Payments in        Payments in        Payments in       Payments Total
                  Expenditure     Expenditure in       1994         1995 IR£ 1996                   1997     1998                1999               2000               2001
                   MioEUR             IR£
                                                       IR £                         IR£                  IR £ IR£                IR£                IR£                IR£               IR£
Energy Sub-          56.633200         44.602269
Programme
Peat Generation      26.000000         20.476664              0               0              0              0        1,401,307          9,138,758         8,512,546          1,424,053         20,476,664

Energy               16.985900         13.377483        446,942         735,237     1,631,780       2,779,925        2,936,595          1,832,691         2,470,679                  0         12,833,849
Efficiency
Renewables             6.021300          4.742159             0               0             0               0               0             85,000            550,775          2,302,636          2,938,411
Cutaway Bogs           1.400000          1.102590                        42,499       224,505         265,443         252,581            243,012             91,090                  0          1,119,130
Rural Networks         6.226000          4.903373                      333,720     1,928,508         310,347        1,236,792            645,009           435,024            281,650          5,171,050

Communications       53.057064         41.785833
Sub-programme

Telecom              19.396000         15.275591             0       5,122,257     4,248,832       1,301,811         3,817,802         1,311,085                   0                 0         15,801,787
Postal Services        7.003064          5.515361       997,295         327,382     2,401,494         770,303         899,364            202,553            966,315            944,440          7,509,146

Broadband            24.158000         19.025970                                                                                       5,027,420          8,789,086          2,847,856         16,664,362
E-Commerce             2.500000          1.968910             0               0              0              0               0            693,707            922,872                  0          1,616,579
Technical              1.597987          1.258517
Assistance Sub-
Programme

Technical              1.347487          1.061232        23,281         23,886         84,618        124,797          356,269             84,643            11,564             36,356            745,414
Assistance
(General)
I.S.Awareness          0.250500          0.197285                                                                                        130,169             67,081                  0           197,250
TOTAL               111.288251         87.646620       1,467,518      6,584,981    10,519,737       5,552,626       10,900,710         19,394,047     22,817,032             7,836,991         85,073,642




26 March 2003                                                                                      25
          Chapter 2
                EIOP Sub-
                Programme
                 : Energy




26 March 2003       26
                      2.1 Peat Generation Measure

                                2.1.1 Introduction:


2.1.1.1 Bord na Mona submitted the proposal to the Department of Transport, Energy
and Communications (subsequently the Department of Public Enterprise) for a new
120 mega Watt peat-fired station in 1993. The objective was to maximize the use of
available peat reserves in the East Midlands area. The proposal was subsequently
included in the Energy Sub Programme of the EIOP, under the Community Support
Framework for Ireland 1994 – 1999 and EU financial support of £21 million (€26m)
was sought. The EU Commission sought a full socio-economic cost benefit analysis
before deciding to commit Structural Fund aid to the project. A Memorandum of
Understanding (Appendix 8) between the Minister for Public Enterprise and the EU
Commissioner for Regional Policy, signed in 1995, set out the basis for the provision
of EU Structural Fund assistance (€26m) to the Peat Generation Measure.


2.1.1.2 Edenderry Power Limited (EPL), a wholly owned subsidiary of the Fortum
Group, the international energy group based in Finland, was awarded the contract in
early 1998 to build, own and operate a new 120MW peat-fired electricity generating
Powerstation at Ballykilleen near Edenderry in Co. Offaly. EPL awarded the Turnkey
contract to construct the plant to Fortum Engineering Ltd (Formally known as IVO
Power Engineering Ltd) - also a wholly owned subsidiary of the Fortum Group. The
Turnkey contractor was issued with a notice to proceed on the 5th January 1999. The
Contractor commenced work on site on the 26th January 1999 and the Edenderry
Power Plant was declared commercially operational on the 22nd December 2000.


2.1.1.3 The EIOP negotiated with the EU included the provision for a grant from the
EU Structural Funds of up to 23% of eligible expenditure for the Edenderry power
project up to a maximum grant of €26 million. This financial support is the subject of
a grant agreement dated 19 March 1998, between the Minister for Public Enterprise
and the developer EPL. Measure spending is outlined in the Table 2.1 below.




26 March 2003                            27
Table 2.1: Peat Generation
Year                          1998           1999              2000         2001           Total
Spend IR£                     6,092,638      39,733,729        37,011,074   6,191,533      89,028,974
Grant IR£                     1,401,307      9,138,758         8,512,546    1,424,053      20,476,664
Spend €                       7,736,054      50,451,429        46,994,370   7,861,625      113,043,478
Grant €                       1,779,293      11,603,829        10,808,704   1,808,174      26,000,000




                                          2.1.2 Information and Publicity


            2.1.2.1 During visits by external auditors, acting on behalf of the Department of
            Public Enterprise, to Edenderry Power Limited in London, Fortum Engineering
            Limited in Helsinki and Edenderry Power Station in Co. Offaly copies of all relevant
            publicity material were obtained. The billboard was inspected by the audit and the
            audit confirmed that the section of the billboard used to indicate EU involvement took
            up at least 25% of the total billboard area. The wording in relation to EU involvement
            was as follows:
            „THIS PROJECT RECEIVED PARTIAL FINANCIAL ASSISTANCE FROM THE
            EUROPEAN UNION‟2


            2.1.2.2 A summary of the various other publicity measures indicating that the Peat
            Generation Measure is part-financed by the EU is set-out in Table 2.2




            2

            Note: The specific recommended wording per Decision 94/342/EC is „THIS PROJECT IS BEING
            PART-FINANCED BY THE EUROPEAN COMMUNITY‟.


            26 March 2003                                 28
Table 2.2 Summary of Publicity for Peat Generation Measure
    No      Name of Publication                Date        Title of article             EU part-Finance
                                                                                        Mentioned
    1       Department of Public Enterprise    01/04/98    £100 midlands electricity    Yes
            Press Release                                  station on schedule



            Irish Independent                  02/04/98    IVO looking to other Irish   Yes
            (National Newspaper)                           projects after europeat
        2
            The Examiner                       02/04/98    Powerstation receives EU     Yes
        3   (National Newspaper)                           aid package
            Presentation                       Mar 2000    Presentation to IEI          Yes
        4   (by Paavo Javanainen & Michael                 (Institute of Engineers of
            Hoven)                                         Ireland)
            Offaly Topic                       06/07/00    Enright questions sale of    Yes
        5   (Local newspaper)                              power station
            Sunday Business Post               03/09/00    No buyer yet for new peat    Yes
        6   (National Newspaper)                           fired power station
            Opening Speech                     27/11/00    Minister      for   Public   Yes
        7                                                  Enterprise      –    Plant
                                                           opening speech
            Design, Supply         &   Build   March „01   Edenderry Power: making      Yes
        8   magazine                                       the link
            (Meridian Media)




             2.1.3 Declaration of Observance of Relevant Community Policies:


2.1.3.1 Competition rules: Community competition rules have been observed for this
Measure. There was an open competition conducted by independent consultants3 to
select the preferred bidder to build, own and operate the station.


2.1.3.2 Public procurement: As part of the external audit on this project, the
procurement procedures followed were reviewed with nine contracts chosen for
detailed testing. These nine contracts constituted almost 65% of the Turnkey contract
cost. For each contract chosen audit obtained and inspected all relevant
documentation including the originating tender, responses                           and       evaluation
documentation. Audit established that procurement procedures within the Turnkey
contracts were satisfactory.            Helm Corporation, the external auditors, received the
contract.
3
 Stone & Webster Management Consultants Limited was the lead member of a consortium which
advised on designing a framework for the competition to build, own and operate the new peat fired
power station. The other members were, 2) Matheson, Ormsby &Prentice, 3) NCB corporate Finance,
4) Natwest Markets and lastly 5) Allen & Overy.


26 March 2003                                         29
2.1.3.3 Equal Employment Opportunities: The developers of the Peat Generation
Measure adopt a policy of equal employment opportunity for all.


2.1.3.4 Environmental (EIS): As part of the necessary planning and environmental
requirements, both at Irish and EU levels, the developer submitted an Environmental
Impact Statement to the Environmental Protection Agency in May 1999. Edenderry
Power Ltd received the Integrated Pollution Control (IPC) Licence in July 1999 in
accordance with Section 85(2) of the Environmental Protection Agency Act 1992. A
copy of the IPC Licence is held on file in the Department of Public Enterprise.



                2.1.4 Impacts on Employment and on the Environment


2.1.4.1 Construction: During the construction of the Power Plant, excluding the
construction of the integrated Bord na Móna works, the employment was as follows:
1999            Average number employed              116
                Peak number employed                 248
2000            Average number employed              263
                Peak number employed                 421


2.1.4.2 Operations: The total number of full time employed operators, managers and
support staff is 50. Bord na Móna have 250 people employed full time and 150
seasonal staff employed at Derrygreenagh associated with the supply of peat to the
new power station at Ballykillen. Development work at Bord na Móna‟s bogs is now
practically completed and the total man-years on the project was 549, a significant
and positive increase on the projected 420 contained in the Memorandum of
Understanding.


2.1.4.3 The Peat consumption per year is 1 million tonnes per annum and the energy
output per year 118 Mega Watts. This output is not expected to change in the coming
years. The overall contribution to the national energy output is 2.75%. The present
lifespan of the plant based on Public Service Obligation is 15 years.




26 March 2003                             30
2.1.4.4 Environment: The Edenderry Plant is designed to achieve very strict
environmental limits, with SOX and NOX emissions levels roughly 50% lower than the
current EU standard emission levels for new large-scale combustion plant.4 As well
as low emissions, the state-of-the-art fluidised bed technology will ensure that the
conversion from peat to electricity will be highly efficient with over 38% thermal
efficiency5, which is higher than most coal fired plants.


                                             2.1.5 Files

2.1.5.1 The Key reference files at the Department of Public Enterprise for the Peat
Generation Measure are set out in Table 2.3:-


Table 2.3 : Files for Peat Generation Project
8/45/1      CSF Structural Funds 1994-1999: Closure of Operational Programmes and Data on
            Expenditure and Commitments.
8/47/1      EIOP Quarterly Expenditure returns - New Peat Station 1999 to date
8/47/2      New Peat Station- General Managers Quarterly Progress Report.
8/49/1      Briefing for EIOP Monitoring Committee.
8/50/1      EIOP: Annual Reports by Ireland for Submission to EU Commission. Peat Generation
            Measure, 1998 to 2000.
8/52/1      EU Commission Regulation concerning irregularities in context of Structure Funds. EIOP
            Returns - Peat Generation Measure. 1999 to date.
8/63/1      Structural Funds: EU Regulations/Directives and Decisions regarding Financial Control,
            Management, Publicity, Procurement etc.
8/63/2      EU Datasheets/Factsheets on Financial Control and Eligible Expenditure under the
            Structural Funds.
8/63/3      Planning Unit draft „Guide to monitoring and control of EU fundings‟; Planning Unit
            „Audit Trail‟ document and Dept. of Finance Circular 23/98

8/63/4      EU Commission Audit of EIOP and in particular Peat Generation Measure; 29 May to 1
            June 2000
8/64/2      New Peat Station: Cost Benefit Analysis for EU Commission 1994 - National Economic
            Research Associates (NERA).




4
 See Air Pollution Act 1987 and Council Directive 94/66/EC.
5
 Based on the latest technology available from Finland, the EPL station has a net conversion efficiency
of 38%, compared to the average of 25% in the existing peat stations.


26 March 2003                                     31
8/64/3    New Peat Station: Memo of Understanding dated 12 April 1995 between Minister and EU
          Commission on Structural Funding conditions.
8/64/6    New Peat Station - Agreement on EU Grant towards Station
8/64/8    New Peat Station: question of Appointment of Consultant to Monitor Expenditure on, and
          EU Support for Project; 1998 to date.
8/64/9    New Peat Station. Claims for drawdown of EU Grant expenditure.
8/64/11   New Peat Station Progress of Project - Report for Ministers information (weekly&
          monthly) from Feb 1998 to date.
8/64/13   Launch of Edenderry Power Station by Minister-27/11/00.
17/23     New Peat Station Competition and matters arising, finalising award of contract on 1/4/98.


17/31     New Peat Station - Planning Application and Objections (including IPC licence) 1998.




26 March 2003                                     32
                Section 2.2 : Energy Efficiency Measure

                          2.2.1 Background to the Measure


2.2.1.1 The Irish Energy Centre (IEC) was established in 1994 for the purpose of
delivering the Energy Efficiency Measure of the EIOP (1994-1999). It was also
assigned an information and support function with regard to Renewable Energy. As
the Centre was in its infancy in 1994 strengthening of the institutional infrastructure
took longer than anticipated which resulted in some delay in the launch of
programmes. In addition the lead-in time between the launch of funding programmes
and the approval of grant support and the implementation of projects with resultant
payments, was underestimated in the original profiles, which further compounded the
delay in expenditure against originally profiled amounts.


2.2.1.2 The measures funded through the EIOP were of two kinds – direct and
indirect. The direct measures were co-funded by industry and offered financial
support for energy audits and energy efficient investments. Indirect measures had a
wider application and covered information, advice and support (including the
establishment of the IEC itself). During the lifetime of the EIOP the Energy
Efficiency Measure covered a range of activities, which included:


                   Energy Audits
                   Energy Efficiency Investment Support Scheme (including Special
                    call for Large Scale Combined Heat and Power)
                   Self Audit Scheme for Industry
                   Technical Advice
                   Backup, promotion and information measures
                   Grant Support for Combined Heat and Power projects (new scheme
                    arising from reallocation of aid within the measure following on
                    from the Mid-Term Review and administered by the Department of
                    Public Enterprise)
                   Energy Awareness Week


26 March 2003                             33
                                Boiler Awards
                                Other initiatives to support and promote energy efficiency.


            2.2.1.3 EU aid for the Energy Efficiency Measure was initially set at €19.7m.
            The table below summarises the financial details of EU commitment over the lifetime
            of the EIOP.


             Table 2.4: EU Financial Details
                  Allocation           Revised Allocation                                Reason
              (Million euros)          (Million euros)
                                                                     Following Mid-Term review €2.54
                                                                     million savings identified were re-
              19.7                     18.49
                                                                     allocated to new energy projects (this
                                                                     provision included €1.33 million aid
                                                                     for AER IV Competition) (1998).

                                       18.5535                       Further allocation of €0.0635 million
                                                                     to AER IV (1998).
                                       17.4107                       Allocation of further savings
                                                                     identified (€ 1.1428 million) to
                                                                     Broadband Technology / Information
                                                                     Society Measure (1999).
              Final                    16.9859                       €0.4248 million surrendered from 5
                                                                     CHP projects unable to meet end 1999
              Allocation
                                                                     deadline for having commitments in
                                                                     place (2000).

            2.2.1.4 Actual expenditure to the end of the programme under the Measure is as
            follows:




Table 2.5: Expenditure Under Measure by Year
Year          1994              1995             1996         1997          1998           1999        2000            Total



Euro          1,042,968         1,689,249        6,305,145    15,963,691    14,481,532     7,951,173   22,403,745   69,837,503


IR£               843,369         1,346,276      5,143,630    11,927,559    11,173,863     6,262,058   17,644,383   54,341,138
Euro Rate     0.808624          0.796967         0.815783     0.747168      0.771594       0.787564    0.787564



            Note: these figures include full private investment on grant schemes; all rates given
            are at correct euro rate for differing years.


            26 March 2003                                    34
A breakdown of expenditure between the individual components of the Measure is
set out in Table 2.6 below: -


Table 2.6: Breakdown of Expenditure
Spending under the Private              EU ERDF         Exchequer   Total Spend Total Spend
Energy       Efficiency Sector
Measure


                            €            €                  €         €           IR£
Audit Grants*              I, 738,242   1,091,637                   2,829,879    2,202,671

Investment Grants         40,439,131 9,068,226                      49,507,357   38,387,206

Advice / Backup/                                                    9,852,959    7,732,307
                                        5,397,941       4,455,018
Building
CHP Scheme (DPE) 6,452,450              572,059                     7,024,508    5,532,250


Self Audit                66,529        336,313         219,959*    622,801      486,704


Total                     48,696,351    16,466,176      4,674,977   69,837,503   54,341,138


* Self Audit Exchequer co-funding was met by time in lieu




                       2.2.2 Energy Audit Grant Scheme (EAGS)


2.2.2.1    The Energy Audit Grant Scheme was launched in September 1994. It
replaced the Fuel Efficiency Grant Scheme administered by the Department of
Transport, Energy and Communications (subsequently the Department of Public
Enterprise). A total of €2,829,879 was spent on this scheme. This scheme provided
grants of 40% (up to a maximum of €6,349 [£5,000]) to energy users in the industrial,
commercial and institutional sectors towards the cost of hiring consultants to conduct
energy audits and to advise on the steps to be taken to improve and enhance energy
efficiency. Details of all grant payments made under the Measure are outlined in
Appendix 9.



26 March 2003                                     35
2.2.2.2   Following the mid-term review of the Energy Efficiency Measure, (see
Appendix 4 to this Final Report) it was recommended that the scheme be discontinued
after June 1997. The EIOP Monitoring Committee agreed with this recommendation
but designated 31 October 1997 as the cut-off date. At closure of this scheme a total
of 453 audits (includes fuel efficiency grants paid by Department) were completed
with the involvement of over 40 consultants. This activity leveraged €1.74 million
private expenditure and identified an estimated €3.9 million national annual realisable
savings as a result.



                               2.2.3 Self-Audit Scheme

2.2.3.1 Following the discontinuance of the Energy Audit Scheme, savings of €0.67
million were deployed to augment an existing advisory / information corporate
programme - the Self Audit Scheme. This Programme required participating
companies to set annual targets in respect of energy savings, to audit and report
against those targets for publication in an annual report on the scheme.


2.2.3.2 The Self Audit Scheme membership rose to 74 in 2000 with a combined
annual energy spend of €235million (IR£185m). A total of €622,801 was spent on this
scheme. Activities of this voluntary agreement, additional to the ongoing informal
networking, included workshops and site visits focussing on technological solutions
such as Energy Management Systems, Efficient Motors, Process Change, and on
behavioural solutions such as Staff Awareness and Energy Monitoring and Targeting.
Furthermore the subject of the link between energy, the environment and large
industry was covered at a specific workshop. The 1999-2000 Annual Report of the
Scheme recorded annual energy savings of 296.05 Giga watt hours (GWh), which
equates to 124,341 tonnes CO2.
A list of members and annual reports of the scheme are available on the Irish Energy
website www.irish-energy.ie.




26 March 2003                             36
           2.2.4 Energy Efficiency Investment Support Scheme (EEISS)

2.2.4.1 The Energy Efficiency Investment Support Scheme was launched in
December 1994. The scheme provided grant assistance for investment in energy
efficient technologies for the industrial, commercial and institutional sectors. A total
of €49,507,357 was spent on this scheme. Grants of up to 40% of the cost of the
project subject to a maximum of €126,974 (£100,000) were made available. The
scheme formally closed for applications in September 1997. In June 1996 an
Addendum to the original Terms of Reference provided for an increase of the grant to
€317,435 (£250,000) subject to a maximum of 20% of the project cost. The payment
structure of the scheme was in five stages as follows:


   1. Detailed Engineering Study
   2. Procurement and Installation
   3. As Built Report
   4. Interim Monitoring Report
   5. Final Project Report

2.2.4.2 The scheme was revised for administrative and operational efficiency in
March 1998 with the combination of the final two payments. Over the life of the
programme a total of 217 projects were funded under the scheme providing over €8.8
million in EU funding grant support which leveraged over €39 million in Private
Investment in a range of energy efficient technologies.




                                2.2.5 Grants for CHP

2.2.5.1 The Irish Energy Centre launched a special scheme in October 1998 to
support the introduction of Large Scale Combined Heat & Power Plants. This scheme
allowed payment in three stages as follows:


   1. Detailed Engineering Study                          5%
   2. Procurement and Installation                        75%
   3. Connection, Running and Commissioning               20%




26 March 2003                             37
2.2.5.2 A total of €7,024,508 was spent on this scheme. The scheme offered grant
assistance of up to 20% of the cost of implementing the CHP Plant subject to a
maximum grant of €634,869 (£500,000). Under this mechanism 16 MW of CHP was
installed and commissioned in early 2000.




       2.2.6 CHP scheme organised by the Department of Public Enterprise:

2.2.6.1 In addition to the Combined Heat and Power scheme run by the IEC, a second
scheme was operated by the Department of Public Enterprise (organised under the
AERIV competitive tendering scheme) for large-scale projects, which included the
right to sell electricity to the grid.


2.2.6.2 Full information on this scheme is outlined in the EIOP Annual Report, 1999.
In summary, the Department launched the Fourth Alternative Energy Requirement
competition (AER IV) in 1997 to secure 25MW of newly installed additional
electricity generating capacity from high efficiency CHP systems and up to 10MW of
additional electricity generation capacity from existing similar systems.


2.2.6.3 The EIOP Monitoring Committee approved an allocation of €1.33m towards
the capital costs of projects successful in the competition. Grant-aid was made
available at the rate of €53,200 per installed megawatt. An additional €63,500 was
allocated to the scheme in 1998.


2.2.6.4 The results of the competition were announced in August, 1998. Contracts for
19 CHP electricity generating stations were awarded, representing 42 MW of new
capacity and the upgrading of 7.6 MW of existing capacity. The commissioning
deadline for all projects was 31 December 1999.


2.2.6.5 During the course of the competition, a number of developers decided not to
proceed with their projects. As a consequence 13 projects, representing 31.2MW,
withdrew from the scheme. At the end of 1999, a total of three new plants and two
existing plants had been commissioned representing a total installed capacity of
18.353MW.


26 March 2003                             38
2.2.6.6 A total of €561,100.40 was disbursed in two grant payments during the course
of 2000. The table overleaf summarises the financial aspects of the EIOP funding


Allocation           Decommitted/       Expenditure 1999    Expenditure        Total
(€ million)          Reallocated        (€ million)         2000 (€ million)   Expenditure
                     (€ million)                                               (€ million)
1.33 (Sept 1997)     0.45 (1999)        0.010959            0.5611             0.572059
                     (transferred to
                     other IEC energy
                     efficiency
                     measures)

0.08 (1998)          0.2148 (1999)      -                   -                  -
1.41 (total)         0.6648 (total)     -                   -                  -
0.7452               -                  -                   -                  -
(final allocation)




                                  2.2.7 Other Initiatives

2.2.7.1 In addition to the grant schemes a number of other elements of the Irish
Energy Centre (IEC) Programme were funded under the EIOP. These included the
IEC building as well as Advice and Backup. A total of €9,852,959 was spent on these
schemes.




2.2.7.2 IEC Building: Part of the ERDF funds, (€0.286 million), were earmarked for
the building of a new Headquarters for the IEC to embrace the latest in energy
efficient technologies and architecture. Therefore as well as serving as a functional
Headquarters for the IEC it was also to be a flagship energy conservation and energy
efficient demonstration building. Construction of the energy efficient building
commenced in February 1995 and it was officially opened on 22 July 1996. Architects
and builders were encouraged to visit the new building and to include the innovative
design features in their building plans.       The highly acclaimed “Our House” TV
Programme camera team visited the Centre and transmitted footage of the design
approach. Articles in trade journals have featured the building.




26 March 2003                                39
2.2.7.3: Advice Back-Up: An integral and crucial component of the Energy Efficiency
Measure was the provision of advice, support and promotional campaigns on energy
efficiency. This incorporated a wide range of integrated activities including: -

                   Establishment of reference sites which are used as models for
                    promoting various types of energy efficient technologies.
                   Establishment of Regional Energy Offices in Sligo and Cork.
                   Establishment of a Renewable Energy Information Centre in Cork.
                    This is a national service of the Irish Energy Centre, established to
                    promote the use of renewable energy resources and provide
                    independent advice and information on financial, social and
                    technical information relating to renewable energy development.
                   Multi-sector technical advice measures.
                   Development of good practice guides and training courses. The
                    Irish Energy Centre organises training courses to educate energy
                    users in the commercial sector in the area of energy and boiler
                    house management.
                   Promotion of National Boilers‟ Initiative. This comprises a set of
                    integrated measures designed to support, encourage and educate
                    boiler users and service providers. The initiative aimed to raise
                    operational standards, increase energy efficiency and improve
                    competitiveness.
                   Educational    programmes,     seminars    and    development     of
                    information packs (including the promotion of EU energy
                    programmes in Ireland).
                   Sponsorship of selected events, i.e. management and co-ordination
                    of the various activities of Energy Awareness Week, an annual
                    event which is co-ordinated by the Irish Energy Centre. It remains
                    the single most important platform for promoting energy efficiency
                    in Ireland. The primary target audience are household consumers.
                    The campaign informs them of how much energy is used on a
                    domestic basis and the potential for savings there; where this


26 March 2003                              40
                    energy comes from, and the longer term implications of current
                    consumption trends.
                   Management and co-ordination of the various activities of Energy
                    Awareness Week.
                   A range of North/South initiatives.



                               2.2.8: Re-Allocated Funding


2.2.8.1 Following the mid-term review of the Measure, the External Evaluator
recommended that the extent of expenditure on advice, information and support
elements of the Measure should not exceed 50% of the Measure funding.           The
Monitoring Committee agreed that ERDF provision for these aspects of the Measure
should be reduced by €2.54 million. This funding was re-allocated to other energy
related projects.



  2.2.9: Compliance with Commission Decision on Information / Publicity with
                       respect to the Operational Programme

2.2.9.1: The Irish Energy Centre adhered to the guidelines laid down by the EU in
respect of publicity and information actions with respect to the EIOP. This includes
written / verbal acknowledgement of EU funding support and the inclusion, where
possible, of the EU logo in:


                   All printed promotional material and publications
                   Stationery
                   Building signage, both during and after construction
                   Press releases and press statements
                   Advertisements


                            2.2.10 Impact on Employment

2.2.10.1 The creation of employment was one of the stated primary objectives of
economic policy in Ireland and the EU as a whole. The Measures receiving ERDF


26 March 2003                              41
assistance under the EIOP 1994-1999 were selected on the basis of their contribution
towards the achievement of the aims and objectives of the Community Support
Framework generally, which included the provision of adequate infrastructure to help
offset Ireland‟s geographic and structural disadvantages, thereby ensuring an adequate
base for employment and wealth generating activity.


2.2.10.2 In this context, the investment initiatives provided under the EIOP, had a
positive stimulative role to play. Through the implementation of the Energy
Efficiency Measure improved employment opportunities arose through direct and
indirect avenues.


                          2.2.11 Impact on the Environment


2.2.11.1   By encouraging energy savings the activities assisted under the EIOP
Energy Efficiency Measure contributed positively to the protection of the
environment.


                       2.2.12 Promotion of Equal Opportunity


2.2.12.1 The Energy Efficiency Measure had little or no impact on the promotion of
equal opportunity; however the Irish Energy Centre effected all of its full-time
requirements through Forfas, which is itself an equal opportunities employer. In its
engagement of further contract staff and consultants for all activities the Centre is also
committed to equal opportunities.




                    2.2.13 Compliance with Public Procurement


2.2.13.1 The administration of the Measure was fully compliant with regard to Public
Procurement. All the Procurement and Publicity Requirements stipulated by the EU
were complied with in the implementation of each of the projects.




26 March 2003                              42
                               2.2.14 NCC Energy Performance Indicators


           2.2.14.1 The Annual Competitiveness Report of the National Competitiveness
           Council (NCC) for 2001 has produced comparative Energy data that place Ireland‟s
           costs in an international context for a range of aspects of energy. The data, largely for
           2000, as reproduced in the NCC‟s Report for the year 2001, is summarised in the
           table below.




Table 2.8: Summary of Comparative Energy Costs
          Indicator       Industrial      Industrial      Industrial    Key Indicator:    Key Indicator:    Key             Heavy fuel oil
                          Electricity     Electricity     Electricity   Gas prices –      Gas prices –      indicator:      prices for
                          Prices 24 GWh   Prices 10 GWh   Prices 1.25   industrial rate   industrial rate   Automotive      industry use
                          per annum –     per annum –     GWh per       excl. VAT         excl. VAT         diesel oil      (US$ per toe)
                          VAT excluded    VAT excluded    annum – VAT   (4186 G/J         (41860 G/J        prices for
                          (euro)          (euro)          excluded      200days)          250days/4000      commercial
                                                          (euro)                          hours)            use (US$/toe)
Ireland   Value           5.31            6.17            8.06          5.66              4.7               703.5           271.3
          Rank            8               9               11            2                 2                 13              14
          Year            Jan 01          Jan 01          Jan 01        Jan 01            Jan 01            Q3 2000         Q3 2000




           26 March 2003                                     43
                     2.3 Renewable Energy Measure

                             2.3.1 Overview of Measure
2.3.1.1 The EU aid provision and original spending profile for the Renewable Energy
Measure was intended to support the first Alternative Energy Requirement Scheme
(AER 1) which involved the procurement of an additional 75 Megawatts (MW) of
renewable/alternative based electricity generating plant. In the event the grant-aid was
not required for this competition. Subsequently, the EIOP Monitoring Committee
agreed at the meeting held in September 1995, that the aid should be deployed
towards the development of other projects in the Renewable Energy area (specifically
the AER II competition (waste to energy electricity generating plant), and AER III
competition (wind, hydro, biomass and wave electricity generating plants). A
Renewable Energy Feasibility Study Grant Scheme (REFSGS) administered by the
Irish Energy Centre and the Renewable Energy Information Office was also funded.
However, the withdrawal of EIOP funding for the proposed waste to energy and wave
to energy projects, and the lower than anticipated funding required for the AER III
projects, impacted significantly on the spend profile for the measure.


2.3.1.2   A total of €3,730,987 was disbursed in grant aid payments under the
Measure. The contribution from private sources amounted to an additional
€44,047,289. The grant-aid was allocated to 11 renewable energy projects awarded
contracts under the AER III competition and 25 studies supported under the
Renewable Energy Feasibility Study Grant Scheme. These projects and studies are
discussed in more detail below.


2.3.1.3 Details of the AER III projects and REFSGS studies supported, including
details of grant-aid payments made, are outlined in the table at Appendix 11 and 12.




26 March 2003                             44
                               2.3.2 Financial Details - EU Allocation


2.3.2.1 The EU aid for the Renewable Energy Measure was initially set at €18.6m. A
further €670,000 was allocated to the Measure following the mid-term review (1997).
The allocation was reduced to €8.701m following the withdrawal of funding for the
AER II and AERIII6 schemes in 1998 (see below). Further funds were re-allocated
from the Measure as a result of the Monitoring Committee Meeting in October, 1999.
The final revised allocation for the Measure was €6.0216m, this included a re-
allocation of funding from the Broadband Measure in December, 1999. Table 2. 9
below summarises the position.


Table 2.9 : Renewable Energy Measure – EU Funds Allocation
       Year                                     Allocation              De-
                   Description                 (€ million)         commitments         Totals
                                                                    (€ million)
                                                                                       (€ million)
       1994        Renewable                       18.6
                   Energy Measure
       1997        Mid-Term                      + 0.670                                     19.27
                   Review
       1998        AER II waste to                                      - 9.3                 9.97
                   energy scheme
       1998        AER III Wave                                       - 1.2697               8.701
                   Energy Station
       1999        AER III Projects                                   - 0.7814              7.9196
                   not proceeding
       1999        AER III projects                                   - 2.9124              5.0072
                   to be funded by
                   the Exchequer
       1999                                                           - 0.0529              4.9543
       1999        From Broadband                + 1.068                                    6.0216
                   Measure
                   Final                       €6.0213m
                   Allocation*

*Final figure adjusted in this table by .00005m due to rounding error




6
    AER II was a waste-to-energy proposal. The AERIII withdrawal related to a wave energy proposal only.



26 March 2003                                          45
                          2.3.3 Financial Details – Expenditure


2.3.3.1 Total EU expenditure amounted to €3,730,987. Details of expenditure are
outlined in Table 2.10




Table 2.10 : Renewable Energy Measure –Expenditure details
 Year    Structural Priority        Measure         Scheme      Expenditure        Total EU
         Fund                                                       (€)           Expenditure
                                                                                       (€)
 1999    ERDF           EIOP        Renewable       REFSGS      107,927.74        107,928
                                    Energy

 2000    ERDF           EIOP        Renewable       AER III     691,925.15
                                    Energy                                        699,314
                                                    REFSGS      7,388.61
 2001    ERDF           EIOP        Renewable       AER III     2,800,449.02      2,800,449
                                    Energy
 2002    ERDF           EIOP        Renewable       AER III     123,296.15        123,296
                                    Energy
                                                                       Total 3,730,987



23.3.2 Total expenditure in the Measure amounted to €47,778,276 (IR£ 37,628,450)

Table 2.11: Total Expenditure Details
                          Annual Expenditure Details
Sub Programme:          1. Energy                  Measure: 1.3 Renewables

Year                                 EU              Private         Total
                                     IR£              IR£             IR£
         1994 Outturn                          0                0             0
         1995 Outturn                          0                0             0
         1996 Outturn                          0                0             0
         1997 Outturn                          0                0             0
         1998 Outturn                          0                0             0
         1999 Outturn                     85,000           96,774       181,774
         2000 Outturn                    550,754        4,572,519     5,123,273
         2001 Outturn                  2,302,637       30,020,766    32,323,403
              Totals                  2,938,391       34,690,059    37,628,450




26 March 2003                                 46
      2.3.4 Overview of AER Programme (AER II & AER III competitions)


2.3.4.1 The rationale for the promotion of renewable energy technologies in the EU
has focused around their potential contribution to energy security, the positive effects
on the environment, regional development and sustainable employment. The
European Commission‟s White Paper for a Community strategy and action plan for
renewable energy sources, published in November 1997, set out a strategy to double
the share of renewable energies in gross domestic energy consumption in the
European Union by 2010. However, these technologies cannot yet compete with
conventional technologies in electricity production. In recognition of this fact,
Member States have initiated their own programmes which offer assistance, in the
form of a long term contracts and/or financial assistance (usually a combination of
grant-aid and price support) to develop these resources.


2.3.4.2 In Ireland, the Alternative Energy Requirement (AER) Programme has been
used as the principal market mechanism to support the increased use of renewable
and alternative energy sources in electricity generation. The Department of Public
Enterprise (now the Department of Communications, Marine and Natural Resources)
administers the Programme. In regard to AER II and AER III, these competitions
were conducted with independent advice from the U.K. consultancy firm, ETSU.
Bids were evaluated using technical, commercial and economic criteria and were then
ranked in terms of the tendered selling price per unit of electricity (kW/h). The effect
of this was to exert downward pressure on prices. The assistance offered to winning
bids is in the form of a contract with the Electricity Supply Board (ESB) which
allows developers to sell the output of the winning facilities to the ESB for up to
fifteen years under Power Purchase Agreements (PPAs).             The original ERDF
allocation for the Measure was intended to fund the first AER Competition (AER I).
However, as funding was not required for the scheme, the EIOP Monitoring
Committee decided in September 1995 to approve the offer of funding for subsequent
AER competitions i.e. AER II & AER III.




26 March 2003                             47
                    2.3.5 AER II scheme (Waste-to-Energy station).


2.3.5.1 A competition to secure one biomass/waste fuelled electricity generating plant
of between 10 and 30 MW of installed generation capacity was announced in
December 1995. An application by Foster Wheeler Power Systems Inc. and ESB
Power Generation to build, own and operate a 30 Megawatt plant at a site in Dublin
was the winner of the competition. The ERDF grant aid for the winning project was
€9.3 million and was subject to approval by the European Commission. Total
investment in the project was estimated to be in excess of €25 million.


2.3.5.2    Under Article 5 of ERDF Regulation 4254/88 there is a requirement that
           projects of this size, which are being co-funded under an Operational
           Programme, must have a socio-economic cost benefit valuation
           undertaken. The analysis was undertaken by Environmental Resource
           Management Ltd. and the outcome was positive. The consultants‟ report
           was submitted to the European Commission (DG XVI) in April 1997. The
           Commission retained an independent expert to review the cost benefit
           analysis.


2.3.5.3 The Commission indicated that it was not prepared to approve ERDF aid for
the project on the grounds that:-

                    the potential revenue from the project was sufficiently attractive for
                     the station to proceed without grant aid (the Commission wished to
                     avoid potential deadweight arising on the project) and


                    the construction of the station would be at variance with the
                     indicative time horizon for thermal conversion of waste i.e. the
                     year 2004 outlined in the Dublin Waste Management Strategy
                     Report.


2.3.5.4   In view of the Commission's position, the EIOP Monitoring Committee
decided not to approve grant assistance for the project. The associated ERDF grant-
aid (€9.3 million) was subsequently reallocated by the Monitoring Committee to the
Information Society - Broadband Technology Measure.



26 March 2003                                48
                    2.3.6 AER III Scheme (Wave Energy Station)


2.3.6.1 In the context of the offer of EU grant assistance for the development of a
wave-to-energy project, the EIOP Monitoring Committee decided in March 1998, that
a technical report prepared by ETSU, the company which evaluated tender proposals
for the wave energy station, should be examined by the External Evaluator for the
Operational Programme. A paper subsequently prepared by the External Evaluator
was circulated to the EIOP Monitoring Committee for consideration. The Evaluator's
opinion was that:-


                   wave to energy technology was not yet proven;

                   the wave energy project put forward was at the Research and
                    Development (R&D) stage, and


                   R&D projects were not within the scope of the EIOP.

2.3.6.2 The EIOP Monitoring Committee decided not to offer the ERDF grant aid of
€1.269m for the project following an evaluation of the wave energy station proposals
by the External Evaluator to the Operational Programme.




          2.3.7 AER III scheme (Wind, biomass and hydro technologies)


2.3.7.1 The Third Alternative Energy Requirement competition was launched in
March 1997. The competition was conducted under contract by the U.K. consultancy
firm ETSU, following a tender process organised by the Department. ETSU evaluated
the bids received using technical, commercial and economic criteria and were then
ranked in terms of bid price per kilowatt hour (kW/h). The results of the competition
were announced in April 1998.


2.3.7.2   Three technologies were supported in the competition: biomass/waste,
hydroelectricity and windpower. The original target was to provide 100 Megawatts of
new electricity generation capacity. In order to allow for possible fall-out, contracts


26 March 2003                             49
for 158.75MW were provided for. The targets in each class and authorised contract
volumes are set out below:-

Table 2.12: Target Capacity
              Category                   Target                  Contracted
            Large wind                   65 MW                   100.82 MW
           (over 5MW)
            Small wind                   25 MW                   36.51 MW
          (under 5MW)
         Biomass/Waste                    7 MW                     17 MW

           Small scale                    3 MW                    4.42 MW
          hydro schemes



2.3.7.3 In total, 30 projects were selected to receive the offer of Power Purchase
Agreements from the ESB for a period of 15 years. In addition, 18 of these projects
were offered ERDF grant-aid at the rate of €80,000 per installed megawatt. The
remaining 12 projects were placed on a reserve list for the receipt of ERDF funding if
projects above them in their respective categories failed to proceed. Projects under 5
MW were also entitled to receive a grid connection grant of €11,670 per installed
Megawatt.


2.3.7.4 The commissioning deadline for all projects was 31 December 1999. It was
recognised at the inception of AER III that the end 1999 deadline for the completion
of projects would be challenging. This was as a consequence of the time which
elapsed in complying with the EU procurement rules for the competition, and the
lengthy planning process applying to project developers (all but two of the projects
required planning permission for site development when the results of the competition
were announced in April 1998).


2.3.7.5 As a result of the delays in the planning process the Department decided,
following the receipt of legal advice, to extend the commissioning deadline for the
draw-down of the ERDF grant-aid by developers, subject to the receipt of
documentary evidence that binding commitments for each project were in place. In
this way, the Department had endeavoured to ensure that projects still in the planning




26 March 2003                            50
process would be in a position to proceed to construction once the necessary planning
consents had been received.


2.3.7.6 However, the delays in the planning process continued during 2000 and a
number of projects failed to receive planning permission (either from the Local
Authority or on appeal from An Bord Pleanála). In addition, several projects failed to
proceed for other reasons (mainly site access problems).


2.3.7.7 In the event, a total of 11 projects were constructed under AER III including 6
windfarms, 4 small scale hydro schemes and one landfill gas project. 42.11
Megawatts in electricity generating capacity was added to the national grid as a result.
All 11 projects have been awarded 15 year contracts to supply electricity to ESB and
it is estimated that enough green electricity will be generated on an annual basis to
meet the needs of some 28,000 homes with a corresponding reduction in greenhouse
gas emissions (mainly carbon dioxide) amounting to approximately 220,000 tonnes
per annum.


2.3.7.8   These projects were developed in the main by small and medium size
enterprises and represented a total investment of €47,532,100 (£37,434,570) in
indigenous renewable energy resources which have contributed to reducing
dependency on energy imports, increased security of electricity supplies, provided
sustainable employment and helped to strengthen the electricity grid in peripheral
areas. It is estimated that up to 230 jobs in total were provided during the construction
of these projects, primarily in rural areas where 10 of the 11 projects are located. In
addition, a further 26 long-term jobs have been created through the on-going
operational and maintenance (O&M) aspects of these projects. The total EU grant-aid
disbursed under the scheme amounted to €3,615,670.55 (£2,847,571.96).




26 March 2003                              51
               2.3.8 Renewable Energy Feasibility Study Grant Scheme


2.3.8.1 Following the mid-term review of the EIOP, a sum of €200,000 was allocated
under the Renewable Energy Measure to support a Renewable Energy Feasibility
Study Grant Scheme administered by the Irish Energy Centre, in conjunction with the
Renewable Energy Information Office. The scheme was launched in 1998.


2.3.8.2 Grant-aid of up to 50 per cent, subject to a maximum grant of €7,618.43
(IR£6,000), was made available towards the costs of conducting feasibility studies to
determine the viability of developing renewable energy sites and to strengthen
applications for market access and planning permission.


2.3.8.3 Applications were approved in 1998 and the scheme was formally closed at
the end of that year. Twenty five projects were offered support, representing total
ERDF grant-aid of €115,316.48. A total of €107,928.14 was drawn down in 1999; the
balance of €7,388.34 was drawn down in 2000. The table below summarises the
position.


Table 2.13 : Renewable Energy Feasibility Study Grant Scheme
 Allocation      Decommitted       No. of         Expenditure    Expenditure     Balance
 (€ million)     October 1999     projects           in 1999        in 2000     (€ million)
                  (€ million)                      (€ million)    (€ million)
      0.2            0.052           25             0.107928       0.007388     0.032684




                            2.3.9 Performance Indicators

2.3.9.1 The AER Programme promotes the increased use of renewable and alternative
energy sources in the generation of electricity. The incentive to prospective
developers is access to a guaranteed demand contract with the ESB obliging the latter
to purchase all the output from selected generating stations for up to fifteen years at
guaranteed prices. Emphasis is placed on a competitive tendering process in order to
deliver renewable based electricity at lowest cost.




26 March 2003                                52
            2.3.9.2 Successful applicants in the Third AER competition (AER III) were entitled
            to apply for ERDF grant-aid once projects were constructed and connected to the
            national grid. As the EIOP programme progressed, a range of wind energy, landfill
            gas and hydro-electric power projects were completed and applications for funding
            were subsequently processed. The following table highlights the contribution of
            renewable energy capacity to the national grid on a project by project basis.




                Table 2.14: Energy Performance Indicators (AER III Competition)
         Organisation                    Project Location                 Technology          Installed Capacity (MWe)
Gaelforce Energy Ltd           Curabwee, Dunmanway, Co. Cork.        Wind energy                          4.62
Irish Power Systems Ltd        Baleally, Co. Dublin.                 Biomass (Landfill gas)              2.928

Saorgus Energy Ltd             Tursillagh, Tralee, Co. Kerry.        Wind energy                       15.00

MHB Windfarms Limited          Milane Hill, Dunmanway,               Wind energy                        5.94
                               Co. Cork.
MHB Windfarms Limited          Beenageeha, Listowel,                 Wind energy                        3.75
                               Co. Kerry.
Largan Hill Wind Farm Ltd      Largan Hill, Ballaghdereen,           Wind energy                        4.8
                               Co. Rosc.
Waterfern Ltd                  Black Banks, Co. Leitrim.             Wind energy                        3.4

Hibernian Hydro Ltd            Meenachallow, Glenties,               Hydro                             0.325
                               Co. Donegal.
Hibernian Hydro Ltd            Barnesmore, Donegal Town,             Hydro                             0.485
                               Co. Donegal
Hibernian Hydro Ltd            Inchinanagh, Kilgarvan, Co. Kerry.    Hydro                              0.49
Hibernian Hydro Ltd            Borlin, Bantry, Co. Cork.             Hydro                              0.37
                                                                     Total                           42.11 MW



           2.3.9.3 As a result of AER III, 42.11 Megawatts in electricity generating capacity was
           added to the national grid. It is estimated that this will provide enough green
           electricity to meet the needs of some 28,000 homes with a corresponding reduction in
           greenhouse gas emissions (mainly carbon dioxide) amounting to approximately
           220,000 tonnes per annum.



                            2.3.10 Underspend under the Operational Programme

           2.3.10.1 The EU aid provision and original spending profile for the Renewable
           Energy Measure was intended to support the first Alternative Energy Requirement
           Scheme (AER 1) which involved the procurement of an additional 75 Megawatts of
           renewable/alternative based electricity generating plant. In the event the grant-aid was
           not required for this competition. Subsequently, the EIOP Monitoring Committee


           26 March 2003                                        53
agreed that the aid should be deployed towards the development of other projects in
the Renewable Energy area (specifically the AER II [waste to energy] and AER III
[wind, hydro, biomass and wave] competitions). However, the withdrawal of EIOP
funding for the proposed waste to energy and wave to energy projects and the lower
than anticipated funding required for the AER III competition impacted significantly
on the spend profile for the Measure.




                                 2.3.11 Information and Publicity

2.3.11.1 All of the projects supported under the AER III scheme received both public
and media attention especially at local level. The wind energy projects in particular
attracted much interest locally. The distinctive profile of the wind turbines provided
additional interest in viewing the projects at first hand. As a result the signage
denoting the financial support received from the European Regional Development
Fund received significant exposure at all of the sites. A number of the projects have
also featured on company web-sites, including references to the ERDF grant-aid
provided. In order to maximise the exposure that these projects can garner from being
posted on the web, links to these sites have been provided from the renewable energy
section of the internet site of the Department of Public Enterprise.




                           2.3.12 Observance of Community policies


2.3.12.1 The AER competitions were administered in accordance with EC Public
procurement rules and State aids guidelines. The launch of the individual schemes
(AER I - AER III) was notified in the Official Journal of the European Communities
                                                                           7
in accordance with the provisions of Directive 93/38/EEC .


2.3.12.2 The offer of contracts under the AER Programme is subject to the receipt of
planning permission for the site and/or electricity grid connection, as appropriate. As


7
  Directive 93/38/EEC of 14 June 1993 coordinating the procurement procedures of entities operating in the water,
energy, transport and telecommunications sectors




26 March 2003                                         54
part of the planning process, an Environmental Impact Assessment study may also
have been required by the Local Planning Authority in accordance with the provisions
of the European Communities (Environmental Impact Assessment Amendment)
Regulations, 1999. In the case of the 11 renewable energy projects supported in AER
III, Environmental Impact Studies were provided to the Local Planning Authorities(s)
for all but one project. The exception was the Landfill Gas Project where planning
permission had already been obtained for works undertaken at the landfill site and a
separate planning consent was not required. Evidence of planning consents and EIS
reports were furnished to the Department by all AER III applicants in support of the
ERDF grant-aid applications.


                                     2.3.13: List of Files


2.3.13.1 The files retained at the Department of Public Enterprise for the Renewable
Energy Measure are set out in Table 2.12:-


Table 2.15 : Files for Renewable Energy Measure
 FIN 6/1             EIOP Community Structural assistance and Employment
 FIN 6/2             EIOP Mid-term Review
 FIN 6/3             EIOP Annual Reports
 FIN 6/4             EIOP Monitoring Committee & Sub Committee on TAPS
 FIN 6/5             E.I.O.P. Controls, guidelines and procedures (Commission Department of
                     Finance and internal for safeguarding, EU funds under the renewable energy
                     measures)
 FIN 6/6             Drawdown of ERDF Funds under the EIOP 1994 – 1999; Correspondence with
                     Planning Unit (Quarterly returns, Irregularities Returns, Closure report etc.)
 FIN 6/7             Management and Control Systems Audit Manual for the Structural funds
                     Financial controls in the Member States.
 FIN 6/8             Payments of EIOP funding to the Irish Energy Centre under the Renewable
                     Energy Feasibility Study Grant Scheme (REFSGS)
 FIN 6/9             EIOP/INTERREG II – 5% Verification Check
 AER III 4/1         Irish Power Systems – Landfill Gas project, Baleally, Co Dublin
 AER III 5/5         Ingleby 451 Ltd. (transferred to Hibernian Hydro Ltd.) - Meenachallow,
                     Glenties, Co. Donegal
 AER III 5/6         Ingleby 451 Ltd. (transferred to Hibernian Hydro Ltd.) - Barnesmore,
                     Mullanalamphra, Co. Donegal




26 March 2003                                   55
 AER III 5/8    Ingleby 451 Ltd. (transferred to Hibernian Hydro Ltd.) - Inchinanagh,
                Kilgarvan, Co. Kerry
 AER III 5/9    Ingleby 451 Ltd. (transferred to Hibernian Hydro Ltd.) - Borlin, Derryclogher,
                Bantry, Co. Cork
 AER III 6/5    Saorgus Energy/Power Gen Renewables - Tursillagh, Tralee, Co Kerry
 AER III 6/8    Renewable Energy Systems - Milane Hill, Drimoleague, Co Cork
 AER III 6/13   Waterfern Ltd – Black Banks, Co Leitrim
 AER III 6/14   Patrick & John Kingston - Currabwee, Co Cork
 AER III 6/15   B9 Energy Services - Beenageeha, Co Kerry
 AER III 6/16   Airogen Ltd - Largan Hill, Ballaghdereen, Co Roscommon




26 March 2003                             56
                    2.4 Cut-away Peatlands Measure

                          2.4.1   Background to the Measure


2.4.1.1 The Cutaway Peatlands Measure project comprised two main elements:-


                   Information Studies required to supplement the existing level of
                    knowledge regarding the rehabilitation of cutaway peatlands to
                    form wetlands; and


                   On site Developments that lead to the creation of some 3,000
                    acres (1,200 hectares) of wetlands, including 65 acres of angling
                    lakes in several different catchments.


2.4.1.2 The Operational Programme provided for European Regional Development
Fund (ERDF) assistance towards the rehabilitation of industrially cutaway peatland
for wetland, wilderness and wildlife purposes. The total investment amounted to €2.8
million of which 50% of the investment was funded from the ERDF. The Cutaway
Peatlands Measure was completed in June 2000. Measure spending is outlined in the
Table 2.13 below.

Table 2.15 Cutaway Peatlands
 Year           1995        1996         1997      1998      1999      2000       Total
 Spend IR£       84,999     449,010      530,886   505,161   486,024   182,181    2,238,261
 Grant IR£       42,499     224,505      265,443   252,581   243,012    91,090    1,119,130
 Spend €        106,653     550,404      710,531   654,698   617,123   231,322    2,870,731
 Grant €         53,327     275,202      355,266   327,349   308,561   115,660    1,421,002




26 March 2003                               57
Table 2.16 Expenditure Under Cutaway Bog Measure to 30 June 2000
                                       Original   Plan Extent of Aid                    Actual Spend to
                                       Total Cost      at 50% of Cost                   30 June 00
                                       IRP             IRP                              IRP

Development of Wetlands
Noggus                                 143,100                71,550                    147,260
Turruan                                119,800                59,900                    114,840
Blackwater                             189,400                94,700                    101,353
Fennamores                             92,100                 46,050                    229,666
Boora*                                 100,000                50,000                    692,675
Derrygreenagh / Derryounce             185,000                92,500                    154,678
Mountdillon*                           205,000                102,500                   0
Oweninny / Blanket*                    0                             0                  43,247
Littleton*                             0                             0                  125,002
Sub total                              1,034,400              517,200                   1,608,721

Technical Studies
Hydrological Impact             121,000                       60,500                    80,429
GIS Mapping*                    106,000                       53,000                    0
Sustainability of Wetlands      70,675                        35,338                    70,675
Ecological Diversity            71,500                        35,750                    71,500
Regeneration         Zoological
Impact                          71,500                        35,750                    30,000
Blanket Peat Regeneration       97,075                        48,538                    97,075
Partridge Habitat Protection    125,400                       62,700                    125,400
Eco - Tourism Study             50,000                        25,000                    32,700
Central Fisheries Board                0                      0                         10,886

Sub total                              713,150                356,576                   518,665

Admin + Tech Support                   450,000                225,000                   110,876

Overall Total                          2,197,550              1,098,776                 2,238,262

* No expenditures under Mountdillon Wetlands and G.I.S. mapping. A 75% reduction over the original Admin &
Tech Support budget. Monies reallocated to expanded work at Boora and new developments in Oweninny and

Littleton.




26 March 2003                                      58
          2.4.1.3 Individual Projects: The following points should be noted in relation to the
          individual projects funded under the Cutaway Peatlands Measure:-



          Noggus / Cloghan Lake and Wetlands:

          This is now a quality “put and take” lake surrounded by 60 hectares of wetland /
          wildlife habitat. It is now managed by the local Cloghan Community and is proving a
          very attractive amenity in the area. It was opened by Mr. Liam Hyland, M.E.P., in
          August 1999.


          Turraun:

          Initially 100 hectares, the wetlands now extend to 190 hectares of wetland, inclusive
          of a 4 hectares angling lake. A series of public pathways and bird hides are in place.


          Blackwater:

          The wetlands at Blackwater Works are now part of the tourist route taken by the
          Clonmacnoise and West Offaly Railway tour which carries some 50,000 people
          annually. Bird hides, nature trails and total peat profile are features on this trip.


          Fennamores:

          Consists of two quality angling lakes stocked with coarse fish (bream, tench, carp,
          rudd) with twelve fishing stands used regularly by visiting English and German
          anglers.


          Boora:

          What initially consisted of only a small number of widely dispersed wetlands is now
          series of wetlands within reasonable flight distance of each other. These are proving
          ideal habitats for wild birds as any disturbance in one area means that they can readily
          fly and seek refuge in the neighbouring wetlands. The wetlands continue to be used
          by up to 350 Whooper Swans each winter, together with several thousand migrating
          duck. The combined wetlands of the Boora complex extend to some 550 hectares.




26 March 2003                                   59
          Derryounce:

          Consists of 3 hectares angling lake surrounded by 40 hectares of wetland. Access
          roads, car parking and walking routes have been provided and it now provides an
          excellent amenity for the people of Portarlington.


          Oweninny / Blanket Bog:

          The research findings from the PhD study on Blanket Bogs (full title: See Table 2)
          was carried forward to demonstration reclamation work at Oweninny. This consisted
          mainly of creating conditions which resulted in saturated ground conditions which in
          turn facilitated natural colonisation of the spent Blanket peat cutaways.


          Littleton:

          Consists of a 4 hectares angling lake surrounded by 25 hectares of wetlands. It has
          car parking and fishing stand facilities together with a developed walkway. It was
          officially opened by Mr. Brian Crowley M.E.P. in August 2000 and handed over to
          the local Slieveardagh Community.



                                    2.4.2 Outputs and Impacts Achieved

          2.4.2.1 The Cutaway Peatlands measure does not lend itself to normal indicator
          measurements, as the primary objective is the creation of wetlands, which will
          maximise the diversity of ecological habitat throughout the midlands of Ireland.


          2.4.2.2 The creation of some 3000 acres (1,200 hectares) increased areas of wetlands
          has led to a very substantial rise in the number of both resident and migrating bird
          species using the wetlands. The success of the wetlands can be gauged by the fact
          that the majority of resident bird species are breeding and rearing young successfully.
          The usage of the wetlands by migrating species is increasing each year, with
          substantial flocks of Whooper Swans, Widgeon and Teal arriving each autumn. Some
          350 Whooper Swans, for example, use the wetlands as a resting place after their
          migration from Iceland.

          2.4.2.3 Usage of Angling lakes: In the early months of 1999 the lakes at Finnamores
          were stocked with coarse fish, carp, tench, rudd and bream. During the fishing months
          of the year the occupancy of angling lake platforms in the 65 acres of angling lakes

26 March 2003                                  60
          created under the Measure is very high - particularly by English angling tourists. It is
          now estimated that up to 400 anglers per month use the area in the period March to
          September. The combination of local and visitor anglers ensures that all fishing stands
          are occupied each weekend. Loch an Dochais which was developed for disabled
          anglers was used to stage the All-Ireland Disabled Angling Championship. It is also
          used by local groups to teach fishing skills to juvenile anglers, and a number of
          juvenile fishing competitions have been held in conjunction with local festivals.

          2.4.2.4 Turraun Wetlands: This is a vast wild area with restored habitats uniquely
          high in value. The shallow flooded area spans over 60 hectares and 110 bird species
          are recorded there to date. There is a secluded bird-hide 300 metres from the car park.
          There are many kilometres of walking paths through vast areas where natural
          recolonisation is occurring on drylands. Over 270 vascular plant species are recorded
          here ranging from trees to reeds to heathers and wild grasses, and the area has
          attractive displays of wild orchids during the month of July.

          2.4.2.5 Technical Studies: Five Technical Studies on the ecological factors associated
          with cutaway peatland rehabilitation in Ireland were accepted and published in the
          Proceedings of the International Peat Society Conference, Quebec, Canada in August,
          2000 – which not alone ensured that cutaway peatland research work in Ireland was
          brought to an international audience but also indicated that such research is on a par
          with other worldwide research on rehabilitation of peatlands. These technical studies
          provide an excellent reference base on the ecological process that takes place on
          newly established wetlands on cutaway bogs. Table 2.17 provides descriptions of the
          technical studies:-




26 March 2003                                  61
          Table 2.17: Description of Technical Studies
           Name:                    Student:                        Title:

           Ms. Una Leader              Research Student             A hydrological study of
                                       National University of       Garryduff Bog (East Co.
                                       Ireland-University College   Galway               near
                                       Galway.                      Shannonbridge,        Co.
                                                                    Offaly)
           Ms. Aine O‟Connor           PhD Student                  Ecology of Artificially
                                       Trinity College              Created     wetlands   on
                                       Dublin.                      cutaway bog with a view
                                                                    to designing management
                                                                    strategies.

           Mr.Robert Rowland         PhD Student                    Investigation     of    the
                                     National University of         Ecologies      of     Irish
                                     Ireland-University College     Midlands Cutaway Peat
                                     Dublin                         lands.
           Ms.     Catherine      A. PhD Student                    Rehabilitation of Atlantic
           Farrell                   National University of         bog industrial cutaway at
                                     Ireland-University College     Bellacorrick, North West
                                     Dublin                         Mayo.
           Mr.    Edward          C PhD Student                     Home range and habitat
           O‟Gorman                  Trinity College                use by the endangered
                                     Dublin.                        grey partridge in the Irish
                                                                    Midlands.



                                 2.4.3 Information and Publicity


      2.4.3.1 Material in relation to media and press coverage indicating EU involvement on the
      Cutaway Peatlands Measure is held on file within the Peat Division, Department of Public
      Enterprise. The material includes press cuttings and ministerial speeches/launches.


                 2.4.4 Declaration of Observance of Relevant Community Policies

                              This project has no impact on community competition rules.

                              Bord na Móna is an equal opportunities employer.

                              As part of an external audit of this measure no irregularities have
                               been detected and public procurement procedures have been
                               followed.


   2.4.4.1 Files: The Key reference files at the Department of Public Enterprise for the Cutaway
   Peatlands Measure are as follows:-


26 March 2003                                   62
         Table 2.18: List of Files
          8/45/2 CSF Structural Funds 1994-99: Closure of Operational Programmes and
                  Data on Expenditure and Commitments (Cutaway Bog Measure)
          8/47    EIOP Quarterly Expenditure Returns and Progress Reports- Monitoring of
                  Expenditure: Cutaway Bogs Measure 1995 to date
          8/49    EIOP Monitoring Committee Meetings-Agenda, Brief and Minutes.
                  Cutaway Peatland Measure. Vols 1-3. 1995 to date.
          8/50    EIOP: Annual Reports by Ireland for Submission to EU Commission.
                  Cutaway Peatland 1996 to date.
          8/52    EU Commission Regulation concerning irregularities in Context of
                  Structure Funds- EIOP Returns- Cutaway Bogs Measure Vols. 1 and 2.
                  1990 to date.
          8/53    EIOP: Drawdown of Expenditure by Bord na Mona and Audit of
                  Expenditure: Cutaway Peatland Measure. Vols 1 to 3. 1995 to date.
          8/53/1 EU Structural Funds: Financial Control Procedures in Bord na Mona
          8/53/2 EIOP: Cutaway Peatlands Measure- Audit by PriceWaterHouseCooper of
                  Grant Claims made by Bord na Mona.1998/99.
          8/53/3 EIOP Cutaway Peatlands Measure: Inspection of Bord na Mona Records,
                  Newbridge, 1/12/99 (including scientific studies)
          8/53/4 EIOP Cutaway Peatlands Measure: Audit Report by Departments Internal
                  Audit Unit in 1999.
          8/63/1 Structural Funds: EU Regulations/Directives and Decisions regarding
                  Financial Control, Management, Publicity, Procurement etc.
          8/63/2 EU Datasheets/Factsheets on Financial Control and Eligible Expenditure
                  under the Structural Funds.




26 March 2003                             63
                    2.5     Rural Energy Networks Measure

                                     2.5.1 Introduction

          2.5.1.1 The Rural Networks Measure of the EIOP was designed to assist the problems
          created by peripherality and population settlement patterns for energy supply. The
          implementing body is the Department of Public Enterprise (now the Department of
          Communications, Marine and Natural Resources) and the final recipient/beneficiary is
          the Electricity Supply Board. Given the nature of the projects, the rationale for the
          projects relates to the socio-economic justification rather than the strict economic
          return criteria. The rural electrification projects however support areas of dispersed
          demographic settlements. While the benefits are related to socio-economic criteria
          they also support tourism and some manufacturing activity. The investments will
          enhance the quality and capacity of supply thereby eliminating constraints imposed by
          the existing supply system on socio-economic development. The investments will
          complement other EU investments particularly in the development of tourism. The
          funding for the rural energy network represents a small part of the overall programme.


                             2.5.2 Projects Under the Measure


          2.5.2.1 There are six projects in the Rural Networks Measure of EIOP.


          1. The Aran Islands (Inis Mor, Inis Meain, and Inis Oirr) / Cape Clear
          2. Inisbofin
          3. Clare Island
          4. Screebe / Carraroe
          5. Leitrim Network Renewal Program
          6. Monaghan Network Renewal Program



                            2.5.3 Investments Under the Measure

          2.5.3.1 The Rural Networks Measure involved a total investment of €13.13 million
          (IR£10.34M.) over the life of the programme.


          2.5.3.2 ESB was allocated EU funding of € 6,226,000 (IR£4,903,373) in the EIOP
          programme for (1) the provision of submarine cable supply to the following islands,
26 March 2003                               64
          the Aran Islands (Inis Mor, Inis Meain, Inis Oirr), Cape Clear, Clare Island and
          Inisbofin Island and (2) the upgrading of Rural Networks in Counties Leitrim and
          Monaghan.


          2.5.3.4 Funding for the Rural Networks Measure changed throughout the years of the
          EIOP programme. The table below shows the changes in funding during the lifetime
          of the programme.


          Table 2.19: Total funding
  Year     1995       1996          1997      1998         1999        2000        2001          Total
  IR£      667,440    3,857,015     620,694   2,473,583    1,290,018    870,048    563,300       10,342,098
  Spend
  €        847,474    4,897,399     788,119   3,140,803    1,637,985   1,104,733   715,243       13,131,756
  EU       333,720    1,928,508     310,347   1,236,792     645,009      435,024   281,650        5,171,049
  Spend
  €        423,737    2,448,700     394,059   1,570,402     819,107     552,367    357,622        6,565,878


          Table 2.20: Rural Networks Funding

                   Year             Funding IR£      Funding Euro          Project
                                                                           Allocated (Euro)
           1994               2,441,448.40           3,100,000             Aran Islands/Cape
                                                                           Clear
           1995
           1996
           1997               425,284.56             540,000               Clare Id
                                                                           (270,000)/Inisbofin
                                                                           (270,000)
           1997               663,916.45             843,000               Clare Id
                                                                           (421,500)/Inisbofin
                                                                           (421,500)
           1998               249,657.79             317,000               Screebe (136,000)/
                                                                           Clare Id (181,000)
           1998               613,512.36             779,000               Leitrim
           1999               509,553.91             647,000               Monaghan
           2000
           2001
           Total              4,903,373.47           6,226,000




26 March 2003                                 65
                          2.5.4 Island Submarine Cable Electricity Supply


          2.5.4.1 Cape Clear, Aran Islands, Clare Island and Inisbofin were connected to the
          National Grid during the lifetime of the programme.


          2.5.4.2 Each project involved the laying of a submarine cable link (see lengths in table
          below) between islands and the mainland. Work was also required on the Networks
          on the islands and the mainland to provide adequate voltage. These projects were
          delivered on time and within budget.



         Table 2.21: Cost per Project

          Island     Length of Cable          Final Cost     Exchange Rte € millions       Year

          Cape Clear         5.2km            £882,230       0.815783         1,081,451     1996
          Aran Islands       40Km             £4,200,437     0.747168         5,621,810     1997
          Clare Islands      10Km             £1,162,410     0.771594         1,506,504     1998
          Inisbofin          12Km             £1,295,313     0.771594         1,678,747     1998


          2.5.4.3 A total of €3.1 million (approx IR£2.5m at that time, €3,174,345) was
          approved for the Aran Islands and Cape Clear. The final grant aid received was IR£
          2,393,063 (€3,038,563.22).


          2.5.4.4 An additional €136,000 (IR£107,109) was provided for reinforcement work at
          Screebe to ensure the reliability of supply to the Aran Islands.


          2.5.4.5 A total of €1.561 million (IR£1.23m, €1,561,777) was approved for Clare
          Island and Inisbofin and the final funding rate was 50%.


                                     2.5.5 Performance Indicators


          2.5.5.1 The performance indicators for the islands were to increase voltage variation
          capability and the supply capacity. The previous figures are given below with the
          projected performance improvement resulting from the installation of the submarine
          cable supply to the islands. The performance improvements were achieved.




26 March 2003                                  66
          Table 2.22: Performance Indicators
          Island                          Before                     After (% improvement)

          Inis Mor
          Capacity                              0.9MVA*              4.0 MVA (344%)
          Voltage Variation Capability          2.0MVA               22.0 MVA (1000%)

          Cape Clear
          Capacity                             0.2MVA                3.3MVA (1550%)
          Voltage Variation Capability         1.2 MVA               4.3MVA (258%)

          Inis Meain
          Capacity                             0.2MVA                0.6MVA (200%)
          Voltage Variation Capability         1.5MVA                19MVA (1166%)

          Inis Oirr
          Capacity                             0.25MVA               0.8MVA (220%)
          Voltage Variation Capability         1.8MVA                17MVA (844%

          Clare Island
          Capacity                             0.15MVA               0.6MVA (300%)
          Voltage Variation Capability         1.1MVA                3.0 MVA (173%)

          Inisbofin
          Capacity                             0.2MVA                0.6MVA (200%)
          Voltage Variation Capability         1.2MVA                3.0MVA (150%)
          *MVA = Million Volt Amps




                                            2.5.6 Objectives


          2.5.6.1 The objective of the island cable supplies from the National Grid was to
          replace the noisy and unreliable old diesel generators on the islands which restricted
          supply to light domestic loads only. The supply was prone to voltage fluctuations,
          which meant use of computers, agricultural, and industrial tools was restricted. The
          investments will have positive socio economic benefits for the islands. The improved
          capacity and quality of electricity supplies will remove the existing constraint in terms
          of electricity supply and allow the islands to develop their tourist potential.




26 March 2003                                   67
                                  2.5.7 Rural Networks Upgrading


          2.5.7.1 Rural electrification investments funded under EIOP are only a very small
          percentage of ESB‟s rural capital Programme. Counties Leitrim and Monaghan were
          approved for funding as these are areas in which Irish demographic and settlement
          characteristics impose the most significant cost on energy supply infrastructure. The
          justification relates to socio-economic criteria rather than direct economic returns.


          2.5.7.2 The final overall cost of Leitrim was IR£1,448,592 (€1,839,332.42).


          2.5.7.3 The cost of Monaghan at closure was IR£1,160,607 (€1,473,666.90). This
          project was budgeted at IR£ 1,020,000 (€1,295,132.80) and is IR£140,607
          (€178,534.06) over budget. Additional Funding is being sought for this project at the
          closure of the programme. Expenditure on the Monaghan Project in 2000 amounted to
          IR£597,307 (€758,423.44). Expenditure on the Monaghan Project in 2001 amounted
          to IR£563,300 (€715,243.46). The initial cost estimate was based on standard cost /
          replacement rates. The excess expenditure is as a result of the extent of the
          refurbishment being greater than anticipated. Completion of the project was delayed
          due to access restrictions caused by the foot and mouth outbreak.


          2.5.7.4 Funding of €779,000 (IR£613,512) was approved for Leitrim and € 647,566
          (IR£510,000) was approved for Monaghan to co-finance the upgrading of the rural
          networks. The work involved the replacement of poles, wires and transformers on the
          medium and low voltage networks and was carried out between 1999 and 2001.




                                    2.5.8 Performance Indicators


          2.5.8.1 The performance indicators for the foregoing projects were similar with the
          completion of the work having been achieved.


          2.5.8.2 The capacity of the medium voltage networks was doubled from 2MVA to
          4MVA.


          2.5.8.3 The voltage of the networks has been doubled from 10,000 volts to 20,000
          volts.
26 March 2003                                  68
          2.5.8.4 The low voltage network was upgraded to supply 120KVA short circuit
          capacity at the customers‟ meter. Up until now 45% of customers were supplied
          below this short circuit level.




                                      2.5.9 Outcomes and Impacts


          2.5.9.1 The EIOP projects under the Rural Networks Measure have had a positive
          socio – economic effect due to the benefits of an enhanced electricity supply. Both
          capacity and quality of supply were enhanced. Restrictions on voltage sensitive
          equipment such as computers, agricultural and light industrial tools were removed.
          This has benefited local industry and tourism in particular. The benefits were
          particularly noticeable on the island projects, where, even use of domestic electrical
          appliances was previously restricted. Air and noise pollution from diesel generators
          was eliminated, with the provision of electricity from submarine cable link between
          the islands and the mainland.


          2.5.9.2 The networks (Monaghan and Leitrim) identified for funding were in areas of
          the country, which are underdeveloped and would benefit from the upgrade on their
          electricity supply and remove this constraint on their socio-economic development.




                                            2.5.10 Publicity


          2.5.10.1 Publicity signs were erected on all rural networks project sites in accordance
          with EU Directive 94/342/EC. In addition extensive press publicity was carried out by
          the ESB highlighting EU assistance. Media interest in the island projects was strong
          both at national and at regional level. The island projects featured in the EU
          Commission publication “ A European Success Story – EU Regional Policy in
          Ireland”.




26 March 2003                                     69
                                    2.5.11 Competition Policies


          2.5.11.1 Where relevant, Community policies including competition, public
          procurement, equal opportunities and environmental policies were observed by the
          ESB. The ESB is governed by the Utilities Directive on Public Procurement, and
          tenders for cable and cable laying were advertised in the EU Journal. ESB is an equal
          opportunities employer. All planning and environmental requirements were complied
          with by obtaining foreshore licences from the Department of Marine and Natural
          Resources (now the Department of Communications, Marine and Natural Resources)
          for cable laying.




26 March 2003                                70
                Chapter 3
                 EIOP Sub-
                Programme
        : Communications




26 March 2003        71
                            3.1 Telecommunications Measure

                                            3.1.1 Introduction

            3.1.1.1       As    part   of   the     EIOP,   investment    by     Telecom   Eireann   in
            telecommunications over the period 1995-1999 was assisted by funding of over €19
            million. Measure spending is outlined in the Table 3.1 below.


            3.1.1.2 In the ten years prior to 1995, Telecom Eireann had invested €2.16 billion
            (£1.7 billion) in infrastructure which ensured that the company kept up to date with
            growth in line connections. The funding under EIOP was provided to assist Telecom
            Eireann in meeting the on-going investment required for future demand for telephone
            service and to cater for the demand for new and more advanced services.


            Table 3.1: Measure spending - Telecommunications
Year                           1995          1996           1997          1998         1999          TOTAL
Spend IR£                      10,898,419    9,040,068      2,769,810     8,122,984    2,789,542     33,620,823
Grant IR£                      5,122,257     4,248,832      1,301,811     3,817,802    1,311,085     15,801,787
Spend €                        13,838,138    11,478,519     3,516,933     10,314,062   3,541,988     42,689,640
Grant €                         6,503,925    5,394,904      1,652,959     4,847,609    1,664,735     20,064,132



                                             3.1.2 Objectives


            3.1.2.1 The investment in telecommunications was designed to help achieve Telecom
            Eireann‟s objective of having in place a high quality mainly digital network with
            advanced signaling and service capability by the end of 1999.


            3.1.2.2       The investment was designed to: -


                         Increase customer connections;
                         Increase traffic levels on the trunk network;
                         Replace analogue technology with digital technology;
                         Enhance digital exchanges with new software for new services such as
                          ISDN;
                         Enhance transmission networks by the provision of SDH technology;
                         Provide Network Management Systems


26 March 2003                                        72
             3.1.2.3       The telecommunications measure involved a wide range of specific
             projects which can be grouped into two areas as follows: -


                          Network enhancement which included analogue exchange replacement,
                           Euro ISDN and the upgrading to the C7 signalling system;
                          Network Technology Development which included Coaxial Cable
                           Replacement and developments in SDH, ATM and National Management
                           Systems.


             3.1.2.4       Table 3.2 overleaf outlines the total spending by project in the period
             1995-1999 and the funding provided under EIOP.




Table 3.2: Project spending – Telecommunications
                 1995        1996        1997        1998        1999        TOTAL        TOTAL         Aid rate @
                                                                                          Eligible      47%
                                                                                          Expenditure
                 IEP         IEP         IEP         IEP         IEP         IEP          IEP           IEP
Exchange         6,006,071 3,998,542                                         10,004,613   10,004,613    4,702,168
Digitalisation
C7 Signalling    996,483     -2,229                  2,344,758   423,908     3,762,920    3,762,920     1,569,334


Euro ISDN        2,245,036 754,964                                           3,000,000    3,000,000     1,410,000


SDH              1,350,829 237,171                                           1,588,000    1,588,000     746,360


ATM                                      826,156                             826,156      826,156       388,293


Coax             300,000     6,925       1,943,654   2,280,837   1,311,297   5,842,713    5,842,713     2,746,075


NMS                          4,044,695               3,497,389   1,054,337   8,596,421    8,596,421     3,712,769


Total            10,898,41 9,040,068     2,769,810   8,122,984   2,789,542   33,620,823   33,620,823    15,275,000




26 March 2003                                         73
                                         3.1.3 Projects


          3.1.3.1     This Measure involved a number of different projects detailed as follows:

          (a) Exchange Digitalisation:
          Investment under this project involved replacing cross-bar exchanges with digital
          exchanges. At the end of 1994 there were 390,000 analogue lines in the network and
          under the investment plans at that time all these lines would not have been replaced
          until 2005. The grant aid ensured the accelerated replacement of these analogue lines
          by the end of 1999 and Telecom Eireann met its objective of a fully digital network
          by the end of the programme. The benefits of accelerated replacement included
          enhanced quality of service, providing the infrastructure for ISDN and Intelligent
          Network, allowing for rationalisation of exchanges and availability of supplementary
          services.



          (b) C7 Signalling:
          C7 is a signalling system between the exchanges to support basic call control, ISDN
          services, PSTN and ISDN supplementary services, intelligent network services and
          circuit control. C7 signalling replaced the national R2 signalling to facilitate the
          rollout of ISDN and Intelligent Network services. Telecom Eireann first introduced
          C7 signalling during 1993 onto main exchanges and the funding under EIOP provided
          for the acceleration of the provision of C7 signalling down to primary level (local)
          exchange.


          (c) ISDN:
          By upgrading an ordinary telephone line to ISDN the customer has the possibility on a
          dial-up basis of transferring files, images, text and data at speeds many times faster
          than the traditional networks. Telecom Eireann launched the ISDN in 1994 as an
          overlay network based on two exchanges in Dublin. The EIOP grant aid allowed for
          the rollout to the local exchange network and the integration of the ISDN into the
          PSTN.


          (d) Coaxial Cable Replacement:
          In 1995, the National Trunk Network still contained some coaxial cable routes that
          were over 20 years old. These routes had a high incidence of faults, high maintenance
          costs, capacity bottlenecks and an increasing unavailability of spares. It was not
26 March 2003                                 74
          possible to upgrade the line systems in these routes to higher bit rates used in SDH
          networks. Under the EIOP grant aid programme all the coaxial cable routes were
          replaced with digital technology and new fibre optic routes were installed for
          completion of planned SDH rings. The investment in coaxial cable replacement was
          run in tandem with the rollout of the SDH Network


          (e) Synchronous Digital Hierarchy (SDH):
          SDH technology provides a more reliable high-speed transmission highway,
          facilitates cross-border interconnect upgrades and supports the introduction of
          network management systems. The SDH ring linking the main population centres was
          competed with the assistance of EIOP grant aid and Telecom Eireann developed
          further rings to ensure fast transmission of large volumes of traffic with diversity of
          routing.




          (f) Asynchronous Transfer Mode (ATM):
          Telecom Eireann commitment to the development of broadband services included the
          use of ATM broadband technology. As a member of the European ATM Pilot trial,
          the EIOP funding assisted in the development work and in the development of other
          services.


          (g) National Management System:
          Telecommunications networks are increasingly vulnerable to congestion and
          overload. With the assistance of EIOP grant aid, Telecom Eireann provided network
          management systems in order to monitor the operation and performance of the
          network and to initiate corrective actions to optimise network configuration and
          traffic flows. The equipment for the National Management System was put in place in
          1998.


                                   3.1.4 Performance Indicators


          3.1.4.1         Specific performance targets for the telecommunications sector were
          agreed for the CSF including:
                               The complete digitalisation of exchanges by 1999;
                               Improved telephone penetration rate from 75% to 82% by 1999;
                               Improved fault clearance rate;
26 March 2003                                    75
                                    Reduced call failure rates


             3.1.4.2       The EIOP Monitoring Committee agreed more ambitious and demanding
             indicators for the Telecommunications measure, particularly in respect of fault
             clearance and reduced failure rates. The baseline outturn for 1999 and revised
             indicators for the Telecommunications Measure are set out in the Table 3.3 below. It
             will be noted that there was some deterioration in the call failure rates on the local and
             STD networks in 1999. The variation arose from a new statistical sampling
             methodology introduced by Telecom Eireann in 1999 to measure call failure rates.


             3.1.4.3 The Annual Competitiveness Report of the National Competitiveness Council
             (NCC) for 2001 has produced comparative Telecommunications data that place Ireland‟s
             costs in an international context for a range of aspects of Telecommunications. The data
             for 2000, as reproduced in the National Competitiveness Council‟s Report for the year
             2001, is summarised in the table below.




Table 3.3: Performance Indicators for Telecommunications
          Indicator       Key Indicator         Fixed-to-Fixed    Key indicator:     Cost of                Key indicator:       Key indicator:
                          2Mbits leased lines   interconnection   Cost of internet   internet use           Composite            OECD national
                          national circuits –   cost (national)   use (30 minutes,   (30 mins off-          Business basket      (GSM) mobile
                          connection (euros)    costs per         peak rate, US$     peak rate,             cost of calls        basket)
                                                minute                               US$)                   (national and
                                                                                                            international)
Ireland   Value           3174                  1.54              0.406              0.202                  938.8                1681
          Rank            8                     2                 9                  7                      15                   26
          Year            2000                  2000              Nov 00             Nov 00                 May 01               May 01



             3.4.1.4 Table 3.4 offers an overview of key indicators from 1993 until 1999, including
             indictors of performance within the network.


             Table 3.4: Operational Programme Indicators for Telecommunications.
                                                Unit      1993      1994      1995     1996          1997        1998     1999

               Rate of Digitalisation           %         70        74        77       84            85          95       100
               Faults cleared in 2 days         %         85        93        96       97            96          94       90


               Call Failure Rates:

               Local                            %         0.61      0.42      0.46     0.55          0.52        0.41     0.58

               STD                              %         0.95      0.68      0.75     0.77          0.89        0.75     1.43

               International                    %         2.7       2.4       1.9      1.74          0.91        0.89     0.8


               Telephone Penetration Rate       %         75        78        80       83            83          89       85

  26 March 2003                                             76
                              3.1.5     Information and Publicity


          3.1.5.1     Due to the nature of telecommunications projects under the EIOP, where a
          project had software loaded onto many exchanges or covered transmission systems
          over a wide part of the country, it was not possible for Telecom Eireann to put signs
          up marking the EU involvement in many of the projects. Telecom Eireann also
          indicated that, for security reasons, it did not identify locations or attract attention to
          their main exchanges where much of the work under the Programme was carried out.
          In order to overcome these problems and comply with the information and publicity
          measures, Telecom Eireann placed advertisements in the three Irish national
          newspapers in March 1996.


          3.1.5.2 During visits by external auditors, acting on behalf of the Telecommunications
          Measure Leader, compliance with publicity procedures were examined. A billboard
          erected at the original site of the National Management Centre at Bluebell, Dublin
          was inspected by the audit and photographic evidence was taken. The wording in
          relation to EU involvement was as follows:
          „THIS PROJECT HAS BEEN PART-FINANCED BY THE EUROPEAN REGIONAL
          DEVELOPMENT FUND‟
          A permanent plaque was also placed within the building in order to comply with the
          publicity requirements. The external auditors also visited the Crown Alley exchange,
          Dublin, which houses C7 signalling equipment, and confirmed the existence of the
          publicity plaque there.




                    3.1.6 Declaration of Observance of Relevant Community Policies.


          3.1.6.1     Public procurement: As part of the external audit on this project, the
          procurement procedures followed were reviewed and a number of contracts chosen
          for detailed testing. For each contract chosen audit obtained and inspected all relevant
          documentation     including    the   originating tender,    responses    and    evaluation
          documentation. Audit established, based on the tests, that procurement procedures
          were followed in accordance with Title 1 of Council Directive 93/98/EEC.




26 March 2003                                   77
          3.1.6.2   Equal Employment Opportunities: Telecom Eireann adopted a policy of
          equal employment opportunity for all.


          3.1.6.3   Environmental (EIS): The measure had no significant impact on the
          environment.




                                         3.1.7 Files
          3.1.7.1.1 The Key reference files held by the Telecommunications Measure Team
          are set out in Table 3.4 (Files for Telecommunications Measure).

          Table 3.5: Files for Telecommunications Measure
           EU/EIOP1       EIOP Monitoring Committee '94-'99


           EU/EIOP2      EIOP Audit Trail Requirements for Economic Infrastructure
                         Operational Programme (EIOP)

           EU/EIOP3      Notification of irregularities to Planning Unit/Department of
                         Finance/EU Commission in context of structural Funds (EIOP)

           EU/EIOP4      Mid Term Review of the EIOP

           EU/EIOP5      Additionality Returns under the EIOP (C.S.F.)


           EU/EIOP6      Technical Assistance Programme (TAP) under the EIOP.

           EU/EIOP7      EIOP Claims for funding


           EU/EIOP8      EIOP Quarterly Returns


           EU/EIOP9      EU Commission Audit of Telecommunications EIOP Measure

           EU/EIOP10     Closure of EIOP




26 March 2003                                78
                                   3.2 Postal Measure

           3.2.1 The EIOP Postal Measure enabled An Post to extend counter automation to 400
           Post Offices (listed at Appendix 13) located primarily in rural areas to bring service
           availability at these offices to the level pertaining at the 600 mainly town/urban based
           offices previously automated. (Phase 1 of the Counter Automation Project).


           3.2.2 Eighty-five per cent of An Post counter business was generated at the 600
           offices with 10% originating at the 400 offices in Phase II (EIOP). The scheme
           enables the 400 offices to offer the full range of Post Office based counter services
           and specifically enables them to participate in card based automated services for bill
           payment and welfare disbursement resulting in social and commercial benefits to rural
           based consumers and to the workers in the offices concerned.


           3.2.3 The Phase II initiative was implemented between 1997 and 1998. Bill payment
           business through An Post has grown by over 50% between 1997 and 2001.


           3.2.4 The Postal Measures included in the EIOP for co-financing assistance are as
           follows:


           3.2.4.1 Regional Mail Centres
           This includes the development of regional mail centres at:
           a. Portlaoise
           b. Athlone
           c. Sligo
           d. Galway


           -- Athlone Mails Centre: Completed in 1994, the Athlone Mails Centre operates as an
           integrated Letter Forwarding Office serving the surrounding counties and acts as a
           transit centre for the Galway and Sligo mail centres.


           -- Portlaoise Mails Centre: The Portlaoise Mails Centre was completed in 1996.
           Between 1997 and 2000 it served as an integrated Letter Forwarding Office serving
           the surrounding counties. In 2000, automated sorting equipment was installed and
           now Portlaoise handles approximately 60m items per year. It will serve as the primary
          processing hub for the Leinster area (excluding Dublin).
26 March 2003                                  79
          -- Sligo Mail Centre: Sligo Mails Centre was completed in 1998. It facilitated the
          move of Letterpost operations from the old Post Office building which did not have
          sufficient capacity to handle the increasing volumes. It serves counties Donegal,
          Sligo, Leitrim and Roscommon and processes approximately 37 million items per
          year.


          --Galway Mail Centre: Construction work finished in December 2000 and fit out was
          completed during the first quarter of 2001. The centre facilitated the move from the
          old Post office building which did not have sufficient capacity or adequate access for
          large vehicles. It processes approximately 60m items per year.
          3.2.4.2 Counter Automation: 400 rural offices were automated under Phase II which
          was completed in 1998. This brought the number of automated offices in the network
          to 1,000. The automation of these offices increased the transaction processing
          capacity at the offices and enables offices to provide a quicker and more efficient
          service to customers.


          3.2.5 Performance Indicators for Postal Services: Specific performance targets
          agreed for the postal investments in the CSF include:


                           Rate of overnight delivery achieved
                           Postal charges as % of EU average


          Up to 1997, the next day delivery performance monitor – the MRBI monitor – was
          used to measure performance of a limited number of mail types and routes. In mid
          1997, following the receipt of the EIOP grant, work began on the development of a
          new monitor – EIREX – designed to monitor all types of mail across a significantly
          increased number of routes. In order to assess the impact on measured performance,
          the new monitor was run in parallel with the existing monitor throughout Quarter 4
          1997. The results showed that the figures for next day delivery performance (for all
          mail types, across the increased number of routes) equated to 83% next day delivery
          under EIREX as opposed to 95% reported for the MRBI monitor results.

          3.2.6 As a consequence of this, An Post took the decision to formally adopt a new,
          lower EIREX figure as a more accurate representation of real mail performance, and
          to use this figure as a baseline for setting future performance targets. Throughout

26 March 2003                                 80
               1998, the company deployed significant effort to increase the measured performance
               from the 83% baseline to the company‟s own target figure of 88% next day delivery
               (all mail types) by year end. The performance objective set for 2001 was to achieve
               90% minimum by next day delivery performance for all mail types. The results
               achieved under the original MRBI up to 1997, the results for 1998 to 2000, and the
               results for 2001 are shown in the Table below.


               3.2.7 With regard to postal charges, the objective was to reduce such charges from
               113% in 1993 to 100% by 2001 in relation to the EU average. The EU average tariff
               is calculated by comparing the cost of the national standard postal rates for a 20 gram
               letter, translated to Euro at the prevailing exchange rate in force on the date of
               calculation. On 6 April 1998, An Post reduced its basic domestic letter rate by 6.25%
               to 0.30p, placing it below the EU average of such charges. By the end of 2000, the
               domestic tariff for Ireland equated to 83% of the EU average domestic tariff.



               3.2.8 The Table below summarises the performance of An Post to the end of 2001.

Table 3.6: Operational Programme Indicators for Postal Services
            Indicator   Unit   1993    1994     1995        1996   1997   Q4:1997   1998    1999    2000    2001
Monitor                 MRBI   MRBI    MRBI     MRBI        MRBI   MRBI   MRBI      Eirex   Eirex   Eirex   Eirex
                                                                          95
Overnight               %      94      91       92          92     95     Eirex     86      88      89      87
Delivery                                                                  83
Postal *                %      113     106      98          107    94     N/A       90      84      83      82
Charges
*In relation to EU Average



               3.2.9 In addition to the CSF indicators for the overnight delivery and postal charges,
               the Operational Programme makes specific provision to monitor the performance of
               the Postal Service Investment at a more detailed level. The detailed measures required
               are letter and parcel volumes through the mails centres earmarked for assistance under
               OP. With regard to the Athlone, Portlaoise and Sligo mail centres, the Table below,
               provides details of the performance of the centres from 1996-2001.




26 March 2003                                          81
          Table 3.7: Letter and Mail Volumes through Athlone, Portlaoise and Sligo Mail
          Centres
           Indicators & Mails    1996   1997        1998       1999      2000       2001
           Centre
           Athlone      Letter   25m    31m         56m        58m       60.9m      66m
           Volumes
           Athlone      Parcel   1.5m   1.8m        2.1m       2.2m      2.3m       2.5m
           Volumes
           Portlaoise   Letter   -      29m         39m        40m       42m        46.2m
           Volumes
           Portlaoise   Parcel   -      -           2.3m       2.5m      2.6m       2.9m
           Volumes
           Sligo        Letter   -      -           26m        27m       28.4m      31.2m
           Volumes
           Sligo        parcel   -      -           .2m        .2m       0.21m      0.23m
           Volumes




          3.2.10 The Minister for Public Enterprise officially opened the Mail Centres at Sligo
          and Galway. Plaques were also positioned at the entrances at each of the four Mail
          Centres, indicating that their construction had been grant aided by the EU. At the
          commencement of the EIOP a Press Release was issued by the GIS on the projects
          which were to be grant aided under the programme, including the automation of the
          rural sub post offices.


          3.2.11 An Post is the only universal service postal provider in the State. An Post
          confirmed that the Mail Centre construction contracts were awarded on the basis of
          open competitive tenders and the independent verification audits have confirmed that
          expenditure was at arms length. The only major purchase which did not go out to
          tender was the purchase of automation equipment from the then An Post subsidiary
          PostGem.


          3.2.12 The contracts for the construction each of the Mail Centres were awarded on
          the basis of open competitive tendering and the developments were subject to the
          relevant Local Authority Planning Permissions and controls. These controls did not



26 March 2003                                  82
          include a requirement for an Environment Impact Assessment. An Post is an Equal
          Opportunities Employer.


          3.2.13 Expenditure on the postal services measure including compliance by An Post
          with the regulatory controls was subjected to audits (see chapter 6.10) by KPMG
          Chartered Accountants, Chapman Flood Mazars Chartered Accountants, the Internal
          Audit Unit of the Department and the ERDF Financial Control Unit of the
          Department of Finance. A full report was made to the EU Commission as a result of
          Irregularities identified by the ERDF Financial Control Unit and refunds made to the
          EU Commission. The irregularities concerned were once off in nature, not systemic.


          3.2.14 The Measure contributed to the securement of employment in the 400 rural sub
          post offices (listed at Appendix 13) by enabling them to offer the full range of
          services through the automated network. The reorganisation and restructuring of mail
          services by An Post, which included the establishment of the regional Mail Centres,
          enabled An Post to provide a more efficient and higher quality service to customers.
          The projects which were grant aided under the Measure will enable An Post to
          compete more effectively in an increasingly liberalised and technologically
          developing market thereby contributing to the retention of employment in the mail
          delivery sector in the longer term.




26 March 2003                                   83
Table 3.8 : Expenditure by project and on an annual basis
EIOP - Analysis of Expenditure by Year                                                                                             Total      Total
                                                      1994      1995       1996      1997      1998    1999         2000     2001 Expenditure Grants
                                                                                                                    Qtr 1    Qtr 1
Athlone Mails Centre        Expenditure            2,082,828 284,519     35,861    16,867         0        0            0        0 2,420,075
                            Grants Claimed           974,731 133,072     16,855     7,927                                                        1,132,585
                            Manpower grant claimed     4,199     651                                                                                 4,850

Portlaoise Mails Centre     Original Expenditure       39,076 412,039 2,965,472   965,364 372,854 25,038               0           0   4,779,843
                            Adj for irregularity                                          (15,780) (8,859)                               (24,639)
                            Revised expenditure        39,076 412,039 2,965,472   965,364 357,270 16,179               0           0   4,755,204
                            Grants Claimed                    176,284 1,404,188   450,449 171,805                                                      2,202,726
                            Manpower grant claimed     18,366 3,973       2,985     1,451                                                                 26,775

Counter Automation Phase II Original Expenditure                       2,334,501 773,170      60,101       0           0               3,167,772
                            Adj for irregularity                       (233,909) (118,225)                                             (352,134)
                            Revised expenditure                        2,100,592 654,945      60,101       0           0           0   2,815,638
                            Grants Claimed                             1,089,526 359,198      28,247                                                   1,476,971
                            Subsequently Repaid                        (109,937) (55,566)                                                              (165,503)
                            Manpower grant claimed                         7,689     4,192                                                                11,881

Sligo Mails Centre          Original Expenditure                          6,122       751 1,527,895 382,187       86,652               2,003,607
                            Adj for irregularity                                            (56,564) (22,821)                            (79,385)
                            Revised expenditure                           6,122       751 1,471,331 359,366       86,652           0   1,924,222
                            Grants Claimed                                2,878       353 330,779                                                       330,779
                            Manpower grant claimed                                                                                                        3,231

Galway Mails Centre         Expenditure                                   1,515     1,016         0 23,740 1,969,338 2,009,446         4,005,055
                            Grants Claimed                                  712    478                       330,482                                    330,482
                            Manpower grant claimed                                                                                                        1,190



Total                       Original Expenditure   2,121,904 696,558 5,343,471 1,757,168 1,960,850 430,965 2,055,990 2,009,446 16,376,352
                          Adj for irregularity             0       0 (233,909) (118,225) (72,344) (31,680)                      (456,158)
                            Revised expenditure    2,121,904 696,558 5,109,562 1,638,943 1,888,506 399,285 2,055,990 2,009,446 15,953,301
                            Grants Claimed           974,731 309,356 2,510,569 817,574 530,831           0 330,482                        5,473,543                £5,473,543
                            Manpower grant claimed    22,565 4,624      14,264     6,474                                                       47,927              €7,099,064
                            Subsequently Repaid                      (109,937) (55,566)                                                     (165,503)
                            Total                    997,296 313,980 2,414,896 768,482 530,831               330,482                        5,355,967

                            TAP Grants                                             62,920    172,080                                                    235,000

                                                                                                                Total EIOP Grant                    IR£5,590,967




26 March 2003                                                                                     84
                    3.3 Broadband Infrastructure Measure

                                      3.3.1 Background

          3.3.1.1 As part of the EIOP, launched in July 1994, the deployment of high-capacity
          telecommunications networks to over 120 towns and cities around the country was
          assisted by funding of over €26 million. Funding was made available to support 12
          broadband projects under EIOP.


          3.3.1.2 The Government actively supports the emergence of the information Society
          in Ireland. Initiatives such as communications, e-Government, education, business-to-
          business e-Commerce and residential services have been driven by the recognition of
          the importance of the Information Society to the future economic and social
          development of the country.


          3.3.1.3 The Information Society is particularly important for the Irish economy, with
          its very open trade environment and its strength in a number of high-tech sectors. A
          core responsibility of the Department of Public Enterprise is the development of
          communications infrastructure that will enable the provision of a full range of
          advanced communications services. Investment by telecommunications operators
          provides the main thrust of infrastructural investment. EU Structural Funds also play a
          major role in the development of telecommunications infrastructure in Ireland.

          3.3.1.4 Broadband is a term used to describe high rates of electronic data transfer. It
          has emerged as a vital tool in all industries, in facilitating e-commerce, in allowing for
          delivery of Government services and facilitating education and healthcare services
          and communications generally. Broadband services can be provided over fibre-optic
          cable, traditional copper wires using Digital Subscriber Line technology, hybrid
          fibre/coaxial cable, and wireless transmission.


          3.3.1.5 As part of the Economic Infrastructure Operational Programme (EIOP),
          launched in July 1994, the deployment of high-capacity telecommunications networks
          to over 120 towns and cities around the country was assisted by funding of over £16.5
          million (€21 million). Funding was made available to support 12 broadband projects
          under EIOP. From the outset, Community procedures and policies were applied to
          each project.

26 March 2003                                  100
                                       3.3.2      Objectives

          3.3.2.1 The funding objectives were to:


                            promote       the     development    in     Ireland    of    advanced
                             telecommunications infrastructure on a par with the most advanced
                             in the EU.


                            to seek to ensure that Ireland is in a position to exploit the potential
                             offered by the new technology.


          3.3.2.2 Proposals for funding needed to demonstrate their ability to:


                            enhance the capacity of the economy


                            improve competitiveness, and


                            reduce Ireland‟s peripherality.

          3.3.2.3 The main aim was to address the perceived gap emerging between broadband
          infrastructure availability in core areas and that available in the peripheral locations.
          The regional locations chosen represented areas where there was low or marginal
          commercial viability of broadband services, but where demand could be developed.
          The selected locations included major industrial estates, business parks and areas
          representing a high density of ICT-based growth sectors. The rollout to users would
          be at a level of 2 Mbit/s and above, and prices would be pitched at a competitive
          level.
                                          3.3.3    Tenders

          3.3.3.1 The Invitation to Tender document for “Structural Funds Investment in
          Broadband Telecommunications Infrastructure” was issued on 20 July 1999, with a
          closing date of 16 August for receipt of proposals. Norcontel (Ireland) Ltd., on behalf
          of the Department of Public Enterprise, conducted the tender and evaluation process.

          3.3.3.2 Proposals were evaluated using weighted criteria published in the Invitation
          to Tender document, and 13 projects were selected for funding. The total funding for


26 March 2003                                     101
          12 projects from EIOP was €23,955,000. The twelve projects leveraged a total
          investment of €68 million.



                                        3.3.4    Projects

          3.3.4.1 The projects covered a range of initiatives including network extension and
          enhancement, competitive infrastructure provision, and the roll-out of urban and
          metropolitan rings. Infrastructure projects are not intended primarily as profit-making
          in the short to medium term, but are seen as delivering less-tangible benefits such as
          opportunities for development and future planning of similar investments. The
          availability of EU funding has made it possible for telecoms providers to undertake to
          serve the regions with a broadband network, and to advance the timescale for ADSL
          service capability in the areas covered.


          Network extension. This included extensions to the backbone networks operated by
          ESAT and Eircom. The ESAT network was extended from Sligo to Ballina, from
          Athlone to Claremorris, and from Cork City to Carrigtwohill. Eircom extended its
          existing network in Co. Donegal to cover the western part of the county in a ring
          structure with enhanced resilience.

          Network enhancement. This involved the upgrading of Eircom‟s existing
          infrastructure to facilitate the provision of modern broadband services, in a backbone
          along the western seaboard from Cork to Sligo. The network connection between Birr
          and Tullamore was also enhanced, and towns along the improved network were
          provided with broadband access nodes in preparation for Digital Subscriber Line
          services. A 32km link was installed on a route connecting Galway to Castlebar, and
          linking with Westport, Aille, Ballinrobe, Kilconly, Kilmaine, Tuam and Claregalway.


          Competitive infrastructure supply. In addition to extensions to existing networks, new
          backbone optic fibre has been installed which will extend the choice of carrier to
          additional areas. ESAT completed its Western Digital Corridor linking Dublin,
          Galway and Limerick, while Chorus installed a new backbone linking Ennis to Cork.

          Urban Roll-out and Metro Rings. Industrial estates, business parks, and areas with a
          high demand for broadband were upgraded, with the replacement of coaxial cable
          with fibre optics. Chorus upgraded its networks in Thurles, Kilkenny, Clonmel and
          Castlebar, while ESAT installed fibre in Sligo, Dundalk, Maynooth, Athlone, Galway,
26 March 2003                                   102
          Carlow, Thurles, Clonmel, Limerick, Cork and Tralee. Ntl extended their Dublin
          network to the Tallaght Industrial Estate.

          3.3.4.2 Ireland‟s National Education and Research Network, known as HEAnet,
          established a high-speed backbone connecting universities, educational and research
          establishments and Government agencies and Departments in a network with
          dedicated high bandwidth connections to Europe and beyond. The network serves
          over 150,000 staff and students in Ireland, with direct links to the UK, Canada and the
          US.


          Directly connected institutions include:


                CAO - the Central Applications Office
                CMOD - Department of Finance
                Dublin City University
                Dublin Institute for Advanced Studies
                Dublin Institute of Technology
                Enterprise Ireland
                Environmental Protection Agency
                Higher Education Authority
                Institute of Technology Network
                NUI Maynooth
                National College of Art and Design
                National College of Ireland
                National Library of Ireland
                National University of Ireland
                NUI Galway
                Royal College of Surgeons in Ireland
                Royal Irish Academy
                Trinity College Dublin
                Teagasc
                Tipperary Rural Business Development Institute
                University College Cork
                University College Dublin
                University of Limerick.



26 March 2003                                    103
                3.3.4.3 To ensure that it remains at the forefront of technical development
                worldwide, HEAnet maintains membership of leading network associations –


                TERENA – Trans European Research and Educational
                             Networking Association
                DANTE - Delivering Europe‟s 155 Mbps international network
                Internet2 - International partner in Internet2/NGI activities
                INEX -       Irish Neutral Exchange Association
                RIPE -       Reseax IP Europeennes




                                    3.3.5   Funding and Aid Rates

          3.3.5.1        The level of aid varied between projects. Determination of the rate of
          funding under EU State Aid regulations involved assessment and consideration of
          existing infrastructure, the viability of the project, and the potential benefits to users.
          Several of the 12 EIOP Broadband projects attracted the highest aid rate of 47%,
          while others received lower rates between 34% and 45%. One project – the 114kms
          Ennis to Cork link – received 14.8%.



     Table 3.9: Broadband Funding
                  1994     1995      1996     1997     1998   1999         2000         2001        Total
      IR Spend    0        0         0        0        0      13,350,765   23,340,213   7,562,738   44,253,716
      ERDF        0        0         0        0        0      5,027,420    8,789,086    2,847,856   16,664,362
      Spend €     0        0         0        0        0      16,951,975   29,635,957   9,602,696   56,190,628
      ERDF €      0        0         0        0        0      6,383,507    11,159,837   3,616,031   21,159,375



                                            3.3.6 Timescale

          3.3.6.1 The projects selected for assistance were implemented during 2000-2001.
          During this period the infrastructure was installed, and in certain instances new
          services were rolled out to local users.




                                  3.3.7   Files and Project Summaries


          3.3.7.1 A separate folder/archive of documents pertaining to each project is filed with
          the Telecommunications (Broadband) Measure Team.

26 March 2003                                        104
          3.3.7.2 An individual financial summary sheet has been created for each of the 12
          Broadband projects, and these are kept on file in the Broadband Measure.




                   3.3.8 NCC Information Technology Performance Indicators


          The Annual Competitiveness Report of the National Competitiveness Council (NCC)
          for 2001 has produced comparative Information Technology data that place Ireland‟s
          costs in an international context for a range of aspects of Broadband Technology. The
          data for 2000, as reproduced in the National Competitiveness Council‟s Report for the
          year 2001.


Table 3.10 Access to Telecommunication Technologies Indicators
                Indicator      Key Indicator:       International        Internet hosts per   Websites including    Key indicator:
                               Broadband Access –   interest bandwidth   1000 population      gTLDs per 1000        Secure web servers
                               lines per 100        (M/bps) per 100                           population            for electronic
                               population           population                                (estimated)           commerce per
                                                                                                                    million population
Ireland         Value          0.01                 0.06                 23.6                 5.3                   47.8
                Rank           25                   14                   18                   17                    12
                Year           2000                 1999                 Jan 01               1999                  2000 (March)




Communication Technologies Indicators, Contd.
                Indicator      Mobile               Key indicator:       Percentage of        Percentage of         Percentage of
                               subscriptions (per   Number of PCs per    population using     Primary Schools       secondary schools
                               100 capita)          100 population       internet (index:     linked to the         linked to the
                                                    (index: US=100)      US=100)              internet (as of Feb   internet (as of Feb
                                                                                              2001)                 2001)
Ireland         Value          48.0                 59.0                 45.0                 100                   100
                Rank           12                   9                    9                    1                     1
                Year           2000(August)         2000 (Autumn)        2000 (Autumn)        2000                  2000




                        3.3.9 Verification, Evaluation, Irregularities and Audit


          3.3.9.1 The matters of verification, evaluation, irregularities and audit, for the
          Broadband Infrastructure Measure, are dealt with in Chapter 6.




26 March 2003                                          105
Table 3.11: The table below lists the projects funded under this Measure
  Tender        Project Description                                                   Total      EIOP        %
                                                                                   Investment   Funding    Aid rate
                                                                                    €million    €million
Cablelink       Deployment of fibre optic cable from the Cablelink headend at          2.2        1.0       45.5%
                Terenure to a node at Belgard Road in order to serve SME's in
(now NTL)       the Tallaght area.

CMI             Design and construction of a hybrid fibre coaxial infrastructure      1.65       0.777      47%
(now Chorus)    in Castlebar.

Eircom          Development of high capacity fibre optic infrastructure in 75        13.42       5.723      42.6%
                towns along the West coast from Sligo to West Cork.

Eircom          Provision of optical fibre cable along a 32 km link connecting       1.693       0.796      47%
                Galway and Castlebar, and a 40 km link between Birr and
                Tullamore improving access to broadband infrastructure and
                services.

Eircom          Rollout of fibre optic cable in urban areas including Cork,           4.2         1.9       45.2%
                Galway, Dundalk, Thurles, Carlow, Tralee, Athlone, Sligo,
                Maynooth, Letterkenny & Limerick.

Esat            Extension of Esat's national fibre optic network to Mayo,             5.0         1.9       38%
Telecom         Roscommon and Sligo covering the towns of Athlone, Ballina,
                Claremorris, Roscommon, Castlerea, Ballyhaunis, Sligo and
                Collooney.

Esat Telecom    Extension of Esat‟s national fibre optic network from Cork to         1.22       0.573      47%
                Little Island to Carrigtwohill (21 kms).

HEAnet          HEAnet is a not-for-profit organisation delivering managed            2.22        1.0       45%
                broadband services to over 30 educational/research institutions
                throughout the State.

Irish Multi-    Provide 114 km of optical fibre network linking the towns of         7.736       1.143      14.8%
Channel         Ennis, Shannon, Limerick, Kilmallock, Charleville, Mallow
(now Chorus)    and Cork.

Ocean           Construction of a high capacity fibre optic digital corridor         17.46        6.0       34.4%
(now ESAT)      linking Dublin, Athlone, Galway and Shannon and 30 locations
                en route.

Suir Nore       Hybrid Fibre Co-axial cable upgrades and Digital MMDS                 4.41        2.0       45.4%
Relays          upgrades in Clonmel and Kilkenny.
(now Chorus)
Suir Nore       Upgrade and extend existing cable network in Thurles to              2.724       1.143      42%
Relays          provide broadband infrastructure and services addressing
(now Chorus)    business, educational and residential sectors.




                                                                   Investments       63.933     23.955     37.5%




26 March 2003                                         106
                            Section 3.4 – E-Commerce

                                      3.4.1 Introduction

          3.4.1.1 The Irish Government has consistently demonstrated its commitment to
          ensuring Ireland‟s role as a leading European digital player, for the benefit of
          industry, consumers and investors.       Meanwhile, companies are adopting new
          technology to lower costs and enhance their profile for provision of customer service.




          3.4.1.2 In 1999, the effect of these trends became evident in the form of an industrial
          need to implement new client-centred business models, with an emphasis on customer
          relationship management emerging. E-Commerce technologies played an important
          role in supporting and defining these new business models.


          3.4.1.3 In order to stimulate this type of development in Ireland, in July 1999 an e-
          Commerce Corporate Infrastructure Programme was launched, supported by the
          European Regional Development Fund. The €2.5m Measure under the EIOP was
          expected to leverage €7m of total expenditure.


                           Total Grant Aid Available from the EIOP fund:        €2.5m.
                           Total Grant Aid distributed:                         €2,132,154
                           Total Project Expenditure:                           €6,915,161




          3.4.1.4 The fundamental aims of the programme were:


                           To provide a National e-Commerce infrastructure.
                           To facilitate regional development through e-Commerce.
                           To exploit the economic potential of e-Commerce and position
                            Ireland as a global competitor in the field.


          3.4.1.5 The funding programme for this E-Commerce Measure was announced on 5th
          July 2000 and applicants were invited from all players in the Information Technology
          and Communications sector. Projects supported ranged from the agricultural business
26 March 2003                                107
            to the freight business, encouraging the universal acceptability of e-Commerce. The
            projects were also geographically dispersed across Ireland as is evident from the
            location of companies as attached.


Table 3.12: E-Commerce Expenditure
             1994         1995    1996      1997       1998      1999        2000        2001   Total

 IR Spend    0            0       0         0          0         1,745,153   2,368,675   0      4,113,828
 ERDF        0            0       0         0          0         693,707     922,872     0      1,616,579
 Spend €     0            0       0         0          0         2,215,887   3,007,597   0      5,223,484
 ERDF €      0            0       0         0          0         880,826     1,171,806   0      2,052,632




                                 3.4.2 Information and Publicity

            3.4.2.1 The launch of the Measure took place in Dublin Castle, on 26th October 1999.
            The Minister for Public Enterprise, Mary O‟Rourke, her officials, and representatives
            of the Department of Public Enterprise (DPE), Department of Finance, Department of
            Enterprise, Trade and Employment (DETE), Department of the Taoiseach, personnel
            from participating companies, Government Agencies, the media and others attended
            this event. It included a Ministerial speech and a presentation made by the DPE and
            Stratel addressing the objectives and requirements of the Measure including project
            management, reporting, publicity and funding.

            3.4.2.2 This launch was seen as a means of further educating the participants on the
            procedures involved in the measure and as a means of personally answering any
            arising queries.

            3.4.2.3 The launch was also a medium from which to create public awareness of the
            measure and in particular the EU support in enhancing the e-commerce environment
            in Ireland.


            3.4.2.4 Additionally, all companies fully collaborated in the preparation of a book of
            case studies titled “e-Business Case Studies, e-Commerce Corporate Infrastructure
            Programme, Department of Public Enterprise”, which collated the results of the
            programme and presented case studies of each project. This book is still widely used
            to promote and disseminate the work of the programme.



26 March 2003                                    108
          3.4.2.5    Over 2000 copies of the book were distributed widely to industry,
          Government Departments and Agencies, IBEC, education establishments and the
          media.


          3.4.2.6 The programme was formally concluded at a major event in Dublin Castle in
          October 2000, at which the Minister addressed over 300 guests drawn from industry,
          Government Departments, Government Agencies, IBEC, education establishments
          and the media.


          3.4.2.7 On an ongoing basis, the public was made aware of this Measure through
          positive press and Internet media coverage.


                3.4.3 Declaration of observance of relevant community policies:

          3.4.3.1 In terms of observance of relevant community policies, in relation to this
          Measure, the following should be noted:


                            Public procurement issues were adhered to in accordance with EU
                             Directive 93/38. The Call for Proposals was issued in the national
                             media and posted to the Department of Public Enterprise website
                             (www.ecommerce.gov.ie), The Department received 54 tenders.
                             Following a “multistage”, open and fair evaluation process, 25
                             projects were selected to participate in this measure.        The
                             maximum grant available was limited to IR£118,135. Therefore,
                             the Call for Proposals did not have to appear in the Official
                             Journal.


                            For   the   position   of   E-Commerce   Infrastructure   Measure
                             independent consultant, an invitation to tender was issued to 7
                             companies. Three companies submitted tenders. All submissions
                             received a formal evaluation by a committee drawn from the DPE
                             and DETE following which the contract was awarded to Stratel.




26 March 2003                                 109
                         3.4.4 Measures to ensure observance of these policies

          3.4.4.1 Monitoring: In order to be able to evaluate the progress of the funded e-
          commerce infrastructure projects, the Measure Teams requested monthly reports from
          each of the 25 projects. In addition an independent consultant, Stratel, was retained to
          evaluate project proposals.    The consultant was also responsible for monitoring
          project progress in each participating company. Special attention was paid to the
          benefits of the project for the Irish business community, and to the lessons learned,
          and the eligibility of the project costs. Personnel from Stratel and the Department of
          Public Enterprise conducted 100 percent site visits. During these visits the project
          owner gave an explanation of the progress and possible problems and displayed
          results. The site visits were conducted in December 1999 and March 2000. In
          addition to this Stratel compiled two reports.


                             3.4.5 Outputs and impacts achieved

          3.4.5.1 Information in relation to these matters is provided in Appendix 14 to this
          Final Report



                       3.4.6 Impacts on employment and environment

          3.4.6.1 This Measure facilitated the creation and maintenance of permanent jobs,
          especially in disadvantaged regions, by initiating the development of an e-Commerce
          infrastructure that enabled local industries to transact business independently of
          geographical location.


          3.4.6.2 On a National scale the programme assisted Ireland to compete in the global
          market by enhancing our economic capacity, improving our competitiveness and over
          coming the disadvantages of our peripherality and isolation from the European
          mainland. It enabled the Irish economy to exploit the potential offered by new
          technology and to help sustain and develop Ireland‟s pace of development within the
          European Union.


          3.4.6.3 Furthermore, by initiating the establishment of an e-Commerce infrastructure,
          the programme supported and accelerated the implementation of the Information
          Society in Ireland in accordance with the Action Plan, “Implementing the Information
          Society in Ireland”, published by the Irish Government in January 1999.
26 March 2003                                 110
                            3.4.7 Evaluation, Impact of the Programme

          3.4.7.1 The programme exploited Ireland‟s e-Commerce potential by developing real
          solutions, accelerating commercial activity and creating a critical mass of e-
          businesses. The intention was to create a cadre of early entrants.


          3.4.7.2 A focal point of the programme was the development of an expertise and
          infrastructure in order to facilitate the uptake of e-Commerce as a business process by
          Irish industry. Building an e-Commerce environment of systems, infrastructures and
          know-how by users greatly improves the ability of SMEs, in particular, to compete
          internationally.


          3.4.7.3 The projects supported in this programme ranged from the creation of a
          European electronic trading hub to the creation of an electronic marketplace for
          individual arts and crafts designers, in may cases working from remote rural locations.
          The projects created innovative new business models, transformed the business value
          chain and applied the latest Internet development technologies such as Java Beans.


          3.4.7.4 The Annual Competitiveness Report of the National Competitiveness Council
          (NCC) for 2001 has produced comparative Information Technology data that place
          Ireland‟s costs in an international context for a range of aspects of E-Business. The
          data for 2000, as reproduced in the National Competitiveness Council‟s Report for the
          year 2001 is summarised in the table below.


Table 3.13: Access to Communications Technologies, Indicators

                Indicator       Key Indicator:              Value of online        Key indicator: Value       Value of online
                                Value of online Business-   Business-to-consumer   of online business-to-     business-to-business
                                to-consumer transactions    transactions ($) per   business transactions      transactions billions
                                billions ($) per million    million population     billions ($) per million   ($) per million
                                population                  (forecast)             population                 population
                                                                                                              (forecast)
Ireland         Value           0.02                        0.18                   0.36                       1.03
                Rank            11                          4                      15                         4
                Year            2000                        2002                   2000                       2002



Access to Communication Technologies, Indicators Contd.

                Indicator       Key: Business-to-           Percentage of SMEs     Percentage of SMEs         Key Indicator:
                                consumer e-commerce         connected to the       using the internet for     Percentage of SMEs
                                sales – number of buyers    internet               information purposes       using the internet for
                                per 000 population                                                            distribution purposes
Ireland         Value           10.8                        58                     22                         3
                Rank            13                          3                      6                          11
                Year            1998                        1999                   1999                       1999

26 March 2003                                         111
      3.4.8 List of projects, showing grants awarded and total eligible expenditure.


          3.4.8.1 The table below lists the projects under this Measure, together with the
          amount of grant awarded and the total eligible expenditure.


     Table 3.14: List of Projects
           Company                          Project                  Funding          Project
                                                                        IR£          Location
         Anshe/An Post          Internet Based shipping suite for    93,760.00        Dublin
                               SME‟s based on An Post shipping
                                             services.
         Aspect Software         Internet based bill presentment.    64,600.00        Dublin
         International Ltd
        Comit Gruppe and          E*Laser electronic debit car       20,439.60        Dublin
        Macalla Software              payment system.
             CR2 Ltd           Credit union services via Internet    15,685.14        Dublin
                                  and Internet-enabled mobile
                                            phones.
        Creative Labs Ltd      Internet based Technical Support      118,134.80       Dublin

        Datacare Software     E-sec corporate secretarial software   40,720.00      Monaghan
           Group Ltd                    infrastructure
           Deloitte &               Centre of excellence for e-      30,000.00        Dublin
          Touche/UCD                       Commerce.
         EDI Factory Ltd            Standardised e-Commerce          55,355.20        Dublin
                                        transaction server.
          Fore Systems              Portal website on Network        50,778.36        Dublin
                                           Management.
        Halcyon Systems        Internet-based Infrastructure for     118,134.84     Monaghan
              Ltd                Irish independent vegetable
                                       growers industry.
            IBM IISL           e-Commerce enabled Customer           54,985.60        Dublin
                                Relationship Management for
                                      Industry Insurance.
       Icarus Marketing Ltd         Integrated supply chain          83,440.00        Dublin
                              management process conversion to
                                         e-Commerce.
          ICL Project 1       Trading Community Hardware and         98,897.20        Dublin
                                   infobank Development.
          ICL Project 2          Trading Community managed           103,004.00       Dublin
                                 service, ICL development and
                              localisation and marketing & sales.
           IT Solutions          Web-based Customer Support          36,136.00        Dublin
                                            Systems.
             Kilkenny            e-Commerce craft studio and         27,494.89       Kilkenny
         Information Age         database of Irish crafts/design
                                          companies.
               Ltd.
           Local Ireland       Events Information management         102,876.80       Dublin
                                           System.


26 March 2003                                     112
            Magic Lamp                         On-line sales of children‟s                    78,038.08            Kildare
                                                    education toys.
         Nortel Networks                  e-Commerce incubator network of                    117,952.00            Galway
                                           multimedia Customer interaction
                                                  Centres for SME‟s.
             Orbism Ltd                  Internet Marketplace fro Java beans                  94,263.72            Dublin
                                                software components.
                Piercom                   Web-based Contact Management.                       30,464.36           Limerick

            Ventilux Ltd                 Web-based order processing system                    23,520.00            Dublin
                                           to integrate with computerised
                                               manufacturing system.
       Viking Components                 e-Commerce enabled supply chain                      62,700.00            Dublin
            Europe*                            focusing on fulfilment.
       Waterford Internet                e-Kiosk deployment in small towns                   118,135.00           Waterford
           Centre Ltd                        and peripheral locations in
                                         Kilkenny, Waterford and Wexford.
       Working and Living                  On-line electronic publishing.                     39,686.40            Kildare
         Publications
             Total                                                                            1,679,202
      *Viking Components is no longer deemed eligible for EU Funding; final figures will reflect this decision.




26 March 2003                                                   113
                Chapter 4
                EIOP Sub-
                Programme
 : Technical Assistance



26 March 2003       114
                    4.1 : Technical Assistance - Overview


          4.1 The third sub-programme of the EIOP was concerned with technical assistance.
          This sub-programme was primarily focussed on ensuring appropriate management,
          control, planning and appraisal of the Operational Programme as a whole. The
          Technical Assistance sub-programme set out to:



                           upgrade management, co-ordination, control, investment planning
                            and project appraisal on the Operational Programme;

                           maintain appropriate monitoring and evaluation systems;

                           provide background research as required;

                           undertake feasibility and other studies directly related to the
                            programme; and

                           provide any training deemed necessary for those involved in
                            implementing the programme.


          4.2 The Technical Assistance Programme covered areas of investment, under the
          Operational Programme, across the postal, energy and telecommunications sectors
          and was used to develop better target/indicators for Measures. The details of the
          Technical Assistance Programme were agreed by the Irish Authorities with the
          European Commission following commencement of the Operational Programme and
          after consultation with the EIOP Monitoring Committee.


          4.3 Technical Assistance Sub-Committee:       At the first meeting of the EIOP
          Monitoring Committee on 15 December, 1994, it was agreed that a Technical
          Assistance Sub-Committee, consisting of a representative of the European
          Commission and representatives of the Government Department responsible for the
          EIOP (the then Department of Transport, Energy and Communications), would be
          established to evaluate requests for funding under the Technical Assistance Sub-
          Programme of the EIOP and to bring such requests to the EIOP Monitoring
          committee for approval. This decision was taken in order to ensure that requests for
          funding would be processed in a streamlined and responsive manner, having
          particular regard to the need to process suitable projects without undue delay. In
          setting up this Sub-Committee, it was agreed that at each meeting of the EIOP

26 March 2003                               115
          Monitoring Committee an update would be given on co-funding decisions made by
          the Technical Assistance Sub-Committee. Funding requests for amounts in excess of
          €60,000 continued to require the approval of the EIOP Monitoring Committee.


          4.4 The Planning Unit of the Department of Public Enterprise (formerly the
          Department of Transport, Energy an Communications) was the Measure Leader for
          the Technical Assistance Sub-Programme of the EIOP. The resources of the Unit
          were augmented, as necessary, by the engagement of consultants to carry out specific
          projects, not only for the Technical Assistance Sub-Programme itself, but also for
          other Measures within the Programme. The individual sections of Chapters 2 and 3,
          dealing with the individual Measures, refer to such consultancy assignments.

          4.5 This chapter is presented in two parts:


                            Technical Assistance (General) Measure
                            IS Awareness Measure




                         4.2 Technical Assistance (General) Measure



          4.2.1 One significant assignment was the consultancy work undertaken for the Mid-
          term Review of the EIOP. External evaluators (Indecon International Economic
          Consultants) were appointed to undertake the mid-term review of the EIOP. The
          external evaluators report prepared a detailed and rigorous independent review which
          evaluated in detail the impact of the Programme. The mid-term evaluation report
          questioned the merits of certain projects and aspects of programmes and made
          recommendations to improve the impact of investments under the EIOP. The report
          also provided detailed recommendations regarding the on-going monitoring of the
          programme. As discussed in paragraph 1.5.3 above, the consultants‟ report was given
          detailed consideration by the EIOP Monitoring Committee. The outcome of the
          Committee‟s deliberation is reproduced at Appendix 4.


          4.2.2 Following a competitive tender process, Indecon were subsequently appointed
          as on-going external evaluators of the Programme. The work undertaken by the
          evaluators was in two areas. Firstly, in their participation at Monitoring Committee
          meetings during which an independent and challenging external perspective was
26 March 2003                                 116
          provided on all aspects of the programme. Secondly, on-going evaluation reports
          were prepared in advance of steering group meetings by the external evaluators.


          4.2.3 It is of use for illustrative purposes to consider the specific reports prepared by
          Indecon in their role as external evaluators. One report related to an analysis of
          performance indicators and reflected the role of the evaluator in supporting the
          steering group to continually improve the effective monitoring of the EIOP. The
          second example related to a report undertaken by the evaluator on the implications for
          EIOP of proposed tax incentives for wind-energy and bio-mass.               This report
          recommended that in order to minimise the impact of deadweight that individual
          projects should qualify for either EIOP grants or tax incentives.         The evaluator
          recommended that projects which received EIOP grants should not be eligible for tax
          incentives and vice versa. This is illustrative of the typical inputs made by the
          external evaluator which had the impact of enhancing the overall effectiveness of
          EIOP funding.


          4.2.4 The range of issues and reviews undertaken by the external evaluator covered
          all aspects of the EIOP Programme and the issues examined are too numerous to list
          in this report. As an illustration, however, it is useful to list examples of the work
          undertaken by EIOP external evaluator in the period April/August 1999. This is
          outlined below:


          - Evaluation of proposals for projects under the broadband technology measures.
                            Review of draft annual report.
                            Review of draft minutes of EIOP Monitoring Committee.
                            Review of terms of reference for financial controls contract re the
                             Peat Station Project.
                            Review of legal advice concerning grant aid for the Renewables
                             Measure.
                            Evaluation of proposals re transfer of funds to the Information
                             Society measure and establishment of E Commerce Measure.
                            On-going advice to Secretariat.




26 March 2003                                 117
            4.5.1.5 As regards other assignments, Table 4.1 provides a list of expenditure under
            the TAP Measure.

Table 4.1 Technical Assistance (General) Measure
  Area of Expenditure          Purpose of Consultancy/Expenditure                  Measure assisted
Managing Authority          Publication of EIOP Programme Complement           Entire
                                                                               Programme
Energy Division                Energy Statistics Study                         Energy
                                                                               Efficiency
CSI Consultancy                Regulation of open competition to build, own,   Peat Generation
                               and operate new peat fired power station
NERA                           Cost benefit study on Peat Powered              Peat Generation
                               Electricity Generation Station
International Energy           Socio-economic study of renewable energy in     Renewable Energy
Environment Division of        Ireland
Dept. to cover fees paid to
panel of experts
Indecon International          Midterm review of EIOP                          Entire Programme
Economic Consultants           External Evaluation of the EIOP
Environmental Resources        Socio-economic cost benefit analysis of         Renewable Energy
Management (ERM)               proposed biomass fuelled electricity station
PricewaterhouseCoopers         Quality of Service Monitoring for An Post       Postal
ERM                            Study on limitation and reduction of            Renewable Energy
                               greenhouse gas emissions

                               Evaluation of projects for 3rd Alternative      Renewable Energy
ETSU                           Energy Requirement Competition using
                               Wind, Hydro and Waste to Energy technology
                               (AER III) Competition
                               Evaluation of proposals following call for EU   Broadband
Norcontel                      co-funded Broadband Telecommunications
                               Infrastructure projects in the regions.
                               Evaluation of projects for 4th Alternative      Renewable Energy
AEA Technology                 Energy Requirement Competition using
                               Combined Heat and Power technology (AER
                               IV Competition)
                               External Audit of EU backed expenditure by      Cutaway Bogs
PricewaterhouseCoopers         Bord na Mona

                               External audit of EU backed expenditure by      Rural Networks
KPMG                           ESB
PricewaterhouseCoopers         External Audit of EU backed expenditure by      Telecommunications
                               Eircom
                               External audit of EU backed expenditure on      Peat Generation
Helm Corporation               Peat Generation Measure




26 March 2003                                  118
Table 4.2: Technical Assistance Programme
           1994     1995     1996          1997        1998          1999      2000     2001     Total
Total IR   31,041   31,848   112,824       208,343     475,026       112,858   15,419   48,475   1,035,834

ERDF       23,281   23,886   84,618        124,797     356,269       84,643    11,564   36,356   745,414

Total €    39,414   40,439   143,257       264,541     603,159       143,300   19,578   61,550   1,315,238

ERDF €     29,561   30,329   107,443       158,459     452,368       107,474   14,683   46,163   946,481




           4.1.5.6 Chapters 2 and 3 refer in more detail to the consultancies funded under the
           Technical Assistance (General) Measure.


                                       -------------------------------


           4.3 Information Society Awareness Measure (EBAC)

                               4.3.1 Background to the Measure


           4.3.1.1 The European Commission decision of 29th November 1999 provided for an
           Information Society (Business Awareness) Measure. This Measure was implemented
           as the Electronic Business Awareness Campaign, (EBAC) and was an alliance
           between the Information Society Commission and the Irish Business Employers
           Confederation, (IBEC). The EU funding element for this Measure was 75% with the
           remaining 25% being provided by the alliance members equally at 12.5% each.


           4.3.1.2 The total amount of EU aid available for this campaign was £197,254.


                                         4.3.2 The Campaign


           4.3.2.1 The EBAC was held over two years and involved the holding of eleven
           seminars in different geographic locations around Ireland. During 1999, most of the
           seminars were aimed at particular industry sectors, e.g., the Pharmaceutical or
           Printing, Publishing sectors. However in 2000, all the seminars were general and
           aimed in particular at the small to medium business sector. Attendance at these
           seminars rose from eighty at the inaugural seminar to over 300 at the final seminar.

26 March 2003                                        119
          4.3.2.2 The final seminar was held in June 2000 and was attended by over 300
          delegates. The Campaign was very successful in terms of making business people
          aware of the enormous potential that eCommerce had to offer. The success for the
          campaign can also be attributed to the fact that the campaign came to the business
          rather than vice versa. In so many cases the need to travel long distances can cause a
          disincentive to attend seminars, with the eleven seminars held at different geographic
          locations, this was not the case.


                                   4.3.3 Seminars held 1999


          4.3.3.1 In 1999 most of the seminars were aimed at particular industry sectors.
          Outlined below are details of these seminars:


            Sector                      Venue                   Date
            Pharmaceuticals             Cork                    05/03/1999
            Software                    Galway                  22/04/1999
            Electronics                 Limerick                17/06/1999
            Printing                    Dublin                  03/09/1999
            Logistics/Transport         Dundalk                 14/09/1999
            General SME‟s               Waterford               21/10/1999
            General SME‟s               Ennis                   18/11/1999




                                   4.3.4 Seminars held 2000


          4.3.4.1 In 2000, the focus switched from particular industry focused seminars to more
          general seminars aimed at small and medium business. The four seminars were again
          held at different geographic locations and are outlined below.


          Sector              Venue                      Date


          General             Dublin                     27/01/2000
          General             Ballina                    24/02/2000
          General             Tralee                     30/03/2000
          General             Dublin                     22/06/2000
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                              4.3.5 Expenditure under EBAC


          4.3.5.1 The total expenditure incurred under this campaign was £263,000 and the EU
          aid was £197,250, representing 75% of the total.


          4.3.5.2 Payments were made to the Campaign on the following dates:


           £18,000                                  September 1999
           £81,260                                  February 2000
           £97,000                                  January 2001
           Total: £196,260




             4.3.6 Compliance with Commission Decision on Information/Publicity with
                             respect to Operational Programme.


          4.3.6.2 IBEC and the Information Society Commission adhered to the guidelines laid
          down by the EU in respect of publicity and information aspects with respect to the
          EIOP. This included written/verbal acknowledgement of EU funding support and the
          inclusion, where possible, of the EU Logo in:


                    All printed promotional material and publications
                    Stationary
                    Press releases and all press statements
                    Advertisements




                                      4.3.7 Impact on Employment


          4.3.7.1 The creation of employment was one of the stated primary objectives of
          economic policy in Ireland and the EU as a whole. The Measures receiving ERDF
          assistance under the EIOP 1994-1999 were selected on the basis of their contribution
          towards the achievement of the aims and objectives of the Community Support
          Framework generally which included the provision of adequate infrastructure to help
26 March 2003                             121
          offset Ireland‟s geographic and structural disadvantages thereby ensuring an adequate
          base for employment and wealth generating activity.


          4.3.7.2 In this context, the investment initiatives, provided under the EIOP, had a
          positive stimulative role to play. Through the implementation of the EBAC improved
          employment opportunities arose through direct and indirect avenues.




                           4.3.8 Promotion of Equal Opportunity


          4.3.8.1 The EBAC would have had a very positive effect with regard to equality
          issues. E-Commerce as an industry is not defined by gender and any opportunities
          with regard to employment opportunities would be available to all irrespective of
          gender.


                        4.3.9 Compliance with Public Procurement


          4.3.9.1 The administration of the Measure was fully compliant with regard to Public
          Procurement. All the Procurement and Publicity Requirements stipulated by the EU
          were complied with in the implementation of each of the projects.




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                CHAPTER 5


       Expenditure under
                  EIOP




26 March 2003       123
      CHAPTER 6
                Audit Dimensions
                    of EIOP




26 March 2003          124
                                        6.1 Introduction

          6.1.1 The European Commission Regulation (EC) No 2064/97 of 15 October 1997
          established detailed arrangements for financial control by Member States of
          operations that are co-financed by the Structural Funds. As part of the arrangements,
          each Member State is required to complete control checks, on an appropriate
          sampling basis, of at least five per cent of expenditure under each Operational
          Programme of the Community Support Framework. The controls prescribed include
          systems control checks (Article 3 1(a) of Regulation 2064/97) and transaction test
          audits (as required under Article 3 1(b) of Regulation 2064/97).     On 22 December
          1998 the Department of Finance - the National Authority for the European Regional
          Development Fund (ERDF) - produced Circular 23/98 which set out how the financial
          management and control procedures for ERDF funded programmes (as laid down by
          Council Regulation (EEC) 2082/93 and Commission Regulation 2064/97) were
          applied in Ireland. In July 1999, the EIOP Secretariat issued its document, “Guide to
          Monitoring and Control of EU Funds”, which set out how the financial control
          principles and procedures were to apply in relation to the EIOP. The EIOP also held
          regular workshops for the EIOP Measure Leaders and EIOP Measure Teams to
          remind them of their duties and responsibilities with regard to the Measures for which
          they had responsibility.


          6.1.2 This chapter describes the implementation of the foregoing audit requirements,
          insofar as the Measures under the EIOP are concerned. It has particular regard to




                            Audit visits by the European Commission and the ERDF &
                             Cohesion Fund Financial Control Unit of the Department of
                             Finance
                            Systems Audits carried out by the Internal Audit Unit of the
                             Department of Public Enterprise
                            Verification Work carried out on EIOP Measures by External
                             Auditors
                            The work of the EIOP Verification Group
                            The Communication of Irregularities as provided for in Article 3
                             and Article   5 of Commission Regulation (EC) No 1681/94 and
                             Commission Regulation (EC) No 1831/94
26 March 2003                                125
                            Follow-up on Transaction audits and irregularity returns.




                                    6.2 Audit Visits
          6.2.1 There were two main audit visits during the life of the EIOP. One by the
          European Commission, and the other by the ERDF & Cohesion Fund Financial
          Control Unit of the Department of Finance. These two audits are now looked at in
          turn.

          6.2.2   On-the-Spot check by DG Financial Control: The Directorate-General for
          Financial Control of the European Commission carried out an on-the-spot check of
          the EIOP in May and June 2000. The check was based on the declaration of
          expenditure for 1998 which had been submitted to the Commission in 1999.
          The objectives of the check were:
                           to ascertain the accuracy of the expenditure declared by the
                            designated authority in the last request for drawdown of ERDF aid,
                           to examine the system of management and control of the
                            programme by the public authorities and its functioning and
                           to verify the execution of projects by final beneficiaries/project
                            managers.


          6.2.3 Three Measures were selected for the check – Peat Generation, Rural Networks
          and Telecommunications. Peat Generation, comprising of one major project and three
          projects each from the Rural Networks and Telecommunications Measures were
          selected for detailed examination. The check, in addition to meeting the Measure
          Teams and examining documentation in the Department also included site visits.

          6.2.4 A report on the on - the - spot check was received in the Department in August
          2000. The report was broadly favourable to the managing authority. However a
          number of recommendations in relation to procedures were made.            These were
          addressed in the response to the Control Check and taken into account by the
          managing authority in the management of the remainder of the programme. A copy
          of the response to the DG Financial Control Audit Report was submitted to the
          Internal Audit Unit of the then Department of Public Enterprise and the Internal Audit
          Unit of the Department of Finance.



26 March 2003                                  126
          6.2.5 The main recommendation was in relation to the Telecommunications Measure
          in respect of which the report stated that „The designated authority (with the co-
          operation of DPE) is requested to carry out a full audit of the projects cofinanced by
          the ERDF ‟. PricewaterhouseCoopers, as external consultants, were engaged to carry
          out the audit.


          6.2.7 The ERDF and Cohesion Fund Financial Control Unit Control Check: The
          ERDF and Cohesion Fund Financial Control Unit of the Department of Finance
          carried out a control check of the EIOP in May June 2000. The overall objectives of
          the control check were to:

                            examine the effectiveness of the management and control systems
                             in place in the organisations and
                            test the audit trail for selected expenditure by tracing amounts from
                             the ERDF claim back to original documentation.


          6.2.8 The expenditure return submitted to the European Commission for the period
          January to December 1998 was selected for the verification of the audit trail. The
          Energy Efficiency Measure and the Postal Measure were selected for examination
          during the control check. In addition to examining documents held by the EIOP
          Secretariat and the relevant Measure Teams in the then Department of Public
          Enterprise, the control check also involved visits to the Irish Energy Centre and An
          Post, and to a sample of final beneficiaries.


          6.2.9 A report on the control check was received in August 2000. All of the issues
          raised in the report were addressed and relevant changes in procedures were
          implemented. Reports on the various issues, including Irregularity Reports were sent
          to the Department of Finance in the period following receipt of the Control Check
          Report.   A second cycle follow-up was undertaken by the Unit in December 2001,
          following which a comprehensive response was submitted by the EIOP Secretariat to
          the ERDF and Cohesion Fund Financial Control Unit and to Internal Audit Unit,
          Department of Finance. The Reports completed by way of follow-up to this control
          check are on file at the EIOP Secretariat.




26 March 2003                                  127
                           6.3 EIOP Verification Group

          6.3.1 As part of the Closure Process for the EIOP, the EIOP Secretariat oversaw
          verification checks of the individual Measures under the EIOP. The verification
          checks were carried out in the Divisions of the then Department of Public Enterprise
          that have responsibility, both as Measure Leaders and Measure Teams, for the
          different Measures under the EIOP. The checks were designed to complement checks
          that have been carried already on the EIOP Measures, by external consultants and
          external auditors.


          6.3.2 The verification checks that were undertaken on the EIOP Measures related to
          Article 3.1 (b) of EC Regulation 2064/97; that Article refers specifically to the need to
          “… verify selectively, on the basis of risk analysis, expenditure declarations made at
          the various levels concerned”. The specific focus of this series of checks was on the
          Divisions themselves, having regard to their role as EIOP Measure Teams. The
          accompanying article of the Regulation, Article 3.3, gave guidance as to the controls
          that had to be taken into account in the selection of projects for verification.


          6.3.3 The verification process was carried out using the Verification Checks set out
          in the Questionnaire attached at Appendix 15 using the services of the EIOP
          Verification Group, that was convened especially for this purpose from within the
          then Department of Public Enterprise. That Group reported during July-August 2002
          to the EIOP Secretariat on the outcome of its work. The Group liaised with individual
          EIOP Measures to facilitate completion of the questionnaire. The Questionnaire was
          discussed at the EIOP Workshop that took place on 4th April 2002. It was also
          considered by the EIOP Verification Group at its meeting on 12th April 2002. This
          final version took into account the views of those who supplied comments and
          observations.




26 March 2003                                  128
                              6.4 Peat Generation Measure


          6.4.1 Peat Generation underwent a comprehensive Verification Check by Helm
          Consultants; a Systems‟ Audit by Andersen consulting; and a Control Check by EU
          DG Financial Control.



          6.4.2 Very definite steps were taken undertaken in relation to the Peat Generation
          Measure to ensure that EU policy requirements were adhered to. As part of the
          monitoring of these policies, the General Manager of the Peat Generation Project
          submitted detailed monthly progress reports to the Peat Generation Measure Team.
          These progress reports were used as briefing material for the EIOP Monitoring
          Committee.

          6.4.3   All EU Regulations/Directives and Decisions regarding Financial Control,
          Management, Publicity, Procurement etc. concerning the disbursement of Structural
          Funds have been furnished to the Measure Leader for this project.          To ensure
          observance of these policies the Measure Team engaged Helm Consultants to carry
          out an audit on the Peat Generation project. This assignment involved:

                           Selective verification of expenditure declarations underlying claims
                            for EU grant support under the Structural Funds, and


                           Checking compliance with EU rules on public procurement and
                            publicity.




          6.4.4   As part of the verification, the Consultants reviewed the extent of the
          developers compliance with the following EU legislation:-


                        EU regulation 2064/97 relating to financial control.
                        EC Directive 93/38/EEC relating to procurement.
                        EC Decision 94/342/EC relating to information and publicity.




26 March 2003                                 129
          6.4.5 The Consultants obtained assurance that the declarations of expenditure and
          claims submitted for payment of Grant aid were free of material misstatement.
          Specifically that the expenditure:-
                            Is allowable within the definition of the Operational Programme
                            Has been incurred by the applicant
                            Has been paid for by the applicant
                            Is fairly described and classified and is included at the correct
                             amount
                            Is in accordance with the applicants books and records
                            Has not been subject to a previous application
                            The Consultants also ensured that Grant income has been received
                             and can be traced to the applicant‟s records.


          6.4.6 Specifically in accordance with Article 3 of EC Regulation No. 2064/97 (5 %
          verification) Audit reviewed material items and items whose description aroused the
          interest of audit were chosen for detailed testing. For each individual item chosen,
          Audit obtained the following:


                            Originating invoice to verify the amount claimed, to ensure the
                             expenditure was eligible and had been appropriately approved.


                            Where the invoice had been submitted by the Turnkey contractor,
                             audit sought to ensure that payment had not been made until EPL
                             had received the „certificate of payment‟ from their independently
                             appointed site engineers.


                            Where the amount claimed related to staff costs audit sought
                             evidence to ensure rates charged were correct and that individual‟s
                             time was chargeable to the project.


                            Extracts from the purchase ledger and nominal ledger to ensure that
                             expenditure had been accounted for correctly.




26 March 2003                                   130
                             The relevant bank statements to ensure that the amount claimed
                              had been paid and where invoices were in other currencies, to
                              ensure that the amount claimed was in fact the Irish Pound cost.


          6.4.7 A small number of irregularities were identified in the course of this audit. All
          of these irregularities were of a once-off type in nature and any amounts identified as
          being overpaid have been offset against subsequent claims. An Irregularity Report
          was prepared by the Measure Leader and submitted to the EIOP Secretariat for each
          irregularity identified.



          6.4.8 Arthur Andersen Consultants were employed to verify the Peat Generation
          control and file systems in place in Peat Division and the Planning Unit of the
          Department of Public Enterprise. As part of their work, they reviewed the existing
          control and file system procedures; tested, on a sample basis, the operation of the
          procedures and assessed the adequacy of the procedures. The consultants reported that
          the control and file systems in place in respect of the Peat Generation Measures is
          adequate to ensure verification in line with Article 3.1 (b) of EU Commission
          Regulation 2064/97.


          6.4.9 The Peat Generation Measure was among a number of projects selected for
          audit, by the European Commissions DG for Financial Control, in the course of an on-
          the-spot check of the EIOP, during the period 29 May 2000 to 1 June 2000. The
          purpose of the audit was to establish that the project:


                             was properly eligible for grant aid;
                             was in accordance with description given in grant applications;
                             was being implemented with appropriate technical and financial
                              control in accordance with Community rules and
                             had grant claimed in the final beneficiary‟s own accounts.


          6.4.10    In its report to the Department of Finance, the European Commission‟s
          auditors had “no particular observations to make” regarding the Peat Fired Project. In
          essence this amounted to a clean bill of health as far as the specific audit of the Peat
          Generation Project – the Edenderry Power project - is concerned.


26 March 2003                                  131
                          6.5 Energy Efficiency Measure

          6.5.1 Energy Efficiency underwent a Control Check by the Department of Finance
          ERDF and Cohesion Fund Financial Control Unit; an Internal Audit under the
          National Authority‟s Annual Audit Plan; and a comprehensive Verification Check by
          Integrated Engineering Consultancy.


          6.5.2 Control Checks: In May-June 2000, the ERDF & Cohesion Fund Financial
          Control Unit of the Department of Finance carried out a control check on the EIOP
          1994-1999. The scope of the check encompassed the Energy Efficiency Measure.


          6.5.3 Arising out of the control check a number of rectifications were made to the
          financial tables in respect of the Energy Efficiency Measure and these were reflected
          in the Declaration of Expenditure Table at Appendix F of the 1999 EIOP Annual
          Report.


          6.5.4 At the Auditor‟s request the Irish Energy Centre carried out a complete review
          of its method of calculating private expenditure at each grant instalment stage for all
          Energy Efficiency Investment Support Scheme (EEISS) funded projects and
          recalculated the private expenditure for all years (based on the actual expenditure
          incurred at the time of the relevant grant instalment).


          6.5.5 During the course of the control check another matter arose in relation to the
          EEISS. Details of this issue are contained in the EIOP Annual Report 2000. In
          summary, the ERDF & Cohesion Fund Financial Control Unit raised the question of
          whether the Irish Energy Centre should have placed a cap on eligible expenditure
          declared on EEISS projects. The matter was referred to the European Commission,
          which found in favour of the methodology used by the Centre, i.e. the reporting of the
          entire project expenditure as eligible expenditure was appropriate. In the light of this,
          the EIOP Secretariat submitted a rectification report to the European Commission on
          5 October 2001, including revised Financial Tables, (the Official Commission
          Repsonse to the Submission).

          6.5.6 Systems Audits: The National Authority‟s Annual Audit Plan for 2001 – drawn
          up by the Department of Finance (in discussion with the European Commission) in
          accordance with its obligations arising from Article 3.1(a) of Regulation 2064/97 –
26 March 2003                                  132
          required the carrying out of a systems audit on the Energy Efficiency Measure of the
          EIOP. Under cascade arrangements, the systems audit work of the Measure fell into
          two tranches:

                         audit of the systems and procedures within the then Department of
                          Public Enterprise that were relevant to the Measure. This work was
                          carried out by the Internal Audit Unit of the then Department of Public
                          Enterprise; and


                         audit of the systems and procedures within the Irish Energy Centre that
                          were relevant to the Measure. This work was carried out by Enterprise
                          Ireland (the parent body of the Irish Energy Centre) through the
                          engagement of external consultants (Deloitte & Touche).



          6.5.7 The report (dated May 2002) of the systems audit carried out by the Internal
          Audit Unit of the then Department of Public Enterprise concluded that the systems
          and controls within the Department for the management of the Measure were
          appropriate and were applied effectively. No errors or irregularities were discovered
          in the course of the audit.       The report made some recommendations for the
          improvement of the systems and controls. These recommendations concerned the
          audit trail and documentation of the system that existed. The Measure Leader fully
          accepted the recommendations and is implementing them in the context of the 2000-
          2006 round of Structural Funding.

          6.5.8 The report (dated February 2002) of the systems audit carried out by Enterprise
          Ireland concluded that an effective system of internal control existed within the Irish
          Energy Centre to ensure protection of EU funds. The report made some
          recommendations for the improvement of the systems and controls. These
          recommendations included production of a procedures manual, delegation of authority
          to staff, a further check to prevent duplication of funding, and the documentation of
          decisions. All the recommendations were favourably received by the Irish Energy
          Centre and are being implemented.


          6.5.9 The 5% Verification Check : In January 2001 the Measure Leader engaged an
          engineering consultancy, Integrated Engineering Consultancy, to undertake spot-checks
          on projects, which received funding under the Energy Efficiency Investment Support

26 March 2003                                 133
          Scheme. A total of 37 projects were surveyed. These projects were distributed over 26
          companies nation-wide and were selected by the Measure Leader. The total cost of these
          projects was €15,893,419 which comprises 23% of total Energy Efficiency Measure
          expenditure of €69,837,503.


          6.5.10 The Verification checks main objectives were to determine the following:


            1.       verify for an adequate number of accounting records the correspondence of
                     those records with the support documentation at the level of final
                     beneficiary
            2.       confirm for an adequate number of expenditure items, that the nature and
                     timing of the relevant expenditure (commitments and payments)
                     correspond to approved physical characteristics of the project and to the
                     works actually carried out.
            3.       ensure that the use or intended use of the projects is consistent with the use
                     described in the application for Community co-financing.


          6.5.11 A list of the projects inspected is given at Appendix 9.


          6.5.12 Conclusions: The Verification checks concluded that:


                           There was good agreement between the total cost of invoices
                            inspected during the site visits with the amounts paid by the
                            various suppliers / contractors for the work undertaken and the total
                            project cost as shown in IEC files.
                           In terms of the amount of grant assistance paid under the scheme,
                            no company received a grant payment greater than 40% of the total
                            project cost. (This was outlined in the Application Guidance
                            Package). For companies that received funding under the Large
                            Scale Combined Heat and Power call, the maximum grant paid was
                            €634,869 (£500,000).
                           All projects (save one which could not be inspected as it is no
                            longer in use) are operating very satisfactorily and meet the
                            Commission requirements in terms of their intended use.




26 March 2003                                 134
                   Overall the scheme had been very successful in achieving its
                    objectives to promote energy efficiency through the rational use of
                    energy.




26 March 2003                       135
                             6.5 Renewable Energy Measure

          6.6.1 Renewable Energy underwent a comprehensive Verification Check by Irish
          Management Energy Limited. The Measure did not undergo any other audits or
          examinations.


          6.6.2 Irregularities: The administration of the Renewable Energy Measure was
          conducted in accordance with EC Regulation 1681/94. No irregularities were
          identified during the period.

          6.6.3 The 5% Verification Check: Following a tendering process, Irish Energy
          Management Limited (IEML), Ballycurreen Commercial Park, Kinsale Road, Cork
          was appointed to conduct the 5% verification check of the Renewable Energy
          Measure. The Project Selection for the AER III scheme was as follows: One project
          from each of the three technology classes supported under the AER III scheme was
          selected for inclusion in the 5% verification check. The projects selected were:


            Table 6.1: AER Projects

           Technology     Company         Project         Year        EU Grant-    Total
           Class                          Location        complete    aid €        Investment €
                                                          d

           Biomass        Irish Power     Baleally        1999        268,409.76   1,739,844.21
                          Systems
                                          Co Dublin

           Wind           MHB             Milane Hill     2000        475,200      6,603,907.75
                          Windfarms       Dunmanway
                          Limited
                                          Co Cork

           Hydro          Hibernian       Meenachallow    2001        29,792.75    538,368.95
                          Hydro Ltd.      Glenties

                                          Co Donegal




          6.6.4    The Project Selection for the Renewable Energy Feasibility Study Grant
          Scheme was as follows; two projects were selected from the 25 studies supported.
          These were:




26 March 2003                                  136
            Table 6.2: REFSG Projects

           Company           Study                       Year        EU Grant- Total
                                                         completed   aid €     Investment €

           BEOFS, c/o        Examine the potential       1999        6094.74     12,316.46
           Campile           of energy self                           (£4,850)      £9,700)
           Community,        sufficiency and export
           Ballytobin,       of surplus electricity
                             over the grid from
           Callan, Co        anaerobic digestion of
           Kilkenny          farm slurry

           Cork              Assess the thermal          1999        6,278.85    12,557.71
           Corporation       potential of shallow                     (£4,945)     (£9,890)
           Energy Agency     groundwater in
           Office, City      gravels beneath the
           Hall,             River Lee floodplain
           Cork City         for space heating



          6.6.5 The verification checks undertaken by IEML concluded that:-


                           the financial control and management systems operated by the two
                            implementing bodies (Renewable Energy Division, of the then
                            Department of Public Enterprise and the Irish Energy Centre)
                            contained a good audit trail supporting the application, approval
                            and payments of grants payable in the case of each project selected
                            for review;
                           the financial control and management systems underlying the
                            claims by grantees were sound and reliable;
                           the expenditure declarations made at the various levels of the
                            control chain at both implementing body and grantee levels were
                            found to be in order;
                           appropriate sampling of documents pertaining to grant-aid claims
                            were found to be in order;
                           ERDF grant-aid had been committed in line with the grantee‟s
                            contractual obligations and in accordance with EC Regulations and
                            ERDF eligibility guidelines.




26 March 2003                                137
                             6.7 Cutaway Bogs Measure

          6.7.1 Cutaway Bogs         underwent       a   comprehensive    Verification   Check    by
          PricewaterhouseCoopers; a second Verification Check by Andersen Consulting; an
          Internal Audit under the National Authority‟s Annual Audit Plan; and a Systems‟
          Audit by Andersen Consulting, as part of Andersen‟s Verification Check.

          6.7.2 The 5% Verification Check: External consultants, PricewaterhouseCoopers,
          were engaged to audit on to five of the eight claims for EU grant aid under the
          Measure, with the remaining three falling within the scope of Andersen‟s Audit..
          Under the terms of Article 3 of the Regulation, the Measure Team is responsible for
          the implementation of audit procedures designed to:-

                            Verify the effectiveness of the management and control procedures
                             in place over grant-aided expenditure; and
                            Verify selectively, on the basis of risk analysis, expenditure
                             declarations made at the various levels concerned.

          6.7.3 The auditors were required to perform the necessary audit test of Bord na Móna
          (implementing agency) grant claims in order to enable the Department ensure that it
          meets the above obligations under the Regulation. Audit reported that the Department
          of Public Enterprise (the then Lead Department for the Cutaway Bogs Measure) can
          be assured that all claims submitted for payment by the implementing agency are free
          from material misstatement.


          6.7.4 The Cutaway Bogs Measure was subject to an audit by the Internal Audit Unit
          of the then Department of Public Enterprise in May 1999. The main aim of the audit
          was to verify, primarily to the European Commission and also to the Measure Team,
          that the relevant management and control systems to prevent, detect and correct errors
          and irregularities are in place and are being applied effectively to all activities related
          to the Cutaway Bogs Measure.

          6.7.5 The audit found that systems and controls for management of the project are
          appropriate and are being applied effectively within the Measure Team. Audit made a
          number of recommendations for improving procedures and bring them into line with
          the new financial control requirements of EU Regulation 2064/97. The Measure


26 March 2003                                  138
          Leader fully accepted the Audit‟s Recommendations and these have been
          implemented for the remaining period of the Measure.


          6.7.6 Arthur Andersen Consultants were employed to verify the Cutaway Bogs
          Measure control and file systems in place in Peat Division and the Planning Unit of
          the Department of Public Enterprise. As part of their work, they reviewed the existing
          control and file system procedures; tested on a sample basis, the operation of the
          procedures and assessed the adequacy of the procedures. The consultants reported that
          the control and file systems in place in respect of the Cutaway Bogs Measure is
          adequate to ensure verification in line with Article 3.1 (b) of EU Commission
          Regulation 2064/97.




26 March 2003                                139
                             6.8 Rural Networks Measure


          6.8.1 Rural Networks underwent two comprehensive Verification Checks by KPMG,
          a Systems‟ Audit by KPMG, a Control Check by EU DG Financial Control, and three
          Internal Audits.


          6.8.2 KPMG was engaged on two occasions by the Department to carry out detailed
          examination of at least 5% of the expenditure of selected ESB claims ranging over the
          lifespan of the Rural Networks Measure. KPMG reported in May 2000 and August
          2002 in respect of both audit exercises and in each case they concurred that the
          expenditure:


               Was allowable within the definition of the EIOP
               Had been incurred by ESB
               Had been paid for by ESB
               Was fairly described and classified and was included in each claim at the correct
                amount
               Was in accordance with ESB‟s books and records
               Had not been subject to a previous application.


          Furthermore no matters came to attention of KPMG during either audit to suggest the
          existence of irregularities as laid out in EU Regulation 1681/94.


          6.8.3 KPMG was engaged to verify the Rural Networks control and file systems in
          place in Electricity (Corporate) Division. As part of their work, KPMG reviewed all
          the relevant files maintained in the Division to assess the existing control and file
          system procedures and examined the operation and adequacy of the procedures.
          KPMG reported in August 2002 that the Division maintained adequate control over
          the processing of claims and that appropriate documentation supporting the claims has
          been maintained.


          6.8.4 The Rural Networks Measure was among a numbers of projects selected for
          audit by the European Commission DG for Financial Control in the course of an on-
26 March 2003                                   140
          the-spot check of the EIOP during the period 29 May 2002 to 1 June 2000.           The
          purpose of the audit was to establish that the Measure :


               Was properly eligible for grant aid
               Was in accordance with description given in grant applications
               Was being implemented with appropriate technical and financial control in
                accordance with Community rules and
               Had grant claimed in the final beneficiary‟s own accounts.


          6.8.5 In its report to the Department of Finance, the European Commission‟s auditors
          had “no particular observations to make” regarding the Rural Networks measure. In
          essence this amounted to a clean bill of health as far as the audit of the ESB projects
          were concerned.


          6.8.6 In July 1999 the Internal Audit Unit of the Department reported on its
          examination of the Rural Networks Measure.             Overall, it was found that the
          management systems and controls in operation for the Measure were adequate to
          ensure its appropriate and effective implementation.       However, on the basis of the
          audit work, some recommendations were made for improvement of the system e.g.
          formulate checklists, terms of reference for the external auditors should include a
          remit to suggest improvements for the areas examined etc.


          6.8.7 Internal Audit Unit conducted a follow-up on implementation of their
          recommendations and reported in May 2001 that it was satisfied that full
          implementation had been undertaken.


          6.8.8 Internal Audit Unit engaged external auditors HELM Corporation to undertake,
          inter alia, an audit of the Rural Networks Measure.        The audit was carried out by
          HELM in August 2002 and the outcome was satisfactory.




26 March 2003                                   141
                        6.9 Telecommunications Measure


        6.9.1 Telecommunications underwent a comprehensive Verification Check by
        PricewaterhouseCoopers; a second comprehensive Verification Check, also by
        PricewaterhouseCoopers; a third verification check, by Helm Consultants; a Control
        Check by EU DG Financial Control; and an Internal Audit under the National
        Authority‟s Annual Audit Plan.


        6.9.2 The PricewaterhouseCoopers Verification Check which verified a sample of
        claims up to 1997, detected full compliance with the conditions, as set out in the terms
        of reference.


        6.9.3 An on-the-spot check was carried out in May/June 2000 by the EU Commission.
        (DG Budget). As a result of their findings, it was requested that the designated authority
        „carry out a full audit of the projects co-financed by the ERDF.‟


        6.9.4 The intention was that the second Verification Check by PricewaterhouseCoopers
        would also meet the requirements of a full audit. Despite detecting full compliance as
        set out in the terms of reference, this verification check was not deemed sufficient to
        meet the full EU requirements for verification. As a result in October 2002 Helm
        Consultants were contracted to carry out a comprehensive audit, and the results of this
        audit confirmed that Eircom expenditure took place in accordance with EU regulations.


        6.9.5 Internal Audit carried out an examination of Telecommunication‟s control
        systems in 1997, and found the Measure satisfactory in its maintenance of procedures
        and records.




26 March 2003                                 142
                                      6.10 Postal Measure

          6.10.1 The Postal Measure underwent a comprehensive Verification Check by KPMG;
          a second comprehensive Verification Check by Chapman Flood Mazars; and a
          Control Check by the Department of Finance ERDF and Cohesion Fund Financial
          Control Unit.


          6.10.2   Under the terms of European Commission Regulation 2064/97, and in
          accordance with the requirements set out in Department of Finance Circular 23/98,
          KPMG Chartered Accountants were engaged in 1998 to carry out an audit of the
          Postal Services Measure covering the period from the commencement of the
          programme up to 31 December 1997.


          6.10.3 A random sample of 6 claims made by An Post (out of a total of 18 made up to
          31 December 1997) were selected for audit by KPMG. At least 5% of the expenditure
          of each claim was subject to detailed examination and, on this basis, KPMG
          concluded that the expenditure was:


                           Allowable within the definition of the EIOP
                           Had been incurred by An Post
                           Had been paid for by An Post
                           Was fairly described and was included in each claim at the correct
                            amount
                           Was in accordance with An Post‟s books and records
                           Had not been subject to a previous application


          6.10.4 Site inspections were also carried out of the Athlone and Portlaoise Mail
          Centres which confirmed the existence of the assets in respect of which grant aid had
          been sought. Photographic evidence of the existence of both these Mail Centres was
          provided. Photographic evidence of compliance by An Post with the publicity
          provisions of the European Commission Decision 94/342 was also provided.


          6.10.5 KPMG concluded that on the basis of their audit that no matters came to their
          attention to suggest the existence of irregularities as outlined in EU Regulation



26 March 2003                                143
          1681/94 and that the „Nil Returns‟ submitted by An Post in respect of expenditure
          under the Measure appeared appropriate.


          6.10.6 A further audit of expenditure under the Postal Measure was also carried out by
          the Internal Audit Unit of the Department of Public Enterprise which brought the
          level of total expenditure examined up to the 5% required under the Regulations. No
          irregularities were determined as a result of the internal audit.


          6.10.7 The Department of Finance‟s ERDF and Cohesion Fund Financial Control
          Unit undertook a separate Control Check during May and June 2000. The check was
          carried out in accordance with the Dept. of Finance Circular 23/98 and in line with
          Council Regulation (EEC) 2082/93 and CION Regulation 2064/97. The objectives
          were to:-


                      a.     Examine the effectiveness of the management and control systems
                             in place in the organisations
                      b.     Test the audit trail for selected expenditure by tracing amounts
                             from the ERDF claim back to original documentation.


          6.10.8 The Postal Services Measure were examined as part of the check. A Report
          was produced in August 2000, and the Department prepared a comprehensive
          response with regard to the implementation of Control Check recommendations.


          6.10.9 Counter automation equipment was purchased by An Post from a subsidiary.
          The profit of IR£248,102 which the subsidiary made in the transaction was ineligible
          expenditure for co-funding purposes. An Post subsequently submitted a cheque for
          IR£165,503 (47% of the amounts claimed) which included a reimbursement of
          IR£116,607.94 in respect of the ineligible expenditure on the Counter Automation
          Equipment and VAT of IR£104,032 on the transaction which was also ineligible.
          Irregularity reports on both of these aspects were submitted.


          6.10.10 An amount of IR£7,310 was returned as eligible expenditure in 1998 in
          relation to the Portlaoise Mail Centre. This amount was invoiced to An Post by the
          ESB and related to on- going electricity usage at Portlaoise which An Post coded to
          the capital project in error. The error was noted and corrected. An irregularity report
          was submitted;
26 March 2003                                  144
          6.10.11 An amount of IR£40,000 incurred by An Post on the purchase and subsequent
          resale of a site not ultimately used for the construction of the Sligo Mail Centre was
          ineligible expenditure for co-funding purposes. The reason for the resale of the first
          site was that development costs at a second site purchased by An Post for the
          construction of the Centre were considerably less. An irregularity report was
          submitted for IR£18,000 (IR£40,000 @47% aid rate). No refund was required as a
          grant claim had not been submitted.



          6.10.12        Chapman Flood Mazars, Chartered Accountants, have recently been
          engaged to carry out a verification check of 5% of all expenditure under the Postal
          Services Measure subsequent to 1997 up to the closure of the programme as well as
          compliance with all the regulatory requirements and rules.


          6.10.13 The Consultants, Chapman Flood Mazars were engaged by the Department to
          provide independent confirmation of An Post‟s and the Department‟s compliance with
          the requirements of European Commission Regulation No.2064/97, in relation to the
          Postal Measure, in particular, that verification audits be conducted on at least 5% of
          the total eligible expenditure. The exercise included an examination of the procedures
          in place within the Department to ensure that all claims submitted were properly
          processed through the cascade of the Department and that amounts ultimately claimed
          from the EU were in agreement with the claims submitted by An Post. The audit
          covered the period I January 1998 to 31 December 2001. The specific objectives in
          carrying out the audit were to verify that:


               all amounts clamed represent eligible expenditure under the EU structural funding
                rules;
               all expenditure is vouchable and verifiable including the physical verification of
                capital expenditure on a sample basis;
               all expenditure has been incurred and paid within the required time limits;
               all expenditure has been fairly described and recorded at the correct amount;
               all claims are in accordance with the books and records;
               no amounts claimed have been subject to a previous application;
               all expenditure as been incurred on a arms length basis;
               all expenditure statements submitted are free from material misstatement;

26 March 2003                                   145
               the requirements of the „Audit Trail‟ document issued by the Department have
                been adhered to.


          6.10.14 The total eligible expenditure under the Postal Services Measure over the
          period 1998 to 2001 which was covered by the audit amounted to IR£6.443m. The
          total value of expenditure audited amounted to IR£1.153m. This represented nearly
          18% of total eligible expenditure.


          6.10.15 Overall the audit concluded that there were no major issues of non –
          compliance with the Regulations but it did identify ineligible expenditure amounting
          to IR£56,714 in respect of certain items of expenditure claimed under the programme.
          The Consultants view is that the errors they identified were not systemic. The items
          deemed to be ineligible were on the basis that:


               sufficient supporting documentation was not available;
               evidence of payment was not available;
               invoices were addressed to bodies other than An Post.


          6.10.16 The Consultants report points out that An Post introduced a new accounting
          system in 1998 and that sufficient records have not been retained in respect of the old
          system. Consequently, for some items claimed it was not possible to obtain a
          supporting invoice or to verify the payment of these amounts by An Post. Where
          invoices or other supporting documents could not be obtained, the audit was unable to
          conclusively establish that expenditure constituted a „real cost.‟ Such expenditure
          amounted to IR£8,859. Similarly, in instances were payment could not be verified, the
          audit was unable to establish whether the payments were made within the correct
          timeframe or that the expenditure was actually and ultimately borne by the project.
          Under the strict interpretation of the regulations such expenditure may be deemed
          ineligible. The consultants have indicated that such instances were largely due to the
          change in the accounting system and that all other evidence suggested that An Post
          had in fact incurred this expenditure. Their view is that it would be harsh in these
          circumstances to disallow such expenditure which amounted to IR£46,855.


          6.10.17 The Measure Leader has taken the view that the onus for preserving a clear
          audit trail, irrespective of the changeover to a new accounting system, had been made
          clear to An Post and if there was not full compliance with the regulations there was no
26 March 2003                                  146
          choice but to rule the expenditure in question as ineligible and to submit Irregularity
          Reports in respect of each item.


          6.10.18 In relation to financial control issues, the Consultants criticised, the absence
          of a contract or agreement between the Department of Public Enterprise and An Post
          in respect of the Postal Services Measure. It is their view that such agreements or
          contracts are essential in case of any disputes or issues in regard to the programme.
          The Department accepts, in retrospect, this would have been desirable but it was not
          the practice to draw up such contracts with semi state companies at the time the
          programme commenced in 1994 nor was it a requirement under the regulations.


          6.10.19 The Consultants also pointed out that cumulative totals of claims submitted
          and payments made were not maintained by the Department which would have helped
          to ensure that excess grant funding would not be approved in error and that amended
          claims submitted by An Post where not retained by the Communications Division
          which potentially could have lead to control problems arising from inaccurate
          information. Copies of the amended claims in question were held by the Secretariat.




26 March 2003                                 147
                    6.11 Broadband Infrastructure Project


          6.11.1 Broadband underwent a comprehensive Verification Check on a claim by claim
          basis by Ernest and Young. The Measure did not undergo any other examinations or
          audits.


          6.11.2 Verification and Evaluation: The technical evaluation of the projects was
          entrusted by the Measure Team to North West Labs Ltd, who furnished a
          completion report for each phase of each project. Due partly to the difficulties
          experienced by the industry in the past two years, the level of completion of projects
          has tended to vary. Most of the projects have been fully completed as provided in the
          original proposals, but some have been less fortunate. In some cases the project was
          undertaken by a contractor whose business subsequently failed, and completed by a
          new company following the takeover of the original contractor. These projects are
          identified in the table below.


          6.11.3 In order to encourage completion of those projects by alternative contractors,
          the Measure Leader has striven to ensure that each project was completed as closely
          as feasible to the specification outlined in the original proposals. The underspend on
          some of the projects can be attributed in the main to those projects having been
          amended in the light of such difficulties.


          6.11.4     Audits: Ernst and Young were recruited through a tender process, under
          which their principal functions were:


          To advise the Measure Team of grantee compliance with contractual reporting
          obligations under the Grant Agreements made with the Department.


          To verify the accuracy of the grant claims submitted, and to test that each claim was
          supported by adequate documentation.


          To verify that all contractual obligations have been met under European Commission
          Regulations and ERDF and Interreg eligibility guidelines.




26 March 2003                                  148
          6.11.5 Ernst and Young have audited each project on a claim-by-claim basis, and as a
          result have built up a very comprehensive audit of the Broadband Measure.


          6.11.6 The sampling involved a full audit from order documentation through to bank
          statements. The objective was to sample at least the 5% rate stipulated under EU
          Regulation 2064/97. Sampling included audit of documentation across different key
          expenditure headings, different time-periods and for expenditures of different scale.
          The level of sampling of expenditure in some of the projects was between 50% and
          60%.


                                            6.12: Irregularities


          6.12.1 In an extensive examination of the documentation pertaining to each project,
          no systemic irregularities were detected. Because of the great diversity in locations
          and contractors, some minor inconsistencies have been discovered in the completion
          of some of the Claim Form B documentation. There have also been some minor errors
          in processing of claims, but where errors occurred they were quickly identified and
          rectified without delay. In no instance was there any financial shortfall.


          6.12.2 In Project No.8, HEAnet Ltd, a typographical error made in the Department
          resulted in an overpayment of £20,000 on a claim submitted on 7 December 2000.
          The overpayment was noted, and the overpayment was deducted from the next Form
          B claim submitted on 21 November 2001.


          6.12.3 Claim 2 for Project 12 (Chorus, Thurles), was submitted with an overstated
          expenditure of £20,794. This was caused when the company incorrectly recorded US
          Dollar invoices as IR£. Although Ernst & Young highlighted the overclaim and
          adjusted the figures on Form B, the form was processed here with the original claim
          amount, and payment of the higher figure was made. The overpayment has been
          deducted from the final payment for this project.


          6.12.4 The first claim submitted by Suir Nore Relays in February 2000. The amount
          was overstated by £12,807.27 due to the application of an incorrect aid rate. This was
          identified during a standard documentation check in April 2000. The amount was
          recovered by means of a deduction from the next claim (in June 2000).


26 March 2003                                  149
          6.12.5 A claim submitted by Princes Holdings (now Chorus) for project ref. DPE 302
          was overstated by £39,777 due to a clerical error in the Department. This was
          identified by external auditors in December 2001. The amount was recovered by
          means of a deduction from the next claim.


          6.12.6 Two projects, No.9 (Chorus, Ennis – Cork) and No.12 (Chorus, Thurles)
          presented considerable difficulties in respect of final payments. In each case, the
          project was started by one contractor and taken over and completed by another.


          6.12.7 Broadband have had independent verification from Ernst and Young (from the
          financial aspect) and from NWLabs (from the technical aspect) that the proper
          procedures were followed, and the final payments for each these two projects were
          passed for payment.




26 March 2003                                150
                            6.13 E-Commerce Measure


          6.13.1 E-Commerce underwent a comprehensive Verification Check by BCW
          Consultancy, and an Internal Audit under the National Authority‟s Annual Audit Plan.


          6.13.2 BCW found E-Commerce to be in compliance with expenditure as set out in
          the EU regulations on expenditure.


          6.13.3 Internal Audit examined E-Commerce Control Systems in 2002. As part of the
          management response to the Audit, the E-Commerce Measure Team contracted BCW
          to comment on the Measure‟s control systems, and BCW were able to provide
          independent assurances of the adequacy of the Measure‟s control systems.


          6.13.4 Irregularities: To date six projects under the E-Commerce Measure have
          incurred irregularities, all of which resulted in grant overpayments. For all
          irregularities formal irregularity reports have been issued to the EIOP Secretariat.
          In the case of three of the companies concerned monies have been recovered. In
          relation to the remaining three projects a recovery process is in operation. It is
          anticipated that all relevant monies will be recovered in the near future.




26 March 2003                                  151
          6.14 Technical Assistance (General) Measure


          6.14.1 The Technical Assistance Project underwent a comprehensive Verification
          Check by Internal Audit. The Technical Assistance Project did not undergo any other
          audits or examinations.



          6.14.2 The minimum 5% verification required under Article 3.1(b) of 2064/97 was
          carried out by the Internal Audit Unit of the Department of Public Enterprise. Total
          eligible expenditure for the Measure was £1,035,274.63. Of this, £669,346.20 was
          examined in the course of the verification check. This represented 64% of Total
          Eligible Expenditure and covered the full life of the Measure.

          6.14.3 In August 2001 the Department, in fulfilling its EU Funding Control
          Obligations, employed external auditors to carry out a 100% audit of the EBAC.

          6.14.4 The audit found that the expenditure claimed was fully compliant with all
          relevant EU Financial Guidelines

          6.14.5 No irregularities were uncovered as part of the audit.




26 March 2003                                 152
           6.15 Technical Assistance (IS Awareness) Measure


          6.15.1 The IS Awareness Measure underwent a comprehensive Verification Check by
          BCW Consultancy. The Measure did not undergo any other examinations or audits.



          6.15.2 In the Department in fulfilling its EU Funding Control Obligations employed
          BCW as external Auditors to carry out a 100% Audit of the EBAC.


          6.15.3 The Audit found that the expenditure claimed was fully compliant with all
          relevant EU Financial Guidelines.


          6.15.4 No irregularities were uncovered as part of the audit.




26 March 2003                                 153
                Appendices




26 March 2003       154
                                     Appendix 1


The texts of the Five Decisions taken by the European Commission in relation the Economic
Infrastructure Operational Programme, 1994-1999, are reproduced in this Appendix. The
Financial Tables accompanying these Decisions are not re-produced herein, although key
dimensions of those Tables are discussed in the course of this Final Report.




                 Decision 1: European Commission Decision of 24 July 1994


                 Decision 2: European Commission Decision of 08 July 1997


                 Decision 3: European Commission Decision of 23 July 1998


                 Decision 4: European Commission Decision of 26 July 1999


                 Decision 5: European Commission Decision of 08 July 2000




26 March 2003                                  155
APPENDIX 1 - DECISION 1


                                                                     ERDF No.940409005
                                                                 Arinco No. 941R16004




                              COMMISSION DECISION of 29/07/1994




Concerning the granting of assistance from the European Regional Development Fund
(ERDF), to an operational programme for Economic Infrastructure under the Objective 1
Community Support Framework for structural assistance for Ireland


                 THE COMMISSION OF THE EUROPEAN COMMUNITIES,


Having regard to the Treaty establishing the European Community,


Having regard to Council Regulation (EEC) No. 4253/88 of 19 December 1988 laying down
provisions for implementing Regulation (EEC) No. 2052/88 as regards co-ordination of activities
of the different Structural Funds between themselves and with the operations of the European
                                                                 8
Investment Bank and the other existing financial instruments as last amended by Regulation
                      9
(EEC) No. 2082/93 and in particular Article 14(3) thereof;


                                                     10
Whereas by Decision C(94)1715 of 13 July 1994             the Commission adopted the Objective 1
Community Support Framework for Ireland for the period 1994-1999;


Whereas, pursuant to Article 5(2) of Council Regulation (EEC) No. 2052/88 of 24 June 1988 on
the tasks of the Structural Funds and their effectiveness and on co-ordination of their activities
between themselves and with the operations of the European Investment Bank and the other




8
  OJ No. L374 of 31.12.1988, page 1.
9
  OJ No. L193 of 31.07.1993, page 20
10
   To be published.
26 March 2003                                  156
                                  11                                                 12
existing financial instruments          as amended by Regulation (EEC) No. 2081/93        assistance from
the Structural Funds may take the form of part-financing of an operational programme;


Whereas Article 1 of Council Regulation (EEC) No. 4254/88 of 19 December 1988 laying down
provisions for implementing Regulation (EEC) No. 2052/88 as regards the European Regional
                       13                                                14
Development Fund            as amended by Regulation (EEC) No. 2083/93        defines the measures for
which the ERDF may provide financial support;


Whereas on 28 April 1994 the Government of Ireland sent the Commission an application
concerning an operational programme under Objective 1 in Ireland for which Community
assistance was requested from the ERDF and which forms part of the Community Support
Framework for Ireland; whereas expenditure under that operational programme is eligible,
pursuant to Article 33(2) of Regulation (EEC) No.4253/88, as amended, from 1 January 1994;


Whereas the aims of the operational programme are:
        to contribute to the cost effective supply and consumption of indigenous and imported
         fuels; and
        to maintain and develop efficient postal and telecommunications services to industry and
         consumers in general;
and so contribute to the priorities laid down for measures under the Community Support
Framework for Ireland;


Whereas certain measures planned under this operational programme include the part-financing
of aid schemes which have not been approved by the Commission; whereas the financial
commitments should be reduced by the amounts corresponding to the said measures until the aid
schemes are approved by the Commission;


                                                                         15
Whereas Article 1 of the Financial Regulation of 21 December 1977             applicable to the general
budget of the European Communities as last amended by Regulation (Euratom, ECSC, EEC) No
         16
610/90        states that the legal commitments entered into for measures extending over more that




11
   OJ No. L185 of 15.07.1988, page 9
12
   OJ No. L193 of 31.07.1993, page 5
13
   OJ No. L374 of 31.12.1988, page 15
14
   OJ No. L193 of 31.07.1993, page 34
15
   OJ No. L356 of 31.12.1977, page 1
16
   OJ No. L70 of 16.03.1990, page 1
26 March 2003                                       157
one financial year must contain a time limit for implementation which must be specified to the
recipient in due form when the aid is granted;


Whereas all the other conditions laid down for the grant of aid from the ERDF have been
complied with,


HAS ADOPTED THIS DECISION:
                                             Article 1

The operational programme for Economic Infrastructure for the period 1 January 1994 to 31
December 1999, as described in the annexes and concerning a series of multiannual measures
under Priority No.2, Economic Infrastructure, in the Community Support Framework for Ireland
is hereby approved.

                                             Article 2

The assistance from the ERDF granted to this programme amounts to a maximum of ECU 108.0
million.

The procedure for granting this financial assistance, including the financial contribution from the
Funds to the various subprogrammes and measures which this programme comprises, is set out in
the financing plan annexed to this Decision.
                                             Article 3

The budgetary commitment for the first instalment is as follows:
                             ERDF                           ECU 1.6 million

Commitments of subsequent instalments will be based on the financing plan for the programme
and progress in its implementation.
                                             Article 4

The procedure for the grant of the assistance may be amended subsequently, subject to the
availability of funds and the budgetary rules, in the light of adjustments decided on in accordance
with the procedure laid down in Article 25(5) of Regulation (EEC) No. 4253/88, as amended.

                                             Article 5

This Decision is without prejudice to the Commission‟s position on the aid schemes in the energy
efficiency measure in the programme. In accordance with Articles 92 and 93 of the Treaty, the
aid schemes must be approved by the Commission and hence the financial commitments shall be
reduced by the amounts corresponding to the said measure (ECU 19.7 million over the period
1994-1999) until the aid schemes are approved by the Commission.




26 March 2003                                    158
                                             Article 6

The Community aid concerns expenditure on operations under this programme which, in the
Member State concerned, are the subject of legally binding commitments and for which the
requisite finance has been specifically allocated no later than 31 December 1999. The final date
for taking account of expenditure on these measures is 31 December 2000.

                                            Article 7

The Community assistance which is the subject of this Decision is granted in accordance with the
detailed implementing provisions which form an integral part of the Community Support
Framework.

                                            Article 8

The operational programme shall be implemented in accordance with Community law, and in
particular Articles 7, 30, 48, 52 and 59 of the EC Treaty and the Community Directives on the
co-ordination of procedures for the award of public contracts.
                                            Article 9

This Decision is addressed to Ireland.

Done at Brussels,                                           For the Commission



                                                            Bruce Millan
                                                            Member of the Commission




26 March 2003                                  159
APPENDIX 1 - DECISION 2



ERDF No 940409005
ARINCO No 941Rl6004


COMMISSION DECISION

of 08 -07- 1997


amending Decision C (94) 1971/2 concerning the granting of assistance from the European
Regional Development Fund (ERDF) to the operational programme for Economic Infrastructure
within the Community support framework for structural assistance under Objective 1 in Ireland
and confirming several acts of its Monitoring Committee.


THE COMMISSION ,OF THE EUROPEAN COMMUNITIES,


Having regard to the Treaty establishing the European Community,


Having regard to Council Regulation (EEC) No 4253/88 of 19 December 1988 laying down
provisions for implementing Regulation (EEC) No 2052/88 as regards coordination of activities
of the different Structural Funds between themselves and with the operations of the European
Investment Bank and the other existing financial instruments1, as last amended by Regulation
(EC) No 3193/942, and in particular Article 14(3) and Article 25(5) second and third
subparagraph thereof;

Whereas, according to the procedure laid down in Article 25(5) third subparagraph of Regulation
(EEC) N° 4253/88, the Commission. may decide, in collaboration with the Member State
concerned and after delivery of the opinion of the competent Monitoring Committee, any
amendment required for implementing the Operational Programme and, subject to the availability
of funds and to the budgetary rules, adjust the financial plan accordingly;


Whereas, according to the procedure laid down in the first and second subparagraph of Article
25 (5) of Regulation (EEC) No 4253/88, the Monitoring Committee is required, if necessary,
without altering the total amount of the Community contribution and within harmonised limits
for each Objective, to adjust both the procedure for granting assistance as initially approved and,
in conformity with available resources and budgetary rules, the financing plan envisaged,
including any transfers between Community sources of finance and the consequent adjustments
of the rates of assistance; whereas the act of the Monitoring Committee, duly notified to the
Commission and the Member State concerned, shall be confirmed by the Commission;


Whereas the competent Monitoring Committee has delivered its opinion;
1
 OJ No. L374, 31.12.1988, pg 1.
2
 OJ No. L 337, 24.12.1994, p.11
26 March 2003                                  160
Whereas the Monitoring Committee of the Community support framework has approved on 16
October 1995, an increase of the Community assistance of ECU 1.679 million granted by the
ERDF to the Operational Programme for Economic Infrastructure;

Whereas the Monitoring Committee for the Economic Infrastructure Operational Programme at
its meeting on 29 March 1996 approved the distribution of ECU 1.679 million of ERDF
assistance to the Communications Sub Programme divided equally between the
Telecommunications and Postal Measures.

Whereas the Monitoring Committee for the Economic Infrastructure Operational Programme
decided at its meeting on 20 March 1997 to modify the total cost of certain annual instalments
without altering the total cost of the Community contribution to the Programme to reflect the
current state of implementation of the Programme;


Whereas it is appropriate to adjust the financial plan to the current state of implementation of the
Operational Programme;

Whereas the Monitoring Committee for the Operational programme for Economic Infrastructure
decided by way of written procedure finalised on 21 June 1996 to alter the descriptive text of
Paragraph 2.5.1(iii) Page 31 and Paragraph 3.5 (iii) Page 46 of the Programme to provide funding
for the generation of electricity from wave energy;


Whereas these acts of the Monitoring Committee for the Economic Infrastructure Operational
programme should be confirmed,

                               HAS ADOPTED THIS DECISION :



                                               Article 1
  1. In Article 2 first paragraph, the maximum amount of “ECU 108 Million” is replaced by the
                            maximum amount of “ECU 109,679 Million.”
  2. The financial plan of the programme annexed to Decision C (94) 1971/2 is replaced by the
                               financial plan annexed to this Decision.

3. The text of Paragraph 2.5.1 (iii) Page 31 and Paragraph 3.5 (iii) Page 46 of the Operational
Programme is amended as set out in Annex 1 to this Decision.

                                             Article 2

This Decision is addressed to Ireland.

Done at Brussels,      08-07-1997



26 March 2003                                   161
                                                              For the Commission
                                                              Monika WULF-MATHIES
                                                              Member of the Commission

_____________________________________________________________________

                                             ANNEX 1


Section 2
Paragraph 2.5.1 (iii) Renewable Energy.
Last sentence of first Sub-Paragraph alter as follows -“Certain other sources, wave energy for
example, are being considered in the context of this initiative.

Section 3
Paragraph 3.5 (iii) Renewable Energy.
Addition to final Sub-Paragraph. Add the following -“ Additional targets for the generation of
electricity from wind power, hydro waste and other sources including biomass and wave energy
may be set”.




26 March 2003                                   162
APPENDIX 1 - DECISION 3




ERDF No 940409005
ARINCO No 94IR16004


                                   COMMISSION DECISION


                                        of 23-07-1998.


amending Decision C (94) 1971/2 concerning the granting of assistance from the European
Regional Development Fund (ERDF) to the operational programme for Economic Infrastructure
within the Community support framework for structural assistance under Objective 1 in Ireland
and confirming several acts of its Monitoring Committee.


THE COMMISSION OF THE EUROPEAN COMMUNITIES,


Having regard to the Treaty establishing the European Community,


Having regard to Council Regulation (EEC) No 4253/88 of 19 December 1988 laying down
provisions for implementing Regulation (EEC) No 2052/88 as regards co-ordination of activities
of the different Structural Funds between themselves and with the operations of the European
                                                             1
Investment Bank and the other existing financial instruments , as last amended by Regulation
                      2
(EC) No 3193/94 , and in particular Article 14(3) and Article 25(5) second and third
subparagraphs thereof;


Whereas the Commission has adopted, by Decision C 1971/2 of 29 July 1994, as amended by
Decision C (97) 1945 of 8 July 1997, the Operational Programme for Economic Infrastructure
within the Community support framework for structural assistance under Objective 1 in Ireland;


Whereas the Monitoring Committee of the Community support framework has approved on 6
June 1996, an increase of the Community assistance of ECU 0.843 million granted by the ERDF
to the Operational Programme for Economic Infrastructure;
1
 OJ No L 374, 31.12.1988, p. 1.
2
 OJ No L 337, 24.12.1994, p. 11.
26 March 2003                                 163
Whereas the Monitoring Committee for the Economic Infrastructure Operational Programme at
its meeting on 29 September 1997 approved the distribution of ECU 0.842251 million of ERDF
assistance to the Rural Networks Measure of the Energy Sub-Programme;

Whereas in accordance with paragraph 4.1.2 of the Implementation provisions of the Community
Support Framework a mid-term review has been carried out on the Community Support
framework for Objective 1 in Ireland;


Whereas, according to the procedure laid down in Article 25(5) third subparagraph of Regulation
(EEC) N° 4253/88, the Commission may decide, in collaboration with the Member State
concerned and after delivery of the opinion of the competent Monitoring Committee, any
amendment required for implementing the Operational Programme and, subject to the availability
of funds and to the budgetary rules, adjust the financial plan accordingly;


Whereas the CSF Monitoring Committee at its meeting of 29 July 1997 has approved the Mid
Term Review of the Community Support Framework for Objective 1 in Ireland and transferred
€2 million of Community assistance from the Economic Infrastructure Programme to other
operational programmes within the CSF for Objective 1 in Ireland and reallocated €10 million
from the Telecommunications Measure to a new Measure entitled Information Society -
Broadband Technology within the Economic Infrastructure Programme;


Whereas, according to the procedure laid down in the first and second paragraphs of Article
25(5) of Regulation (EEC) No 4253/88, the Monitoring Committee is required, if necessary,
without altering the total amount of the Community contribution and within harmonised limits
for each Objective, to adjust both the procedure for granting assistance as initially approved and,
in conformity with available resources and budgetary rules, the financing plan envisaged,
including any transfers between Community sources of finance and the consequent adjustments
of the rates of assistance; whereas the act of the Monitoring Committee, duly notified to the
Commission and the Member State concerned, shall be confirmed by the Commission;

Whereas the Monitoring Committee for the Economic Infrastructure Operational Programme
decided at its meeting on 29 September 1997 to modify the total cost of certain annual
instalments without altering the total cost of the Community contribution to the Programme to
reflect the current state of implementation of the Programme;



26 March 2003                                   164
Whereas these acts of the Monitoring Committee for the Economic Infrastructure Operational
programme should be confirmed,


HAS ADOPTED THIS DECISION :

                                            Article 1

Decision C (94) 1971/2 is amended as follows:

1. In Article 2 first paragraph, the maximum amount of “ECU 109.679 Million” is replaced by
the maximum amount of “ECU 108.521251 Million”.
2. The financial plan of the programme is replaced by the financial plan annexed to this Decision.
3. The text of the Operational Programme is amended at Page 59 by the addition of the text set
out in Annex 1 to this Decision.


                                            Article 2

This Decision is addressed to Ireland.

Done at Brussels, 23-07-1998



                                               For the Commission
                                               Monika WUF-MATHIES
                                               Member of the Commission
_____________________________________________________________________

                                            Annex I.
Section 3- Objectives and Strategy of Sub Programmes.
Paragraph 3.6- After 3.6 (ii) which deals with Telecommunications on page 59 insert new
measure.
(iii) Information Society -Broadband Technology with the following text:

                       3.6 Communications Sub-Programme Measures

                       (iii) Information Society -Broadband Technology

Context
In the context of the mid-term review of Operational Programmes and Community Initiatives in
the current CSF and in the light of policy developments at European Community level, one of the
priorities selected for funding was the development of the Information Society. The CSF
Monitoring Committee at its meeting on 29 July 1997 approved the reallocation of €10 million
ERDF aid from savings within the Telecommunications Measure of the Economic Infrastructure

26 March 2003                                   165
Operational Programme to fund a new measure for broadband telecommunications to assist the
development of the Information Society in Ireland.


Rationale and Objectives
The infrastructural challenge posed by the Information Society is the development of a high
capacity national network which can support the mass market availability of emerging advanced
services, incorporating the simultaneous transmission of data, text, sound, images and video. The
total investment which must ultimately be dedicated to this end will be a matter for operators in
the market.


The liberalisation of telecommunications infrastructure from 1 July 1997 enables operators other
than Telecom Eireann to participate in infrastructural development. The liberalisation process in
the telecommunications sector which will be completed in 1 January 2000 is expected to
engender vigorous competition in the provision of traditional telecommunications, notably voice
traffic. The provision of EU aid is conditional on all the operators, which includes the private
sector, being allowed to participate in tendering for the grant on the basis of criteria set down in
advance.


In short, the primary objective of the Information Society Measure is therefore to provide a
stimulus to investment in broadband infrastructure to support the Information Society in Ireland.


                               FINANCIAL SUMMARY
                     GROSS INVESTMENT/ERDF AID PROFILE
                            For Information Society Measure
                                        (€ million)
              Year                  Total Expenditure                  ERDF Aid
              1998                          8.0                            4.0
              1999                         12.0                            6.0


Responsible Authority:
Department of Public Enterprise
Duration:       1998/1999
Financial Beneficiaries:
Providers of Telecommunications Infrastructure
Scope/Geographical Coverage: Nationwide
Indicators for Monitoring and Evaluation
26 March 2003                                     166
Indicator:              1999 Forecast
Geographical Coverage   To be determined




26 March 2003                           167
APPENDIX 1 – DECISION 4



ERDF: 94.04.09.005
ARINCO: 94.IR.16.004 C(1999) 3779
.


                                  COMMISSION DECISION


                                       of 26 -11- 1999


amending Decision C(94) 1971/2 concerning the granting of assistance from the European
Regional Development Fund (ERDF) to an Operational Programme for Economic Infrastructure
within the Community support framework for structural assistance under Objective 1 in Ireland
and confirming several acts of its Monitoring Committee.


THE COMMISSION OF THE EUROPEAN COMMUNITIES,


Having regard to the Treaty establishing the European Community,


Having regard to Council Regulation (EEC) No, 4253/88 of 19 December 1988 laying down
provisions for implementing Regulation (EEC) No. 2052/88 as regards co-ordination of activities
of the different Structural Funds between themselves and with the operations of the European
                                                             1
Investment Bank and the other existing financial instruments , as last amended by Regulation
                     2
(EC) No.3193/94 , and in particular Article 14(3) and Article 25(5) second and third,
subparagraphs thereof;

Whereas the Commission has adopted, by Decision C 1971/2 of 29 July 1994, as amended by
Decision C (1998) 2115 of 23 July 1998, the Operational Programme for Economic
Infrastructure within the Community support framework for structural assistance under Objective
1 in Ireland;


Whereas the Monitoring Committee of the Community support framework has approved on 29
July 1997, on 25 June 1998, and on 18 November 1998 an increase of the Community assistance



1
 OJ No L 374, 31.12.1988, p. 1.
2
 OJ No L 337, 24.12.1994,p.11.
26 March 2003                                168
of 634,000 euro, 1,479,000 euro, and 654,000 euro respectively granted by the ERDF to the
Operational Programme for Economic Infrastructure;


Whereas the Monitoring Committee for the Economic Infrastructure Operational Programme at
its meetings on 30 March 1998, on 28 September 1998, and on 29 March 1999 approved the
distribution of 634,000 euro, 1,479,000 euro and 654,000 euro of ERDF assistance to various
Measures of the Programme;


Whereas, according to the procedure laid down in Article 25(5) third subparagraph of Regulation
(EEC) No. 4253/88, the Commission may decide, in collaboration with the Member State
concerned and after delivery of the opinion of the competent Monitoring Committee, any
amendment required for implementing the Operational Programme and, subject to the availability
of funds and to the budgetary rules, adjust the financial plan accordingly;

Whereas the Monitoring Committee for the Programme at its meeting of 29 March 1999
reallocated 250,500 euro from the Technical Measure to a new Measure entitled Information
Society (Business Awareness) and approved a textual change to the Cutaway Bogs Measure
within the Economic Infrastructure Programme;


Whereas the Monitoring Committee for the Programme at its meeting on 29 March 1999
approved the extension of the final date for taking account of expenditure to 31 December 2001;

Whereas, according to the procedure laid down in the first and second paragraphs of Article
25(5) of Regulation (EEC) No. 4253/88, the Monitoring Committee is required, if necessary,
without altering the total amount of the Community contribution and within harmonised limits
for each Objective, to adjust both the procedure for granting assistance as initially approved and,
in conformity with available resources and budgetary rules, the financing plan envisaged,
including any transfers between Community sources of finance and the consequent adjustments
of the rates of assistance; whereas the act of the Monitoring Committee, duly notified to the
Commission and the Member State concerned, shall be confirmed by the Commission;


Whereas the Monitoring Committee for the Economic Infrastructure Operational Programme
decided at its meeting on 30 March 1999 to modify the total cost of certain annual instalments
without altering the total cost of the Community contribution to the Programme to reflect the
current state of implementation of the Programme;


Whereas these acts of the Monitoring Committee for the Economic Infrastructure
Operational programme should be confirmed,

26 March 2003                                  169
Whereas Article 2(1) of Council Regulation (EC) No. 1103/97 of 17 June 1997 on certain
provisions relating to the introduction of the euro1 provides for the replacement, as from 1
January 1999, of every reference to the ECU in a legal instrument by a reference to the euro at a
rate of one euro to one ECU ;

HAS ADOPTED THIS DECISION :


                                                 Article 1

Decision C (94) 1971/2 is amended as follows:
        1. In Article 2 first paragraph, the maximum amount of “ECU 108.521251 Million” is
           replaced by the Maximum amount of “111 288 251 euro”.
        2. The financial plan of the programme is replaced by the financial plan annexed to this
           Decision.
        3. The text of the Operational Programme is amended at pages 50 and 60 by the addition
           of the texts set out in Annexes 1 and 2 respectively to this Decision.
        4. In Article 6 the date of “31 December 2000” in the final sentence is replaced by the
           date “31 December 2001”

                                                    Article 2

        This Decision is addressed to Ireland.

        Done at Brussels,         26 -11- 1999
                                                   For the Commission
                                                   M.BARNIER.
                                                   Member of the Commission
_____________________________________________________________________

                                RATIONAL FOR INFORMATION SOCIETY
                                  (BUSINESS AWARENESS) MEASURE

Global electronic commerce will be an engine of economic growth in the 21st century, with the
potential to invigorate economies by enhancing productivity; streamlining distribution, and
revamping corporate structures.


As electronic commerce begins to displace traditional trading mechanisms, it is vitally important
that small and medium enterprises in Ireland recognise the threats and opportunities associated
with the new information technologies so that they can compete effectively in an increasing
global and competitive trading environment. Irish               enterprises must adopt and use these
technologies if they ate to participate successfully in the Information Age.


While many small and medium enterprises are aware of the existence of the new technologies,
surveys have revealed that few respondents claim a strong degree of familiarity. A business

1
 OJ No L 162, 19.6.1997 p. 1.
26 March 2003                                      170
education and awareness campaign will be undertaken to “demystify” these technologies and to
encourage small and medium enterprises in Ireland to apply information and communications
technologies to their operational, procurement and marketing functions. Such a campaign will be
focused on particular sectors which offer a potential demonstration effect.
.
Responsible Authorities
Department of Public Enterprise, Information Society Commission and Irish Business and
Employers Confederation. .
Final Beneficiaries

Small and Medium Enterprises.

_____________________________________________________________________


                                             Annex 1


INFORMATION SOCIETY (BUSINESS AWARENESS) MEASURE

Actions:
The Cutaway Peatlands Measure will:


Provide for studies on the various ecological processes that are taking place in the new wetlands.
The studies will included such diverse matters as the hydrology of the areas, the factors
favouring the colonisation by differing plant communities and the use of indicator species to
measure water purity. The information gleaned will supplement the existing level of knowledge
regarding the rehabilitation of cutaway bogs to form wetlands.


Allow for on-site development that will lead to the creation at a minimum of an additional 1,000
acres (400 ha.) of new wetlands and notably the addition of deeper water bodies through
excavation of residual peat and subsoils, which can be used as angling lakes. Public usage is
being facilitated by the development of access roads, fishing stands, pathways, information
panels and the strategic location of bird hides.


Scope/Geographic coverage
The measure consists of studies and on-site developments in areas of greatest cutaway
development potential. The bulk of the work will be undertaken in the Midlands and there will
also be some work undertaken in Co. Mayo and Co. Tipperary.

26 March 2003                                      171
Responsible Authorities

Department of Public Enterprise and Bord na Mona

Final Beneficiaries

Bord na Mona
_____________________________________________________________________
                                           Annex 2

        INFORMATION SOCIETY (BUSINESS AWARENESS) MEASURE

Section 3 -Objectives and Strategy of Sub Programmes

Paragraph 3.7 - After 3.7 which deals with the Technical Assistance Programme on
page 60 insert new measure.

       (I)      “ Information Society (Business and Awareness) Measure”, with the following
                text


Context
In the context of the mid-term review of Operational Programmes and Community Initiatives in
the current CSF and in the light of policy developments at European Community level, one of the
priorities selected for funding was the development of the Information Society. In this context,
the Economic Infrastructure OP at its meeting on 29 March 1999 approved a proposal for a new
measure on Information Society within the Technical Assistance Sub-Programme to separately
identify the measure rather than positioning it within the Technical Assistance Measure of the
Technical Assistance Sub-Programme. The Monitoring Committee approved the underlying
rational for co-financing the campaign to be implemented by IBEC, and the Information Society
Commission as set out in the text in the attached Appendix. In short, „the Monitoring Committee:


   i) approved the underlying rationale for the awareness campaign as set out in the Appendix.
   ii) approved the establishment of a new measure within the Technical Assistance Sub-
        Programme entitled Information Society (Business and Awareness) Measure, and
   iii) approved the transfer of aid of £197,250 from Technical Assistance Measure to the new
        measure.




26 March 2003                                 172
APPENDIX 1 – DECISION 5


ERDF No.   940409005
ARINCO No. 94IR16004

                                  COMMISSION DECISION

                                        of 08-06-2000

amending Decision C (94) 1971/2 concerning the granting of assistance from the European
Regional Development Fund (ERDF) to the operational programme for Economic Infrastructure
within the Community support framework for structural assistance under Objective 1 in Ireland
and confirming several acts of its Monitoring Committee.


THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No. 4253/88 of 19 December 1988 laying down
provisions for implementing Regulation (EEC) No. 2052/88 as regards co-ordination of activities
of the different Structural Funds between themselves and with the operations of the European
                                                            1
Investment Bank and the other existing financial instruments , as last amended by Regulation
                     2
(EC) No. 3193/94 , and in particular Article 14(3) and Article 25(5) second subparagraph
thereof;

Whereas the Commission has adopted, by Decision C 1971/2 of 29 July 1994, as amended by
Decision C (1999) 3779 of 26 October 1999, the Operational Programme for Economic
Infrastructure within the Community support framework for structural assistance under Objective
1 in Ireland;

Whereas the Monitoring Committee of the Community support framework has approved by
written procedure ending on 2 July 1999 the inclusion of an Electronic Commerce Infrastructure
Measure under the Communications Sub-Programme and the re-allocation of 2.5 million euro to
this measure from the Broadband Technology measure within the same Sub-Programme;

Whereas it approved at its meeting on 11 October 1999 and subsequently by written procedures
ending on 28 October 1999, 16 November 1999 and 8 December 1999 the re-profiling of the
expenditure in 1999 and the redistribution of funding from the Energy Sub-Programme to the
Communications Sub-Programme of 2.456500 million euro and from Technical Assistance Sub
Programme to the Communication Sub-programme of 0.419312 million euro;

Whereas according to the procedure laid down in the first and second paragraphs of Article 25(5)
of Regulation (EEC) No. 4253/88, the Monitoring Committee is required, if necessary, without
altering the total amount of the Community contribution and within harmonised limits for each
Objective, to adjust both the procedure for granting assistance as initially approved and, in
conformity with available resources and budgetary rules, the financing plan envisaged, including
any transfers between Community sources of finance and consequent adjustments of the rates of


1
 OJ No L 374, 31.12.1988, p.1.
2
 OJ No L 337, 24.12.1994,p. 11.
26 March 2003                                 173
assistance; whereas the act of the Monitoring Committee, duly notified to the Commission and
the Member State concerned, shall be confirmed by the Commission;

Whereas these acts of the Monitoring Committee for the Economic Infrastructure Operational
programme should be confirmed,

Whereas Article 2(1) of Council Regulation (EC) No. 1103/97 of 17 June 1997 on certain
                                                    1
provisions relating to the introduction of the euro provides for the replacement, as from 1
January 1999, of every reference to the ECU in a legal instrument by a reference to the euro at a
rate of one euro to one ECU;

HAS ADOPTED THIS DECISION

                                              Article 1

Decision C (94) 1971/2 is amended as follows:

    1. The financial plan of the programme is replaced by the financial plan annexed to this
       Decision.

    2. The text of the Operational Programme is amended at page 59 by the addition of the text
       set out in Annex 1 to this Decision.


                                              Article 2

This Decision is addressed to Ireland

Done at Brussels, 08-06-2000

                                                       For the Commission


                                                       M. BARNIER
                                                       Member of the Commission

_____________________________________________________________________

                                              Annex 1

Section 3 – Objectives and Strategy of Sub Programmes.
Paragraph 3.6 – After 3.6 (iii), which deals with Broadband Technology on page 59 insert new
measure.

                  (iv) E-Commerce Infrastructure Measure with the following text:

                             3.6 Communications Sub-Programme Measures

                                    (iv) E-Commerce Infrastructure




1
 OJ No 162, 19.6.1997 p.1.
26 March 2003                                    174
                                            Rationale

The Information and telecommunications technology sector has changed considerably since the
inception of the EIOP, in 1994. While the EIOP will result in significant improvements in
broadband      and   general   telecommunications     infrastructure   in   Ireland,   the   global
telecommunications market is embarking on a new phase of development due to the exponential
growth of the Internet, the trend towards technology convergence, the uptake of e-commerce and
the emergence of the information society.

For this reason, a revised measure is proposed for the Communications Sub-Programme to
address Ireland‟s e-commerce and information society infrastructural gaps. This infrastructure
emphasises the development of applications, tools and learning experiences through practical
demonstrations of the capabilities of e-commerce in the emerging information society.

Communications services in Ireland must be competitive with those available elsewhere. The
gaps and deficits in the e-commerce infrastructure are inhibiting economic growth. They are also
preventing economic performance in this sphere from converging with that of other European
countries, by reducing the ability of indigenous industry to compete in international markets.

A focal point of this measure is the development of an expertise and infrastructure, which will
facilitate the uptake of e-commerce as a business process by Irish industry. Building an e-
commerce environment of systems, infrastructures and know-how by users, will greatly improve
the ability of SMEs, in particular, to compete internationally.



                                            Objectives

The objective of this measure of the Communications Sub-Programme is:

To support cost-effective e-commerce infrastructure by providing assistance of not more than
40% of eligible capital cost for selected projects.

This objective will be achieved through a selective investment strategy with the following key
actions

   (i)       Support the e-commerce conversion and enabling of elements through the entire
             business process value chain such as:

         Raw materials ordering and procurement
         Assembly and manufacturing process control systems
         Support systems and development and roll out and
         Marketing, sales and distribution

The projects will be benchmarked against best international practice in these fields, in particular
with respect to Total Quality Management, Just in Time systems, etc.

   (ii)      In implementing the projects at (i) beneficiaries of the measure must create an
             infrastructure of virtual business communities of common interest by:

26 March 2003                                  175
      Sharing knowledge and information gained through the practical use of e-commerce tools
       and processes;
      Enabling SMEs to undergo e-commerce conversion by locating and linking up with other
       companies to their mutual benefit,
      Establishing a mentoring structure in which beneficiaries shall each foster several SMEs
       providing them with the results of their projects, advising them on how to transform their
       businesses to support e-commerce capability.

Financial Summary:

Year 1999:      Total expenditure:   7 million euro
                ERDF aid:            2.5 million euro




26 March 2003                                 176
                                        Appendix 2
     Membership of the Monitoring Committee of Economic Infrastructure Operational Programme

Chair             Mr. Martin Brennan, Assistant Secretary, Department of Communications, Marine and
                  Natural Resources, is currently Chairman of the Committee. He succeeded Mr. Tom
                  Reeves, then Assistant Secretary, Department of Public Enterprise on 29th March 1999



Secretary         Department of Public Enterprise

Government Departments

Department of Finance
Department of Communications, Marine and Natural Resources

European Commission

DG Regio
DG Energy & Transport


Agencies

An Post
Bord na Mona
ESB
Eircom
Irish Energy Centre

Social Partners

IBEC
ICTU
Regional Authorities

Other Bodies

CSF Information Unit
CSF Evaluation Unit


External Evaluator
Indecon Economic Consultants




26 March 2003                                       177
                            Appendix 3

                The adjustments to the amounts of EU Funds
                for the EIOP, arising from the Monitoring
                Committee‟s Decisions, are set-out in the
                following excel table “EIOP Additions and Re-
                allocations”.




26 March 2003                     178
      APPENDIX 4 : REPORT TO CSF MONITORING COMMITTEE REGARDING
          ECONOMIC INFRASTRUCTURE OPERATIONAL PROGRAMME
                               22nd May 1997

1.     BACKGROUND: This paper represents the considered views of the EIOP Monitoring
Committee on the midterm evaluation of the Economic Infrastructure Operational Programme.
The mid-term evaluation was undertaken by Indecon Economic Consultants. The Consultant's
Report was considered by the Monitoring Committee at its meeting on 20th March 1997 where it
was agreed that the Committee would only comment on major issues raised in the mid-term
evaluator's report and other significant issues raised during the course of that meeting.

2.      The External Evaluator raised significant issues in relation to four measures of the
Operational Programme (3 Measures from the Energy Sub-Programme and 1 Measure from the
Communications Sub-Programme). Each of the issues raised by the consultants and other related
issues raised by the Monitoring Committee are dealt with in the following paragraphs.

ENERGY SUB.PROGRAMME

3 Peat Generation Measure (ERDF aid = €26 million)

3.1    External Evaluator's comments: The External Evaluator's comments and conclusions on
       the Peat Generation measure included the following:

        delays have arisen on the organisation of the competition for the new station;
        the timescale for the plant and whether it will be possible to drawdown the ERDF funds
         for the measure.

3.2    Timeframe Concerns: Discussions took place on 13th February 1997 between the
       Minister for Transport, Energy and Communications and the EU Commissioner for
       Regional Policy, when the availability of EU financial support for the project was
       confirmed in the light of an undertaking by the Minister to demonstrate - with the support
       of independent advice - that the peat station could be completed by end 2001 and thus
       enable the entire ERDF grant to be drawn down. On 23 April 1997 the Minister provided
       the Commissioner with a report on the timeframe from the independent Consultants who
       are running the Peat Station Competition. The Consultants have advised that there is a
       high probability that the project will be completed in a 54 month timeframe, i.e.
       completion by July 2001.

3.3    Consultant's Report on Time Schedule: The Competition process started in February
       1997. Progress is sound to date. Prequalification is currently in progress and on schedule
       and it is planned to invite detailed bids in June. The Consultants have identified the
       following, as two of the most critical factors in optimising the project schedule:

       •        the efficient preparation by the Developer of the Integrated Pollution Control
                ("IPC") Licence application and efficient processing of the application by the
                EPA, and


26 March 2003                                 179
       •        the efficient preparation by the Developer of the Planning Application and a
                positive approach and efficient processing of the application by the Planning
                Authority.

       In relation to IPC Licensing, the independent consultants have carried out additional work
       on the IPC licensing requirements. This work included a meeting with the EPA. As a
       result, the following measures are being implemented to assist efficient IPC licensing:

      Comprehensive guidance on IPC licensing will be provided to bidders by the independent
       consultants in the competition documentation. Preparation of this material is underway.

      The Developer will be encouraged to engage in prior consultation with the EPA in
       parallel with the preparation of an Environmental Impact Statement. The EPA has
       undertaken to co-operate positively in this consultation.

      Provided that the IPC licence application is properly prepared, the EPA has undertaken to
       expedite the processing of the application and any, third party submissions. The EPA has
       pointed out that in some significant previous cases, it has processed applications in less
       than the statutory period.

Based on the above, the Consultants consider that 12 months is both practicable and achievable
for the completion of the IPC Licensing process. In relation to the planning permission, the
independent consultants have also carried out additional work on the process for planning
permission. This work has included consultation with the Offaly Local Authority. The following
measures and characteristics are expected to assist the timely granting of planning permission:

•      Comprehensive guidance will be provided to bidders by the independent consultants on
       the planning permission process in the competition documentation. The County Council
       has undertaken to review this information to check that the requirements are accurately
       reflected.
•      The Developer will be encouraged to engage in prior consultation on planning matters.
       The County Council has agreed to make itself available and will participate positively in
       such prior consultation.
•      The Council has reported that there is substantial local support for the Project and it is
       included in the local County Development Plan.
•      Provided that the planning application is properly prepared, the County Council has
       undertaken to expedite processing of the application.

Based on the above, the Consultants consider that 12 months is both practicable and achievable
for the completion of the planning permission process, including a contingency for the
submission of supplementary information by the Developer. Should the matter be referred to An
Bord Pleanala it is most probable that the period required to obtain planning permission would
not exceed 16 months. Based on the reported high level of local support for the project, any
objections would most probably originate from interest groups outside the project area and are
judged unlikely to succeed.

Bord na Mona has acquired a suitable site which will be available to bidders on commercial
terms. The she is well located with respect to the peat reserves. Preparatory site investigations
already completed include a Baseline Environmental Survey, a Geotechnical Report and a Water
Resources Survey. This preparatory work should assist the planning and environmental consent
processes.

26 March 2003                                 180
3.4 Achievable Project Schedule: The Monitoring Committee notes that based on the additional
investigations carried out by the independent consultants and the initiatives mentioned above, it
is considered that there is a high probability that the project can be completed in an elapsed time
of 54 months from the start of the competition process. This would provide project completion in
July 2001. This schedule is considered to be practicable and achievable by the Monitoring
Committee. The remaining months to the end of 2001 could be considered as a contingency
available to deal with unforeseen delays, such as third party objections in the planning process.

For reference, the 54 month schedule consists of the following main components:

Competition                                                       12 months
Planning/environmental consents and financial close               12
*Lump sum turnkey contract implementation                         30

*140 mw Peat Plant at Oslo in Finland recently completed in under 3 years.

The Monitoring Committee notes that the Department of Transport, Energy and Communications
has also met with the EPA and the Local Authority. The EPA are satisfied that the application
will be dealt with within a six month timeframe. The Local Authority is strongly supportive of
the project. They expect that the planning application will not be contentious, particularly as it is
in an area with a strong tradition of electricity generation and where there is almost 100% support
for the project.

3.5    Employment Implications: The benefits associated with this project derive largely from
the significant local employment, particular in peat extraction. The project wil1 create about
1120 man Years in the development phase - 700 in the construction of the plant and 420 in the
bog development and milled peat stock - building programme. Thereafter, over the lifetime of the
plant, 250 permanent and 250 seasonal jobs will be provided in the peat production and
transportation operations. The measure has the highest job creation profile in the entire E1OP.




MONITORING COMMITTEE'S VIEW ON THE PEAT GENERATION MEASURE The
Monitoring Committee welcomes the independent study on the timescale for the delivery of the
new peat fired station, which demonstrates that the project can be completed by July 2001, thus
allowing the available ERDF aid for the measure to be drawndown. The Monitoring Committee
recommends that the EU Commission give maximum flexibility on the timescale for the plant
and agrees that the Commission should extend the date for commitments and expenditure to end
2000 and end 2001, respectively

The Monitoring Committee recommends that the peat project should remain an intrinsic part of
the Operational Programme particularly in view of the extensive job-creation impact of the
project in terms of direct labour during construction of the plant, but more importantly in the
operation of the plant. The Monitoring Committee notes that the benefits associated with the
plant derive largely from the significant local employment, particularly in peat extraction. It is
noted that Bord na Mona has already spent over £2.5 million in bog development during 1996
with a further £4.8 million in the current year. The Monitoring Committee will carefully monitor
the progress of the project on an on-going basis.


4      Energy Efficiency Measure (ERDF a id = 19.7 ME C U)
26 March 2003                                   181
4.1    External Evaluator's comments: The principal issues raised by External Evaluator in
       relation to the Energy Efficiency Measure included the following:-

       •        there has been a significant degree of underspend under the measure
       •        there was a low interest in the Energy Audits Grants Scheme in the early stages
                and the scheme should be discontinued for new applicants after June 1997;
       •        the Energy Efficiency Investment Support Scheme should be continued with a
                refocusing to minimise potential deadweight and to be more selective in terms of
                the projects to be funded;
       •        the extent of expenditure on the advice, information and support element of the
                measure should not exceed 50% of the measure funding and some reallocation of
                the funds from the measure should be c6nsidered; and
       •        concerns about the relevance of some of the indicators and consideration should
                be given to revision of some of the targets for energy savings.

In addition, the European Commission consider that the measure should be specifically focused
at the traded sectors of the economy in order to improve industrial competitiveness.

4.2     Underspending within the measure: Underspending under the measure is attributable to
number of factors. Among them, the belated approval of the Operational Programme (September
1994) and the delay in issuing approval of various energy efficiency measures from a state-aids'
perspective (December 1994). Additionally, the Irish Energy Centre, the primary vehicle for
delivering the various energy efficiency measures was not formally established until January
1995. The Department and Centre's senior personnel were concerned primarily with putting the
requisite institutional, structural, budgetary and personnel resources in place, and with finalising
the individual schemes to be funded from the measure. Because of this, expenditure was lower
than planned in the period up to end 1996. This was compounded by the nature of the grant
schemes under the measure and a longer than anticipated lead in time which had been required to
sensitise Irish industry to the value of energy efficiency.

4.3     Discontinuance of the Energy Audits Grant Scheme: The Monitoring Committee has
agreed that the Energy Audits Grant Scheme should be discontinued with effect from 31 October
1997 as opposed to 30th June as recommended by the External Evaluator. The resultant savings
are to be used to support the Self-Audit

4.4     Potential deadweight and the need to have a more selective approach in relation to
the Energy Efficiencv Investment Support Scheme: Investment decisions taken under the
EEISS are always with a view to stimulating replication under market conditions. Having regard
to the low level of activity in energy auditing and energy efficiency investment in the time
preceding the Operational Programme deadweight is not considered to be a serious issue. The
Irish Energy Centre is sensitive to both deadweight and the need to be selective in the nature of
the projects to be funded under the measure. The measure is focused towards the traded sectors
of the economy.

4.5    Extent of expenditure on the advice, information and support elements of the
measure should not exceed 50% of the measure funding: The Monitoring Committee has
agreed to reduce the extent of ERD17 aid for the advice, back-up and promotional activities
under the measure by €2.54 million. At the behest of the Commission. the Monitoring Committee
has identified a range of specific energy projects to absorb the ERD17 resources being
"surrendered" from within the measure. The CSF Monitoring Committee is asked to approve a
range of projects in the energy area to absorb these "spare" funds in page 10.


26 March 2003                                   182
 Concerns about relevance of indicators for the measure The Monitoring Committee notes the
 External Evaluator's comments that the indicators for the Energy Efficiency Measure are useful
 measures of activity and impact. Of particular importance is the potential for energy savings
 identified of £125 million and more importantly the energy savings target of £50 million. The
 Evaluator expressed some concern over whether it will be possible to meet the energy savings
 target and concluded that it is unlikely to be feasible to exceed a target of £40 million over the
 period of the Operational Programme. The Monitoring Committee, for its part, has decided that a
 target, of £40 million energy savings, over the life of the Programme, is a more realistic target,
 particularly having regard to the proposed reduction in the EU aid for the Energy Efficiency
 Measure.



MONITORING COMMITTEE’S VIEW ON THE ENERGY EFFICIENCY MEASURE

The Monitoring Committee has already agreed that the Energy Audits Grant Scheme should be
discontinued from 31 October 1997 and that the resultant savings should be refocused to support
the Self-Audit Scheme. The CSF Monitoring Committee is asked to endorse this decision.

The Monitoring Committee has agreed that the ERDF provision for the advice, back-up and
promotional aspects of the measure should be reduced by €2.54 million aid. At the request of the
European Commission, the Monitoring Committee has identified a range of additional energy
related projects to absorb this provision. (Details contained in page 10). The Monitoring
Committee recognises that there has been underspending in the Energy Efficiency Measure under
the Energy Efficiency Investment Support Scheme. However, the rate of take up of the scheme has
improved and all of the ERDF funds for the EEISS will be spent.
The Committee does not share the Evaluator‟s concerns about deadweight. Investment decisions
taken under the EEISS are always with a view to stimulating replication under market conditions.
Having regard to the low level of acitivity in energy auditing and energy efficiency investment in
the time preceding the Operation Programme deadweight and the need to be selective in the nature
of the projects to be funded under the measure. The Committee agrees with the Evaluator that
energy efficiency is, in practice, the result of a combination of technology and behaviour and to
realise the energy efficiency improvement potential that exists in Ireland it is necessary to effect
change both in technology and behaviour. It is a legitimate function of public policy to promote
rational energy use such that the dissemination of energy efficiency technologies is replicated and
becomes part of Ireland‟s competitive base. The Committee considers that the indicator for the
realisation of energy savings should be £40 million. The Monitoring Committee recommends that
this revised target should relate to cumulative energy savings up to end 1999.            The CSF
Monitoring Committee is asked to endorse the revised target for the measure.




 5       Renewable Energy, Measure (ERDF aid = €18.6 million)

 5.1     External Evaluator's comments: The External Evaluator's most significant comments
         and conclusions on the
         Renewable Energy Measure included the following:-


                 there has not been any spending under the measure yet;
                 the measure is based 'on environmental rationale, rather than economic rationale;


 26 March 2003                                   183
                alternative energy may not be justified on commercial grounds, but wider
                externalities may Justify specific policy interventions such as those included in the
                Operational Programme;
                an assessment of the costs and benefits of specific technologies (and of specific
                major investments) should be undertaken and the methodology for such
                assessments should be in accordance with best practice; the rationale for the
                measure should be considered on the basis of an evaluation of the costs and
                benefits of specific projects, set against the stated objective of the Programme to
                assist investments critical to cost effective supply and consumption of fuel;
                cost implications of the mix of technologies for renewable energy should be
                addressed and a less specific approach should be adopted in order to facilitate
                supporting technologies which are closest to commerciality;
                consideration should be given to using EU funds to encourage projects using
                Combined Heat and Power Technologies (CHP) in certain circumstances;
                need for an evaluation of the proposed wave energy plant before the project is
                progressed; and indicators for the measure are good.

      The EIOP Monitoring Committee has also asked that the timing of the implementation of
      the AERII (biomass/waste fuelled electricity station) and the AERIII projects should be
      examined to ensure that all of the ERDF funds for these schemes can be drawndown
      before the expiry of the Operational Programme.

5.2   Underspending under the Measure: The ERDF funding under the measure was
      intended to support renewable Energy projects arising from the first Alternative Energy
      Requirement Scheme (AERI) which involved the procurement of 75 MegaWatts of
      electricity from alternative sources. The target of 75 MW was exceeded, without recourse
      to the available ERDF grant. It was subsequently agreed by the Monitoring Committee
      that the ERDF funds would be used to support further renewable energy schemes - a
      biomass/waste fuelled electricity generating station (AERI1) and additional renewable
      energy projects (AERIII).

5.3   The Renewable Energy Measure is based on environmental rationale rather than
      economic rationale: Renewable Energy addresses a number of National and EU energy
      policy fundamentals - exploitation of indigenous resources, diversification of energy
      sources, environmental requirements and targets set in the EU ALTENER Programme.
      Increased generation of electricity from renewable energy sources is a necessary
      requirement if the long term goal of sustainable development, which is the lynchpin of
      future development both at a National and European level, is to be achieved. The
      increased deployment of renewables in the generation of electricity has a number of
      environmental advantages and having regard to the "greening" of the Structural Funds, it
      is appropriate to provide ERDF support for the development of renewable energy. Ireland
      is lagging far behind other EU Member States in terms of the share of renewables in gross
      energy consumption - 2.2% compared with the EU average of 5.5%. Moreover, Ireland
      has a number of natural advantages in terms of renewable energy and having regard to the
      diminishing share of indigenous resources in energy consumption, it is essential that
      every effort be made to harness our natural resources.

5.4   "Cost" of Renewable Energy: The competitive tendering mechanism deployed in
      securing additional installed capacity ensures that the cost of renewable energy remains
      keen. For example, the winning AERII (waste to energy station) bid was 11 % below the
      price cap set for the competition. The reference price set for renewables in Ireland is
      among the most competitive in Europe.


26 March 2003                                   184
      The External Evaluator raised some concerns about the cost implications of the mix of
      technologies for renewable energy and the possibility that a lower level of spend could
      achieve the targets for the programme. The additional costs associated with the planned
      AERIII increment of renewable energy is estimated, by reference to an energy

      Benchmark cost (based on best available conventional electricity generating technology,)
      to be of the order of IR£88 million over 15 years. When this increment of renewable
      enemy is on stream, the annual cost is estimated to be of the order of IR£5.8 million
      which represents slightly more than a ½ of 1 per cent ESB's annual turnover. With regard
      to the Evaluator's views that a lower spend could possibly achieve the targets of the
      Operational Programme in relation to renewable energy, the level of grant for the
      development of the measure has been evaluated taking account of a number of factors not
      least the need to maximise the potential of the overall renewable energy resource and the
      need to develop the sector in a coherent manner. The mix of technologies, with the bias in
      favour of the best and most competitive renewable energy resource - wind - is a direct
      reflection of the results of the AERI competition. The amount of wind energy, in the
      target for the AERIII scheme, will have the effect of - deflating the overall minimal
      additional cost of the tranche even further.

      It is accepted that capping the size of projects and allowing a spread of technologies may
      have relative cost implications, but this ignores the legitimate policy objectives of
      enhanced energy security and maximising indigenous sources which underpin the
      decision. The fact that some of these technologies, to a greater or lesser extent, are not
      commercially competitive is recognised in the EIOP as the very reason for supporting
      them. The recommendation that a less specific approach to technologies be taken would
      not achieve the desired results in terms of maximising the potential of the overall
      renewable energy resource.

5.5   Need for an assessment of the costs and benefits of specific technologies and of
      specific major investments and the methodology for such assessments should be in
      accordance with best practice: The terms of reference for the completed
      socio-economic cost benefit analysis of the AERII waste to energy station are in
      accordance with EU and Department of Finance Guidelines on Investment Appraisal. The
      terms of reference for the study were agreed with the European Commission.

      With regard to the External Evaluator's recommendation that the rationale for increased
      output targets ought to be considered on the basis of a cost/benefit evaluation of specific
      projects and against the OP objective of assisting investment in cost-effective supply and
      consumption of fuel, this recommendation ignores the fact that both Irish and EU energy
      policy objectives in relation to renewables extend to a wider range of issues, than is the
      case with more established energy sources. In that regard the following is relevant:

      •         The extent to which indigenous energy sources are set to decline is more
                significant that was anticipated in 1994. According to the latest forecasts,
                indigenous sources will account for only 7% of Ireland's total supply in 2010. This
                has serious implications for security of supply and is being addressed specifically
                through the development of renewables.
      •         The EU Commission's Green Paper on Renewable Energy recognises that
                renewables face problems in terms of cost competitiveness and that these must be
                addressed. The Commission is seeking to set more ambitious targets for
                renewables. It is reasonable that the EU-funded EIOP should complement
                Commission proposals.


26 March 2003                                   185
5.6   ERDF support for Combined Heat and Power Plants: The External Evaluator
      supported the provision of ERDF aid to encourage the development of Combined Heat
      and Power plants, provided there are low levels of deadweight, and projects with high
      rates of return are supported which would thereby make a positive contribution to
      industrial competitiveness. The Monitoring Committee proposes to reallocate £1 million
      within the Energy Efficiency Measure towards the development of CHP plant and the
      CSF Monitoring Committee's approval in this matter is sought in page 10. The
      assessment criteria for the CHP competition will take account of the External Evaluator's
      concerns about deadweight.

5.7   Need for Evaluation of Wave Energy Plant: The External Evaluator recommended that
      an independent assessment of (i) the likely cost of electricity produced by this resource
      and (ii) an evaluation of the risk involved is undertaken before the project is progressed.
      This recommendation reflected the Evaluator's doubts regarding the viability of this
      technology and the level of risks involved. The Department does not share these doubts. It
      should be noted that part of the remit of the Independent Agency to be engaged to
      conduct the AER III competition will be a rigorous assessment of the technical and
      financial feasibility of wave energy to electricity proposals put forward as part of the
      AERIII tender competition. Only one contract will be awarded, and that project will need
      to pass the most rigorous expert and independent scrutiny. The level of expertise in
      Ireland in the area of wave energy is recognised and respected not only within Europe but
      world-wide. The Department and the Power Procurer estimate that the additional costs
      associated with the wave generated electricity will not be significant and will be of
      the.order of IR£1.3 million over 15 years.

5.8   Achievable Project Schedule

      AER III Waste to Energy Station.. The tender documentation, as well as the proposed
      contract for the biomass
      station identifies the timescales for the implementation of the waste to energy station. The
      significant milestones
      for the implementation of the waste to energy, project are as follows:-

                       Item                       Completion Date
         Planning and Licensing approval            March 1998
                    Civil Works                   December 1998
         Electrical works and mechanical          November 1999
                    completion
           Start-up and acceptance tests            December 1999
              Commercial Operation                  December 1999

      The grant of €9.3 million for the station will be paid in two tranches - half on successful
      commissioning in 1999 and half throughout the year 2000 based on performance.

      AER III Competition including wave energy project: The launch of the AER III
      competition involving an additional 100 MegaWatts of electricity from renewable sources
      has already taken place and a total of 270 expressions of interest have been received. The
      various stages of the competitive tender process for the AERIII are
      as follows:-

                                          Item                                     Indicative Timescale
      Issue of tender packs to registered applicants                                    June 1997
      Deadline for formal application -Part 1 submission -Technical                     July 1997
26 March 2003                                 186
      Completion of technical appraisal and provision of connection cost               October 1997
      estimate
      Deadline for submission of tender part 2 submission and bid price KWh           November 1997
      Project Selection                                                               December 1997


      The AER III competition will be finalised by end of 1997, giving recommended projects
      up to end 2000 to mature for grant payments. Capital grants for the established
      technologies (wind, hydro, biomass) will be paid on commissioning the plants for
      commercial operation, while the grant for the proposed pilot wave energy plant will be
      paid at pre-agreed construction phases, culminating in a final payment on certification of
      the plant for commercial operation. The tender documentation for the AERIII scheme
      requires that the various projects must be commissioned by 31 December 1999 to qualify
      for ERDF aid. While it is not possible at this stage to provide a detailed project execution
      schedule for the implementation of AERIII projects until the various tenders have been
      evaluated, some comfort can be drawn from the fact that some potential bidders have
      already secured planning permissions for their sites. The Department of Transport,
      Energy and Communications and the Power Procurer are satisfied that the entire ERDF
      provision for the AERIII scheme amounting to €9.3 million will be drawdown before the
      expiry of the Operational Programme.


      MONITORING          COMMITTEE'S           VIEWS      ON     RENEWABLES           ENERGY
      MEASURE

      The ERDF funding for the measure is intended to support the development of
      indigenous renewable sources in Ireland. This will enhance energy security by
      diversifying supply sources, assist in meeting international undertakings to reduce
      emissions of carbon dioxide, nitrogen and sulphur from electricity, generation and
      contribute to the EU target set in the ALTENER Programme. The Monitoring
      Committee anticipate that all of the ERDF funds for the measure will be spent
      before 31 December 2000. Expenditure under the measure will be kept under
      continuous review.


COMMUNICATIONS SUB-PROGRAMME

6     Telecommunication Measure (ERDF =€31.7 million)

6.1   External Evaluator's comments: The External Evaluator's most significant comments and
      conclusions on the Telecommunications-Measure included the following.-

     A high quality competitive telecommunications infrastructure is a critical requirement for
      economic development in Ireland and investment in telecommunications should continue
      to be a high priority for Structural Funds;
      support is given for the existing level of funding for the measure remaining at or above
      its current allocation, provided the benefits of the investment enhance industrial
      competitiveness rather than producing a subsidy to Telecom Eireann;
     concerns expressed about potential deadweight and difficulties encountered in evaluating
      the impact of the measures, as the investments represent only a small element of the
      annual capital expenditure on the telecommunications network by Telecom Eireann;
     the measure should be refocused so that a very small number of significant ring-fenced
      projects can be identified, with clarity on the details of implementation: this would be
26 March 2003                                 187
       more appropriate than attempting to spread the EU funds too widely, across a range of
       small projects;
      many of the indicators are too general to measure the specific impact of each of the
       investments
      Consideration to be given to the establishment of a new sub-measure within the
       Telecommunications Measure to encourage a number of infrastructure projects (possibly
       of a pilot nature) to promote the "Information Society".

The Monitoring Committee has also asked that alternative projects should be identified to absorb
some spare ERDF aid within the measure, freed up as a consequence of lower than expected cost
for the Exchange Digitalisation programme. The projects would embrace actions to promote the
development of the "Information Society" in Ireland in line with the European Commission's
paper on "Priorities for the adjustment of Objective 1 and 6 Structural Funds programmes
to the end of 1999".

6.2 Need for a quality telecommunications network: The Monitoring Committee concurs with
       the views of the External Evaluator in this regard. The investments being co-financed
       from the Telecommunications Measure were designed to ensure that the Irish economy
       does not fall behind the pace of development in the telecommunications sector as a whole
       and that it is in a position to exploit the potential offered by new technology and the
       "Information Society".

6.3    Contribution towards industrial competitiveness: The Monitoring Committee
       re-inforced its view                                   that the investments should
       enhance the productive capacity of the economy and thereby contribute to the creation of sustainable and new
       the main population centres. The absence of a modern telecommunications network
       would seriously impair the capacity of the economy to provide sustainable employment in
       Ireland. There is no question of ERDF funds being used as a subsidy for Telecom
       Eireann.

6.4    Difficulties encountered by the External Evaluator in measuring the impact of the
       co-financed investments: The Monitoring Committee does not share the concerns of the
       External Evaluator about potential deadweight. The telecommunications investments
       under the Operational Programme, agreed with the European Commission, were selected
       on the basis that they would accelerate the development of the telecommunications
       network in the country. The EU backed investments are consistent with the broad thrust
       of the Thematic Evaluation of Investments in the Telecommunications Sector in
       Ireland commissioned by the European Commission. Moreover, having regard to the
       scale of on-going investment in the telecommunications network in Ireland and the
       demands on capital funding in Telecom Eireann, it is entirely appropriate to provide funds
       towards selected projects, which would bring forward benefits by a number of years. The
       projects would have been delayed by a number of years in the absence of EU funding.
       The need for accelerated infrastructural enhancement is brought into even sharper focus
       on foot of the reduced liberalisation derogation timetable set, by. the European
       Commission for the telecommunications market in Ireland.

6.5    Need to refocus the measure and develop ring-fenced projects: The Monitoring
       Committee agrees in principle that, it would be better to ring fence projects and to
       develop sharper indicators which would facilitate the monitoring of the impact of the
       specific investments. However, it is not always possible to do either (or both) but these
       considerations alone should not be a disqualifying factor in project selection. Any
       approach which sets rigid pre-conditions in the area of indicators and ring-fencing may
       not result in the most deserving projects being selected for EU aid. The EU investment in
       the network to date has been designed to achieve Telecom Eireann‟s objective of having
26 March 2003                                  188
        in place a high quality mainly digital network with advanced signalling and service
        capability by the end of 1999. Some elements of the work under the Telecommunications
        Measure have already been completed and others are at an advanced stage of
        implementation.

6.6     Many of the indicators are too general to measure the specific impact of each of the
        investments: The Monitoring Committee recognises the importance of appropriate
        indicators to measure the impact of particular investments under the Operational
        Programme. The indicators for the measure do not provide an), specific indication of the
        impact of the particular investments under the Operational Programme. The generality in
        the indicators is a direct consequence of the fact that the specific EU backed investments
        under the measure represent only a relatively small part of the on-going investment, in an
        integrated network, and it is almost impossible to measure the specific impact of the
        relatively small scale investments under the measure. The general nature of the indicators
        for the telecommunications measure has been discussed at various meetings of the
        Monitoring Committee. Notwithstanding the generality of the indicators, they do provide
        the Monitoring Committee with a range of information in relation to the performance of
        Telecom Eireann in the delivery of services and on the extent of digitalisation of the
        network. This information is beneficial to the Monitoring Committee and the CSF
        Monitoring Committee in monitoring overall trends and ensuring that the
        telecommunications network is responding adequately to the increasing expectations of
        the business and commercial sectors of the economy. Furthermore, it should be noted that
        more demanding indicators have been approved during the life-time of the Operational
        Programme for the Telecommunications Measure of the Operational Programme.

6,7     ERDF funding within the Telecommunications Measure for the Development of the
        "Information Society" in Ireland: The Monitoring Committee recommends that "spare"
        ERDF resources of the order of €12 million in the measure (becoming available as a
        consequence of lower than expected costs for the Exchange Digitalisation Programme)
        should be retained within the measure and used for the development of infrastructure
        which would promote the development of the "Information Society" in Ireland in line
        with the recommendations of the Report of the Information Society Steering
        Committee. The Government has decided that these "spare" ERDF resources within the
        measure should be used for this purpose. The Government's decision is in line with the
        European Commission's proposals for the development of the Information Society set out
        in the draft paper on "Priorities for the adjustment of Objective 1 and 6 Structural
        Funds programmes to the end of 1999". In the context of the liberalisation of the
        telecommunications market, public companies as well as private sector companies will
        have an opportunity to submit proposals for funding. It would not be appropriate to
        confine the distribution of the "spare" funding to Telecom Eireann only. The EIOP
        Monitoring Committee has approved the establishment of a sub-committee within the
        Monitoring Committee to select priorities for funding and appraisal criteria to be used in
        the assessment of tender proposals for particular projects.


      MONITORING COMMITTEE’S VIEWS ON THE TELECOMMUNICATIONS
         MEASURE
      The Monitoring Committee recommends that telecommunications infrastructure should
      continue to be a high priority for ERDF funding over the remaining years of the Operational
      Programme. The Committee seeks the endorsement of the CSF Monitoring Committee to
      use "spare" resources of the order of €12 million for the development of infrastructure
      -which would promote the "Information Society" in Ireland and assist industrial
      competitiveness. The Monitoring Committee has concluded that it is not possible to define

26 March 2003                                  189
    specific indicators for some of the investment under the measure but that aggregate
    indicators of sectoral performance are a more useful basis for assessing performance.
    However, the question of indicators will be revisited with the External Evaluator.


7. Distribution of 1996 "Deflator" provision: The June 1996 meeting of the CSF Monitoring
Committee approved a total of 0.843 MEW for the Economic Infrastructure Operational
Programme arising from the application of the 1996 "deflator" to the ERDF provision of the
Programme. The EIOP Monitoring Committee propose that these "spare" resources should not be
distributed on a pro-rata basis across the various measures of the Operational Programme - but
they should be amalgamated with other ERDF funds which it is proposed to reallocatewithin the
Operational Programme in order to develop new projects. (See table below)

8   Reallocations within the Economic Infrastructure Operational Programme

Views of the External Evaluator: The External Evaluator made a number of recommendations
in relation to the reallocation of ERDF funds within the programme which included the provision
of ERDF funding for the Information Society, Rural Electricity Networks, support for Combined
Heat and Power and a reduced ERDF provision for the Energy Efficiency Measure of the
Operational Programme.

The E1OP Monitoring Committee discussed the reallocation of some ERDF funds within the
Operational Programme at its March 1997 meeting. The CSF Monitoring Committee is asked to
approve the following adjustments within the Operational Programme:-

 Measure        Extent of       Proposed    Aid to be used for
                ERDF to be      Measure
                reallocated
 Energy         2.54 MEW        Energy      Combined Heat and Power projects (1.338
                                            MEW
 Efficiency                    Efficiency or IR£1 million)
                               Renewabl Renewable Energy Grid connections and a
                               e
                               Energy       Renewable Energy Feasibility Grant Scheme
                                            (0.67
                                            MEW or IR£0.5 million)
                                            (Outstanding balance brought forward = €0.54
                                            million)
 1996           0.843 MEW + Rural           Provision of mains supply to Clare Island and
 Deflator                                   Inis
                outstanding    Networks Bofin (1.383 MEW or IR£1.03m)
                amount from
                the Energy
                Efficiency
                0.54
                MEW
 Telecoms       12 MEW         Telecoms Development of Infrastructure to promote the
                                            "Information Society" in Ireland
Request to the CSF Monitoring Committee: The EIOP Monitoring Committee has completed
a thorough review of the Economic Infrastructure Operational Programme with the assistance of
independent consultants. A number of issues have been identified by the External Evaluator
which will be followed up.


26 March 2003                                190
The CSF Monitoring Committee is asked to note the EIOP Monitoring Committee's specific
responses to the main issues raised by the External Evaluator and to approve the reallocation of
some ERDF aid within the Operational Programme.

EIOP Secretariat
22nd May 1997




26 March 2003                                 191
                                   Appendix 5
       Economic Infrastructure Operational Programme Monitoring Committee
           Paper on “Community Structural Assistance and Employment”




Background


The European Commission has asked the Chairperson of each Operational Programme
Monitoring Committee to put the topic of Community Structural Assistance and Employment
on the agenda for the next meeting of the Monitoring Committee and to report on the outcome of
discussions to the CSF Monitoring Committee meeting in December, 1996. The Commission
also wish this matter to be addressed as part of the Mid- Term Review of all Operational
Programmes.

The Commission is required to produce an interim report on Community Structural
Assistance and Employment for the Dublin European Council. The Presidency will be hosting a
seminar for Regional Policy Ministers on 14/15 November 1996 at which employment and the
Structural Funds will be a main item for discussion.

This paper reflects the views of the Monitoring Committee of the Operational Programme for
Economic Infrastructure on “Community Structural Assistance and Employment”. The paper was
discussed by the Monitoring Committee at its meeting on 27th September 1996. The paper was
approved by the Monitoring Committee by Written Procedure.


Scope of Commission‟s Proposals

It is the Commission‟s desire that all those involved in implementing structural policies should
step up their efforts to give operations financed by the Structural Funds a greater employment
content. Monitoring Committees are being asked to identify adjustments, within current
programming arrangements, which might increase the impact on growth and the impact of
growth on employment. This involves examining the scope for manoeuvre and flexibility
available within current programming in order to pursue the following goals:


      providing the conditions for long-term economic growth;

      increasing the job-intensity of economic growth;
      promoting a more active approach to economic and social solidarity including equal
       opportunities;
      enhancing arrangements for greater participation by public and private bodies in the
       context of the Structural Funds.


Operational Programme for Economic Infrastructure 1994-1999


26 March 2003                                 192
The Operational Programme for Economic Infrastructure 1994-1999 provides for investment of
£259 million in postal, energy and telecommunications infrastructure and services of which £86
million is being provided by the ERDF. The programme represents only a small part of the total
investments planned for the three sectors for the period 1994 to 1999.

The Operational Programme comprises two main Sub-Programmes - one on energy and one on
communications which are complemented by a third sub-programme on Technical Assistance.
The Energy Sub-Programme is designed to contribute towards the development of a cost efficient
energy sector by providing support for key investments in energy infrastructure and energy
efficiency measures The Communications Sub-Programme is also designed to support cost-
effective services provision in the postal and telecommunications sectors by providing ERDF
assistance for selected projects in these areas.


Employment Opportunities arising from the co-funded investments under the OP .


The Monitoring Committee is aware that the creation of employment is one of the stated primary
objectives of economic policy in Ireland and the EU as a whole. The EU‟s White Paper - Growth,
Competitiveness & Employment - clearly recognises that it is the responsibility of the National
and European authorities to provide industry with a favourable environment, to open up clear and
reliable prospects for growth and to improve international competitiveness. The measures
receiving ERDF assistance under the Operational Programme were selected on the basis of their
contribution towards the achievement of the aims and objectives of the Community Support
Framework generally which includes the provision of adequate infrastructure to help offset
Ireland‟s geographic and structural disadvantages thereby ensuring an adequate base for
employment and wealth generating activity.


The Monitoring Committee is aware that a strong, sustainable and employment creating growth
pattern cannot be obtained by decree. It can only result from the dynamism of market forces
supported by a public policy framework which facilitates and encourages economic growth and
job creation. In this context, the investment initiatives, provided under the EIOP, have a positive
stimulative role to play. Accordingly, the Monitoring Committee wishes to highlight the fact that
the implementation of the measures of the Operational Programme will give rise to improved
employment opportunities through:-

Direct employment


                   the construction and physical implementation phases of the different measures
                    under the Operational Programme.


Indirect employment


                   ensuring that the postal, energy and telecommunications sectors provide
                    competitive, efficient and effective services and thereby stimulating
                    employment in the wider economy.

26 March 2003                                  193
                 the investments being undertaken under the OP offer the opportunity for closer
                   integration with other CSF investments aimed at offsetting the economic
                   impact of peripherality and under-development.




The Monitoring Committee also notes that the employment impact of the investments under the
Operational Programme will not be confined to Ireland solely. It is inevitable that goods and
services may be acquired outside Ireland, but within the Single Market, and consequently any
positive employment impact is not confined to Ireland but is a shared impact across the
Community. As well as the wider geographic impact, there is also the wider trans-sectoral
impact. Accordingly the investments under the Operational Programme can lever a number of
down-stream benefits which are difficult to quantify but can make a positive contribution
towards increased employment in the economy. These down-stream benefits include:-


      increased spending power of those employed within the economy as a result of increased
       direct employment on projects funded under the Operational Programme;

      increasing the spending power and market strength of organisations whose
       competitiveness is improved as a result of actions taken under the Operational
       Programme;


      assisting in a switch in spending, from commodities with a low labour content, to goods
       and services with a much higher labour content; and


      assisting in the re-distribution of employment towards regions and communities where
       unemployment is high.


The Monitoring Committee is cognisant of the difficulties of providing precise estimates of the
scale of potential employment creation directly attributable to the different measures under the
EIOP. While fairly specific estimates can be given for employment creation in the context of the
construction and on-going operation of the new peat generating station, it is virtually impossible
to provide meaningful estimates of what the employment creating impact is on foot of the
investment earmarked for the enhancement of telecommunications under the EIOP .


This is not to suggest that attempts should not be made to measure such impacts. Indeed,
recognising the importance of establishing the potential impact of energy efficiency actions on
employment, a study - ENERGY EFFICIENCY AND EMPLOYMENT IN IRELAND -
prepared for the Energy Advisory Board is currently under consideration. This as well as other
studies suggest that energy efficiency measures have a significant impact on employment, and
that this impact can be estimated. It is against this background that the following table set out a
statement of “Employment Opportunity under the EIOP”, which is largely qualitative rather than
quantitative.




26 March 2003                                  194
     Table: Employment Opportunities Under the EIOP Energy Sub-Programme
   Measure                      Employment Opportunities
   Peat Generation              Jobs in new Station 40-90
                                450 jobs in construction of new plant
                                500 new and sustained jobs in turf production (250
                                fulltime and 250 part-time)
   Renewable Energy             Substantial regional and local employment arising
                                from implementation and operation of renewable
                                energy installations
                                The development of a biomass fuelled electricity
                                generating station will provide new and sustainable
                                local employment
   Energy Efficiency            Installation of energy efficient technologies and
                                improved energy management will contribute to job
                                creation and improve competitiveness. The estimated
                                spin-off is 200 jobs. Within the industrial and
                                commercial sectors, indirect employment of at least
                                200 jobs is expected.
   Rural Networks (installation The installation of a reliable electricity supply at these
   of electricity at Cape Clear peripheral locations will make a substantial
   and the Aran Islands)        contribution to sustaining socio-economic activity and
                                enhance the quality of life on the Islands
   Cutaway Peatlands            Seasonable employment will become available arising
                                from the rehabilitation of industrially cutaway
                                peatlands. Some graduates will be recruited to
                                undertake a number of studies in connection with this
                                project. Eco-tourism type holidays will materialise
                                when the project is completed.
                           Communications Sub-Programme
   Measure                      Employment Opportunities
   Postal Services              Construction of new mail centres and automation of
                                rural post offices will give rise to some direct
                                employment. The automation of rural post offices will
                                enhance their attractiveness for conducting financial
                                and other transactions thereby contributing to local
                                development and renewal
   Telecommunications           A modern and reliable network is a fundamental
                                component of Ireland‟s industrial policy.


Technical Innovation and the Promotion of Information Society


The Monitoring Committee recognises that as information and communication technologies have
become more widespread, attention has focused on the economic and social impact of the
emerging “information society”. The speed of dissemination of information and communications
technologies stems largely from the economic advantages they are able to deliver. The
Monitoring Committee considers that there is great potential for the growth of completely new
forms of employment in the Information Society. But as the EU‟s High Level Group on the
Information Society pointed out “ nothing will happen automatically. We have to act to ensure
that these jobs are created here, and soon. And that means public and private sectors acting
together”.

26 March 2003                                 195
The Monitoring Committee notes that the investments being undertaken with assistance from the
OP in the telecommunications network will contribute to the development of the necessary
infrastructure to permit the expansion of the Information Society in Ireland. It should be noted
that the Monitoring Committee approved the allocation of extra resources to Telecom Eireann
arising from the 1995 “deflator” for the development of the Synchronous Digital Hierarchy rings
linking the main population centres in the country .The introduction of SDH will help to maintain
Ireland‟s position at the forefront of technologically advanced telecommunications networks.


Furthermore, the Monitoring Committee has endorsed proposals being prepared by Telecom
Eireann to develop a strategy to intensively market their advanced services to Small and Medium
Enterprises which will create an awareness of the benefits of advanced digital communications
services for small business enterprises. With the availability of new services such as ISDN and
high speed, high quality data transmission, Telecom Eireann is endeavouring to build awareness,
knowledge and understanding among the SME customer base of the IT applications and products
available to them. As part of the development of the new communications strategy, Telecom
Eireann will be liaising with IBEC, SME representative associations, Forbairt, County
Development Teams and other organisations with an interest in developing SME‟s. Specific
customised packages will be developed by Telecom Eireann to meet the needs of particular
market segments.


The traditional character of the telephone network is rapidly changing. It now has to meet multi-
communication requirements of a modern economy. In this regard, new technological advances
in telecommunications offer the opportunity of teleworking in Ireland. Forbairt and Telecom
Eireann are developing a Teleworking Pack which will provide information on the facilities
available to promote this type of working arrangement.


The Monitoring Committee awaits the Report of the Information Society Steering Committee
established by the Department of Enterprise and Employment on a strategy for the development
of the Information Society in Ireland. The Monitoring Committee proposes to defer any decision
on the allocation of the 1996 “deflator” resources made available for the Economic Infrastructure
Operational Programme until the March 1997 meeting of the Committee. This will enable the
Monitoring Committee to consider the conclusions of the Report of the Steering Committee and
to review the possibilities of co-funding further telecommunications network enhancements
which might further assist the promotion of the information society.


Summary and conclusions


The investments being undertaken under the Economic Infrastructure Operational Programme
will contribute to sustained economic growth, and to employment creation at a local and regional
level. However, the scale of this positive contribution has to reflect the fact that the investments
being undertaken under the Operational Programme are relatively small compared to the total
investments being undertaken in the postal, energy and telecommunications networks in Ireland
during the programming period.


The proposed expenditure on the peat fired station (Peat Generation Measure) and the Renewable
Energy Measure of the Energy Sub-Programme of the Operational Programme, recognise that
there are positive externalities associated with these developments -local and regional
26 March 2003                                  196
development, employment and income generation, the adoption of new technologies and the use
of indigenous sources. Further benefits will arise as the experience and expertise garnered from
participation in the renewable energy projects in the home market and as an export commodity.
In addition, the energy efficiency expenditures can lead to significant direct and indirect
employment as result of increased competitiveness, increased spending power, and a switch to
more labour-intensive energy efficiency technologies. Here, too, further benefits can accrue as
awareness of the benefits of energy efficiency is increased, and as a pool of expertise in this area
is developed.


The investments under the Communications Sub-Programme will have in-direct benefits. The
availability of new advanced telecommunications services throughout the country will assist
regional development. The telecommunications investments will contribute to competitiveness
which is essential to wider economic development. The Postal Services investments will
improve An Post‟s capability to provide an efficient and affordable universal service and the
computerisation of rural post offices will contribute to local development.


Agencies involved with the implementation of the investments under the Operational Programme
are liaising and consulting relevant parties to maximise the utilisation of the infrastructure
facilities being co-funded under the Operational Programme which will ensure that the job-
creation potential of the investments being grant aided under the Operational Programme is
maximised. The Monitoring Committee will make arrangements to ensure that any new projects
put forward for grant assistance under the Operational Programme takes account of the job-
creation possibilities.


It should be emphasised that employment in the overall economy depends critically on the ability
of the Agencies involved with the implementation of the OP investments to:-

               Cope with increasing competition, which will become even more severe in the
                medium to long term;

               Operate flexibly and imaginatively in existing and new commercial markets;

               Adapt successfully to changing regulatory environments.

EIOP Monitoring Committee Secretariat
1 October 1996




26 March 2003                                   197
                                         APPENDIX 6
                                   Monitoring Committee
                                                 of
                  Economic Infrastructure Operational Programme


         EQUAL OPPORTUNITY FOR MEN AND WOMEN
    ECONOMIC INFRASTRUCTURE OPERA TIONAL PROGRAMME


   BACKGROUND


The investments being implemented under the Economic Infrastructure Operational Programme
have an infrastructural orientation which are intended to assist the postal, energy and
telecommunications sectors with a view to increasing the level of service to industry and thereby
promote economic growth and enhance opportunities for both men and women. These
investments will have a positive stimulative role in assisting the creation of paid employment
which is a major aspect of participation by men and women in economic and social activity.
There is no discrimination against men or women or any impediments to access by either sex in
respect of any of the operations being implemented under this particular Operational Programme
or within the regulatory framework for the energy or communications sectors of the economy.
All of the agencies involved with the implementation of the Operational Programme operate
equal opportunities policies and they are subject to relevant equality legislation. In particular, it
should be noted that the External Evaluator in the mid-term evaluation noted that the Operational
Programme “has very little if any impact on the promotion of equal opportunity but the external
evaluator has no evidence to suggest that the implementing agencies involved are not firmly
committed to equal opportunity objectives”.


   OPPORTUNITIES FOR SPECIFIC MEASURES WITHIN THE                                       EIOP     TO
   PROMOTE GREATER EQUALITY AMONGST MEN AND WOMEN


The opportunities for taking a pro-active role in promoting specific initiatives to equal
opportunity for men and women in the context of the Economic Infrastructure Operational
Programme are generally fairly limited on the following grounds:-
    the specific infrastructural nature of the investments under the Operational Programme.
       These are once-off infrastructural investments which enable new or enhanced services to
       be provided for the postal, energy and telecommunications sectors;
      a significant part of the investments under the Operational Programme will have a very
       marginal and indirect impact on work-place innovations, which is considered to be the
       forum to provide greatest opportunity to increase equal opportunity involving employee
       participation, positive flexibility, improvements in the distribution of work and flexible
       working hours;
      the Operational Programme is not concerned with any training of workers in relation to
       the sectors covered by the Operational Programme.



26 March 2003                                   198
   PROMOTION OF THE INFORMATION SOCIETY


It should be noted that the emerging area of the “Information Society”, for which this Operational
Programme now has a separate measure following the CSF Mid-Term Review of 1997, heralds
prospects of promoting greater gender equality. It offers great potential for the growth of
completely new forms of employment. The investments related to the “Information Society” will
assist the development of teleworking which offers possibilities for new types of employment as
well as flexible work arrangements for both men and women. Teleworking will be particularly
advantageous to men and women in circumstances where there are young children, long
commuting distances and/or low car or public transport availability and possibly a lower
attachment to career progress. With
expanded teleworking capability, the opportunities to provide new higher quality local job
opportunities for low mobile groups can be increased. Such trends are likely to be conducive to
the promotion of a policy of equal opportunity particularly for marginalised groups and mobility
impaired persons.


May 1998




26 March 2003                                  199
                                               APPENDIX 7

      This Appendix lists the main EU Regulations, Decisions etc., governing the administration of the
      European Regional Development Fund (ERDF), as listed in Form A of Department of Finance
      Circular 23/98 (Dublin, December 1998):



            Framework Regulation:

             Council (EEC) No. 2081/93 amending Regulation (EEC) No. 2052/88 on the tasks of the
             Structural Funds and their effectiveness and on co-ordination of their activities between
             themselves and with the operations of the European Investment Bank and the other
             existing financial instruments.



            Co-ordination Regulation:

Council Regulation (EEC) No. 2082/93 amending Regulation (EEC) No. 4253/88 laying down
      provisions for implementing Regulation (EEC) No. 2052/88 as regards co-ordination of the
      activities of the different Structural Funds between themselves and with the operations of the
      European Investment Bank and the other existing financial instruments.



            ERDF Regulation:

Council Regulation (EEC) No. 2083/93 amending Regulation (EEC) No. 4254/88 laying down
      provisions for implementing Regulation (EEC) No. 2052/88 as regards the European Regional
      Development Fund.



            Council regulation (EC Euratom No.) 2988/95 on the protection of the European
             Communities Financial Interests.



            Council Regulation (Euratom, EC) No. 2185/96 concerning on-the-spot checks and
             inspections carried out by the Commission to protect the European Communities financial
             interests against fraud and other irregularities.



            Commission Regulation (EEC) No. 1866/90 on arrangements for using the ECU for the
             purposes of the budgetary management of the Structural Funds.


      26 March 2003                                    200
      Commission Regulation (EC) No. 1681/94 concerning irregularities and the recovery of
       sums wrongly paid in connection with the financing of the structural policies and the
       organisation of an information system in this field.



      Commission Regulation (EC) No. 2064/97 establishing detailed arrangements for the
       implementation of Council Regulation (EEC) No. 4253/88 as regards the financial control
       by Member States of operations co-financed by the Structural Funds.




      1994-1999 Community Support Framework for Ireland.



      Commission Decision C(97) 1035/8 of 23/04/1997 modifying the decisions approving the
       Community Support Frameworks, the single programming documents and the
       Community Initiatives programmes in respect of Ireland (Factsheets 1 to 22).



      Commission Decision(s) in respect of the Operational Programme(s) for which your
       Department has responsibility.



      Commission Decision No. 94/342/EC of 18 June 1994 concerning minimum publicity
       requirements.



      Council Resolution of 2 December 1996 on mainstreaming equal opportunities for men
       and women into the European Structural Funds.


      “Net Corrections in the context of the application of Article 24 of Regulation (EEC)
       4253/88”, 15 October 1997, which constitutes guidelines for use by the Commission
       Department‟s in applying Article 24 of Regulation (EEC) 4253/88.




26 March 2003                                  201
                                             Appendix 8



                                Memorandum of Understanding


                                            Between


                         The Commission of the European Communities



                                              And



                the Minister for Transport, Energy and Communications of Ireland




                                              On

                                Community Structural Funding



                                              For



                                Peat Fired Electricity Generation




26 March 2003                                 202
1. Introduction

The Commission of the European Communities and the Minister for Transport, Energy and

Communications of Ireland, referring to the agreed Operational Programme for Economic

Infrastructure and in particular to the proposal contained therein for the partial funding of a new

peat fired electricity generating station to be situated in the East Midlands of Ireland and to the

extensive discussions which have taken place on this proposal, agree the following conditions for

the disbursement of Community Structural Funds for this project The Department of Transport,

Energy and Communications will monitor the fulfilment of these conditions and will report

biannually to the Commission until 2006.




2. Jobs.




The Minister believes that this project is vital to the continued development of, the East Midlands

area. The Minister will ensure that Bord na Mona, the semi-

state body charged with peat extraction and supply, will create some 250 permanent and 250

seasonal jobs (that is, 375 job years per annum) in peat production and related activities on the

bogs supplying peat to the proposed station. The Minister estimates that there will be 64 jobs in

operating the station and 25 jobs in support and ancillary activities.



It is anticipated that there will be 700 job years involved in the construction of the station and a

further 420 job years in the development of the bogs and associated works.


3. CO2 Emissions

The Irish Government has signed and ratified the UN Framework Convention on Climate Change

and has forwarded an initial communication on Ireland‟s CO2 abatement policies and measures

to the Commission and to the UN Convention Secretariat. The target set is to limit increases in
26 March 2003                                    203
CO2 emissions to, at most, 20% over 1990 levels by the year 2000. The proposed new peat fired

station can be accommodated within this growth limitation target. The new station will give rise

to a temporary increase in emissions of CO2 from peat fired stations, but the phased

decommissioning of the oldest and least efficient peat fired units will lead to an overall reduction

in CO2 emissions from peat fired plants. The Irish Government is conscious of the Commission's

concerns in relation to emissions of CO2 arising from the combustion of peat. Existing peat fired

stations in general are old and have moderate to low conversion efficiencies. Some are near the

end of their operational lives. It is the intention of the Minister to ensure the early

commencement of a programme of phased closure of these stations as they reach the end of their

operational lives and the refurbishment of other stations to improve their efficiencies from an

operational and environmental perspective: A definite programme will be agreed at an early date

with the Electricity Supply Board and Bord na Mona. Emissions of CO2 will decline from 2:79m

tonnes in 1994 to 2.68m tonnes in 1997 but will increase to 3.69m tonnes with the coming on

stream of the new station in 1999. Emissions will decline steadily thereafter to reach 2.36m

tonnes in 2006 with the decline continuing as stations reach the end of their operational lives.The

attached table outlines the anticipated profile of CO2 emissions from peat fired electricity

generation up to 2023.




4. Cutaway Bogs.

Minister and the Commission have concerns in relation to the environmental aspects of cutaway

bogs following peat production. The Minister will impose a condition on Bord na Mona to

implement a development plan for the bogs supplying the new station after the peat is extracted,

dividing areas between coniferous forestry, deciduous forestry, grassland and wetlands. Bord na

Mona expect to have about 400 hectares of their total estate developed as wetlands by end 1999.

They will use 26,000 hectares of bogs to supply peat for the new station over its lifetime and


26 March 2003                                   204
anticipate that about 7,000 hectares of this area will be suitable for wetlands development. The

Minister will ensure that Bord na Mona achieve this target. The first cutaway bogs suitable for

wetlands development in this area will become available for development from about 2007

onwards. , The Minister will ensure that these wetlands fully realise their tourism and amenity

potential.




5. Technology

The Minister is committed to the use of the latest state of the art proven technology in the

operation of the station. The Minister has been advised that the most appropriate combustion

technology is fluidised bed technology and that it is capable of conversion efficiencies of 36.7%

under Irish conditions. The call for tender will specify requirements with respect to the efficiency

of and emissions from the plant. There will be full compliance with all relevant EU Regulations

and Directives in the tendering and planning processes and in the operation of this station.

6. Implications for Ireland/UK Gas Interconnector

It is the intention of the Irish Government that the gas interconnector to the United Kingdom,

partially funded under the Commission's REGEN initiative, will be used to its maximum capacity

.The Minister is convinced that the construction and operation of this new peat fired station is

fully in line with national and Commission's energy policy, notably the national security of

supply dimension of that policy. It will not have any major implications for the envisaged

viability of the interconnector project. The market for electricity in Ireland is growing at the rate

of about 150 MW per annum and the insertion of the new peat station in the generation plant

programme will mean a delay of at most one year in the alternative gas fired electricity

26 March 2003                                   205
generating station programme thus putting back by up to one year the expected attainment of

maximum usage of the pipeline and postponing the anticipated achievement of economic break-

even from 2003 to 2004. The interconnector will now reach 50% of capacity utilisation in 2000

as against 1999 and full capacity in 2011 as against 2015 shown in the original assessment done

in 1990. However, since 1990 the development of the gas sector in Ireland has been better than

originally anticipated in the 1990 feasibility study of the economics of the interconnector in that

the premium sector has had higher growth than anticipated and also, it now seems

probable, contrary to the original assumption made in the feasibility study, that fertiliser

manufacture from natural gas will likely continue in Ireland after the year 2000.




7. ERDF Funds

Funding sought for the peat fired electricity generating project will not

exceed that provided in the Operational Programme for Economic

Infrastructure.

Signed on behalf of the Commission of the European Communities



Signed: Michael Lowry



Minister for Transport, Energy and Communications of Ireland

Dated this 12th day of Apri11995.




26 March 2003                                        206
26 March 2003   207
 Appendix 9: Payments Under the Fuel Efficiency Grant Scheme and Energy
                         Audit Grant Scheme

                                Fuel Efficiency (Audit) Grant Payments 1994

 Ref            Name                                       Grant IR£            Private IR        Total Cost
                                                                                     IR£                 IR£
 EC 28/587 Basta Ltd., Tobercurry, Co. Sligo                 613                 1,227             1,840
 EC28/590       Killybegs Fish Meal (IWAS Group),          5,000                10,000            15,000
                Dublin
 EC28/591       N.E.C. Semi- Conductors Ltd.               1,000                 2,000             3,000
 EC28/593  M.B. Ireland Ltd., Cork Road,                   1,500                 3,000             4,500
           Waterford
 EC 28/594 Castletroy Park Hotel, Limerick.                1,083                 2,167             3,250
 EC28/598       Jury‟s Hotel, Dublin.                      1,850                 3,700             5,500
 EC28/600       Gallagher‟s Ltd., Tallaght, Dublin.        2,653                 5,307             7,960
 EC28/602       Warner Lambert Ireland,                    1,325                 2,650             3,975
                Dunlaoghaire
 EC28/607       P.J. Carroll & Co. Ltd., Dundalk           2,960                 5,920             8,880
 EC28/608       Brothers of Charity, Clarinbridge.         2,560                 5,121             7,681
 EC28/609       Mater Misercordiae Hospital                5,000                 10,000           15,000
 EC28/610       Balcas Kildare Ltd.                        2,000                  4,000            6,000
 EC28/611       Essilor Irl.Ltd, Raheen Ind. Est.,         1,043                  2,087            3130
                Limerick
 EC28/615       Brothers of Charity, John Paul             1,172                  2,343            3,515
                Centre, Ballybane, Galway
                                                           29,759               59,522             89,281
                Total
                                Energy Audit Grant Scheme Payments


                                                                                                                  Total
Ref No        Name                                         Date sent to A/C     Grant IR£         Private IR£     Cost
1995

EC28/603      Nevilles Bakery, Macroom                               12/13/95            2,167              3,250 5,417

EAGS 001/95 Supervalu Supermarket, Dunmanway                         12/13/95               396              594 990

EAGS 002/94 Prudential Life of Ireland                               11/22/95            1,200              1,800 3,000

EAGS 002/95 Johnson Bros. Dublin 12                                                      1,120              1,680 2,800

EAGS 003/95 Showerings (Ireland) Limited                             12/13/95            3,400              5,100 8,500

                                                                                                                  10,48
EAGS 004/94 Carbery Milk Products                                                        4,192              6,288 0

EAGS 004/95 Irish Carton Printers Limited                            11/22/95            2,120              3,180 5,300
26 March 2003                                        208
EAGS 005/94 Jones Lang Wooton                           6/9/95   2,000    3,000 5,000

EAGS 005/95 SIFA Limited                              11/22/95   3,280    5,520 8,800

EAGS 006/95 Readymix Plc, East Wall, Dublin 3           6/9/95   1,220    1,830 3,050

EAGS 007/95 Readymix Plc, Naas Plant                    6/9/95   1,260    1,890 3,150

EAGS 008/94 Udaras Na Gaeltachta                      11/22/95    720     1,080 1,800

EAGS 008/95 Readymix Plc, Tullamore                     6/9/95   1,320    1,980 3,300

EAGS 009/94 Saint Vincents Convent, Galway              1/3/96    600      900 1,500

EAGS 009/95 Transitions Optical Limited, Tuam                    2,340    3,510 5,850

EAGS 010/94 Marian College Swimming Pool                          646      994 1,640

EAGS 010/95 Telemecanique                                        1,600    2,400 4,000

EAGS 012/94 Radionics Limited                                     240      360 600

EAGS 012/95 The Coombe Hospital                         1/3/96   1,907    2,860 4,767

                                                                                16,20
EAGS 013/94 Wyeth Medica Ireland                       9/14/95   5,000   11,200 0

EAGS 013/95 Brothers of Charity, Galway                 6/9/95   1,792    2,688 4,480

EAGS 014/95 Our Lady's Hospice, Harolds Cross           1/3/96   2,046    3,069 5,115

EAGS 015/95 Saronix-Kony Ireland Limited              12/13/95   1,520    2,280 3,800

EAGS 017/95 Brothers of Charity, Limerick                        2,780    4,170 6,950

EAGS 018/95 Brothers of Charity, Roscommon                        800     1,200 2,000

EAGS 020/95 Cara Data processing Ltd                   9/14/95    520      780 1,300

                                                                                11,22
EAGS 021/95 FMC International                                    4,488    6,732 0

                                                                                12,50
EAGS 022/95 Unifi Ltd Letterkenny                      10/3/95   5,000    7,500 0

EAGS 023/95 Irish Biscuits Limited                    11/22/95   2,980    4,470 7,450

EAGS 024/95 John E. Coyle Limited, Monaghan                       720     1,080 1,800

EAGS 026/95 Dawn Dairies                              11/22/95    714     1,071 1,785

EAGS 028/95 Blackrock Hospital                         9/14/95    920     1,380 2,300

EAGS 030/95 Blackbush Golf Club                        10/3/95    240      360 600

EAGS 031/95 Clan Court Management                                 240      360 600

EAGS 032/95 Tytex Ireland Limited                       6/9/95   1,196    1,794 2,990

EAGS 033/95 Supervalu Supermarket, Palmerston         11/30/95    960     1,440 2,400

EAGS 034/95 Supervalu Supermarket, Finglas            11/30/95    240      760 1,000
26 March 2003                                   209
EAGS 035/95 Supervalu Supermarket, Balbriggan              11/30/95    400       1,900 2,300

EAGS 036/95 Nestle Ireland Limited                         11/22/95   2,980      4,470 7,450

                                                                                       11,20
EAGS 037/95 Malinckrodt Medical Imaging Ireland             9/14/95   4,480      6,720 0

EAGS 040/95 Great Southern Hotel, Killarney                11/22/95   1,560      2,340 3,900

EAGS 041/95 Monaghan Poultry Products Limited              11/30/95   1,960      2,940 4,900

                                                                                       14,88
EAGS 042/95 Dublin Corporation, Sports Section               1/3/96   5,952      8,928 0

EAGS 043/95 North Cork Co-operative Creameries Ltd          9/14/95   3,200      4,800 8,000

EAGS 044/95 Cold Chon, Galway                              10/13/95   1,120      1,680 2,800

EAGS 045/95 Castle Leslie, Glaslough                       11/22/95    482         722 1,204

                                                                                       12,50
EAGS 047/95 Semperit Ireland                                          5,000      7,500 0

                                                                                       10,40
EAGS 049/95 Syntex Ireland Limited                         11/30/95   4,080      6,320 0

EAGS 053/95 Gaedhealachas Teo                                         1,120      1,680 2,800

EAGS 055/95 Sono Press Data Replication                    12/13/95    400         600 1,000

EAGS 056/95 Carton Bros Limited                            11/30/95   3,640      5,460 9,100
            Linen Supply of Ireland (Connaught Court
EAGS 057/95 Group)                                         12/13/95   1,720      2,580 4,300

EAGS 058/95 Bic Ireland Limited                            11/22/95    480         720 1,200

EAGS 067/95 Pepsi Cola International Plc                   11/22/95   3,834      5,751 9,585

                                                                                       10,00
EAGS 069/95 Drinagh Co-operative Limited                   11/22/95   4,000      6,000 0

EAGS 076/95 Colfix (Dublin) Limited                        11/22/95   1,120      1,680 2,800

                                                                                           284,7
                Total Payments 1995                                    111,412   173,341      53

         1996

EAGS 001/96 Sisters of the Sacred Hearts of Jesus & Mary    5/23/96    680       1,020 1,700

EAGS 002/96 Minch Norton Malt Limited                       8/16/96    400         600 1,000

EAGS 003/96 Minch Norton Malt Limited                       5/23/96   2,200      3,300 5,500

EAGS 004/96 Sherry Broz (Furniture) Limited                10/18/96   1,000      1,500 2,500

EAGS 005/96 Cork County Council (Innishannon)               8/16/96   1,060      1,590 2,650

EAGS 006/96 Cork County Council (Mallow)                    8/16/96    125                 125

EAGS 007/96 Cork County Council (Mallow)                    8/16/96     75         300 375
26 March 2003                                       210
EAGS 008/96 Cork County Council (Mallow)                  8/16/96    360     540 900

EAGS 009/96 Cork County Council (Bandon)                  8/16/96    580     870 1,450

EAGS 010/96 Cork County Council (Ballincollig)            8/16/96    720    1,080 1,800

EAGS 011/94 Marrow Meats Limited                          2/26/96    528    1,972 2,500

EAGS 012/96 Calor Gas Limited                             8/16/96    960    1,440 2,400

EAGS 014/96 Kepak (Clonee) Limited                       10/18/96   2,360   3,540 5,900

EAGS 015/96 Cork County Council(Skibbereen Office)       10/24/96    200     300 500

                                                                                  12,00
EAGS 016/95 Dairygold Co-op Society Limited               4/10/96   4,800   7,200 0
            Cork County Council(Skibbereen Machinery
EAGS 016/96 Yard)                                        10/24/96    480     720 1,200
            Cork County Council(Clonakilty Water
EAGS 017/96 Works)                                       10/24/96   1,000   1,500 2,500
            Cork County Council(Dunmanway Swimming
EAGS 018/96 Pool)                                        10/24/96    460     690 1,150

EAGS 019/96 Cork County Council(Bandon Fire Station)     10/24/96    140     210 350

EAGS 020/96 Cork County Council(Clonakilty Offices)      10/24/96    200     300 500

EAGS 021/96 Roche Manufacturing Limited                   8/16/96    480     720 1,200

EAGS 022/96 Newmarket Co-op Creameries Limited            8/16/96   3,360   5,040 8,400

EAGS 023/96 Oran Precast Concrete Limited                 6/11/96    900    1,350 2,250
            Cork County Council(Dower Bridge Pump
EAGS 024/96 House)                                       10/24/96   1,080   1,620 2,700
            Cork County Council(Roynan's Waste Water
EAGS 025/96 Work                                         10/24/96    480     720 1,200
            Cork County Council(Glanmire Pumping
EAGS 026/96 Station)                                     10/24/96    440     660 1,100
            Cork County Council(Lakes Cross Pump
EAGS 027/96 Station)                                     10/24/96    480     720 1,200
            Cork County Council(Carrs Hill Pumping
EAGS 028/96 Station)                                     10/24/96   1,280   1,920 3,200
            Cork County Council(Shanballymore
EAGS 029/96 Pumping Station)                             10/24/96    520     780 1,300
            Cork County Council(Baxters Bridge Water
EAGS 030/96 Works)                                       10/24/96    500     750 1,250
            Cork County Council(Carrightowshill Sewage
EAGS 031/96 Scheme)                                      10/24/96    460    1,040 1,500

EAGS 032/96 Cork County Council(Ballyhea Water Works)    10/24/96    680    1,020 1,700
            Cork County Council(Freemount Water
EAGS 033/96 Treatment                                    10/24/96    680    1,020 1,700

EAGS 036/96 Finnstown Country House Hotel                 5/23/96   1,120   1,680 2,800

EAGS 039/95 North Western Health Board                    6/11/96   3,360   5,040 8,400

EAGS 039/96 Dan Morrissey Ireland Limited                 5/23/96   3,980   5,970 9,950

EAGS 040/96 Grangeford Precast Limited                    8/26/96   1,178   1,767 2,945
EAGS 041/96 Ducon Concrete Limited                        6/11/96   1,560   2,340
26 March 2003                                    211
                                                                                   3,900

EAGS 042/96 Thermopack Limited                           9/19/96    275     675 950

EAGS 043/96 Moorhill Country House                       9/19/96    500     750 1,250

EAGS 044/96 The Irish Glass Bottle Company Limited      10/18/96   2,360   3,540 5,900

EAGS 045/96 Pharmacia Medical Devices Limited           10/18/96   2,400   3,600 6,000

EAGS 046/96 Quality Ceramics (Arklow) Limited            9/13/96   1,320   1,980 3,300

EAGS 048/96 Aurburn Lodge Hotel                         10/18/96   1,120   1,680 2,800

EAGS 049/96 Educational Company Of Ireland Ltd           8/14/96    480     720 1,200

                                                                                 11,15
EAGS 050/95 Aughinish Alumina Limited                    4/15/96   4,461   6,692 3

EAGS 051/95 Pleroma Group                                1/31/96   1,960   2,940 4,900

EAGS 051/96 Newport Synthesis Limited                    9/13/96   1,600   2,400 4,000

EAGS 052/96 Killeshall Precast Concrete Limited         10/18/96   1,100   1,650 2,750

EAGS 054/95 Bord na Mona                                 6/11/96   1,780   2,670 4,450

EAGS 054/96 Banagher Concrete Limited                   10/24/96   1,440   2,160 3,600

                                                                                 12,98
EAGS 055/96 John A. Wood Limited                        10/18/96   4,240   8,747 7

EAGS 056/96 E. Buttimer & Co. Limited                    8/16/96    520     780 1,300

EAGS 061/96 Sea Ray Boats Europe BV                     10/18/96   1,336   2,004 3,340

EAGS 062/95 CPM Dairy                                    3/14/96   2,896   4,344 7,240

EAGS 062/96 RS Sales Limited                            10/24/96    260     390 650

EAGS 063/95 Wessel Energy Cables Limited, Dublin 11       1/3/96   1,000   1,500 2,500

                                                                                 11,20
EAGS 063/96 Welman International Limited                10/24/96   4,480   6,720 0

                                                                                 10,00
EAGS 064/95 BWG Foods Limited                             3/8/96   4,000   6,000 0

EAGS 064/96 Cork Malting Company                         6/28/96   2,150   3,225 5,375

EAGS 065/96 Irish Pride Limited (Bakery)                10/24/96   2,400   3,600 6,000

EAGS 066/95 F.S.W. Coatings Limited                      5/14/96    480     720 1,200

EAGS 066/96 AS Richardson & Co. Ltd.                     9/13/96   1,200   1,800 3,000

EAGS 069/95 Irema Ireland                                6/28/96   1,300   1,950 3,250

EAGS 069/96 McNally & Finlay Limited                     7/24/96    960    1,440 2,400

EAGS 070/96 BD Flood Limited                             9/13/96   1,760   2,640 4,400
EAGS 071/96 Printcraft Computerprint Ltd                 12/4/96   1,480   2,320
26 March 2003                                     212
                                                                                 3,800

EAGS 072/96 Shay Murtagh Precast Limited                10/18/96    800    1,200 2,000

EAGS 073/95 Ardmore Studios Limited                      6/28/96   1,314   1,971 3,285

EAGS 073/96 Molloy Precast Products Limited              9/19/96    300     450 750

EAGS 074/95 The Ormond Printing Company Limited          1/31/96    920    1,380 2,300

EAGS 075/96 Pierce Engineering Limited                  10/24/96   1,800   2,700 4,500

EAGS 077/95 Irish Farm Centre                            5/23/96   1,200   1,800 3,000

EAGS 077/96 Marchmount Packaging Limited                 8/14/96   1,460   2,190 3,650

EAGS 078/95 Sligo Park Hotel                             2/26/96   1,738   2,607 4,345

EAGS 079/95 Crown Equipment                               3/8/96   1,920   2,880 4,800

EAGS 079/96 Medentech Limited                           10/18/96    512     768 1,280

EAGS 080/96 First National Building Society              12/4/96   1,600   2,400 4,000

EAGS 081/95 Manufacturing Services Limited               6/11/96    990    1,485 2,475

EAGS 081/96 Nicholl's Limited                           10/24/96    200     300 500

                                                                                 10,85
EAGS 082/95 Cadbury Ireland Limited                      4/10/96   4,340   6,510 0

EAGS 082/96 Westend Knitwear                            10/18/96    600     900 1,500

EAGS 083/95 Silver Hill Foods                            5/14/96   2,000   3,000 5,000

EAGS 084/95 Canon Hayes Recreation Centre                3/14/96    480     720 1,200

                                                                                 12,50
EAGS 084/96 Irish Sugar Company                          9/19/96   5,000   7,500 0

EAGS 085/96 Royal Dublin Hotel                          10/18/96   1,450   2,185 3,635

EAGS 086/95 Leeside Leisure                              4/15/96    640     960 1,600

EAGS 087/95 Metropole Hotel Cork                         6/28/96   1,160   1,740 2,900

EAGS 087/96 Oranmore Lodge Hotel                        10/18/96    800    1,200 2,000

                                                                                 12,00
EAGS 088/95 University College Cork                      4/15/96   4,800   7,200 0

EAGS 088/96 Friends Restaurant                          10/18/96    520     780 1,300

EAGS 089/95 Mallinckrodt Veterinary                      5/23/96   3,200   4,800 8,000

                                                                                 10,00
EAGS 089/96 Smithkline Beecham (Mfr.) Ltd.              11/13/96   4,000   6,000 0

                                                                                 10,00
EAGS 090/95 Waterford Foods Plc                          1/31/96   4,000   6,000 0

EAGS 091/95 Info Lab Limited                             4/15/96   1,984   2,976 4,960

26 March 2003                                     213
EAGS 092/95 Cork Dockyard Limited                         6/28/96    600     900 1,500

EAGS 093/95 Jurys Inn, Cork                               6/28/96    800    1,200 2,000

EAGS 094/95 Jurys Hotel, Limerick                         6/28/96   1,500   2,250 3,750

EAGS 094/96 Byrnemech Engineering                        10/18/96   1,400   2,100 3,500

EAGS 095/95 Jurys Christchurch Inn                        6/28/96   1,300   1,950 3,250

EAGS 097/95 Krups Engineering Limited                     6/11/96   3,386   5,079 8,465

EAGS 097/96 Odlum Group Limited                           8/26/96   1,800   2,700 4,500

EAGS 098/96 Midland Malting Company Limited              10/18/96   1,520   2,280 3,800

EAGS 099/95 Meath Proteins Limited                        2/26/96   1,960   2,940 4,900

EAGS 100/95 Lakeland Dairies Limited                      5/23/96   2,000   3,000 5,000

EAGS 100/96 Quarts International Limited                  12/4/96    560     840 1,400

EAGS 102/95 Cork County Council                           8/14/96   1,400   2,100 3,500

EAGS 103/95 Cork County Council                           8/14/96   3,320   4,980 8,300

EAGS 103/96 Donnelly Mirrors limited                     10/18/96   1,600   2,400 4,000

EAGS 104/95 Cork County Council                           8/14/96   2,320   3,480 5,800

                                                                                  12,00
EAGS 104/96 Munster Joinery Limited                       8/16/96   4,800   7,200 0

EAGS 105/95 Quest International Ireland Limited           4/10/96   1,656   2,424 4,080

EAGS 105/96 Windsor Motors Limited                        12/4/96    720    1,080 1,800

EAGS 106/95 Pinewood Laboratories Limited                10/18/96    860    1,290 2,150

EAGS 106/96 Laois Concrete Limited                        12/4/96   1,280   1,920 3,200

EAGS 107/95 Crown Berger Paints                           5/14/96   1,500   2,250 3,750

EAGS 108/95 Economic & Social Research Institute          3/14/96    570     855 1,425

EAGS 108/96 Charles O'Neill & Co. Limited                 12/4/96   1,680   2,520 4,200

EAGS 109/95 Killybegs Seafoods Limited                    6/11/96   2,400   3,600 6,000

EAGS 110/96 St. Columba's College                        11/13/96   1,270   1,905 3,175

EAGS 112/95 Navan Carpets                                 5/14/96   1,180   1,770 2,950

EAGS 113/96 McDowell's Jewellers                          12/4/96    200     300 500

EAGS 121/96 Breton Roecrete Limited                       12/4/96   1,000   1,500 2,500

EAGS 123/96 Hickson Pharmachem Limited                    12/4/96   2,432   3,648 6,080

EAGS 126/96 J A Hickey & Co Limited                      10/24/96   1,760   2,710 4,470
EAGS 127/96 Irish Progressive Life Assurance Co.         11/13/96   1,000   1,500
26 March 2003                                      214
                                                                                              2,500

EAGS 128/96 Coca-Cola Bottlers Limited                         12/4/96       800       1,200 2,000

EAGS 116/96 David Patton Limited                              12/19/96      2,200      3,300 5,500

                                                                                             13,08
EAGS 078/96 Comharchumann Inis Meain Teoranta                 12/19/96      2,616     10,464 0



                                                                                              503,9
                Total 1996 Payments                                      197,242    306,703   45


         1997

058/96          Cahill May Roberts                             2/14/97      1,200      1,800 3,000

074/96          Comhar Caomhan Teoranta, Inis Oirr             2/14/97      2,400      3,600 6,000

093/96          HKM Milling Limited                            2/14/97      1,800      2,700 4,500

                                                                                             12,50
101/96          Irish Sugar Plc                                2/14/97      5,000      7,500 0

107/96          Proctor & Gamble (Manf.) Ireland Limited       2/14/97      1,840      2,760 4,600

115/96          Donnelly Vision Systems Europe Limited         2/14/97      1,200      1,800 3,000

117/96          Organon (Ireland) Limited                      2/14/97      1,420      2,130 3,550

129/96          Londis Supermarket                             2/14/97       200        300 500

132/96          Joseph Stewart & Company Limited               2/14/97      2,880      4,320 7,200

141/96          Carrigaline Pottery Limited                    2/14/97      1,952      2,928 4,880

144/96          Cavan MacLellan Limited                        2/14/97       880       1,320 2,200

145/96          Containers & Pressure Vessels Limited          2/14/97      2,200      3,300 5,500

153/96          CPM Europe Limited                             2/14/97      1,600      2,400 4,000

154/96          MacDonald's Limited                            2/14/97      1,960      2,945 4,905

168/96          Dunnes Workshop Limited                        2/14/97       960       1,440 2,400

179/96          Weatherglaze Systems Limited                   2/14/97       720       1,080 1,800

180/96          Ardamine House                                 2/14/97       340        510 850

188/96          Town of Monaghan                               2/14/97      1,400      2,100 3,500

086/96          Clona Dairy Products                            3/4/97      1,490      2,235 3,725

120/96          Sherwood Davis & Geck                           3/4/97      3,584      5,376 8,960

185/96          Ballina Milk Co Ltd T/A Pure Fresh Dairies      3/4/97       480        720 1,200

186/96          Irish Stoneware & Fireclays Limited             3/4/97      1,200      1,800 3,000

003/97          Ballinteer Community School                     3/7/97       360        540 900
26 March 2003                                           215
005/97      Odlum Group Limited                         3/7/97   2,320    3,480 5,800

139/96      Trimproof Limited                           3/7/97   1,600    2,400 4,000

176/96      Kelly Hunter Limited                        3/7/97   2,160    3,240 5,400

067/96      Cork Corporation                           3/21/97    940     1,410 2,350

068/96      Cork Corporation                           3/21/97    980     1,470 2,450

112/96      Dan Morrissey Limited                      3/21/97    840     1,260 2,100

136/96      Clonmel Corporation                        3/21/97   3,000    4,500 7,500

                                                                                15,88
143/96      Cadbury Ireland Limited                    3/21/97   5,000   10,885 5

173/96      Macroom Mills                              3/21/97   3,600    5,400 9,000

183/96      Dan Morrissey (Ireland) Limited            3/21/97   1,500    2,250 3,750

184/96      Dan Morrissey (Ireland) Limited            3/21/97   1,800    2,700 4,500

187/96      Van den Bergh Foods                        3/21/97   1,000    1,500 2,500

085/96      Thurles Co-Op Creamery                     3/26/97   1,600    2,400 4,000

194/96      Queens Hotel Limited                       3/26/97   1,200    1,800 3,000

017/97      St. Benildus College                        4/9/97    372      558 930

                                                                                12,50
090/96      Cork County Council (Sth Cork)              4/9/97   2,500   10,000 0

                                                                                13,00
092/96      Cork County Council (Nth & W Cork)          4/9/97   2,600   10,400 0

134/96      Interbalco A.G.                             4/9/97    720     1,118 1,838

140/96      Oriflame Manufacturer Limited               4/9/97   3,000    4,500 7,500

                                                                                10,00
142/96      Warner Lambert (Ireland) Limited            4/9/97   4,000    6,000 0

151/96      Kerry County Council                        4/9/97    986     1,478 2,464

161/96      The Borden Company Limited                  4/9/97   1,200    1,800 3,000

172/96      Concrete Precast Limited                    4/9/97    360      540 900

150/96      Linen Supply Company of Ireland            4/25/97   2,000    3,000 5,000

158/96      Lakelands Dairies Limited                  4/25/97   2,000    3,000 5,000

164/96      River Room Hotel                           4/25/97    320      480 800

009/97      Natural Sprout Limited                     5/12/97    200      300 500

021/97      Stillorgan Park Hotel                      5/12/97   1,320    1,180 2,500

030/97      Rochestown Lodge (ex-Victor Hotel)         5/12/97   1,200    1,800 3,000

26 March 2003                                    216
043/97       Yukon SBC Limited                              5/12/97    200     300 500

059/96       Mitsami (Ireland) Limited                      5/12/97   1,480   2,020 3,500

                                                                                    12,50
124/96       Tara Mines Limited                             5/12/97   5,000   7,500 0

159/96       Bausch & Lomb Limited                          5/12/97   1,200   1,800 3,000

202/96       Hannon's Poultry Exporting Co Ltd              5/12/97   2,800   4,200 7,000

019/97       The Galleon Restaurant                         5/26/97    640     960 1,600

020/97       Renvyle House Hotel Limited                    5/26/97   1,200   1,800 3,000

026/97       Sligo Dairies Limited                          5/26/97   1,140   1,710 2,850

111/96       Erin Foods Limited                             5/26/97   1,600   2,400 4,000

130/96       Tarkett Ireland Limited                        5/26/97   1,920   2,880 4,800

                                                                                    10,00
162/96       Kilsaran Concrete Limited                      5/26/97   4,000   6,000 0

170/96       Castle Oaks House Hotel                        5/26/97    780    1,170 1,950

171/96       The Stables & The Paddocks                     5/26/97    480     720 1,200

199/96       Harris Ireland Limited                         5/26/97   1,880   2,820 4,700

022/97       Computer Products Limited                       7/3/97   2,200   3,300 5,500

031/97       Ballymount Precision Engineering Ltd            7/3/97   1,400   2,100 3,500

060/97       Donegal Parian China                            7/3/97   2,000   3,000 5,000

083/96       Q.K Cold Stores                                 7/3/97   1,600   2,400 4,000

118/96       Topps Ireland Limited                           7/3/97   1,680   2,520 4,200

138/96       R.N.H. Wood Products Limited                    7/3/97    300     450 750

152/96       Sean Duffy Export Limited                       7/3/97   2,120   3,180 5,300

193/96       Department of Defence                           7/3/97    540     810 1,350

044/97       Limerick Inn Hotel                              7/4/97   2,000   3,000 5,000

047/97       Cassidy Brothers Contrete Products Ltd          7/4/97   1,280   1,920 3,200

167/96       Techrete (Ireland) Limited                      7/4/97    800    1,200 2,000

                                                                                    12,50
203/96       Motorola AECG                                   7/4/97   5,000   7,500 0

025/97       The Shelbourne Hotel                           8/11/97   2,000   3,000 5,000

035/97       Talbot Hotel                                   8/11/97   1,400   2,100 3,500

046/97       The Moorings                                   8/11/97    448     672 1,120

054/97      IJM Timber Engineering Ltd                      8/11/97    800    1,200 2,000
26 March 2003                                         217
062/97      Dunmore Leisure Company Limited               8/11/97    600     900 1,500

067/97      JH Bennett & Company                          8/11/97   1,560   2,340 3,900

166/96      Graham O'Sullivan Restaurants Limited         8/11/97    509     763 1,272

197/96      Waterford Crystal Ltd Dungarvan Site          8/11/97   3,800   5,700 9,500

                                                                                  12,00
198/96      Waterford Crystal Ltd                         8/11/97   4,800   7,200 0

038/97      Tower Hotel                                   8/14/97   1,600   2,400 4,000

055/97      Michael H Limited                             8/14/97    720    1,080 1,800

081/97      Sean Kelly Sports Centre                      8/14/97    400     600 1,000

181/96      Thermo-King Europe Limited                    8/14/97   2,600   3,900 6,500

                                                                                  12,00
007/97      Hollister Overseas Limited                    8/26/97   4,800   7,200 0

051/97      Artcast Limited (MacDonalds)                  8/26/97    840    1,260 2,100

058/97      Sligo Regional Sports Centre                  8/26/97   1,240   1,860 3,100

104/97      Munster Carpets Limited                       8/26/97   1,108   1,662 2,770

175/96      Tulfarris House Hotel                         8/26/97    800    1,200 2,000

102/96      Kileen Steel Wool                              9/5/97    500     750 1,250

13/97       North Western HB (Sligo General Hosp)          9/5/97   2,928   5,772 8,700

41/97       Guinness Ireland Group                         9/5/97   3,560   5,340 8,900

53/97       Nalvern Limited (T/A MacDonalds)               9/5/97   1,140   1,820 2,960

57/97       Irish Country Meats                            9/5/97   2,400   3,600 6,000

68/97       Newpark School                                 9/8/97   1,251   1,877 3,128

039/97      Farrell Brothers (Ardee) Limited              9/18/97   1,600   2,400 4,000

040/97      Temple Bar Hotel                              9/18/97   1,600   2,400 4,000

042/97      Cavan Crystal Glass Limited                   9/18/97   1,600   2,400 4,000

056/97      T O'Higgins                                   9/18/97    720    1,080 1,800

059/97      Galvia Private Hospital                       9/18/97   1,200   1,800 3,000

075/97      Galway Irish Crystal                          9/18/97   1,100   1,650 2,750

087/97      Donegal Fish Limited                          9/18/97   1,400   2,100 3,500

156/96      Radiac Abrasives Limited                      9/18/97   1,260   2,582 3,842

093/97      Bolands Mills Limited                         9/24/97   2,000   3,000 5,000

169/96      Breton Roecrete Limited                       9/24/97    800    1,200 2,000

26 March 2003                                       218
006/97       Knocktopher Hall                              10/21/97    200      300 500

                                                                                     15,00
011/97       Shannonside Milk Product Co-Op Limited        10/21/97   5,000   10,000 0

066/97       Iarnrod Eireann No 2 Repair Shop              10/21/97   1,200    1,800 3,000
             Revenue Commissioners Environmental &
078/97       Energy                                        10/21/97    560      840 1,400

083/97       Mc Donalds Restaurant                         10/21/97    867     1,300 2,167

084/97       Munster Proteins Limited                      10/21/97   2,000    3,000 5,000

111/95       O'Donnell Design Limited                      10/21/97    640     2,360 3,000

201/96       S.E Health Board - St. Johns Hospital         10/21/97    800     1,200 2,000

014/97       Kare                                           11/6/97    880     1,320 2,200

015/97       Dakota Packaging                               11/6/97   1,600    2,400 4,000

049/97       Calor Gas Ireland Limited                      11/6/97    720     1,080 1,800

050/97       Tellabs Limited                                11/6/97   1,200    1,800 3,000

065/97       Donegal County Council                         11/6/97   2,400    3,600 6,000

069/97       Grassland Fertilizers                          11/6/97   2,200    3,300 5,500

070/97       AIBP (Rathkeale)                               11/6/97   1,600    2,400 4,000

124/97       Edward Kavanagh Manor Mills                    11/6/97   3,400    5,100 8,500

182/96       Jones Lang Wooton                              11/6/97   3,972    5,958 9,930

001/97       Essidev S.A. T/A Organic Lens Manu            11/17/97   1,600    2,530 4,130

008/97       BOC Gas Services Limited                      11/17/97    200      300 500

063/97       Waterford Foods Ireland Limited               11/17/97   1,380    2,070 3,450

                                                                                     14,50
073/97       Allied Signals (Ireland) Limited              11/17/97   5,000    9,500 0

077/97       Connemara Coast Hotel                         11/17/97   2,240    3,360 5,600

128/97       Clery & Company (1941) Plc                    11/17/97   2,400    3,600 6,000

148/96       Richard Keenan & Co Ltd                       11/17/97   1,040    1,260 2,300

048/97       St. Mary's Hospital                           11/21/97   1,500    2,250 3,750

200/96       Colso Enterprises Ltd                         11/21/97   2,360    3,540 5,900

027/97       Jones Lang Wooton-Gandon House                11/21/97   1,400    2,100 3,500

094/97       Dept of Arts, Culture and Gaeltacht            12/8/97    768     1,152 1,920

095/97       Supervalu - Centra Distribution Ltd            12/8/97   1,400    2,100 3,500

                                                                                     12,00
147/96      Supermacs - Head Office                         12/8/97   4,800    7,200 0
26 March 2003                                        219
146/96      Warner Lambert (Ireland) Limited                       12/15/97   2,400          3,600 6,000

155/96      Donegal County Council                                 12/15/97   1,120          2,880 4,000

126/97      Data Packaging Limited                                 12/18/97   2,680          4,020 6,700

115/97      Kee's Hotel                                            12/18/97   1,200          1,800 3,000

96/97       Pettitt (Wexford) Limited                              12/18/97    720           1,080 1,800

                                                                                                      £652,
            Total 1997 payments                                               £251,155     £401,021     176

1998
payments
                                                                                                     £2,40
142/97      Fijitsu Isotec Ireland Ltd                   1/23/98               £960.00     £1,440.00 0.00
                                                                                                     £6,00
145/97      C&D Petfoods Ltd                             1/23/98              £2,400.00    £3,600.00 0.00
                                                                                                     £1,50
112/97      Diorama Ltd                                  1/23/98               £600.00       £900.00 0.00
                                                                                                     £4,00
120/97      Castlerosse Hotel                            1/23/98              £1,600.00    £2,400.00 0.00
                                                                                                     £6,00
100/97      Waterford Stanley Ltd                        1/23/98              £2,400.00    £3,600.00 0.00
                                                                                                     £3,30
86/97       Moores Hotel Ltd                             1/23/98              £1,261.00    £2,039.00 0.00
                                                                                                     £5,00
89/97       Arlington Industries Ltd                     1/23/98              £2,000.00    £3,000.00 0.00
                                                                                                     £2,40
111/97      Jacksons Hotel Ballybofey Ltd                1/23/98               £960.00     £1,440.00 0.00
                                                                                                     £3,20
127/97      Dawn Dairies Ltd                             1/23/98              £1,280.00    £1,920.00 0.00
                                                                                                     £3,50
29/97       Dooleys Hotel                                1/23/98              £1,060.00    £2,440.00 0.00
                                                                                                     £11,4
103/97      Atlas Aluminium                              1/23/98              £4,560.00    £6,840.00 00.00
                                                                                                     £2,25
121/97      Tower Hotels                                 1/23/98               £900.00     £1,350.00 0.00
                                                                                                     £12,5
106/97      Janssen Pharmaceutical (Ireland) Limited     2/10/98              £3,800.00    £8,700.00 00.00
                                                                                                     £500.
101/97      Truagh Group Water Scheme                    2/10/98               £200.00       £300.00    00
                                                                                                     £2,10
177/97      Greenlodge Limited                           2/10/98               £840.00     £1,260.00 0.00
                                                                                                     £8,74
105/97      Ulster Bank Limited                          2/10/98              £3,496.00    £5,244.00 0.00
                                                                                                     £2,28
92/97       L.R. Wood t/a Lenwood Cash & Carry Ltd       2/27/98               £915.00     £1,373.00 8.00
                                                                                                     £6,50
79/97       Norton (Waterford) Limited                   2/27/98              £2,584.00    £3,916.00 0.00
                                                                                                     £6,00
123/97      Munekata Ireland Limited                     2/27/98              £2,400.00    £3,600.00 0.00
                                                                                                     £2,75
118/97      St. Patricks College                         2/27/98              £1,100.00    £1,650.00 0.00
                                                                                                     £6,00
119/97      NEC Semiconductors Ireland Limited           2/27/98              £2,400.00    £3,600.00 0.00
                                                                                                     £15,0
122/97      Irish Ispat Limited                          2/27/98              £5,000.00   £10,000.00 00.00
                                                                                                     £8,90
140/97      Custom Compost Limited                       2/27/98              £3,560.00    £5,340.00 0.00
26 March 2003                                      220
                                                                                             £4,75
114/97      Braun Ireland Limited                           2/27/98   £1,900.00    £2,850.00 0.00
                                                                                             £2,50
99/97       P. Mulrine & Sons                               3/12/98   £1,000.00    £1,500.00 0.00
                                                                                             £2,00
146/97      Ballyshannon Swimming Pool                      3/12/98    £800.00     £1,200.00 0.00
                                                                                             £9,75
139/97      Henkel Ireland Limited                          3/12/98   £3,900.00    £5,850.00 0.00
                                                                                             £6,00
80/97       Largo Food Exports Limited                      3/12/98   £2,400.00    £3,600.00 0.00
                                                                                             £12,0
137/97      Aughinish Alumina Limited                       3/23/98   £4,800.00    £7,200.00 00.00
                                                                                             £2,50
33/97       Teagasc                                         3/23/98   £1,000.00    £1,500.00 0.00
                                                                                             £15,0
116/97      Radio Telefis Eireann                           3/23/98   £5,000.00   £10,000.00 00.00
                                                                                             £1,50
131/97      Morrisons Island Hotel                          3/23/98    £600.00       £900.00 0.00
                                                                                             £4,80
189/97      Brother of Charity Southern Services            3/23/98   £1,920.00    £2,880.00 0.00
                                                                                             £9,00
144/97      Dairygold Quality Feeds                         3/23/98   £3,600.00    £5,400.00 0.00
                                                                                             £6,00
135/97      Lotus Development Ireland                       3/23/98   £2,400.00    £3,600.00 0.00
                                                                                             £2,00
088/97      Deasy & Company                                 3/26/98    £800.00     £1,200.00 0.00
                                                                                             £2,50
163/97      Lucent Technologies                             3/26/98   £1,000.00    £1,500.00 0.00
                                                                                             £600.
012/97      Liam Milner Furniture Limited                   3/31/98    £240.00       £360.00    00
                                                                                             £10,5
64/97       Liffey Meats (Cavan) Limited                    3/31/98   £4,800.00    £5,700.00 00.00
                                                                                             £6,50
150/97      Irish Country Meats                             4/9/98    £2,600.00    £3,900.00 0.00
                                                                                             £4,00
196/96      St. Davnets Hospital                            4/9/98    £1,600.00    £2,400.00 0.00
                                                                                             £6,00
190/97      CFAB Ltd                                        4/9/98    £2,284.00    £3,716.00 0.00
                                                                                             £4,00
199/97      NCF Ltd                                         4/27/98   £1,600.00    £2,400.00 0.00
                                                                                             £5,92
125/97      Novum (Overseas) Limited                        4/27/98   £2,368.00    £3,552.00 0.00
                                                                                             £1,40
91/97       Eagle Star Life Assurance Co of Ire Ltd         4/27/98    £560.00       £840.00 0.00
                                                                                             £4,50
143/97      Feldhues Limited                                4/27/98   £1,800.00    £2,700.00 0.00
                                                                                             £800.
164/97      Thomas Archer (Ballina) Ltd                     4/27/98    £320.00       £480.00    00
                                                                                             £2,80
151/97      Rehab Group                                     4/27/98   £1,120.00    £1,680.00 0.00
                                                                                             £5,50
160/97      Gresham Hotel                                   4/27/98   £2,200.00    £3,300.00 0.00
                                                                                             £2,75
072/97      Revenue Commissioners                           5/18/98   £1,040.00    £1,710.00 0.00
                                                                                             £3,25
198/97      Sofrimar Ltd                                    5/18/98   £1,300.00    £1,950.00 0.00
                                                                                             £9,55
133/97      Reheis Ireland                                  5/18/98   £3,820.00    £5,730.00 0.00
                                                                                             £3,50
152/97      Standard Life                                   5/18/98   £1,260.00    £2,240.00 0.00
                                                                                             £10,8
061/97      Mater Private Hospital                          5/18/98   £4,356.00    £6,534.00 90.00

26 March 2003                                         221
                                                                                          £13,7
036/97      Vistakon Ireland, Johnson & Johnson           5/21/98   £5,000.00   £8,700.00 00.00
                                                                                          £10,5
167/97      Rye Valley Foods                              5/21/98   £4,200.00   £6,300.00 00.00
                                                                                          £8,90
200/97      TLC Beatrice International (Irish) Holdings   5/21/98   £3,560.00   £5,340.00 0.00
                                                                                          £8,00
147/97      3 Com Technologies                            5/21/98   £3,200.00   £4,800.00 0.00
                                                                                          £11,2
202/97      De Beers Industrial Diamond Division (Ire)    5/27/98   £4,480.00   £6,720.00 00.00
                                                                                          £3,54
155/97      Celtic Linen Services (Carlow) Ltd            5/27/98   £1,418.00   £2,127.00 5.00
            Pfizer Pharmaceuticals Production                                             £12,0
181/97      Corporation                                   5/27/98   £4,800.00   £7,200.00 00.00
                                                                                          £6,50
141/97      Kepak Cork                                    5/27/98   £2,600.00   £3,900.00 0.00
                                                                                          £1,25
245/97      Corporation of Drogheda                       5/27/98    £600.00      £650.00 0.00
                                                                                          £4,50
117/97      Lackagh Quarry Group                          6/3/98    £1,800.00   £2,700.00 0.00
                                                                                          £6,20
156/97      Celtic Linen Ltd                              6/3/98    £2,482.00   £3,723.00 5.00
                                                                                          £6,50
166/97      Quantam Ireland Ltd                           6/12/98   £2,600.00   £3,900.00 0.00
                                                                                          £2,00
176/97      Irish Sugar                                   6/12/98    £800.00    £1,200.00 0.00
                                                                                          £9,50
174/97      Smithkline Beecham                            6/12/98   £3,800.00   £5,700.00 0.00
                                                                                          £11,0
179/97      General Semi Conductor                        6/30/98   £4,400.00   £6,600.00 00.00
                                                                                          £6,30
226/97      EM Ericsson                                   6/30/98   £2,520.00   £3,780.00 0.00
                                                                                          £8,50
153/97      Modus Media International                     6/30/98   £3,400.00   £5,100.00 0.00
                                                                                          £4,50
169/97      Keeling Group                                 6/30/98   £1,372.00   £3,128.00 0.00
                                                                                          £3,00
209/97      Drummonds Limited                             6/30/98   £1,200.00   £1,800.00 0.00
                                                                                          £6,00
182/97      Bon Secour Hospital                           6/30/98   £2,040.00   £3,960.00 0.00
                                                                                          £6,85
239/97      Lawson Mardon Superior Ltd                    7/31/98   £2,740.00   £4,110.00 0.00
                                                                                          £6,00
138/97      Irish Country Meats Ltd                       7/31/98   £2,400.00   £3,600.00 0.00
                                                                                          £1,50
171/97      Mayo County Council                           7/31/98    £600.00      £900.00 0.00
                                                                                          £3,00
170/97      Mayo County Council                           7/31/98   £1,200.00   £1,800.00 0.00
                                                                                          £1,50
172/97      Mayo County Council                           7/31/98    £600.00      £900.00 0.00
                                                                                          £7,50
132/97      Printech International Group                  7/31/98   £3,000.00   £4,500.00 0.00
                                                                                          £5,70
227/97      Smurfit Print & Smurfit Web Press             7/31/98   £2,280.00   £3,420.00 0.00
                                                                                          £5,00
250/97      Duffy Meats                                   7/31/98   £2,000.00   £3,000.00 0.00
                                                                                          £4,00
249/97      Kerry Foods                                   7/31/98   £1,600.00   £2,400.00 0.00
                                                                                          £2,00
184/97      Tramore Water Centre Group Ltd                7/31/98    £800.00    £1,200.00 0.00
                                                                                          £8,00
204/97      Kepak Athleague                               8/21/98   £3,200.00   £4,800.00 0.00

26 March 2003                                      222
                                                                                            £12,5
247/97      University College Dublin                 8/21/98      £5,000.00      £7,500.00 00.00
                                                                                            £8,00
203/97      Kepak (Hackettstown)                      8/21/98      £3,200.00      £4,800.00 0.00
                                                                                            £8,00
205/97      Kepak (Longford)                          8/21/98      £3,200.00      £4,800.00 0.00
                                                                                            £15,0
158/97      Premier Periclase Ltd                     9/17/98      £5,000.00     £10,000.00 00.00
                                                                                            £7,50
168/97      M.D. O'Connor & Sons (Cappaquin Chickens) 9/17/98      £3,000.00      £4,500.00 0.00
                                                                                            £9,00
211/97      Saehan Media Ireland Ltd                  9/17/98      £3,600.00      £5,400.00 0.00
                                                                                            £6,50
217/97      Irish Country Meats Ltd                   9/17/98      £2,360.00      £4,140.00 0.00
                                                                                            £2,50
230/97      Kartoncraft Ltd                           9/21/98      £1,000.00      £1,500.00 0.00
                                                                                            £8,50
183/97      Elan Corporation Plc                      9/21/98      £3,400.00      £5,100.00 0.00
                                                                                            £12,5
134/97      Team Aer Lingus                           10/14/98     £5,000.00      £7,500.00 00.00
                                                                                            £5,50
148/97      AW Ennis & Co Ltd                         10/14/98     £2,200.00      £3,300.00 0.00
                                                                                            £12,5
157/97      Southern Health Board                     10/14/98     £5,000.00      £7,500.00 00.00
                                                                                            £13,7
208/97      Kostal Ireland Ltd                        10/14/98     £5,000.00      £8,700.00 00.00
                                                                                            £13,2
236/97      Nutrica Ireland                           11/26/98     £5,000.00      £8,200.00 00.00
                                                                                            £8,15
154/97      Thermo King Europe                        11/26/98     £3,260.00      £4,890.00 0.00
                                                                                            £7,50
229/97      St. Conals Hospital                       11/26/98     £3,000.00      £4,500.00 0.00
                                                                                            £7,85
243/97      SCI Systems (Ireland) Ltd                 12/3/98      £3,140.00      £4,710.00 0.00
                                                                                            £1,00
136/97      Clare County Council                      12/24/98      £400.00         £600.00 0.00
                                                                                            £1,00
228/97      North Western Health Board                12/24/98      £400.00         £600.00 0.00
                                                                                            £12,0
180/97      Leo Laboratories Limited                  12/24/98     £4,800.00      £7,200.00 00.00
                                                                                            £2,00
165/97      Honeyclover Ltd                           12/24/98      £800.00       £1,200.00 0.00
                                                                                            £18,0
207/97      Swords Laboratories Ltd                   12/24/98     £5,000.00     £13,000.00 00.00

                                                                                            672,0
            Total 1998 Payments                                   260,116.00     411,922.00 38.00

                                                                                            £2,11
                                                                                            2,912
            Total Payments all Years                             £819,925.00   £1,292,987.00 .00




26 March 2003                                   223
                                                    Appendix 10: EEISS Payments
                                                        Date sent                  Total Cost        of Revised      Reported                       Stage
Ref No      Ref No    Name                              to A/C    Grant IR£        Project to date     Private IR£   Private IR£   Difference in PI Paid
                                                                                                        £
IS 001/95   1995001   Carbery Milk Products             2/26/96    £         579.39 £       1,158.78 579.39          869.09        -        289.70    des
                                                                                                        £
IS 110/95   1995110   Waterford Stanley Limited         3/8/96     £         600.00 £       1,293.77 693.77          900.00        -        206.23    des
                                                                                                        £
IS 049/95   1995049   FMC International                 3/27/96    £         678.74 £       1,357.74 679.00          1,018.11      -        339.11    des
                                                                                                        £
IS 054/95   1995054   John E. Coyle Limited             3/27/96    £    14,400.00 £        39,567.00 25,167.00       21,600.00             3,567.00   des
                                                                                                        £
IS 045/95   1995045   Premier Periclase Limited         4/4/96     £     4,704.00 £        13,373.00 8,669.00        7,056.00              1,613.00   ab
                                                                                                        £
IS 064/95   1995064   Wyeth Medica Ireland              4/4/96     £    10,377.00 £        67,191.00 56,814.00       15,565.50           41,248.50    pi
                                                                                                        £
IS 072/95   1995072   CPC Foods (Ireland) Ltd           5/27/96    £         750.00 £       1,500.00 750.00          1,125.00      -        375.00    des
                                                                                                        £
IS 022/95   1995022   Kellys Resort Hotel               5/27/96    £     7,670.00 £        22,967.00 15,297.00       11,505.00             3,792.00   ab
                      Telemecanique         (Ireland)                                                   £
IS 080/95   1995080   Limited                           5/27/96    £    12,800.00 £        37,429.00 24,629.00       19,200.00             5,429.00   ab
                                                                                                        £
IS 059/95   1995059   Waterford Foods Plc               5/27/96    £    48,000.00 £       174,349.83 126,349.83      97,454.55           28,895.28    ab
                                                                                                        £
IS 002/96   1996002   Meath Proteins Limited            6/28/96    £    26,840.00 £       315,775.70 288,935.70      104,086.83         184,848.87    ab
                                                                                                        £
IS 137/95   1995137   Telemecanique Ireland             6/28/96    £    13,800.00 £        43,122.00 29,322.00       20,700.00             8,622.00   ab
                                                                                                       -£
IS 064/95   1995064   Wyeth Medica Ireland              6/28/96    £    10,377.00 £                -   10,377.00     15,565.50     -      25,942.50   ab
                                                                                                        £
IS 079/95   1995079   Carbery Milk Products             7/16/96    £     4,886.66 £         9,773.32 4,886.66        7,329.99      -       2,443.33   des
                                                                                                        £
IS 135/95   1995135   Kildare Chilling Co. Ltd          7/16/96    £    11,840.00 £        37,262.00 25,422.00       17,760.00             7,662.00   ab
                                                                                                        £
IS 138/95   1995138   Asahi Spinning                    9/20/96    £     3,000.00 £         6,113.82 3,113.82        5,108.11      -       1,994.29   des
                                                                                                        £
IS 072/96   1996072   CPC Foods (Irl) Limited           9/20/96    £     3,700.00 £        22,629.00 18,929.00       5,550.00            13,379.00    pi
                                                                                                        £
IS 007/96   1996007   Henkel Ireland Limited            9/20/96    £    10,000.00 £        30,000.00 20,000.00       88,039.22     -      68,039.22   des
                                                                                                        £
IS 026/95   1995026   Jurys Hotel (Cork)                9/20/96    £    17,422.00 £        54,541.00 37,119.00       47,103.93     -       9,984.93   ab
                                                                                                        £
IS 027/95   1995027   Jurys Hotel (Waterford)           9/20/96    £    11,011.00 £        34,410.00 23,399.00       28,314.00     -       4,915.00   ab
                                                                                                        £
IS 011/96   1996011   Killybegs Seafoods Limited        9/20/96    £    40,300.00 £     1,466,000.00 1,425,700.00    258,218.52        1,167,481.48   pi
                                                                                                        £
IS 001/96   1996001   Odlum Group Limited               9/20/96    £         600.00 £       2,600.00 2,000.00        900.00                1,100.00   fr
                                                                                                       -£
IS 002/96   1996002   Meath Proteins Limited       10/18/96        £    25,840.00 £                -   25,840.00     100,208.78    -    126,048.78    ab
                      P.V. Doyle Hotels Ltd (Green                                                      £
IS 021/95   1995021   Isle Hotel)                  10/18/96        £     6,310.40 £        18,720.00 12,409.60       9,465.60              2,944.00   ab
                                                                                                        £
IS 017/95   1995017   SEHB St. Dympna's Hospital 10/18/96          £     2,000.00 £         4,920.00 2,920.00        3,000.00      -          80.00   des
                                                                                                        £
IS 010/96   1996010   Lapple Ireland Limited            10/25/96   £     6,566.40 £        20,520.00 13,953.60       9,849.60              4,104.00   ab
                                                                                                        £
IS 130/95   1995130   Novartis Ringaskiddy Limited 10/25/96        £     1,305.00 £         2,610.00 1,305.00        1,957.50      -        652.50    des
                      Jurys       Hotel     Group,                                                      £
IS 102/95   1995102   Ballsbridge                  11/15/96        £     2,750.00 £         5,500.00 2,750.00        11,138.89     -       8,388.89   des
                      Jurys       Hotel     Group,                                                      £
IS 136/95   1995136   Ballsbridge                  11/15/96        £     2,500.00 £         5,000.00 2,500.00        10,657.89     -       8,157.89   des
                                                                                                        £
IS 008/96   1996008   Project Management Limited 11/15/96          £         250.00 £         500.00 250.00          375.00        -        125.00    des
                                                                                                        £
IS 099/95   1995099   EHB Naas General Hospital         11/21/96   £     9,000.00 £        61,107.00 52,107.00       18,272.73           33,834.27    pi
                                                                                                        £
IS 019/96   1996019   Wessel Energy Cable Limited 12/9/96          £     2,750.00 £         5,500.00 2,750.00        5,107.14      -       2,357.14   des
                                                                                                        £
IS 041/95   1995041   Ascend Communications             12/19/96   £    10,688.00 £        33,400.00 22,712.00       22,712.00                   -    ab
IS 078/95 -                                                                                             £
30/96       1996030   Calor Kosangas Limited            12/19/96   £    14,304.00 £        44,700.00 30,396.00       22,372.92             8,023.08   ab
  26 March 2003                                                        224
                                                                                                         £
IS 001/95   1995001   Carbery Milk Products             12/19/96   £    14,601.00 £       36,504.79     21,903.79      21,901.50                2.29    ab
                                                                                                        -£
IS 016/96   1996016   CoGen Ltd./Dairygold Co-Op 12/19/96          £   100,000.00 £                 -   100,000.00     1,076,470.59 - 1,176,470.59      pi
                      Conservation     Engineering                                                       £
IS 031/96   1996031   Limited                      12/19/96        £    10,000.00 £       20,000.00     10,000.00      35,454.55     -      25,454.55   des
                                                                                                        -£
IS 072/95   1995072   CPC Foods (Ireland) Ltd           12/19/96   £     3,700.00 £          500.00     3,200.00       5,550.00      -       8,750.00   ab
                                                                                                         £
IS 124/95   1995124   Dublin Corporation                12/19/96   £     2,400.00 £       12,891.00     10,491.00      2,400.00              8,091.00   des
                      Educational Company          of                                                    £
IS 055/96   1996055   Ireland                           12/19/96   £     4,529.60 £       14,356.00     9,826.40       8,052.62              1,773.78   ab
                                                                                                         £
IS 128/95   1995128   Jurys Hotel Group Plc             12/19/96   £     3,000.00 £        6,000.00     3,000.00       4,500.00      -       1,500.00   des
                                                                                                         £
IS 049/96   1996049   Nicholls Limited                  12/19/96   £     8,012.80 £       28,034.00     20,021.20      12,019.20             8,002.00   ab
                                                                                                         £
IS 122/95   1995122   St. James's Hospital Board        12/19/96   £     2,225.00 £        5,006.00     2,781.00       6,332.69      -       3,551.69   des
                                                                                                         £
IS 082/95   1995082   St. Vincents Hospital             12/19/96   £    55,200.00 £      262,680.00     207,480.00     107,152.94         100,327.06    ab
                                                                                                         £
IS 110/95   1995110   Waterford Stanley Limited         12/19/96   £    25,410.44 £       63,525.36     38,114.92      38,115.66    -         0.74      pi
                                                                                                         £              £
                      Total payment 1996                           £ 567,678.43    £ 3,034,388.11       2,466,709.68   2,308,037.15 £ 158,672.53


                                                                                                         £
IS 126/95   1995126   Avonmore Foods Plc                3/10/97    £    12,000.00 £       87,753.80     75,753.80      £25,500.00          50,253.80    pi
                                                                                                         £
IS 053/96   1996053   Cork Malting Company              3/10/97    £    14,800.00 £       49,480.00     34,680.00      £22,200.00          12,480.00    ab
                                                                                                         £
IS 109/96   1996109   Deerpark Knitwear Ltd        3/10/97         £     2,366.70 £        7,196.00     4,829.30       £3,550.05             1,279.25   ab
                      Jurys       Hotel     Group,                                                       £
IS 102/95   1995102   Ballsbridge                  3/10/97         £    14,860.00 £      132,977.60     118,117.60     £60,190.51          57,927.09    pi
                      Jurys       Hotel     Group,                                                       £
IS 136/95   1995136   Ballsbridge                  3/10/97         £    36,400.00 £      220,000.00     183,600.00     £155,178.95         28,421.05    ab
                                                                                                        -£
IS 011/96   1996011   Killybegs Seafoods Limited 3/10/97           £    39,700.00 £       18,232.73     21,467.27      £571,069.23 -      592,536.50    ab
IS020/022/9           Lakeland     Dairies   Co-op                                                       £
6           1996020   Society Ltd                  3/10/97         £    31,066.00 £       97,083.00     66,017.00      £46,599.00          19,418.00    ab
                      Marian College Swimming                                                            £
IS 003/96   1996003   Pool                         3/10/97         £     8,292.00 £       25,913.39     17,621.39      £12,438.00            5,183.39   ab
                                                                                                         £
IS 052/96   1996052   Marley Compost Limited            3/10/97    £     7,022.00 £       33,777.48     26,755.48      £10,533.00          16,222.48    pi
                                                                                                         £
IS 117/95   1995117   Monaghan Mushrooms          3/10/97          £         750.00 £      1,500.00     750.00         £750.00                     -    des
                      North Cork Co-op Creameries                                                        £
IS111/95    1995111   Ltd                         3/10/97          £    23,040.00 £      171,603.55     148,563.55     £77,133.91          71,429.64    ab
                      North Cork Co-op Creameries                                                        £
IS 013/96   1996013   Ltd                         3/10/97          £    44,160.00 £      205,933.04     161,773.04     £119,395.56         42,377.48    ab
                                                                                                         £
IS 116/95   1995116   Pleroma Limited                   3/10/97    £         750.00 £      1,500.00     750.00         £750.00                     -    des
                                                                                                         £
IS 105/96   1996105   Polycell Rawplug Ireland Ltd 3/10/97         £     3,280.00 £       10,250.00     6,970.00       £4,920.00             2,050.00   ab
                                                                                                         £
IS 139/95   1995139   Saronix Kony (Ireland) Ltd        3/10/97    £     9,904.00 £       28,150.00     18,246.00      £14,856.00            3,390.00   ab
                                                                                                         £
IS 071/95   1995071   Blackbush Golf Club               3/21/97    £     2,108.00 £        7,183.00     5,075.00       £3,162.00             1,913.00   ab
                                                                                                         £
IS 142/95   1995142   Crown Equipment Limited           3/21/97    £     4,496.00 £       11,240.00     6,744.00       £6,744.00                   -    ab
                                                                                                         £
IS 047/96   1996047   Premier Proteins Limited  3/21/97            £    80,000.00 £      712,017.00     632,017.00     £320,000.00        312,017.00    ab
                      Thermie Urban Project c/o                                                          £
IS 104/96   1996104   AIB                       3/21/97            £    12,536.68 £      240,000.00     227,463.32     £12,536.68         214,926.64    des
                                                                                                         £
IS 016/96   1996016   CoGen Ltd./Dairygold Co-Op 3/26/97           £   100,000.00 £     2,396,421.00    2,296,421.00   £861,538.46       1,434,882.54   ab
                                                                                                         £
IS 094/96   1996094   Cara House                        4/25/97    £     3,120.00 £       10,000.00     6,880.00       £4,680.00             2,200.00   ab
                      Dairygold          Co-operative                                                    £
IS 043/95   1995043   Society Ltd                       4/25/97    £     7,752.32 £       24,226.00     16,473.68      £11,628.48            4,845.20   ab
                                                                                                         £
IS 136/96   1996136   De La Salle College               4/25/97    £    10,602.88 £       33,134.00     22,531.12      £15,904.32            6,626.80   ab
                      Finnstown Country        House                                                     £
IS 046/96   1996046   Hotel                             4/25/97    £     3,696.00 £       11,580.00     7,884.00       £5,544.00             2,340.00   pi
                                                                                                         £
IS 023/96   1996023   Sherry Bros Ltd                   4/25/97    £     4,740.00 £       13,000.00     8,260.00       £8,426.67     -        166.67    ab
  26 March 2003                                                        225
                                                                                                       £
IS 066/96    1996066   Sherry Bros Ltd                    4/25/97   £     8,604.00 £      30,758.00   22,154.00    £20,076.00         2,078.00   ab
                                                                                                       £
IS 111/96    1996111   Calor Kosangas                     5/26/97   £     4,696.64 £      14,676.90   9,980.26     £7,044.96          2,935.30   ab
                                                                                                       £
IS 019/97    1997019   Carrigaline Pottery Limited        5/26/97   £    15,099.88 £      94,374.25   79,274.37    £22,649.82        56,624.55   pi
                                                                                                       £
IS 102/96    1996102   Cork Dockyard Limited              5/26/97   £     3,300.00 £       6,600.00   3,300.00     £3,300.00                -    des
                                                                                                      -£
IS 099/95    1995099   EHB Naas General Hospital 5/26/97            £     9,000.00 £             -    9,000.00     £18,272.73    -   27,272.73   ab
                       Jurys       Hotel   Group,                                                      £
IS 102/95    1995102   Ballsbridge                5/26/97           £    14,860.00 £      50,000.00   35,140.00    £52,685.45    -   17,545.45   ab
                                                                                                       £
IS 126/96    1996126   Minch Norton Limited               5/26/97   £         500.00 £     1,000.00   500.00       £500.00                  -    des
                                                                                                       £
IS 054/96    1996054   Minch Norton Ltd                   5/26/97   £         500.00 £     1,000.00   500.00       £500.00                  -    des
                                                                                                       £
IS 048/96    1996048   Minch Norton Malting Ltd           5/26/97   £    50,048.00 £     156,692.56   106,644.56   £75,072.00        31,572.56   ab
                                                                                                       £
IS 040/96    1996040   Sola Adc Lenses Ltd                5/26/97   £    12,800.00 £      87,127.00   74,327.00    £19,200.00        55,127.00   ab
                                                                                                       £
IS 122/95    1995122   St. James's Hospital Board 5/26/97           £    11,110.00 £     117,718.00   106,608.00   £33,330.00        73,278.00   pi
                       Town of Monaghan Co-op                                                          £
IS 123/96    1996123   Society Ltd                5/26/97           £    64,053.29 £     200,166.53   136,113.24   £96,079.94        40,033.31   ab
                                                                                                       £
IS 065/96    1996065   Avonmore Foods Plc                 6/19/97   £     4,824.00 £      15,075.00   10,251.00    £7,236.00          3,015.00   ab
                                                                                                       £
IS 056/96    1996056   Cadbury Ireland Limited            6/19/97   £    11,613.60 £      36,399.00   24,785.40    £17,420.40         7,365.00   ab
                                                                                                       £
IS 004/95    1995004   Green Isle Foods Ltd               6/19/97   £    25,766.72 £      80,521.00   54,754.28    £38,650.08        16,104.20   ab
                                                                                                       £
IS 097/96    1996097   Irish Glass Bottle Co Ltd          6/19/97   £    16,640.00 £      84,860.00   68,220.00    £24,960.00        43,260.00   ab
                                                                                                       £
IS 113/96    1996113   Lee & Co. (Dublin) Ltd             6/19/97   £     4,118.40 £      12,872.00   8,753.60     £6,177.60          2,576.00   ab
                                                                                                       £
IS 052/96    1996052   Marley Compost Limited             6/19/97   £    11,861.70 £      24,636.57   12,774.87    £17,792.55    -    5,017.68   ab
                                                                                                       £
IS 101/96    1996101   Minch Norton Malting Ltd     6/19/97         £    13,920.00 £      44,382.00   30,462.00    £20,880.00         9,582.00   ab
                       MWHB       Limerick      Reg                                                    £
IS 057A/95 1995571     Hospital                     6/19/97         £     7,680.00 £      24,608.93   16,928.93    £11,520.00         5,408.93   ab
                                                                                                       £
IS 057B/95   1995572   MWHB(Limerick Maternity) 6/19/97             £    12,992.00 £      47,045.83   34,053.83    £19,488.00        14,565.83   ab
                                                                                                       £
IS 062/96    1996062   Odlum Group Ltd                    6/19/97   £    23,765.14 £      72,766.05   49,000.91    £35,647.71        13,353.20   ab
                       The     Royal           Hospital                                                £
IS 090/95    1995090   Donnybrook                         6/19/97   £    12,960.00 £      60,913.00   47,953.00    £19,440.00        28,513.00   ab
                                                                                                       £
IS 015/97    1997015   Weatherglaze Systems Ltd           6/19/97   £         375.00 £      750.00    375.00       £562.50       -     187.50    des
                                                                                                       £
IS 095/96    1996095   Munster Joinery Ltd                6/30/97   £    80,000.00 £     502,935.70   422,935.70   £420,000.00        2,935.70   ab
                                                                                                       £
IS 130/95    1995130   Novartis Ringaskiddy Limited 6/30/97         £     8,585.20 £      46,090.00   37,504.80    £12,877.80        24,627.00   pi
                                                                                                       £
IS 077/96    1996077   Novartis Ringaskiddy Ltd    6/30/97          £         217.50 £      435.00    217.50       £217.50                  -    des
                       Pfizer Pharmaceuticals Prod                                                     £
IS 038/95    1995038   Corp                        6/30/97          £    13,877.76 £      42,368.00   28,490.24    £28,176.06          314.18    ab
                                                                                                      -£
IS122/95     1995122   St. James's Hospital Board 7/1/97            £    11,098.00 £             -    11,098.00    £16,647.00    -   27,745.00   ab
                       Cork Regional Technical                                                         £
IS 127/95    1995127   College                    8/22/97           £    20,973.07 £      61,540.85   40,567.78    £31,459.61         9,108.18   ab
                                                                                                       £
IS 117/96    1996117   Info Labs Limited                  8/22/97   £     1,540.00 £       5,000.00   3,460.00     £3,427.74            32.26    des
                                                                                                       £
IS 139/96    1996139   Royal Dublin Hotel                 8/22/97   £         600.00 £     1,200.00   600.00       £600.00                  -    des
                                                                                                       £
IS 133/95    1995133   St. Vincents Hospital              8/22/97   £    19,974.24 £      55,484.00   35,509.76    £35,509.76               -    ab
                                                                                                       £
IS 132/96    1996132   Wellman International Ltd          8/22/97   £         300.00 £      600.00    300.00       £300.00                  -    des
                                                                                                       £
IS 132/96    1996132   Wellman International Ltd 8/22/97            £     3,400.00 £      20,042.38   16,642.38    £5,100.00         11,542.38   pi
                       WHB - Mayo General                                                              £
IS 015/95    1995015   Hospital                  8/22/97            £     5,379.20 £      14,810.00   9,430.80     £8,068.80          1,362.00   ab
                                                                                                       £
IS 012/97    1997012   Woodland Products Limited          8/22/97   £     9,142.40 £      39,329.18   30,186.78    £22,383.12         7,803.66   ab
                                                                                                       £
IS 114/96    1996114   Westend Knitwear                   8/26/97   £     7,353.60 £      22,980.00   15,626.40    £11,030.40         4,596.00   ab
  26 March 2003                                                         226
                                                                                                   £
IS 004/97   1997004   Cork Maltings Company          9/10/97    £    63,070.96 £     195,096.76   132,025.80   £94,606.44         37,419.36   ab
                                                                                                   £
IS 122/96   1996122   Irish Glass Bottle Co. Ltd     9/10/97    £     5,000.00 £      10,000.00   5,000.00     £5,000.00                 -    des
                                                                                                   £
IS 030/97   1997030   Midland Malting Co Ltd         9/10/97    £     1,000.00 £       2,000.00   1,000.00     £1,000.00                 -    des
                                                                                                  -£
IS 132/96   1996132   Wellman International Ltd      9/10/97    £     3,400.00 £        950.00    2,450.00     £5,100.00     -     7,550.00   ab
                                                                                                   £
IS 042/97   1997042   Dan Morrisey (Ireland) Ltd     9/24/97    £    65,820.00 £     899,100.00   833,280.00   £263,280.00       570,000.00   ab
                                                                                                   £
IS 030/97   1997030   Midland Malting Co Ltd         9/24/97    £    18,400.00 £     176,618.17   158,218.17   £104,266.67        53,951.50   ab
                                                                                                   £
IS 012/96   1996012   College Proteins Ltd          10/3/97     £     6,769.70 £      20,155.30   13,385.60    £10,154.55          3,231.05   ab
                      Conservation      Engineering                                                £
IS 138/96   1996138   Limited                       10/3/97     £    46,400.00 £     235,000.00   188,600.00   £185,600.00         3,000.00   pi
                                                                                                   £
IS 042/97   1997042   Dan Morrisey (Ireland) Ltd     10/3/97    £     2,500.00 £       5,000.00   2,500.00     £2,500.00                 -    des
                                                                                                   £
IS 089/95   1995089   International Airport Hotel    10/3/97    £    18,000.00 £      63,252.00   45,252.00    £27,000.00         18,252.00   ab
                                                                                                  -£
IS 019/97   1997019   Carrigaline Pottery Limited    11/7/97    £    18,972.76 £      12,100.00   6,872.76     £28,459.14    -    35,331.90   pi
                                                                                                   £
IS 119/95   1995119   M & J Gleeson Limited          11/7/97    £     7,848.32 £      24,026.00   16,177.68    £11,772.48          4,405.20   ab
                                                                                                   £
IS 044/96   1996044   Mallinckrodt Medical Imaging 11/7/97      £     2,560.00 £      11,505.00   8,945.00     £6,582.86           2,362.14   ab
                                                                                                   £
IS 027/97   1997027   Odlum Group Ltd                11/7/97    £     4,288.32 £      11,901.00   7,612.68     £6,432.48           1,180.20   ab
                                                                                                   £
IS 052/97   1997052   Odlum Group ltd                11/7/97    £     6,976.00 £      20,481.32   13,505.32    £10,911.18          2,594.14   ab
                                                                                                   £
IS 006/96   1996006   Quest International Ireland Ltd 11/7/97   £    16,320.00 £      52,784.99   36,464.99    £25,526.15         10,938.84   ab
                                                                                                   £
IS 040/97   1997040   Van Den Bergh Foods Limited 11/7/97       £     3,000.00 £       6,000.00   3,000.00     £3,000.00                 -    des
                                                                                                   £
IS 080/97   1997080   Ballet International 200 Ltd 11/17/97     £         300.00 £      600.00    300.00       £300.00                   -    des
                      Dundalk Regional Technical                                                   £
IS 063/97   1997063   College                      11/17/97     £         500.00 £     1,000.00   500.00       £500.00                   -    des
                      Dundalk Regional Technical                                                   £
IS 064/97   1997064   College                      11/17/97     £         300.00 £      600.00    300.00       £300.00                   -    des
                                                                                                   £
IS 050/97   1997050   Stillorgan Park Hotel          11/17/97   £     2,017.10 £       5,000.00   2,982.90     £2,017.10            965.80    des
                                                                                                   £
IS 002/95   1995002   Bourns Electronics Irl Ltd     11/20/97   £    23,940.44 £      59,851.12   35,910.68    £35,910.66              0.02   fr
                                                                                                  -£
IS 072/95   1995072   CPC Foods (Ireland) Ltd        11/20/97   £         925.00 £      500.00    425.00       £1,387.50     -     1,812.50   ir
                                                                                                   £
IS 009/97   1997009   Gypsum Industries Plc          11/20/97   £     9,974.40 £      50,205.00   40,230.60    £29,923.20         10,307.40   ab
                                                                                                   £
IS 106/96   1996106   Lapple Ireland Ltd             11/20/97   £    30,336.00 £      94,800.00   64,464.00    £45,504.00         18,960.00   ab
                                                                                                   £
IS 124/96   1996124   McNally & Finlay Limited       11/20/97   £     1,250.00 £       2,500.00   1,250.00     £1,250.00                 -    des
                                                                                                  -£
IS 062/96   1996062   Odlum Group Ltd                11/20/97   £     2,970.64 £             -    2,970.64     £4,455.96     -     7,426.60   ir
                                                                                                   £
IS 133/95   1995133   St. Vincents Hospital          11/20/97   £     3,174.52 £      12,650.06   9,475.54     £4,761.78           4,713.76   ab
                                                                                                   £
IS 019/96   1996019   Wessel Energy Cable Limited 11/20/97      £    21,640.00 £      67,000.00   45,360.00    £32,460.00         12,900.00   ab
                                                                                                   £
IS 090/97   1997090   Castleoaks House Hotel         11/21/97   £     1,150.10 £       2,500.00   1,349.90     £1,150.10            199.80    des
                                                                                                   £
IS 005/97   1997005   Joseph Stewart & Company       11/21/97   £     1,510.87 £       3,021.74   1,510.87     £1,510.87                 -    des
                                                                                                   £
IS 054/96   1996054   Minch Norton Ltd          11/21/97        £    18,848.00 £      72,166.00   53,318.00    £28,272.00         25,046.00   ab
                      Smithkline Beecham (Cork)                                                    £
IS 028/97   1997028   Limited                   11/21/97        £     3,947.63 £       7,895.25   3,947.62     £3,947.63     -         0.01   des
                                                                                                   £
IS 071/97   1997071   Cavan Crystal Glass Ltd        12/2/97    £    16,366.00 £      51,142.50   34,776.50    £34,776.50                -    pi
                                                                                                   £
IS 042/96   1996042   Bausch & Lomb Ireland Ltd 12/8/97         £     5,308.80 £      18,007.00   12,698.20    £7,963.20           4,735.00   ab
                      Lakeland   Dairies    Co-op                                                  £
IS 112/96   1996112   Society                     12/8/97       £     6,918.40 £      20,120.00   13,201.60    £10,377.60          2,824.00   ab
                                                                                                   £
IS 126/96   1996126   Minch Norton Limited           12/8/97    £    15,152.00 £      48,772.69   33,620.69    £22,728.00         10,892.69   ab
                                                                                                   £
IS 072/96   1996072   Ballie Foods Ltd               12/16/97   £    11,431.20 £      44,950.65   33,519.45    £32,534.95           984.50    ab
  26 March 2003                                                     227
                                                                                                       £
IS 037/97   1997037   Ballinteer Community School 12/16/97         £    10,240.00 £       36,000.00   25,760.00      £19,017.14           6,742.86   ab
                      Finnstown Country House                                                          £
IS 046/96   1996046   Hotel                       12/16/97         £     3,696.00 £       16,120.00   12,424.00      £5,544.00            6,880.00   ab
                                                                                                       £
IS 125/96   1996125   John E. Coyle Limited             12/16/97   £     1,500.00 £        3,000.00   1,500.00       £1,500.00                  -    des
                                                                                                       £
IS 067/96   1996067   Kepak Ltd                         12/16/97   £    31,808.00 £      100,163.87   68,355.87      £47,712.00         20,643.87    ab
                                                                                                       £
IS 013/97   1997013   Londis Supermarket                12/16/97   £     1,482.51 £        4,429.85   2,947.34       £2,223.77             723.58    ab
                                                                                                       £
IS 008/96   1996008   Project Management Limited 12/16/97          £     2,355.20 £        7,485.00   5,129.80       £3,532.80            1,597.00   ab
                      Spaight Timber Preservatives                                                     £
IS 016/97   1997016   Ltd                          12/16/97        £     8,720.00 £       54,000.00   45,280.00      £13,080.00         32,200.00    pi
                      Lakeland    Dairies   Co-op                                                      £
IS 046/97   1997046   Society                      12/17/97        £    14,240.00 £       89,000.00   74,760.00      £21,360.00         53,400.00    pi
                                                                                                       £
IS 054/95   1995054   John E. Coyle Limited     12/18/97           £    14,400.00 £       62,244.97   47,844.97      £40,984.62           6,860.35   ab
                      Monaghan Poultry Products                                                        £
IS 074/95   1995074   Ltd                       12/18/97           £    17,067.48 £       51,085.87   34,018.39      £25,601.22           8,417.17   ab
                                                                                                       £
IS 106/95   1995106   SEHB-St. Lukes Kilkenny           12/18/97   £    10,800.00 £      100,964.00   90,164.00      £29,200.00         60,964.00    pi
                                                                                                       £
IS 057/97   1997057   AIBP Clones              12/22/97            £    21,120.00 £       74,399.00   53,279.00      £40,997.65         12,281.35    ab
                      Wyeth -Ahp Manufacturing                                                         £
IS 098/96   1996098   B.v.                     12/22/97            £    32,535.07 £       93,672.10   61,137.03      £48,802.61       12,334.43      ab
                                                                                                       £              £
                      Total Payment 1997                           ###########   £ 9,629,726.53       7,990,503.19   4,932,291.13 ###########


                                                                                                       £
IS 005/96   1996005   Cawley Commercials                1/27/98    £5,739.40     £17,435.63           11,696.23      £8,609.10            3,087.13   ab
                                                                                                       £
IS 051/96   1996051   FSW Coatings Ltd                  1/27/98    £5,942.99     £16,821.84           10,878.85      £8,914.49            1,964.37   ab
                                                                                                       £
IS 095/97   1997095   Odlum Group Ltd                   1/27/98    £1,750.00     £3,500.00            1,750.00       £1,750.00                  -    des
                                                                                                      -£
IS 139/96   1996139   Royal Dublin Hotel                1/27/98    £3,221.20     £3,095.44            125.76         £7,516.13    -       7,641.89   ab
                                                                                                       £
IS 139/96   1996139   Royal Dublin Hotel                1/27/98    £3,221.20     £24,043.50           20,822.30      £7,516.13          13,306.17    pi
                                                                                                       £
IS 060/97   1997060   Sherwood Davis & Geck Ltd 1/27/98            £896.80       £3,020.00            2,123.20       £1,345.20             778.00    des
                                                                                                      -£
IS 106/95   1995106   SEHB-St. Lukes Kilkenny           2/10/98    £10,800.00    £0.00                10,800.00      £29,200.00   -      40,000.00   ab
                                                                                                       £
IS 016/95   1995016   WHB-Roscommon Co Hosp             2/10/98    £5,767.44     £17,023.25           11,255.81      £8,651.16            2,604.65   ab
                                                                                                       £
IS 098/97   1997098   Woodland Products Limited         2/10/98    £15,360.00    £59,697.78           44,337.78      £34,188.39         10,149.39    ab
                                                                                                       £
IS 042/95   1995042   Wyeth Medica Ireland              2/10/98    £8,394.56     £26,233.00           17,838.44      £12,591.84           5,246.60   ab
                                                                                                       £
IS 116/95   1995116   Pleroma Limited                   2/27/98    £9,960.00     £30,000.00           20,040.00      £14,940.00           5,100.00   ab
                                                                                                       £
IS 059/96   1996059   Slieve Russell Hotel      2/27/98            £22,846.40    £95,193.00           72,346.60      £55,934.29         16,412.31    ab
                      Monaghan Poultry Prodcuts                                                        £
IS 024/97   1997024   Ltd                       3/12/98            £2,592.00     £7,941.11            5,349.11       £5,031.53             317.58    ab
                      Town of Monaghan Co-op                                                           £
IS 084/97   1997084   Society Ltd               3/12/98            £7,331.20     £50,521.00           43,189.80      £33,397.69           9,792.11   ab
                                                                                                       £
IS 102/96   1996102   Cork Dockyard Limited             3/23/98    £3,696.00     £11,200.00           7,504.00       £5,544.00            1,960.00   ab
                                                                                                       £
IS 011/97   1997011   Greenhill Compost Ltd             3/23/98    £5,942.40     £19,400.00           13,457.60      £10,564.27           2,893.33   ab
                                                                                                       £
IS 007/96   1996007   Henkel Ireland Limited            3/23/98    £36,000.00    £1,547,693.49        1,511,693.49   £64,000.00       1,447,693.49   pi
                                                                                                       £
IS 130/96   1996130   Oran Pre-cast Products            3/23/98    £590.00       £1,500.00            910.00         £1,376.67    -        466.67    des
                                                                                                       £
IS 001/97   1997001   Telemecanique                     3/23/98    £8,748.48     £26,339.00           17,590.52      £13,122.72           4,467.80   ab
                      Donnelly Vision         Systems                                                  £
IS 017/97   1997017   Europe Ltd                        3/26/98    £13,496.80    £42,527.47           29,030.67      £21,110.38           7,920.29   ab
                                                                                                       £
IS 054/97   1997054   Midland Malting Co. Ltd           3/26/98    £46,726.40    £176,680.00          129,953.60     £94,868.75         35,084.85    ab
                                                                                                       £
IS 035/96   1996035   Printech International Group      3/26/98    £10,840.00    £42,133.00           31,293.00      £24,127.74           7,165.26   ab
                                                                                                       £
IS 126/95   1995126   Avonmore Foods Plc                3/31/98    £12,000.00    £26,000.00           14,000.00      £34,153.85   -      20,153.85   ab
  26 March 2003                                                        228
                                                                                           £
IS 026/96   1996026   Donegal Healthcare Ltd         3/31/98   £5,096.00    £17,675.40    12,579.40    £9,464.00           3,115.40   ab
                                                                                           £
IS 120/96   1996120   Kileen Steel Wool Limited      3/31/98   £10,400.00   £39,295.87    28,895.87    £22,100.00          6,795.87   ab
                                                                                           £
IS 039/97   1997039   Metropole Hotel                3/31/98   £1,008.00    £2,400.00     1,392.00     £1,512.00     -       120.00   des
                                                                                           £
IS 060/96   1996060   Ardmore Studios Limited        4/9/98    £14,703.68   £45,949.00    31,245.32    £22,055.52          9,189.80   ab
                                                                                           £
IS 133/96   1996133   Ardmore Studios Limited 4/9/98           £5,984.00    £19,046.50    13,062.50    £9,763.37           3,299.13   ab
                      Coca Cola Bottling Co.                                               £
IS 069/97   1997069   (Dublin ) Ltd           4/9/98           £6,816.00    £32,000.00    25,184.00    £19,399.38          5,784.62   ab
                                                                                           £
IS 070/96   1996070   Cadbury Ireland Limited        4/27/98   £25,515.20   £97,505.10    71,989.90    £54,219.80         17,770.10   ab
                                                                                           £
IS 081/97   1997081   Greenhill Compost Limited      4/27/98   £3,520.00    £11,975.00    8,455.00     £6,257.78           2,197.22   ab
                                                                                          -£
IS 130/95   1995130   Novartis Ringaskiddy Limited 4/27/98     £8,050.80    £1,650.00     6,400.80     £12,076.20    -    18,477.00   ab
                                                                                           £
IS 041/96   1996041   Wyeth Medica Ireland           4/27/98   £24,000.00   £117,664.79   93,664.79    £80,347.83         13,316.96   ab
                                                                                           £
IS 066/95   1995066   Blackrock Hospital             5/18/98   £21,600.00   £84,499.00    62,899.00    £48,077.42         14,821.58   ab
                                                                                           £
IS 015/96   1996015   Blackrock Hospital             5/18/98   £13,808.00   £46,227.90    32,419.90    £23,510.92          8,908.98   ab
                                                                                           £
IS 087/97   1997087   Farrell Bros (ardee) Limited   5/18/98   £1,950.00    £3,900.00     1,950.00     £4,340.32     -     2,390.32   des
                                                                                           £
IS 117/96   1996117   Info Labs Limited              5/18/98   £4,237.76    £12,093.00    7,855.24     £6,356.64           1,498.60   ab
                                                                                           £
IS 115/97   1997115   Munster Proteins               5/18/98   £2,500.00    £5,000.00     2,500.00     £4,078.95     -     1,578.95   des
                                                                                          -£
IS 047/96   1996047   Premier Proteins Limited      5/18/98    £20,000.00   £0.00         20,000.00    £122,857.14 -     142,857.14   fr
                      Lakeland     Dairies    Co-op                                        £
IS 046/97   1997046   Society                       5/21/98    £45,184.00   £165,405.17   120,221.17   £110,622.90         9,598.27   ab
                                                                                           £
IS 067/97   1997067   Gaedhealachas Teoranta         5/27/98   £1,414.40    £4,420.00     3,005.60     £2,121.60            884.00    ab
                                                                                           £
IS 118/96   1996118   J A Hickey & Co Ltd            5/27/98   £14,134.40   £43,370.00    29,235.60    £21,201.60          8,034.00   ab
                                                                                          -£
IS 002/96   1996002   Meath Proteins Limited      5/27/98      £12,920.00   £0.00         12,920.00    £48,603.81    -    61,523.81   fr
                      North Cork Co-op Creameries                                         -£
IS 111/95   1995111   Ltd                         5/27/98      £19,712.00   £0.00         19,712.00    £53,295.41    -    73,007.41   ir
                      North Cork Co-op Creameries                                         -£
IS 013/96   1996013   Ltd                         5/27/98      £5,500.00    £0.00         5,500.00     £15,653.85    -    21,153.85   ir
                                                                                           £
IS 014/95   1995014   WHB Merlin Park Hosptial 5/27/98         £6,846.50    £34,790.63    27,944.13    £10,269.75         17,674.38   pi
                      WHB University College                                               £
IS 088/96   1996088   Hospital                 5/27/98         £21,760.00   £84,783.44    63,023.44    £46,240.00         16,783.44   ab
                                                                                           £
IS 078/96   1996078   Cork County Council           6/3/98     £5,084.00    £13,702.25    8,618.25     £7,951.90            666.35    des ab
                      Lakeland                                                             £
IS 100/96   1996100   Dairies(Killeshandra)         6/3/98     £35,920.00   £112,439.00   76,519.00    £56,182.56         20,336.44   ab
                      Anglo Irish Beef Processors                                          £
IS 072/97   1997072   Ltd                           6/12/98    £16,992.00   £57,487.00    40,495.00    £30,208.00         10,287.00   ab
                      Conservation      Engineering                                        £
IS 031/96   1996031   Limited                       6/12/98    £36,000.00   £279,188.16   243,188.16   £73,090.91        170,097.25   pi
                                                                                           £
IS 015/97   1997015   Weatherglaze Systems Ltd       6/12/98   £4,165.77    £12,905.54    8,739.77     £6,248.66           2,491.12   ab
                                                                                           £
IS 093/97   1997093   Gallaher (Dublin ) Ltd        6/30/98    £2,500.00    £5,000.00     2,500.00     £14,166.67    -    11,666.67   des
                      Jurys       Hotel      Group,                                       -£
IS 136/95   1995136   Ballsbridge                   6/30/98    £9,100.00    £0.00         9,100.00     £34,233.33    -    43,333.33   fr
                                                                                           £
IS 089/97   1997089   Kelly Hunter Ltd               6/30/98   £554.35      £2,264.71     1,710.36     £867.06              843.30    pi
                                                                                           £
IS 115/97   1997115   Munster Proteins               7/8/98    £78,000.00   £250,000.00   172,000.00   £122,000.00        50,000.00   ab
                                                                                           £
IS 025/97   1997025   Ardamine House Hotel           7/31/98   £5,276.00    £17,194.00    11,918.00    £9,379.56           2,538.44   ab
                                                                                           £
IS 090/97   1997090   Castleoaks House Hotel         7/31/98   £3,603.36    £16,850.00    13,246.64    £5,405.04           7,841.60   pi
                                                                                           £
IS 035/97   1997035   Irish Distillers Group Plc 7/31/98       £9,039.20    £32,257.00    23,217.80    £16,787.09          6,430.71   ab
                      Life Force Foods (manufrg)                                           £
IS 100/97   1997100   Ltd                        7/31/98       £2,400.00    £4,800.00     2,400.00     £5,100.00     -     2,700.00   des
                                                                                           £
IS 036/97   1997036   Silver Hill Foods Ltd          7/31/98   £6,368.00    £19,900.00    13,532.00    £9,552.00           3,980.00   ab
  26 March 2003                                                   229
                                                                                          £
IS 099/97   1997099   AIBP Cahir                    8/21/98   £9,536.00    £27,800.00    18,264.00    £14,304.00          3,960.00   ab
                                                                                          £
IS 029/97   1997029   Micro Bio Ireland Ltd     8/21/98       £80,000.00   £990,349.27   910,349.27   £453,333.33       457,015.94   ab
                      Monaghan Poultry Prodcuts                                           £
IS 086/97   1997086   Ltd                       8/21/98       £13,760.00   £46,340.00    32,580.00    £23,429.19          9,150.81   ab
                                                                                          £
IS 092/97   1997092   Warner-Lambert Ireland Ltd    8/21/98   £9,500.00    £19,000.00    9,500.00     £46,382.35    -    36,882.35   des
                                                                                          £
IS 059/97   1997059   Aer Rianta                    9/17/98   £80,000.00   £558,000.00   478,000.00   £364,444.44       113,555.56   ab
                                                                                          £
IS 050/96   1996050   Bailieboro Foods Ltd          9/17/98   £1,120.00    £3,030.00     1,910.00     £1,680.00            230.00    des
                                                                                          £
IS 050/96   1996050   Bailieboro Foods Ltd          9/17/98   £3,272.96    £17,726.00    14,453.04    £4,909.44           9,543.60   pi
                                                                                         -£
IS 090/97   1997090   Castleoaks House Hotel        9/17/98   £2,548.56    £1,250.00     1,298.56     £3,822.84     -     5,121.40   ab
                                                                                         -£
IS 042/97   1997042   Dan Morrisey (Ireland) Ltd    9/17/98   £16,455.00   £3,000.00     13,455.00    £55,088.48    -    68,543.48   fr
                                                                                          £
IS 005/97   1997005   Joseph Stewart & Company      9/17/98   £9,672.31    £29,481.40    19,809.09    £14,508.47          5,300.63   ab
                                                                                         -£
IS 135/95   1995135   Kildare Chilling Co. Ltd      9/17/98   £2,960.00    £0.00         2,960.00     £4,440.00     -     7,400.00   fr
                                                                                          £
IS 021/97   1997021   MacDonalds Limited            9/17/98   £17,369.77   £53,280.52    35,910.75    £26,054.66          9,856.10   ab
                                                                                          £
IS 077/96   1996077   Novartis Ringaskiddy Ltd      9/17/98   £1,713.68    £5,232.00     3,518.32     £2,570.52            947.80    ab
                                                                                          £
IS 084/96   1996084   Teagasc                       9/17/98   £5,977.60    £22,100.00    16,122.40    £12,136.34          3,986.06   ab
                                                                                         -£
IS 012/97   1997012   Woodland Products Limited     9/17/98   £2,285.60    £0.00         2,285.60     £5,595.78     -     7,881.38   fr
                                                                                         -£
IS 064/95   1995064   Wyeth Medica Ireland          9/17/98   £5,188.40    £0.00         5,188.40     £8,115.19     -    13,303.59   fr
                                                                                          £
IS 034/97   1997034   Kildare Chilling Co. Ltd      9/21/98   £12,603.66   £39,386.45    26,782.79    £18,905.49          7,877.30   ab
                                                                                          £
IS 038/97   1997038   Kildare Chilling Co. Ltd      9/21/98   £14,954.19   £46,731.85    31,777.66    £22,431.29          9,346.38   ab
                                                                                          £
IS 076/97   1997076   Kildare Chilling Co. Ltd      9/21/98   £16,360.80   £67,611.00    51,250.20    £38,175.20         13,075.00   ab
                                                                                         -£
IS 132/96   1996132   Wellman International Ltd     9/21/98   £1,700.00    £500.00       1,200.00     £2,550.00     -     3,750.00   fr
                                                                                          £
IS 016/96   1996016   CoGen Ltd./Dairygold Co-Op 10/14/98 £50,000.00       £734,476.00   684,476.00   £575,000.00       109,476.00   fr
                                                                                          £
IS 128/96   1996128   First Active Building Society 10/14/98 £37,249.60    £172,232.00   134,982.40   £100,711.88        34,270.52   ab
                                                                                         -£
IS 044/96   1996044   Mallinckrodt Medical Imaging 10/14/98 £640.00        £450.00       190.00       £1,730.37     -     1,920.37   fr
                                                                                         -£
IS 049/96   1996049   Nicholls Limited              10/14/98 £2,003.20     £500.00       1,503.20     £12,305.37    -    13,808.57   fr
                                                                                          £
IS 116/95   1995116   Pleroma Limited               10/14/98 £3,635.84     £11,362.00    7,726.16     £5,453.76           2,272.40   ab
                                                                                          £
IS 060/97   1997060   Sherwood Davis & Geck Ltd 10/14/98 £5,818.15         £16,171.72    10,353.57    £8,727.23           1,626.35   ab
                                                                                          £
IS 091/97   1997091   Sligo Dairies Ltd             10/14/98 £10,624.00    £48,536.77    37,912.77    £30,237.54          7,675.23   ab
                                                                                          £
IS 026/97   1997026   University College Dublin     10/14/98 £16,301.50    £32,603.00    16,301.50    £16,301.50                -    des
                                                                                          £
IS 020/97   1997020   Calor Kosangas                11/5/98   £16,128.00   £76,210.00    60,082.00    £45,902.77         14,179.23   ab
                                                                                         -£
IS 072/95   1995072   CPC Foods (Ireland) Ltd       11/5/98   £925.00      £600.00       325.00       £1,446.79     -     1,771.79   fr
                                                                                         -£
IS 026/95   1995026   Jurys Hotel (Cork)            11/5/98   £2,753.00    £0.00         2,753.00     £4,129.50     -     6,882.50   fr
                                                                                         -£
IS 027/95   1995027   Jurys Hotel (Waterford)       11/5/98   £4,355.40    £0.00         4,355.40     £6,533.10     -    10,888.50   fr
                                                                                         -£
IS 022/95   1995022   Kelly's Resort Hotel          11/5/98   £1,916.80    £1,000.00     916.80       £2,875.20     -     3,792.00   fr
                                                                                          £
IS 050/97   1997050   Stillorgan Park Hotel         11/5/98   £14,523.12   £64,400.00    49,876.88    £37,345.17         12,531.71   ab
                                                                                          £
IS 014/95   1995014   WHB Merlin Park Hosptial      11/5/98   £9,137.02    £12,157.88    3,020.86     £13,705.53    -    10,684.67   ab
                                                                                          £
IS 087/97   1997087   Farrell Bros (ardee) Limited 11/12/98 £10,468.00     £66,400.00    55,932.00    £15,702.00         40,230.00   pi
                      Jurys       Hotel       Group,                                     -£
IS 102/95   1995102   Ballsbridge                    11/12/98 £7,430.00    £2,500.00     4,930.00     £29,720.00    -    34,650.00   fr
                                                                                         -£
IS 019/97   1997019   Carrigaline Pottery Limited   11/16/98 £8,517.06     £0.00         8,517.06     £12,775.59    -    21,292.65   fr
  26 March 2003                                                  230
                      Conservation   Engineering                                           £
IS 031/96   1996031   Limited                    11/16/98 £36,000.00        £397,390.84   361,390.84   £221,142.86       140,247.98   ab
                      Donnelly Vision Systems                                             -£
IS 017/97   1997017   Europe Ltd                 11/16/98 £3,374.20         £0.00         3,374.20     £5,061.30     -     8,435.50   fr
                      Town of Monaghan Co-op                                              -£
IS 123/96   1996123   Society Ltd                11/16/98 £16,113.32        £250.00       15,863.32    £24,169.98    -    40,033.30   fr
                                                                                           £
IS 142/95   1995142   Crown Equipment Limited      11/26/98 £8,137.72       £28,240.38    20,102.66    £12,206.58          7,896.08   ab
                                                                                           £
IS 083/97   1997083   Mater Misericordiae Hopsital 11/26/98    £17,252.61   £53,914.40    36,661.79    £25,878.92         10,782.88   ab
                      P.V. Doyle Hotels Ltd (Green                                        -£
IS 021/95   1995021   Isle Hotel)                   11/26/98   £1,577.60    £1,000.00     577.60       £2,366.40     -     2,944.00   fr
                      Smithkline Beecham (Cork)                                            £
IS 028/97   1997028   Limited                       11/26/98   £62,697.90   £255,652.46   192,954.56   £139,553.39        53,401.17   ab
                      The        Royal     Hospital                                       -£
IS 090/95   1995090   Donnybrook                    11/26/98   £3,240.00    £0.00         3,240.00     £8,760.00     -    12,000.00   fr
                                                                                           £
IS 137/96   1996137   Virginia Milk Products        11/26/98 £6,400.00      £20,175.00    13,775.00    £9,600.00           4,175.00   ab
                      Dariygold        Co-operative                                        £
IS 077/97   1997077   Society                       12/3/98 £5,988.00       £23,244.51    17,256.51    £17,042.77           213.74    fr
                                                                                           £
IS 049/95   1995049   FMC International            12/3/98     £8,069.01    £31,522.81    23,453.80    £17,146.65          6,307.15   ab
                                                                                           £
IS 107/97   1997107   Irish Country Meats          12/3/98     £15,792.00   £49,350.00    33,558.00    £23,688.00          9,870.00   ab
                                                                                          -£
IS 010/96   1996010   Lapple Ireland Limited       12/3/98     £1,641.60    £0.00         1,641.60     £2,462.40     -     4,104.00   fr
                                                                                          -£
IS 106/96   1996106   Lapple Ireland Ltd      12/3/98          £7,584.00    £0.00         7,584.00     £11,376.00    -    18,960.00   fr
                      Marian College Swimming                                             -£
IS 003/96   1996003   Pool                    12/3/98          £2,233.00    £581.41       1,651.59     £3,349.50     -     5,001.09   fr
                                                                                           £
IS 047/97   1997047   Moy Isover Ltd               12/3/98     £55,808.00   £227,834.27   172,026.27   £124,217.81        47,808.46   ab
                                                                                          -£
IS 019/96   1996019   Wessel Energy Cable Limited 12/3/98      £4,610.00    £0.00         4,610.00     £6,915.00     -    11,525.00   fr
                                                                                          -£
IS 057/97   1997057   AIBP Clones                  12/8/98     £5,280.00    £0.00         5,280.00     £9,805.71     -    15,085.71   fr
                                                                                          -£
IS 037/97   1997037   Ballinteer Community School 12/8/98      £2,560.00    £0.00         2,560.00     £4,754.29     -     7,314.29   fr
                                                                                           £
IS 001/95   1995001   Carbery Milk Products        12/8/98     £4,819.61    £12,488.00    7,668.39     £7,229.42            438.98    fr
                                                                                           £
IS 125/96   1996125   John E. Coyle Limited        12/8/98     £50,000.00   £174,000.00   124,000.00   £88,888.89         35,111.11   ab
                                                                                          -£
IS 011/96   1996011   Killybegs Seafoods Limited   12/8/98     £20,000.00   £0.00         20,000.00    £287,692.31 -     307,692.31   fr
                                                                                          -£
IS 030/97   1997030   Midland Malting Co Ltd       12/8/98     £4,600.00    £0.00         4,600.00     £33,733.33    -    38,333.33   fr
                                                                                          -£
IS 045/95   1995045   Premier Periclase Limited    12/8/98     £1,069.20    £1,060.00     9.20         £1,603.80     -     1,613.00   fr
                                                                                           £
IS 119/96   1996119   St. Columba's College        12/8/98     £26,567.20   £88,023.40    61,456.20    £45,236.04         16,220.16   ab
                                                                                          -£
IS 126/95   1995126   Avonmore Foods Plc           12/21/98 £6,000.00       £0.00         6,000.00     £17,076.92    -    23,076.92   fr
                                                                                          -£
IS 065/96   1996065   Avonmore Foods Plc           12/21/98 £1,206.00       £0.00         1,206.00     £1,809.00     -     3,015.00   fr
                                                                                          -£
IS 056/96   1996056   Cadbury Ireland Limited      12/21/98 £2,903.40       £0.00         2,903.40     £4,355.10     -     7,258.50   fr
                                                                                           £
IS 041/97   1997041   CPM Europe Ltd               12/21/98 £5,893.77       £18,118.04    12,224.27    £8,840.66           3,383.62   ab
                                                                                          -£
IS 099/95   1995099   EHB Naas General Hospital    12/21/98 £4,500.00       £0.00         4,500.00     £7,662.16     -    12,162.16   fr
                                                                                          -£
IS 120/96   1996120   Kileen Steel Wool Limited    12/21/98 £2,600.00       £0.00         2,600.00     £5,278.79     -     7,878.79   fr
                                                                                           £
IS 083/95   1995083   Mid-Western Health Board     12/21/98 £42,416.00      £153,099.49   110,683.49   £78,772.57         31,910.92   ab
                                                                                          -£
IS 062/96   1996062   Odlum Group Ltd              12/21/98 £2,370.64       £0.00         2,370.64     £3,555.96     -     5,926.60   fr
                                                                                          -£
IS 082/95   1995082   St. Vincents Hospital        12/21/98 £13,800.00      £2,742.75     11,057.25    £39,276.92    -    50,334.17   fr
                                                                                          -£
IS 133/95   1995133   St. Vincents Hospital        12/21/98 £5,409.49       £3,261.56     2,147.93     £8,114.24     -    10,262.17   fr
                                                                                           £
IS 1997033 1997033    College Proteins Ltd         12/23/98 £14,653.54      £44,792.30    30,138.76    £21,980.31          8,158.45   ab
                                                                                           £
IS 103/96   1996103   Irish Sugar Company          12/23/98 £80,000.00      £264,485.00   184,485.00   £130,526.32        53,958.68   ab
                                                                                          -£
IS 113/96   1996113   Lee & Co. (Dublin) Ltd       12/23/98 £1,029.60       £0.00         1,029.60     £1,544.40     -     2,574.00   fr
  26 March 2003                                                   231
                                                                                                         -£
IS 054/96   1996054   Minch Norton Ltd                   12/23/98 £4,712.00         £1,000.00            3,712.00      £10,013.00    -    13,725.00   fr
                                                                                                         -£
IS 048/96   1996048   Minch Norton Malting Ltd           12/23/98 £13,352.00        £6,500.00            6,852.00      £20,883.90    -    27,735.90   fr
                                                                                                         -£
IS 101/96   1996101   Minch Norton Malting Ltd           12/23/98 £3,480.00         £1,500.00            1,980.00      £5,677.89     -     7,657.89   fr
                                                                                                         -£
IS 095/96   1996095   Munster Joinery Ltd        12/23/98 £20,000.00                £0.00                20,000.00     £80,000.00    -   100,000.00   fr
                      Schering-Plough (Avondale)                                                          £
IS 043/96   1996043   Co.                        12/23/98 £7,174.08                 £21,419.00           14,244.92     £10,761.12          3,483.80   ab
                                                                                                          £
IS 023/96   1996023   Sherry Bros Ltd                    12/23/98 £1,060.00         £1,500.00            440.00        £1,590.00     -     1,150.00   fr
                                                                                                         -£
IS 066/96   1996066   Sherry Bros Ltd              12/23/98 £1,951.00               £0.00                1,951.00      £3,787.24     -     5,738.24   fr
                      Sister of the Sacred hear of                                                        £
IS 121/96   1996121   Jesus & Mary                 12/23/98 £15,163.12              £55,807.00           40,643.88     £26,956.66         13,687.22   ab
                                                                                                         -£
IS 122/95   1995122   St. James's Hospital Board         12/23/98 £5,567.00         £0.00                5,567.00      £17,628.83    -    23,195.83   fr
                                                                                                         -£
IS 137/95   1995137   Telemecanique Ireland              12/23/98 £3,449.76         £0.00                3,449.76      £5,174.64     -     8,624.40   fr

                      Total Payment 1998                           £1,893,037.28 £9,051,007.45           £7,157,970.17 £5,332,681.52 £1,825,288.65


                                                                                                         -£
IS 1996109 1996109    Deerpark Knitwear Ltd      2/15/99                   511.70                   -    511.70        767.55        -     1,279.25   fr
                      Dundalk Recional Technical                                                          £
IS 1997063 1997063    College                    2/15/99                 6,660.96            20,065.50   13,404.54     9,991.44            3,413.10   ab
                                                                                                         -£
IS 1997009 1997009    Gypsum Industries Plc              2/15/99         2,493.60                   -    2,493.60      7,480.80      -     9,974.40   fr
                                                                                                         -£
IS 1996097 1996097    Irish Glass Bottle Co Ltd    2/15/99               4,160.00                   -    4,160.00      12,480.00     -    16,640.00   fr
                      Mallinckrodt Medical Imaging                                                        £
IS 1996063 1996063    Irl                          2/15/99              29,024.69            90,702.15   61,677.46     43,537.04          18,140.43   ab
                                                                                                          £
IS 1995059 1995059    Waterford Foods Plc                2/15/99         1,763.47             4,408.68   2,645.21      4,534.64      -     1,889.43   fr
                                                                                                          £
IS 1996081 1996081    Wyeth Medica Ireland               2/15/99        23,457.00            73,303.12   49,846.12     35,185.50          14,660.62   ab
                                                                                                          £
IS 1997014 1997014    Cavan Mac Lellan                   3/5/99         12,223.00            38,196.87   25,973.87     18,334.50           7,639.37   ab
                      Coca Cola Bottling           Co.                                                   -£
IS 1997069 1997069    (Dublin ) Ltd                      3/5/99          1,704.00                   -    1,704.00      4,607.11      -     6,311.11   fr
                                                                                                          £
IS 1997007 1997007    Jones Lang Wooton                  3/5/99         21,573.76            66,818.00   45,244.24     32,360.64          12,883.60   ab
                                                                                                         -£
IS 1996105 1996105    Polycell Rawplug Ireland Ltd 3/5/99                  820.00                   -    820.00        1,230.00      -     2,050.00   fr
                                                                                                         -£
IS 1996041 1996041    Wyeth Medica Ireland               3/5/99          6,000.00                   -    6,000.00      18,000.00     -    24,000.00   fr
                                                                                                          £
IS 1995121 1995121    Irish Country Meats                3/19/99         9,700.00            30,761.00   21,061.00     15,171.79           5,889.21   ab
                                                                                                          £
IS 1997092 1997092    Warner-Lambert Ireland Ltd         3/19/99        36,200.00           494,000.00   457,800.00    205,133.33        252,666.67   pi
                                                                                                         -£
IS 1996012 1996012    College Proteins Ltd           4/12/99             1,292.42                   -    1,292.42      1,938.63      -     3,231.05   fr
                      Dairygold         Co-operative                                                     -£
IS 1995043 1995043    Society Ltd                    4/12/99             1,938.08                   -    1,938.08      2,907.12      -     4,845.20   fr
                      Lakeland     Dairies   Co-op                                                       -£
IS 1996112 1996112    Society                        4/12/99             1,329.60               500.00   829.60        1,994.40      -     2,824.00   fr
                                                                                                          £
IS 1996057 1996057    Marchmont Packaging Ltd            4/12/99        21,948.48            67,589.00   45,640.52     32,922.72          12,717.80   ab
                                                                                                          £
IS 1997075 1997075    Natural Sprout Limited             4/12/99         2,753.90             8,405.93   5,652.03      4,130.85            1,521.18   ab
                                                                                                          £
IS 1996050 1996050    Bailieboro Foods Ltd          5/4/99               4,791.04            13,528.00   8,736.96      10,180.96     -     1,444.00   ab
                      Dairygold        Co-operative                                                       £
IS 1995125 1995125    Society Ltd                   5/4/99              24,000.00           125,267.00   101,267.00    76,000.00          25,267.00   ab
                                                                                                          £
IS 1997085 1997085    Golden Vale Plc                    5/4/99         30,988.80           120,640.29   89,651.49     75,869.13          13,782.36   ab
                                                                                                          £
IS 1997079 1997079    Limerick Inn Hotel                 5/4/99          4,046.40            13,160.00   9,113.60      6,889.82            2,223.78   ab
                                                                                                          £
IS 1996052 1996052    Marley Compost Limited             5/4/99         11,996.07            18,785.37   6,789.30      17,994.11     -    11,204.81   fr
                                                                                                         -£
IS 1996040 1996040    Sola Adc Lenses Ltd                5/4/99          3,200.00                   -    3,200.00      14,577.78     -    17,777.78   fr
                                                                                                          £
IS 1996124 1996124    McNally & Finlay Limited           5/26/99        23,384.00            84,000.00   60,616.00     43,427.43          17,188.57   ab

  26 March 2003                                                      232
                     Wyeth -Ahp Manufacturing                                               £
IS 1996098 1996098   B.v.                     5/26/99           10,691.77      14,395.00   3,703.23     16,037.66    -    12,334.43   fr
                                                                                           -£
IS 1996072 1996072   Ballie Foods Ltd               6/10/99      2,857.80             -    2,857.80     6,072.83     -     8,930.63   fr
                                                                                           -£
IS 1996136 1996136   De La Salle College            6/10/99      2,650.72             -    2,650.72     3,976.08     -     6,626.80   fr
                                                                                           -£
IS 1995004 1995004   Green Isle Foods Ltd           6/10/99      6,441.68             -    6,441.68     9,662.52     -    16,104.20   fr
                                                                                           -£
IS 1995119 1995119   M & J Gleeson Limited          6/10/99      2,675.68       2,284.00   391.68       4,013.52     -     4,405.20   fr
                                                                                           -£
IS 1997004 1997004   Cork Maltings Company      6/24/99         15,247.74        700.00    14,547.74    22,871.61    -    37,419.35   fr
                     Lakeland    Dairies  Co-op                                            -£
IS 1996020 1996020   Society Ltd                6/24/99          7,967.20        500.00    7,467.20     11,950.80    -    19,418.00   fr
                                                                                           -£
IS 1996006 1996006   Quest International Ireland Ltd 6/24/99     4,080.00             -    4,080.00     6,381.54     -    10,461.54   fr
                                                                                           -£
IS 1996139 1996139   Royal Dublin Hotel             6/24/99      1,610.60             -    1,610.60     3,758.07     -     5,368.67   fr
                                                                                           -£
IS 1995106 1995106   South Eastern Health Board 6/24/99          5,400.00             -    5,400.00     14,600.00    -    20,000.00   fr
                     Town of Monaghan Co-op                                                -£
IS 1997084 1997084   Society Ltd                6/24/99          1,832.80             -    1,832.80     18,531.64    -    20,364.44   fr
                                                                                           -£
IS 1996042 1996042   Bausch & Lomb Ireland Ltd      7/5/99       1,327.20             -    1,327.20     2,259.83     -     3,587.03   fr
                                                                                            £
IS 1996104 1996104   Cement Roadstone Holdings      7/5/99       1,164.30      13,730.00   12,565.70    18,240.70    -     5,675.00   IS
                                                                                           -£
IS 1996053 1996053   Cork Malting Company           7/5/99       3,800.00        700.00    3,100.00     6,470.27     -     9,570.27   fr
                                                                                           -£
IS 1995054 1995054   John E. Coyle Limited          7/5/99       7,200.00             -    7,200.00     13,371.43    -    20,571.43   fr
                                                                                            £
IS 1996104 1996104   South Dublin County Council 7/5/99         18,000.00     181,820.00   163,820.00   282,000.00   -   118,180.00   IS
                                                                                           -£
IS 1997015 1997015   Weatherglaze Systems Ltd       7/5/99           921.44           -    921.44       1,382.16     -     2,303.60   fr
                                                                                           -£
IS 1996111 1996111   Calor Kosangas                 7/21/99      1,374.12        500.00    874.12       2,061.18     -     2,935.30   fr
                                                                                           -£
IS 1997020 1997020   Calor Kosangas                 7/21/99      4,032.00        500.00    3,532.00     11,475.69    -    15,007.69   fr
                                                                                           -£
IS 1997054 1997054   Midland Malting Co. Ltd        7/21/99     11,681.60        680.00    11,001.60    23,717.19    -    34,718.79   fr
                                                                                           -£
IS 1996126 1996126   Minch Norton Limited      7/21/99           3,788.00             -    3,788.00     5,924.82     -     9,712.82   fr
                     Monaghan Poultry Products                                             -£
IS 1995074 1995074   Ltd                       7/21/99           4,266.87       2,250.00   2,016.87     6,400.31     -     8,417.18   fr
                     Monaghan Poultry Products                                             -£
IS 1997024 1997024   Ltd                       7/21/99               584.44           -    584.44       876.66       -     1,461.10   fr
                                                                                            £
IS 1997095 1997095   Odlum Group Ltd              7/21/99       30,043.20     120,834.34   90,791.14    63,841.80         26,949.34   ab
                     Sligo Regional Sports Centre                                           £
IS 1997139 1997139   Ltd                          7/21/99        5,057.60      19,336.63   14,279.03    10,747.40          3,531.63   ab
                                                                                           -£
IS 1997098 1997098   Woodland Products Limited      7/21/99      3,840.00             -    3,840.00     8,160.00     -    12,000.00   fr
                                                                                           -£
IS 1995042 1995042   Wyeth Medica Ireland           7/21/99      2,098.64             -    2,098.64     3,147.96     -     5,246.60   fr
                                                                                           -£
IS 1996005 1996005   Cawley Commercials             9/3/99       1,234.85             -    1,234.85     1,852.28     -     3,087.13   fr
                                                                                            £
IS 1996104 1996104   Cement Roadstone Holdings 9/3/99            9,314.40     109,840.00   100,525.60   145,925.60   -    45,400.00   is
                     Conservation    Engineering                                            £
IS 1996138 1996138   Limited                     9/3/99         46,400.00     407,727.24   361,327.24   211,377.78       149,949.46   ab
                                                                                           -£
IS 1995142 1995142   Crown Equipment Limited        9/3/99       3,878.43       1,800.00   2,078.43     5,817.65     -     7,896.08   fr
                                                                                            £
IS 1997130 1997130   Oriflame Manufacturing Ltd     9/3/99       5,692.12      17,787.87   12,095.75    8,538.18           3,557.57   ab
                                                                                            £
IS 1996007 1996007   Henkel Ireland Limited         9/22/99     36,000.00     182,259.91   146,259.91   684,000.00   -   537,740.09   ab
                                                                                           -£
IS 1995089 1995089   International Airport Hotel    9/22/99      4,500.00             -    4,500.00     8,000.00     -    12,500.00   fr
                                                                                            £
IS 1997061 1997061   Rochestown Lodge Hotel         9/23/99     11,520.00      36,000.00   24,480.00    17,280.00          7,200.00   ab
                                                                                           -£
IS 1996070 1996070   Cadbury Ireland Limited        10/22/99     6,378.80             -    6,378.80     12,950.90    -    19,329.70   fr
                                                                                            £
IS 1996094 1996094   Cara House                     10/22/99         880.00     2,387.00   1,507.00     1,870.00     -       363.00   fr
                                                                                           -£
IS 1997011 1997011   Greenhill Compost Ltd          10/22/99     1,485.60             -    1,485.60     2,423.87     -     3,909.47   fr
  26 March 2003                                                233
                                                                                                     -£
IS 1997089 1997089   Kelly Hunter Ltd                   10/22/99         351.53                  -   351.53         527.30       -       878.83   fr
                                                                                                      £
IS 1997082 1997082   Killeshal Precast Concrete Ltd 10/22/99          3,798.77        11,871.17      8,072.40       5,698.16           2,374.25   ab
                     North Cork Co-op Creameries                                                      £
IS 1995111 1995111   Ltd                            10/22/99          2,742.00        36,490.00      33,748.00      9,721.64          24,026.36   fr
                     North Cork Co-op Creameries                                                     -£
IS 1996013 1996013   Ltd                            10/22/99          5,540.00         2,800.00      2,740.00       15,767.69    -    18,507.69   fr
                                                                                                     -£
IS 1996114 1996114   Westend Knitwear                   10/22/99      2,038.40           500.00      1,538.40       3,057.60     -     4,596.00   fr
                                                                                                      £
IS 1997026 1997026   College Power Ltd                  11/19/99    146,958.80       956,408.07      809,449.27     626,508.57       182,940.70   ab
                     Finnstown Country          House                                                -£
IS 1996046 1996046   Hotel                              11/19/99      1,848.00                   -   1,848.00       3,752.00     -     5,600.00   fr
                                                                                                      £
IS 1997108 1997108   Galway Irish Crystal Ltd           11/19/99      4,296.96        11,428.00      7,131.04       6,445.44            685.60    ab
                                                                                                      £
IS 1995047 1995047   Glanbia Ingredients                11/19/99      5,166.40        16,145.00      10,978.60      7,749.60           3,229.00   ab
                                                                                                      £
IS 1996122 1996122   Irish Glass Bottle Co. Ltd         11/19/99     43,312.32       132,851.00      89,538.68      64,968.48         24,570.20   ab
                                                                                                     -£
IS 1997034 1997034   Kildare Chilling Co. Ltd           11/19/99      3,549.34         1,667.00      1,882.34       5,324.01     -     7,206.35   fr
                                                                                                     -£
IS 1997038 1997038   Kildare Chilling Co. Ltd    11/19/99             4,405.35         1,667.00      2,738.35       6,608.03     -     9,346.38   fr
                     Pfizer Pharmaceuticals Prod                                                     -£
IS 1995038 1995038   Corp                        11/19/99             3,069.44                   -   3,069.44       4,604.16     -     7,673.60   fr
                                                                                                     -£
IS 1997059 1997059   Aer Rianta                         12/1/99      20,000.00                   -   20,000.00      91,111.11    -   111,111.11   fr
                                                                                                     -£
IS 1996060 1996060   Ardmore Studios Limited            12/1/99       3,875.92           500.00      3,375.92       5,813.88     -     9,189.80   fr
                                                                                                     -£
IS 1996133 1996133   Ardmore Studios Limited            12/1/99       1,496.00           500.00      996.00         2,440.84     -     3,436.84   fr
                                                                                                     -£
IS 1996030 1996030   Calor Kosangas Limited      12/1/99              3,576.00           500.00      3,076.00       5,364.00     -     8,440.00   fr
                     CRH     Cement    Roadstone                                                      £
IS 1996104 1996104   Holdings                    12/1/99             23,996.40       165,888.00      141,891.60     375,943.60   -   234,052.00   ir
                                                                                                      £
IS 1997008 1997008   Jones Lang Wooton                  12/1/99       3,616.00        11,300.00      7,684.00       5,424.00           2,260.00   ab
                                                                                                     -£
IS 1996067 1996067   Kepak Ltd                          12/1/99       7,952.00         1,000.00      6,952.00       11,928.00    -    18,880.00   fr
                                                                                                     -£
IS 1997076 1997076   Kildare Chilling Co. Ltd           12/1/99       4,090.20                   -   4,090.20       9,543.80     -    13,634.00   fr
                                                                                                     -£
IS 1997036 1997036   Silver Hill Foods Ltd              12/1/99       1,592.00                   -   1,592.00       2,388.00     -     3,980.00   fr
                                                                                                      £
IS 1996050 1996050   Bailieboro Foods Ltd               12/21/99      2,016.00         2,850.00      834.00         4,704.00     -     3,870.00   fr
                                                                                                      £
IS 1997048 1997048   Carbery Milk Products Ltd          12/21/99     20,288.00        96,385.00      76,097.00      57,742.77         18,354.23   ab
                                                                                                      £
IS 1997087 1997087   Farrell Bros (ardee) Limited 12/21/99           19,652.00        72,342.00      52,690.00      50,533.71          2,156.29   ab
                     Lakeland      Dairies    Co-op                                                  -£
IS 1997046 1997046   Society                        12/21/99         14,856.00                   -   14,856.00      34,664.00    -    49,520.00   fr
                                                                                                      £
IS 1997029 1997029   Micro Bio Ireland Ltd              12/21/99     20,000.00       470,761.00      450,761.00     265,714.29       185,046.71   fr
                                                                                                      £
IS 1996127 1996127   Minch Norton Limited               12/21/99     15,360.00       130,380.00      115,020.00     87,040.00         27,980.00   ab
                                                                                                     -£
IS 1996008 1996008   Project Management Limited 12/21/99                 754.80          415.00      339.80         1,132.20     -     1,472.00   fr
                                                                                                      £
IS 1996083 1996083   Teagasc                            12/21/99      6,704.00        21,495.00      14,791.00      10,938.11          3,852.89   ab
                                                                                                      £
IS 1997040 1997040   Van Den Bergh Foods Limited 12/21/99            13,952.00        41,900.00      27,948.00      20,928.00          7,020.00   ab

                     Total Payments 1999                           986,735.20     4,574,206.14       3,587,470.94   4,179,704.15 - 592,233.21


                                                                                                     -£
IS 1997025 1997025   Ardamine House Hotel               2/5/00        1,319.00           300.00      1,019.00       2,152.05     -     3,171.05   fr
                                                                                                     -£
IS 1997081 1997081   Greenhill Compost Limited          2/5/00           880.00                  -   880.00         1,498.38     -     2,378.38   fr
                                                                                                     -£
IS 1996125 1996125   John E. Coyle Limited              2/5/00       12,500.00                   -   12,500.00      22,222.22    -    34,722.22   fr
                     Lakeland                                                                        -£
IS 1996100 1996100   Dairies(Killeshandra)              2/5/00        8,980.00                   -   8,980.00       13,470.00    -    22,450.00   fr
                                                                                                     -£
IS 1997115 1997115   Munster Proteins                   2/5/00       19,500.00                   -   19,500.00      29,250.00    -    48,750.00   fr
  26 March 2003                                                    234
                                                                                                    £
IS 1996104 1996104     Roadstone Dublin Ltd                2/5/00      1,999.70       13,730.00    11,730.30      31,328.63   -   19,598.33   ir
                                                                                                   -£
IS 1995139 1995139     Saronix Kony (Ireland) Ltd          2/5/00      1,876.00        1,300.00    576.00         2,814.00    -    3,390.00   fr
                                                                                                   -£
IS 1997050 1997050     Stillorgan Park Hotel               2/5/00      3,630.78               -    3,630.78       8,889.15    -   12,519.93   fr
                                                                                                   -£
IS 1997099 1997099     AIBP Cahir                          2/24/00     1,884.00          750.00    1,134.00       2,826.00    -    3,960.00   fr
                                                                                                    £
IS 1997058 1997058     Carbery Milk Products Ltd           2/24/00    39,802.40      140,325.76    100,523.36     73,918.74       26,604.62   ab
                                                                                                   -£
IS 1996102 1996102     Cork Dockyard Limited               2/24/00         172.00        120.00    52.00          258.00      -     310.00    fr
                       Educational Company            of                                           -£
IS 1996055 1996055     Ireland                             2/24/00     1,132.40               -    1,132.40       1,698.60    -    2,831.00   fr
                                                                                                   -£
IS 1997067 1997067     Gaedhealachas Teoranta              2/24/00         393.60        100.00    293.60         590.40      -     884.00    fr
                                                                                                   -£
IS 1996117 1996117     Info Labs Limited                   2/24/00     1,059.44               -    1,059.44       1,589.16    -    2,648.60   fr
                                                                                                   -£
IS 1996103 1996103     Irish Sugar Company                 2/24/00    20,000.00               -    20,000.00      32,631.58   -   52,631.58   fr
                                                                                                   -£
IS 1995116 1995116     Pleroma Limited                     2/24/00     3,398.96        1,500.00    1,898.96       5,098.44    -    6,997.40   fr
                                                                                                   -£
IS 1995041 1995041     Ascend Communications               3/14/00     2,672.00               -    2,672.00       4,008.00    -    6,680.00   fr
                                                                                                   -£
IS 1997048 1997048     Carbery Milk Products Ltd    3/14/00            5,072.00               -    5,072.00       14,435.69   -   19,507.69   fr
                       Dairygold       Co-operative                                                -£
IS 1995125 1995125     Society Ltd                  3/14/00            6,000.00               -    6,000.00       19,000.00   -   25,000.00   fr
                                                                                                   -£
IS 1997005 1997005     Joseph Stewart & Company            3/14/00     1,818.08               -    1,818.08       2,727.12    -    4,545.20   fr
                                                                                                   -£
IS 1997082 1997082     Killeshal Precast Concrete Ltd 3/14/00          1,149.69          500.00    649.69         1,724.54    -    2,374.23   fr
                                                                                                   -£
IS 1996124 1996124     McNally & Finlay Limited            3/14/00     5,846.00               -    5,846.00       10,856.86   -   16,702.86   fr
                                                                                                   -£
IS 1997087 1997087     Farrell Bros (ardee) Limited        4/4/00      7,530.00               -    7,530.00       19,362.86   -   26,892.86   fr
                                                                                                   -£
IS 1997085 1997085     Golden Vale Plc            4/4/00               7,747.20        5,618.11    2,129.09       17,243.77   -   19,372.86   fr
                       Life Force Foods (manufrg)                                                   £
IS 1997100 1997100     Ltd                        4/4/00              30,567.19       94,722.47    64,155.28      45,850.79       18,304.50   fr
                                                                                                    £
IS 1996104 1996104     South Dublin County Council 4/4/00              1,000.00       22,760.00    21,760.00      15,666.67        6,093.33   ir
                                                                                                   -£
IS 1996026 1996026     Donegal Healthcare Ltd              5/30/00     1,274.00               -    1,274.00       2,264.89    -    3,538.89   fr
                                                                                                   -£
IS 1996128 1996128     First Active Building Society 5/30/00           9,312.40        2,400.00    6,912.40       25,177.97   -   32,090.37   fr
                                                                                                   -£
IS 1996122 1996122     Irish Glass Bottle Co. Ltd          5/30/00     9,138.08          775.00    8,363.08       13,707.12   -   22,070.20   fr
                                                                                                   -£
IS 1997007 1997007     Jones Lang Wooton                   5/30/00     5,553.44        1,000.00    4,553.44       8,330.16    -   12,883.60   fr
                                                                                                   -£
IS 1997021 1997021     MacDonalds Limited        5/30/00               4,242.44          750.00    3,492.44       6,363.66    -    9,856.10   fr
                       Monaghan Poultry Prodcuts                                                   -£
IS 1997086 1997086     Ltd                       5/30/00               3,440.00               -    3,440.00       5,857.30    -    9,297.30   fr
                       Smithkline Beecham (Cork)                                                   -£
IS 1997028 1997028     Limited                   5/30/00              15,674.48        1,875.00    13,799.48      34,888.36   -   48,687.84   fr
                                                                                                   -£
IS 1996119 1996119     St. Columba's College               5/30/00     6,641.80        1,643.09    4,998.71       11,309.01   -   16,307.72   fr

           IS 1998101 Wyeth Medica Ireland           7/26/00         200,000.00     1,314,600.50   1,114,600.50                               ab
                      Sisters of the Sacred Heart of                                               -
           IS 1996121 Jesus & Mary                   7/26/00           5,607.88          480.00    5,127.88                                   fr
                                                                                                   -
           IS 1997047 Moy Isover Ltd                       7/26/00    13,952.00               -    13,952.00                                  fr
                                                                                                   -
           IS 1997014 Cavan Mac Lellan                     7/28/00     3,255.75          500.00    2,755.75                                   fr

           IS 1997136 Cadbury Ireland Ltd                  7/28/00    14,112.00      122,314.00    108,202.00                                 ab
                                                                                                   -
           IS 1997130 Oriflame Manufacturing Ltd           7/28/00     1,423.03               -    1,423.03                                   fr
                                                                                                   -
           IS 1997008 Jones Lang Wooton                    9/29/00     1,044.00          350.00    694.00                                     fr
                                                                                                   -
           IS 1997035 Irish Distillers Group plc           9/29/00     2,259.80               -    2,259.80                                   fr
                                                                                                   -
           IS 1996084 Teagasc                              9/29/00     1,494.40          500.00    994.40                                     fr
  26 March 2003                                                      235
                                                                                           -
         IS 1996083 Teagasc                       9/29/00      1,676.00               -    1,676.00       fr
                                                                                           -
         IS 1997090 Castleoaks House Hotel        9/29/00      1,137.98          500.00    637.98         fr
                                                                                           -
Ref No   IS 1996081 Wyeth Medica Ireland          9/29/00      5,864.25               -    5,864.25       fr

         IS 1998104 Ballyragget Power Ltd         10/19/00   400,000.00     6,941,177.00   6,541,177.00   ab
                                                                                           -
         IS 1995047 Glanbia Ingredients           10/19/00     1,291.60               -    1,291.60       fr
                                                                                           -
         IS 1996035 SerCom Solutions              10/19/00     2,710.00               -    2,710.00       fr
                                                                                           -
         IS 1997092 Warner-lambert Ireland Ltd    10/19/00    36,200.00       26,000.00    10,200.00      ab
                                                                                           -
         IS 1997026 College Power Ltd ( UCD )     11/15/00    36,739.70       30,024.01    6,715.69       fr
                                                                                           -
         IS 1997107 Dawn Country Meats            11/15/00     3,948.00               -    3,948.00       fr
                                                                                           -
         IS 1996007 Henkel Ireland Ltd            11/15/00    18,000.00               -    18,000.00      fr
                                                                                           -
         IS 1997095 Odlum Group Ltd               11/15/00     7,510.80               -    7,510.80       fr

         IS 1998106 ESB Power Generation          11/30/00   185,000.00     1,158,144.50   973,144.50     ab

         IS 1997097 ESB Power Generation          11/30/00    80,000.00      757,979.85    677,979.85     ab
                                                                                           -
         IS 1996127 Minch Norton Malting Ltd    11/30/00       3,840.00        2,439.00    1,401.00       fr
                    Conservation    Engineering                                            -
         IS 1996138 Limited                     11/30/00      23,200.00 -      18,897.76   42,097.76      fr
                    Conservation    Engineering                                            -
         IS 1996031 Limited                     11/30/00      18,000.00 -       3,831.53   21,831.53      fr
                                                                                           -
         IS 1996104 Roadstone Dublin Ltd          12/8/00      8,164.28                    8,164.28       fr
                                                                                           -
         IS 1996104 South Dublin County Council 12/15/00      53,775.96                    53,775.96      fr

         IS 1996078 Cork Country Council    12/15/00               928.90      1,330.00    401.10         fr
                    Cork Regional Technical
         IS 1995127 College                 12/15/00           6,868.37        8,062.75    1,194.38       fr
                                                                                           -
         IS 1997058 Carbery Milk Products Ltd     12/15/00     9,950.60               -    9,950.60       fr
                                                                                           -
         IS 1995130 Novartis Ringaskiddy Ltd      12/15/00     2,199.00               -    2,199.00       fr

         IS 1997045 ESB Power Generation          12/21/00   175,000.00      993,211.97    818,211.97     fr
                                                                                           -
         IS 1997097 ESB Power Generation          12/21/00    20,000.00               -    20,000.00      fr
                                                                                           -
         IS 1998106 ESB Power Generation          12/21/00    49,000.00               -    49,000.00      fr
                                                                                           -
         IS 1997040 Van Den Berg Foods Ltd        12/21/00     2,208.00               -    2,208.00       fr
                                                                                           -
         IS 1998104 Ballyragget Power Ltd         12/21/00   100,000.00               -    100,000.00     fr
                                                                                           -
         IS 1997052 Odlum Group Ltd               12/29/00     1,316.53          250.00    1,066.53       fr
                                                                                           -
         IS 1996077 Novartis Ringaskiddy Ltd      12/29/00         335.62             -    335.62         fr

         IS 1997018 Glanbia Foods Plc             12/29/00    53,760.00      249,658.81    195,898.81     ab
                                                                                           -
         IS 1997018 Glanbia Foods Plc             12/29/00    13,440.00               -    13,440.00      fr

         IS 1997092 Warner-lambert Ireland Ltd    12/29/00    18,100.00       20,016.14    1,916.14       fr
                                                                                           -
         IS 1997027 Odlum Group Ltd               12/29/00         572.08        250.00    322.08         fr

         IS 1997108 Galway Irish Crystal Ltd      12/29/00     1,074.24        2,000.00    925.76         fr
                                                                                           -
         IS 1997072 Anglo Irish Beef Processors   12/29/00     4,248.00          750.00    3,498.00       fr
                                                                                           -
         IS 1996015 Blackrock Hospital            12/29/00     3,452.00          750.00    2,702.00       fr

         IS 1997073 IJM Timber Engineering Ltd    12/29/00    30,844.80      185,785.55    154,940.75     ab

         IS 1996063 Mallinckrodt Medical Imaging 12/29/00     12,409.97       12,884.50    474.53         fr
  26 March 2003                                              236
                                                                                                  -
       IS 1997033 College Proteins Ltd            12/29/00        3,263.38                    -   3,263.38                                         fr
                  Dundalk       Institute    of                                                   -
       IS 1997063 Technology                      12/29/00        1,265.24                    -   1,265.24                                         fr
                                                                                                  -
       IS 1995066 Blackrock Hospital              12/29/00        5,400.00                    -   5,400.00                                         fr
                                                                                                  -
       IS 1996137 Glanbia Ingredients             12/29/00        1,600.00                    -   1,600.00                                         fr
                                                                                                  -
       IS 1998101 Wyeth Medica Ireland            12/29/00       50,000.00                    -   50,000.00                                        fr
                                                                                                  -
       IS 1996057 Marchmount Packaging Ltd        12/29/00        5,279.12             480.00     4,799.12                                         fr
                                                                                                  -
       IS 1997060 Tyco Healthcare                 12/29/00        1,034.54                    -   1,034.54                                         fr




                   Total Payments 2000                       1,946,964.90     12,097,878.72       10,150,913.82 489,010.11      - 442,047.76




                                                             7,033,639.15     38,387,206.95       31,353,567.80 17,241,724.05 4,007,892.28




                   Energy Efficiency Investment Support Scheme - Payment of Grant and attaching private investment by year




                                                                                                  Revised         Reported
                                                                                                 Private         Private         Variance in
                                                  Date sent                  Total Cost of       Investment      Investment     Private            Stage
       Ref No      Name                           to A/C    Grant IR£        Project to date IR£ IR£             IR£            Investment IR£     Paid



                   Total payment 1996                           567,678.43       3,034,388.11     2,466,709.68   2,308,037.15        158,672.53

                   Total Payment 1997                         1,639,223.34       9,629,726.53     7,990,503.19   4,932,291.13       3,058,212.06

                   Total Payment 1998                         1,893,037.28       9,051,007.45     7,157,970.17   5,332,681.52       1,825,288.65

                   Total Payments 1999                          986,735.20       4,574,206.14     3,587,470.94   4,179,704.15 -      592,233.21

                   Total Payments 2000                        1,946,964.90      12,097,878.72     10,150,913.82 489,010.11      -    442,047.76

                                                             7,033,639.15     38,387,206.95       31,353,567.80 17,241,724.05 4,007,892.28




26 March 2003                                                 237
                                          Appendix 11

          Renewable Energy Measure : List of AER III Renewable Energy Projects which
          received ERDF funding

       YApplicant       Project        Technology       Installed       EU              Private
       e               Location                         Capacity    Expenditure       Expenditure
       a                                                 (Mwe)         €/IR£             €/IR£
       r
2000   Gaelforce      Curabwee,           Wind            4.62       423,515.40       4,326,484.60
       Energy Ltd    Dunmanway,          energy                     (£333,545.48)     (£3,407,384)
                      Co. Cork.
2000   Irish Power     Baleally,        Biomass          2.928       268,409.76       1,471,434.45
       Systems Ltd   Co. Dublin.        (Landfill                   (£211,389.86)    (£1,158,848.80)
                                          gas)
2001   Saorgus         Tursillagh,        Wind           15.00        1,200,000       16,273,355.82
       Energy Ltd        Tralee,         energy                     (£945,076.80)    (£12,816,309.20)
                       Co. Kerry.
2001   MHB            Milane Hill,        Wind            5.94         475,200        6,128,707.75
       Windfarms      Dunmanway,         energy                     (£374,250.41)    (£4,826,749.59)
       Limited         Co. Cork.
2001   MHB            Beenageeha,         Wind            3.75       343,762.50       4,645,038.41
       Windfarms        Listowel,        energy                     (£270,734.97)    (£3,658,265.03)
       Limited         Co. Kerry.
2001   Largan Hill    Largan Hill,        Wind             4.8         440,016        4,754,497.78
       Wind Farm     Ballaghdereen,      energy                     (£346,540.76)    (£3,744,471.29)
       Ltd             Co. Rosc.
2001   Waterfern      Black Banks,        Wind             3.4         311,678         3,466,310.84
       Ltd            Co. Leitrim.       energy                     (£245,466.37)    (£2,729,941.63)
2001   Hibernian     Meenachallow,       Hydro           0.325        29,792.75         508,576.19
       Hydro Ltd        Glenties,                                    (£23,463.70)     (£400,536.30)
                      Co. Donegal.
2002   Hibernian      Barnesmore,        Hydro           0.485       44,459.95          914,227.86
       Hydro Ltd        Donegal                                     (£35,015.05)      (£720,012.95)
                         Town,
                      Co. Donegal

2002   Hibernian      Inchinanagh,       Hydro            0.49       44,918.30          777,138.22
       Hydro Ltd       Kilgarvan,                                   (£35,376.04)      (£612,046.09)
                       Co. Kerry.
2002   Hibernian     Borlin, Bantry,     Hydro            0.37        33,917.90         650,657.18
       Hydro Ltd        Co. Cork.                                    (£26,712.52)     (£512,434,17)
                                       Totals            42.11      €3,615,670.55/   €43,916,429.10
                                                         MW         £2,847,571.96    £34,586,998.56




  26 March 2003                                   238
                                             Appendix 12
          List of Projects which received ERDF funding
          under the Renewable Energy Feasibility Study Grant Scheme
        Applicant                                                   EU Expenditure     Private
                            Address                                     €/IR£        Expenditure
                                                                                        €/IR£
BEOFS, c/o Camphill                                                   €6,158.23       €6,157.79
Community                   Ballytobin, Callan, Co Kilkenny            (£4,850)      (£4,849.65)

Cork Corporation Energy                                               €6,278.85       €6,278.84
Agency Office               City Hall, Cork                            (£4,945)      (£4,944.99)

Kerry Co Council                                                      €7,618.43       €14,570.77
                            County Buildings, Tralee,                  (£6,000)      (£11,475.41)

                            Co Kerry
Mr. Dan Ahearne                                                        €307.28         €307.28
                            Beale Hill, Ballybunion, Co Kerry           (£242)          (£242)
Future Wind Partnership                                               €3,491.78       €5,218.00
                            P.O. Box 93, Naas, Co Kildare              (£2,750)      (£4,109.51)
Mr Jim O‟Malley                                                       €5,713.82       €6,323.82
                            65 Heatherview, Sligo                      (£4,500)      (£4,980.41)
Dunnes Workshop Ltd.                                                  €3,174.35       €6,953.56
                            Rahugh, Kilbeggan,                         (£2,500)      (£5,500.00)

                            Co Westmeath
Cork Corporation                                                      €2,539.48       €2,669.03
                            City Hall, Cork City                       (£2,000)      (£2,102.03)
Kerry Co Council                                                       €6,371.99      €6,371.99
                            County Buildings, Rathass, Tralee, Co     (£5,018.35)    (£5,018.35)
                            Kerry
Sheegee Ltd., c/o Precast                                             €2,158.55       €2,158.55
Products Ltd.               Combi House, Ballindud,                    (£1,700)        (£1,700)

                            Co Waterford
Mr Seamus Herron                                                      €2,539.48       €2,539.48
                            Weschtown, Ballybofey,                     (£2,000)        (£2,000)

                            Co Donegal
Mr Dan Twomey                                                          €5,246.56      €5,292.67
                            Carrigeen, Banteer, Co Cork                (£4,132)      (£4,168.00)
Mr Dermot McDermott                                                    €5,027.35      €5,027.35
                            West Clare (Windfarm)                     (£3,959.36)    (£3,959.36)
                            Manufacturing Ltd., Corner House,
                            Creegh, Kilrush, Co Clare
Mr Dan McCarthy                                                       €4,571.06       €4,571.06
                            The Falls Hotel, Ennistymon,               (£3,600)        (£3,600)

                            Co Clare
Mr Joe Mangan                                                         €7,618.43       €7,618.43
                            Roy, Doohoma, Ballina,                     (£6,000)        (£6000)

                            Co Mayo
Galway Energy Agency                                                  €2,722.32       €2,722.32
                            City Hall, Galway                          (£2,144)        (£2,144)


26 March 2003                                              239
Galway Energy Agency                                                    €3,427.66         €3,427.66
                            City Hall, Galway                          (£2,699.50)       (£2,699.50)
Burtonport Fishermans Co-                                              € 6,983.56         € 8,118.29
op                          Burtonport, Co Donegal                      (£5,500)         (£6,396.67)

Johnson & Johnson Ltd.                                                 €2,285.53      €2,285.53 (£1,800)
                            Loughbeg, Ringaskiddy, Co Cork              (£1,800)




        Applicant                                                    EU Expenditure       Private
                            Address                                      €/IR£          Expenditure
                                                                                            €/IR£
Mr Padraig McGowan                                                     € 6,602.64         € 6,983.09
                            Whinney Hill House, Amorset,                (£5,200)         (£5,499.63)
                            Manorhamilton, Co Leitrim
Mr John O‟Connell                                                      €1,491.94          €1,491.94
                            Glenconner, Clonmel,                      IR£1,175.00        IR£1,175.00

                            Co Tipperary
Green Power Ltd.                                                       €3,936.19          €3,936.19
                            Railway View, Macroom,                      (£3,100)         (£3,100.00)

                            Co Cork
Green Energy Company Ltd                                                €5,878.38         €5,878.38
                            Trafalgar House, Montenotte,               (£4,629.60)       (£4,629.60)

                            Co Cork
Green Power Ltd.            Railway View, Macroom,                      €5,554.22         €5,554.22
                            Co Cork                                    (£4,374.30)       (£4,374.30)
Green Energy Company Ltd    Railway View, Macroom,                      € 7,618.43        € 8,369.86
                            Co Cork                                      (£6,000)        (£6,591.80)
                                                           Totals:    €115,316.48/      €130,859.47/
                                                                       £90,819.11       £103,060.21




26 March 2003                                          240
                                             Appendix 13



          OFFICE                     COUNTY                 HEAD
                                                            OFFICE

    1     Ballon, Co Carlow          Carlow        Carlow
    2     Ballylinan, Co Carlow      Carlow        Carlow
    3     Crettyyard, Co Carlow      Carlow        Carlow
    4     Leighlinbridge, Carlow     Carlow        Carlow
    5     Myshall, Carlow            Carlow        Carlow
    6     Rathvilly, Carlow          Carlow        Carlow
    7     Ballyhaise, Co Cavan       Cavan         Cavan
    8     Loch Gowna, Co Cavan       Cavan         Cavan
    9     Loughduff, Co Cavan        Cavan         Cavan
   10     Stradone, Co Cavan         Cavan         Cavan
   11     Swanlinbar, Belturbet      Cavan         Cavan
   12     Ballynacally, Co Clare     Clare         Ennis
   13     Carrigaholt, Co Clare      Clare         Ennis
   14     Cooraclare, Co Clare       Clare         Ennis
   15     Cree, Kilrush              Clare         Ennis
   16     Doolin, Co Clare           Clare         Ennis
   17     Doonbeg, Co Clare          Clare         Ennis
   18     Kilfenora, Ennis           Clare         Ennis
   19     Kilkishen, Co Clare        Clare         Ennis
   20     Kilmurray Mc Mahon, Co     Clare         Ennis
          Clare
   21     Lissycasey, Co Clare       Clare         Ennis
   22     Milford, Kilmallock        Clare         Kilmallock
   23     Quin, Ennis                Clare         Ennis
   24     Tulla, Co Clare            Clare         Ennis
   25     Ardmore, Co Cork           Cork          Waterford
   26     Ballinacurra, Co Cork      Cork          Cork
   27     Ballineen, Co Cork         Cork          Bandon
   28     Ballinhassig, Co Cork      Cork          Cork
   29     Ballinspittle, Cork        Cork          Cork
   30     Ballycotton, Co Cork       Cork          Cork
   31     Ballydehob, Skibbereen     Cork          Skibbereen
   32     Ballydesmond, Mallow       Cork          Mallow
   33     Ballyduff, Co Cork         Cork          Mallow
   34     Banteer, Co Cork           Cork          Mallow
   35     Boherbue, Mallow           Cork          Mallow
   36     Carrignavar, Co Cork       Cork          Cork
   37     Carrigrohane, Co Cork      Cork          Cork
   38     Castlefreke, Co Cork       Cork          Bandon
   39     Castlelyons, Co Cork       Cork          Mallow
   40     Castlemartyr, Cork         Cork          Cork
   41     Castletownroche, Co Cork   Cork          Mallow
   42     Cloghroe, Cork             Cork          Cork
   43     Coachford, Co Cork         Cork          Cork
   44     Conna, Co Cork             Cork          Mallow
   45     Crookstown, Co Cork        Cork          Cork
   46     Crosshaven, Co Cork        Cork          Cork
   47     Donoughmore, Co Cork       Cork          Cork
   48     Drinagh, Cork              Cork          Bandon
   49     Dromina, Co Cork           Cork          Kilmallock
   50     Durrus, Co Cork            Cork          Bantry
   51     Enniskean, Cork            Cork          Bandon
   52     Eyries, Co Cork            Cork          Cork
   53     Farran, Co Cork            Cork          Cork
26 March 2003                                241
    54     Glounthaune, Cork            Cork       Cork
    55     Inchigeelagh, Co Cork        Cork       Cork
    56     Innishannon, Co Cork         Cork       Cork
    57     Kealkill, Co Cork            Cork       Bantry
    58     Kilbehenny, Co Cork          Cork       Mallow
    59     Kildorrery, Mallow           Cork       Mallow
    60     Killeagh, Co Cork            Cork       Cork
    61     Kilworth, Co Cork            Cork       Mallow
    62     Kiskeam, Co Cork             Cork       Mallow
    63     Leap, Co Cork                Cork       Skibbereen
    64     Liscarroll, Mallow           Cork       Mallow
    65     Lislevane, Co Cork           Cork       Bandon
    66     Rathcormack,Co Cork          Cork       Mallow
    67     Ringaskiddy, Cork            Cork       Cork
    68     Rockchapel, Co Cork          Cork       Tralee
    69     Rosscarbery, Cork            Cork       Bandon
    70     Timoleague, Cork             Cork       Bandon
    71     Union Hall, Co Cork          Cork       Skibbereen
    72     Upper Aghada, Co Cork        Cork       Cork
    73     Watergrasshill, Cork         Cork       Cork
    74     Whitegate, Cork              Cork       Cork
    75     Arranmore, Co Donegal        Donegal    Letterkenny
    76     Ballintra, Donegal           Donegal    Donegal
    77     Ballyherrin, Donegal         Donegal    Letterkenny
    78     Ballylar, Co Donegal         Donegal    Letterkenny
    79     Ballyliffin, Lifford         Donegal    Lifford
    80     Bridgend, Lifford            Donegal    Lifford
    81     Brinlack, Letterkenny        Donegal    Letterkenny
    82     Bruckless, Co Donegal        Donegal    Donegal
    83     Bunbeg, Letterkenny          Donegal    Letterkenny
    84     Burnfoot, Lifford            Donegal    Lifford
    85     Burtonport, Letterkenny      Donegal    Letterkenny
    86     Carrick, Co Donegal          Donegal    Donegal
    87     Carrigans, Lifford           Donegal    Lifford
    88     Churchill, Co Donegal        Donegal    Letterkenny
    89     Cloghan, Lifford             Donegal    Lifford
    90     Crolly, Co Donegal           Donegal    Letterkenny
    91     Culdaff, Co Donegal          Donegal    Lifford
    92     Culkeeny, Lifford            Donegal    Lifford
    93     Downings, Letterkenny        Donegal    Letterkenny
    94     Dunfanaghy, Letterkenny      Donegal    Letterkenny
    95     Dunkineely, Co Donegal       Donegal    Donegal
    96     Frosses, Co Donegal          Donegal    Donegal
    97     Glencolumcille, Co Donegal   Donegal    Donegal
    98     Greencastle, Lifford         Donegal    Lifford
    99     Inver, Co Donegal            Donegal    Donegal
   100     Kerrykeel, Letterkenny       Donegal    Letterkenny
   101     Killygordon, Co Donegal      Donegal    Lifford
   102     Kincasslagh, Co Donegal      Donegal    Letterkenny
   103     Kindrum, Co Donegal          Donegal    Letterkenny
   104     Lettermacward, Co Donegal    Donegal    Donegal
   105     Malin Head, Lifford          Donegal    Lifford
   106     Malin, Lifford               Donegal    Lifford
   107     Manorcunningham, Co          Donegal    Letterkenny
           Donegal
   108     Pettigo, Co Donegal          Donegal    Donegal
   109     Quigleys Point, Lifford      Donegal    Lifford
   110     Rathmullan, Letterkenny      Donegal    Letterkenny
   111     Speenogue, Lifford           Donegal    Lifford
   112     The Cross, Co Donegal        Donegal    Lifford
   113     Garristown, Co Dublin        Dublin     GPO
   114     Rush, Co Dublin              Dublin     GPO
   115     St. Margarets, Co Dublin     Dublin     GPO
   116     Abbeyknockmoy, Co Galway     Galway     Tuam
   117     Ardrahan, Galway             Galway     Galway
26 March 2003                                242
   118     Ballyconneely, Galway         Galway      Galway
   119     Ballyglunin, Tuam             Galway      Tuam
   120     Ballynahowen, Galway          Galway      Galway
   121     Ballyvaughan, Galway          Galway      Galway
   122     Barna, Galway                 Galway      Galway
   123     Barnaderg, Tuam               Galway      Tuam
   124     Clarinbridge, Galway          Galway      Galway
   125     Cleggan, Galway               Galway      Galway
   126     Corrandulla, Galway           Galway      Galway
   127     Costelloe, Galway             Galway      Galway
   128     Craughwell, Galway            Galway      Galway
   129     Eyrecourt, Ballinasloe        Galway      Ballinasloe
   130     Inverin, Galway               Galway      Galway
   131     Kilcolgan, Galway             Galway      Galway
   132     Kilconnell, Ballinasloe       Galway      Ballinasloe
   133     Kilkerrin, Ballinasloe        Galway      Ballinasloe
   134     Kilkieran, Galway             Galway      Galway
   135     Killimor, Ballinasloe         Galway      Ballinasloe
   136     Kiltormer, Ballinasloe        Galway      Ballinasloe
   137     Kinvara, Galway               Galway      Galway
   138     Kylebrack, Co Galway          Galway      Galway
   139     Leenane, Galway               Galway      Galway
   140     Letterfrack, Co Galway        Galway      Galway
   141     Menlough, Ballinasloe         Galway      Ballinasloe
   142     Milltown, Tuam                Galway      Tuam
   143     Monivea, Athenry              Galway      Galway
   144     New Inn, Co Galway            Galway      Ballinasloe
   145     Renvyle, Galway               Galway      Galway
   146     Rosmuck, Galway               Galway      Galway
   147     Roundstone, Galway            Galway      Galway
   148     Taughmaconnell, Ballinasloe   Galway      Ballinasloe
   149     Turloughmore, Athenry         Galway      Galway
   150     Woodford, Loughrea            Galway      Galway
   151     Abbeydorney, Tralee           Kerry       Tralee
   152     Annascaul, Co Kerry           Kerry       Tralee
   153     Asdee, Listowel               Kerry       Tralee
   154     Ballinskelligs, Co Kerry      Kerry       Killarney
   155     Ballydavid, Tralee            Kerry       Tralee
   156     Ballyferriter, Tralee         Kerry       Tralee
   157     Ballylongford, Listowel       Kerry       Tralee
   158     Ballymacelligott, Co Kerry    Kerry       Tralee
   159     Brosna, Co Kerry              Kerry       Tralee
   160     Caherdaniel, Co Kerry         Kerry       Killarney
   161     Castlemaine, Killarney        Kerry       Killarney
   162     Chapeltown, Co Kerry          Kerry       Killarney
   163     Farranfore, Killarney         Kerry       Killarney
   164     Fenit, Co Kerry               Kerry       Tralee
   165     Headford, Co Kerry            Kerry       Killarney
   166     Kilflynn, Co Kerry            Kerry       Tralee
   167     Kilgarvan, Co Kerry           Kerry       Killarney
   168     Knocknagoshel, Co Kerry       Kerry       Tralee
   169     Lispole, Tralee               Kerry       Tralee
   170     Lisselton, Co Kerry           Kerry       Tralee
   171     Milltown, Killarney           Kerry       Killarney
   172     Scartaglin, Co Kerry          Kerry       Killarney
   173     Tarbert, Co Kerry             Kerry       Tralee
   174     Ventry, Co Kerry              Kerry       Tralee
   175     Allenwood, Co Kildare         Kildare     Naas
   176     Ballytore, Athy               Kildare     Carlow
   177     Broadford, Co Kildare         Kildare     Naas
   178     Coill Dubh, Naas              Kildare     Naas
   179     Donadea, Co Kildare           Kildare     Naas
   180     Kilmeague, Naas               Kildare     Naas
   181     Moone, Co Kildare             Kildare     Carlow
   182     Robertstown, Naas             Kildare     Naas
26 March 2003                                  243
   183     Sallins, Naas                 Kildare     Naas
   184     Straffan, Naas                Kildare     Naas
   185     Bennetsbridge, Kilkenny       Kilkenny    Kilkenny
   186     Goresbridge, Kilkenny         Kilkenny    Kilkenny
   187     Inistioge, Co Kilkenny        Kilkenny    Kilkenny
   188     Ballacolla, Co Laois          Laois       Portlaoise
   189     Ballinakill, Portlaoise       Laois       Portlaoise
   190     Ballybrittas, Co Laois        Laois       Portlaoise
   191     Borris In Ossory, Co Laois    Laois       Portlaoise
   192     Arigna, Co Leitrim            Leitrim     Carrick On Shannon
   193     Cloone, Co Leitrim            Leitrim     Carrick On Shannon
   194     Dowra, Co Leitrim             Leitrim     Carrick On Shannon
   195     Drumkerrin, Co Leitrim        Leitrim     Carrick On Shannon
   196     Riverstown, Co Leitrim        Leitrim     Carrick On Shannon
   197     Roosky, Co Leitrim            Leitrim     Carrick On Shannon
   198     Ardagh, Co Limerick           Limerick    Limerick
   199     Ardnacrusha, Limerick         Limerick    Limerick
   200     Ballagh, Co Limerick          Limerick    Limerick
   201     Ballyagran, Co Limerick       Limerick    Kilmallock
   202     Ballylanders, Kilmallock      Limerick    Kilmallock
   203     Ballyneety, Co Limerick       Limerick    Limerick
   204     Broadford, Co Limerick        Limerick    Limerick
   205     Crecora, Co Limerick          Limerick    Limerick
   206     Feakle, Limerick              Limerick    Limerick
   207     Fedamore, Kilmallock          Limerick    Kilmallock
   208     Herbertstown, Kilmallock      Limerick    Kilmallock
   209     Kildimo, Co Limerick          Limerick    Limerick
   210     Knocklong, Kilmallock         Limerick    Kilmallock
   211     Mungret, Co Limerick          Limerick    Limerick
   212     Murroe, Co Limerick           Limerick    Limerick
   213     O' Briensbridge, Killaloe     Limerick    Limerick
   214     Old Pallas, Co Limerick       Limerick    Limerick
   215     Pallas Green, Limerick        Limerick    Limerick
   216     Pallaskenry, Limerick         Limerick    Limerick
   217     Shanagolden, Limerick         Limerick    Limerick
   218     Templeglantine, Co Limerick   Limerick    Limerick
   219     Tournafulla, Co Limerick      Limerick    Limerick
   220     Whitegate, Limerick           Limerick    Limerick
   221     Aughnacliffe, Longford        Longford    Longford
   222     Ballinalee, Longford          Longford    Longford
   223     Kenagh, Co Longford           Longford    Longford
   224     Newtownforbes, Co Longford    Longford    Longford
   225     Carlingford, Dundalk          Louth       Dundalk
   226     Collon, Co Louth              Louth       Drogheda
   227     Dromiskin, Co Louth           Louth       Dundalk
   228     Greenore, Dundalk             Louth       Dundalk
   229     Inniskeen, Co Louth           Louth       Dundalk
   230     Jenkinstown, Co Louth         Louth       Dundalk
   231     Julianstown, Co Louth         Louth       Drogheda
   232     Laytown, Drogheda             Louth       Drogheda
   233     Louth, Dundalk                Louth       Dundalk
   234     Omeath, Co Louth              Louth       Dundalk
   235     Riverstown, Dundalk           Louth       Dundalk
   236     Termonfeckin, Co Louth        Louth       Drogheda
   237     Ballindine, Claremorris       Mayo        Claremorris
   238     Ballycastle, Ballina          Mayo        Ballina
   239     Ballycroy, Westport           Mayo        Westport
   240     Ballyglass, Co Mayo           Mayo        Claremorris
   241     Ballyvary, Co Mayo            Mayo        Castlebar
   242     Barnatra, Mayo                Mayo        Ballina
   243     Belcarra, Co Mayo             Mayo        Castlebar
   244     Binghamstown, Co Mayo         Mayo        Ballina
   245     Bofeenaun, Ballina            Mayo        Ballina
   246     Bonniconlon, Mayo             Mayo        Ballina
   247     Bunnacurry, Westport          Mayo        Westport
26 March 2003                                  244
   248     Bunnahowen, Co Mayo         Mayo        Ballina
   249     Carrowmore/Lacken, Mayo     Mayo        Ballina
   250     Carrowteigue, Mayo          Mayo        Ballina
   251     Clonbur, Co Mayo            Mayo        Claremorris
   252     Cloonfad, Ballyhaunis       Mayo        Castlerea
   253     Cong, Claremorris           Mayo        Claremorris
   254     Cornamona, Co Mayo          Mayo        Claremorris
   255     Culleens, Ballina           Mayo        Ballina
   256     Doohoma, Mayo               Mayo        Ballina
   257     Dromore West, Ballina       Mayo        Ballina
   258     Easkey, Ballina             Mayo        Ballina
   259     Geesala, Mayo               Mayo        Ballina
   260     Glenamoy, Co Mayo           Mayo        Ballina
   261     Hollymount, Claremorris     Mayo        Claremorris
   262     Keel, Westport              Mayo        Westport
   263     Killadoon, Co Mayo          Mayo        Westport
   264     Killavally, Westport        Mayo        Westport
   265     Kilmaine, Claremorris       Mayo        Claremorris
   266     Lahardane, Mayo             Mayo        Ballina
   267     Louisburg, Westport         Mayo        Westport
   268     Mulraney, Co Mayo           Mayo        Westport
   269     Pulathomas, Co Mayo         Mayo        Ballina
   270     Rathlee, Ballina            Mayo        Ballina
   271     Rossport, Co Mayo           Mayo        Ballina
   272     Tourmakeady, Co Mayo        Mayo        Claremorris
   273     Ballivor, Co Meath          Meath       Navan
   274     Balrath, Navan              Meath       Navan
   275     Bellewstown, Co Meath       Meath       Drogheda
   276     Blackcastle, Navan          Meath       Navan
   277     Clonee, Co Meath            Meath       GPO
   278     Clonmellon, Navan           Meath       Navan
   279     Drumconrath, Navan          Meath       Navan
   280     Drumree, Co Meath           Meath       GPO
   281     Dunboyne, Co Meath          Meath       GPO
   282     Dunsaney, Co Meath          Meath       Navan
   283     Kilmessan, Meath            Meath       Navan
   284     Lobinstown, Co Meath        Meath       Navan
   285     Longwood, Enfield           Meath       Mullingar
   286     Moynalty, Co Meath          Meath       Kells
   287     Mullagh, Kells              Meath       Kells
   288     Nobber, Co Meath            Meath       Kells
   289     Rathmolyon, Enfield         Meath       Mullingar
   290     Stamullen, Co Meath         Meath       GPO
   291     Tara, Navan                 Meath       Navan
   292     Clontibrett, Monaghan       Monaghan    Monaghan
   293     Newbliss, Monaghan          Monaghan    Monaghan
   294     Scotstown, Monaghan         Monaghan    Monaghan
   295     Smithboro, Monaghan         Monaghan    Monaghan
   296     Ballycumber, Co Offaly      Offaly      Tullamore
   297     Belmont, Co Offaly          Offaly      Birr
   298     Cloghan, Birr               Offaly      Birr
   299     Clonbulloge, Co Offaly      Offaly      Tullamore
   300     Geashill, Co Offaly         Offaly      Tullamore
   301     Killeigh, Co Offaly         Offaly      Tullamore
   302     Kinnitty, Co Offaly         Offaly      Birr
   303     Moneygall, Birr             Offaly      Birr
   304     Pollagh, Co Offaly          Offaly      Tullamore
   305     Rhode, Offaly               Offaly      Tullamore
   306     Shinrone, Birr              Offaly      Birr
   307     Athleague, Co Roscommon     Roscommon   Roscommon
   308     Ballinagare, Co Roscommon   Roscommon   Castlerea
   309     Ballintubber, Castlerea     Roscommon   Castlerea
   310     Ballymoe, Castlerea         Roscommon   Castlerea
   311     Creggs, Co Roscommon        Roscommon   Roscommon
   312     Frenchpark, Castlerea       Roscommon   Castlerea
26 March 2003                              245
   313     Knockcroghery, Co            Roscommon Roscommon
           Roscommon
   314     Tynagh, Loughrea             Roscommon    Galway
   315     Williamstown, Castlerea      Roscommon    Castlerea
   316     Aclare, Ballymote            Sligo        Sligo
   317     Ballinfull, Sligo            Sligo        Sligo
   318     Ballintogher, Co Sligo       Sligo        Sligo
   319     Ballisodare, Sligo           Sligo        Sligo
   320     Cliffony, Sligo              Sligo        Sligo
   321     Dromahair, Co Sligo          Sligo        Sligo
   322     Dromard, Co Sligo            Sligo        Sligo
   323     Grange, Sligo                Sligo        Sligo
   324     Kinlough, Sligo              Sligo        Sligo
   325     Ballinamult, Co Tipperary    Tipperary    Clonmel
   326     Ballingarry, Thurles         Tipperary    Thurles
   327     Ballymacarberry, Clonmel     Tipperary    Clonmel
   328     Ballyporeen, Tipperary       Tipperary    Clonmel
   329     Bansha, Tipperary            Tipperary    Tipperary
   330     Cloughjordan, Co Tipperary   Tipperary    Birr
   331     Dundrum, Co Tipperary        Tipperary    Tipperary
   332     Emly, Tipperary              Tipperary    Tipperary
   333     Galbally, Co Tipperary       Tipperary    Tipperary
   334     Golden, Tipperary            Tipperary    Tipperary
   335     Gurtnahoe, Thurles           Tipperary    Thurles
   336     Holycross, Co Tipperary      Tipperary    Thurles
   337     Kilsheelan, Tipperary        Tipperary    Clonmel
   338     Oola, Co Tipperary           Tipperary    Tipperary
   339     Templetuohy, Thurles         Tipperary    Thurles
   340     Toomevara, Co Tipperary      Tipperary    Nenagh
   341     Glenmore, Co Waterford       Waterford    Waterford
   342     Kill, Co Waterford           Waterford    Naas
   343     Kilmacow, Waterford          Waterford    Waterford
   344     Lemybrien, Co Waterford      Waterford    Waterford
   345     Mullinavat, Co Waterford     Waterford    Waterford
   346     Passage East, Co Waterford   Waterford    Waterford
   347     Rathgormack, Co Waterford    Waterford    Waterford
   348     Ring, Co Waterford           Waterford    Waterford
   349     Ballinahowen, Athlone        Westmeath    Athlone
   350     Ballymore, Co Westmeath      Westmeath    Mullingar
   351     Castletowngeoghegan,         Westmeath    Mullingar
           Mullingar
   352     Collinstown, Co Westmeath    Westmeath    Mullingar
   353     Glasson, Athlone             Westmeath    Athlone
   354     Rathowen, Co Westmeath       Westmeath    Mullingar
   355     Shannonbridge,Co             Westmeath    Athlone
           Westmeath
   356     Streamstown, Co Westmeath    Westmeath    Mullingar
   357     Ballynacargy, Mullingar      Westtmeath   Mullingar
   358     Ballycullane, Co Wexford     Wexford      Waterford
   359     Ballywilliam, Co Wexford     Wexford      Enniscorthy
   360     Bannow, Wexford              Wexford      Wexford
   361     Blackwater, Enniscorthy      Wexford      Enniscorthy
   362     Bree, Co Wexford             Wexford      Enniscorthy
   363     Broadway, Wexford            Wexford      Wexford
   364     Camolin, Co Wexford          Wexford      Enniscorthy
   365     Castlebridge, Co Wexford     Wexford      Wexford
   366     Curracloe, Co Wexford        Wexford      Enniscorthy
   367     Duncannon, Co Wexford        Wexford      Waterford
   368     Duncormick, Wexford          Wexford      Wexford
   369     Foulksmills, Co Wexford      Wexford      Wexford
   370     Kilmore Quay, Co Wexford     Wexford      Wexford
   371     Kilmuckridge, Co Wexford     Wexford      Gorey
   372     Newbawn, Co Wexford          Wexford      Wexford
   373     Oulart, Co Wexford           Wexford      Gorey
   374     Oylegate, Co Wexford         Wexford      Enniscorthy
26 March 2003                                246
   375    Ramsgrange, Co Wexford          Wexford     Waterford
   376    Rathnure, Co Wexford            Wexford     Enniscorthy
   377    Rosslare, Wexford               Wexford     Wexford
   378    Wellington Bridge, Wexford      Wexford     Wexford
   379    Donard, Co Wicklow              Wicklow     Naas
   380    Glendalough, Bray               Wicklow     Bray
   381    Glenealy, Co Wicklow            Wicklow     Wicklow
   382    Kiltegan, Co Wicklow            Wicklow     Naas
   383    Shillelagh, Arklow              Wicklow     Gorey
   384    Ballymore Eustace, Co Kildare   Kildare     Naas
   385    Knockmore, Co Mayo              Mayo        Ballina
   386    Bettystown. Co Louth            Louth       Drogheda
   387    Clogherhead, Co Louth           Louth       Drogheda
   388    Kilmacanogue, Co Wicklow        Wicklow     Bray
   389    Lisnagry, Co Limerick           Limerick    Limerick
   390    Patrickswell, Co Limerick       Limerick    Limerick
   391    Ravensdale, Co Louth            Louth       Dundalk
   392    Cloyne, Co Cork                 Cork        Cork
   393    Cummer, Tuam, Co Galway         Galway      Tuam
   394    Kilmacrennan, Co Donegal        Donegal     Letterkenny
   395    Ballinlough, Co Roscommon       Roscommon   Castlerea
   396    Beaufort, Co Kerry              Kerry       Killarney
   397    Loughglynn, Co Roscommon        Roscommon   Castlerea
   398    Tyrellspass, Co Westmeath       Westmeath   Mullingar
   399    Clarecastle, Co Clare           Clare       Ennis
   400    Foynes, Co Limerick             Limerick    Limerick
                        400




26 March 2003                                 247
                                  Appendix 14: E-Commerce Project Impact Data



                                           Compliance with
   Company                                                            User/               Socio-Economic Benefits                       Industrial
                          Output              Project
                                                                 Customer Benefits                                              Implications/Opportunities
                                             Objectives
                                                                Provides a solution to                                                Anshe has developed
                       Internet Based         This project                                The Internet based software will
                                                                link the e-commerce                                                software using JAVA and
                     shipping suite for      complied with                                allow SMEs that use the postal
                                                                sales aspect with the                                               XML, demonstrating the
Anshe/ An Post        SME‟s based on       project objectives                               service to access a range of
                                                                 tracking and tracing                                             effectiveness of XML with
                     An Post shipping       as set out in the                             shipping services, regardless of
                                                                    of the physical                                               respect to integrating other
                          services.        Call for Proposals                                         location.
                                                                        product.                                                            systems
                                                                 An electronic Client     Allows organisations to establish        Aspect demonstrated that
                                                                   File Management         an on-line relationship with its          software components
                                              This project
                                                                    system for the             customer without major            available today could enable
                                             complied with
Aspect Software      Internet based bill                             Banking and            infrastructure re-investment,         the Banking and Insurance
                                           project objectives
International Ltd.      presentment.                              Insurance industry      thus extending the life of legacy     industry to effectively engage
                                            as set out in the
                                                                                              systems and reducing the          with their partners and clients,
                                           Call for Proposals
                                                                                              importance of geographic               electronically over the
                                                                                                       location.                            Internet
                                                                    A step closer to
                                              This project                                This solution will accelerate the         The area of electronic
                                                                   secure electronic
Comit Gruppe         E*Laser electronic      complied with                                 acceptance of e-Commerce in          payment is one where a lot of
                                                                   payment over the
and Macalla              debit card        project objectives                                Ireland, since it provides a           developments is still
                                                                  Internet for SMEs,
Software              payment system.       as set out in the                             solution for a crucial aspect of e-   underway, this project helped
                                                                 financial institutions
                                           Call for Proposals                                         commerce                     accelerate this process.
                                                                    and consumers.
                                                                   E-Credit provides
                                                                significant benefits to
                                                                the credit unions and
                        Credit union          This project                                                                      This project is an example of
                                                                  their customers by        E-Credit technology allows
                        services via         complied with                                                                        e-Commerce conversion,
                                                                     allowing 24*7          credit unions to broaden the
CR2 Ltd.                Internet and       project objectives                                                                   which is integrating the entire
                                                                   remote access to       scope of their service offerings,
                      Internet-enabled      as set out in the                                                                    business process chain of a
                                                                 account information           regardless of location.
                       mobile phones.      Call for Proposals                                                                            credit union
                                                                at a very competitive
                                                                    cost using WAP
                                                                       technology.
                       Internet based                           The technical support      Extended global market reach,
                     Technical Support                                area web site       streamlined operations and costs,
                                              This project
                                                                  improves customer             created new business            The successful and beneficial
                                             complied with
                                                                     relationships.        opportunities, improved market          use of XML, allowing
Creative Lab Ltd.                          project objectives
                                                                                               efficiencies, enhanced           customers to enter queries in
                                            as set out in the
                                                                                           competition and reduced prices        everyday natural language.
                                           Call for Proposals
                                                                                              while increasing customer
                                                                                                     convenience.
                                                                   . Primary services
                                                                include the hosting of
                                                                     client corporate
                                                                     records and the
                                                                    production of the
                                              This project
                      E-sec corporate                             necessary corporate                                           It is a fully distributed, web
Datacare                                     complied with                                  Situated in Monaghan, this
                         secretarial                             legal forms, required                                          hosted, thin client, corporate
Software Group                             project objectives                               development is a significant
                          software                                      for filing in                                                secretarial software
Ltd.                                        as set out in the                                    boost to the area.
                       infrastructure                               compliance with                                                      infrastructure
                                           Call for Proposals
                                                                     local corporate
                                                                 legislation. Benefits
                                                                to users include 24*7
                                                                    availability, low
                                                                     granular costs.
                         Centre of                                Providing practical
                      excellence for e-                                 and applied
                        Commerce.                                 assistance available
                                                                        to SMEs in
                                                                  implementing their
                                                                                                                                 A mentoring structure has
                                              This project           own eBusiness
                                                                                                                                 been established that helps
                                             complied with          solutions; it is an   Ebusiness Support Centre makes
Deloitte &                                                                                                                       established as well as new
                                           project objectives    excellent example of       its services available free of
Touche / UCD                                                                                                                    businesses to acquiring the e-
                                            as set out in the         sharing on e-         charge to SME nationwide.
                                                                                                                                Commerce skill necessary for
                                           Call for Proposals           Commerce
                                                                                                                                  commercial operations.
                                                                     knowledge and
                                                                       information.




26 March 2003                                                       248
                                                                      Provides a
                                           This project            standardised e-        Enhancing the capabilities of
                                          complied with               commerce            online trading, the solution is        This project fulfilled the
EDI Factory Ltd
                    On-Line Trader      project objectives   transaction server for     now available to SMEs who lack         requirement to enhance the
(now Celebrity)
                                         as set out in the       companies doing         sufficient resources to develop      capabilities of online trading.
                                        Call for Proposals       business over the             their own software.
                                                                       Internet.
                   Portal website on                            This web-enabled
                       Network                               extra net would allow
                     Management                                    the company‟s
                                                                                                                                The project delivered a
                                           This project      customers to access a
                                                                                        An interactive e-commerce site         working prototype that has
                                          complied with        virtual showcase of
Fore Systems                                                                             targeting pre- and post-sales           the potential seamless
                                        project objectives     its products in their
(now Marconi)                                                                           support functions at a national         interaction with the end
                                         as set out in the   own time, gaining as
                                                                                                     level.                       customer through e-
                                        Call for Proposals        much value at a
                                                                                                                                       commerce.
                                                                minimal cost as if
                                                               they were attending
                                                             an actual trade show.
                     Internet-based                              Improved, value-
                   Infrastructure for                        added information to
                   Irish independent                           suppliers, real time
                                                                                            Located outside the greater       Designed to cater for the meat
                   vegetable growers       This project         sales information,
                                                                                         Dublin area, funding attributed      industry, this project finds its
                        industry.         complied with       account information
Halcyon Systems                                                                          to this project reduced the time     application in any part of the
                                        project objectives      available 24 hours
Ltd.                                                                                      to market for this product and      agriculture section, a section
                                         as set out in the      and a flexible and
                                                                                        helped develop a company in the       often considered deficit in IT
                                        Call for Proposals       scalable solution
                                                                                          more remote areas of Ireland.               developments
                                                                 built on a proven
                                                                    technological
                                                                       platform.
                     e-Commerce                               The project allows a
                   enabled Customer                          single customer view                                                IBM software group has
                                                                                          The success of the project has
                     Relationship                                  across multiple                                            made a major change in their
                                           This project                                 resulted in a decision to invest in
                    Management for                              channels (e-mails,                                              approach to insurance IT
                                          complied with                                   further development work in
                       Industry                               contracts, letters and                                           business. The project could
IBM                                     project objectives                                Ireland. The investment will
                      Insurance.                                  proposals), thus                                            easily be extended beyond the
                                         as set out in the                                  result in an infrastructure
                                                                      integrating                                                   insurance industry.
                                        Call for Proposals                                product that will be marketed
                                                               information from a
                                                                                                     globally.
                                                                variety of sources
                                                                into a single view.
                    Integrated supply                            Icarus e-Com has
                   chain management                          developed a platform
                   process conversion                        that enables business      This development has benefited
                                           This project
                     to e-Commerce.                          transactions between            the indigenous freight              Icarus has successfully
                                          complied with
Icarus Marketing                                                    a world-class          forwarding community in             demonstrated the effective
                                        project objectives
Ltd.                                                          manufacturer and its         Ireland, which has grown             use of JAVA within the
                                         as set out in the
                                                                    community of          considerable in scale and in                supply chain.
                                        Call for Proposals
                                                                 vendors, logistics        range of services offered.
                                                                partners and other
                                                                        SMEs.
                        Trading                              Purchasers get better
                      Community                              control, reduced costs
                     Hardware and          This project         and a streamlined           Funding from the EIOP
                                                                                                                              The development of a product
                       infobank           complied with           process. Sellers      accelerated the implementation
                                                                                                                                 that supports the entire
ICL Project 1        Development.       project objectives       increase revenue,      of the Trading Community and
                                                                                                                                purchasing process from
                                         as set out in the     improve processes,       helped make Ireland the hub for
                                                                                                                                requisition to fulfilment.
                                        Call for Proposals        reduce costs and      Trading Community in Europe.
                                                                 manage customer
                                                                    relationships.
                       Trading                               Cost savings deriving
                                                                                                                               EHub essentially comprises
                      Community                                      from (1) the
                                                                                                                                     infrastructure and
                   managed service,        This project              reduction in         The Irish base is intended to
                                                                                                                                applications, which can be
                   ICL development        complied with              procurement         serve a large part of Europe, as
                                                                                                                                   purchased and run by
ICL Project 2       and localisation    project objectives    administrative costs           an initial centre for pan-
                                                                                                                                  individual or groups of
                   and marketing &       as set out in the       and (2) the price      European business and a catalyst
                                                                                                                              enterprises or some part or all
                         sales          Call for Proposals          paid for items         for business transformation.
                                                                                                                               of which can be supplied by
                                                                    purchased are
                                                                                                                                ICL as a managed service
                                                                potentially lower.
                      Web-based                                   The deliverable,
                   Customer Support                           AnswerOne, takes a
                       Systems.                                 customer enquiry,
                                                                  relays it to a call
                                                              centre representative                                           The project provides excellent
                                           This project                                 Since Ireland has taken a leading
                                                                who can answer it                                               examples were voice and
                                          complied with                                  position in the operation of call
                                                               and relays the reply                                              internet technology are
IT Solutions                            project objectives                                    centres this project is
                                                                                                                                integrated and provide a
                                         as set out in the        to the customer,         particularly beneficial for
                                                                                                                                  complete solution for
                                        Call for Proposals    together with a link             indigenous industry.
                                                                                                                                    customer queries.
                                                              to the web page they
                                                                were on when they
                                                               posed the question.


26 March 2003                                                    249
                e-Commerce craft                              The portal gives        The crafts database will create
                                         This project
Kilkenny            studio and                                Internet users a        opportunities for businesses in         The benefits to crafts
                                        complied with
                 database of Irish                          selection of options     the craft sector to promote their    enterprises include savings on
Information        crafts/design
                                      project objectives
                                                               to query craft         businesses worldwide without          software development and
Age Ltd.                               as set out in the
                    companies.                                 enterprise and            incurring the associated                   hardware.
                                      Call for Proposals
                                                           product information.            infrastructure costs.
                      Events                                  Making content
                   Information           This project         meaningful and
                                                                                     Using the wealth of quality Irish
                   management           complied with          valuable, and
                                                                                      content that is available and       Development of a system for
Local Ireland        System.          project objectives        reducing the
                                                                                      presenting it to the User in a         on-line reservations
                                       as set out in the    frustrating problem
                                                                                             meaningful way
                                      Call for Proposals       of information
                                                           overload for the user.
                 On-line sales of                                                                                              The EIOP funding has
                   children‟s            This project                                                                     demonstrated that companies
                                                                                      Enabling SMEs nationwide to
                 education toys.        complied with      Offer securely hosted                                              can transform their core
                                                                                       avail of top level Inter shop
Magic Lamp                            project objectives   eCommerce websites
                                                                                       technology at an affordable
                                                                                                                          activities from being an SME
                                       as set out in the      to other SMEs                                                   catalogue retailer to the
                                                                                                   price.
                                      Call for Proposals                                                                    provision of e-Commerce
                                                                                                                                  services to SMEs
                    e-Commerce                              Enabling customers                                              The traditional call centre,
                incubator network                            to access products                                              complete with call centre
                   of multimedia         This project        and services using                                            network and agents, evolves
                                                                                      The project assisted SMEs to
                      Customer          complied with        new access media                                                  to become a Customer
Nortel                                                                                optimise the development of
                interaction Centres   project objectives      such as the world                                             Interaction Centre. It is an
Networks                                                                              new technologies in the Call
                     for SME‟s.        as set out in the     wide web (www),                                                     example of Internet
                                                                                           Centre operation.
                                      Call for Proposals         public access                                               technology being used to
                                                           multimedia solutions                                           share knowledge and capture
                                                              and video kiosks.                                                      information.
                    Internet                                The collaboration of
                                                                                      Enterprise Java Beans, provide
                 Marketplace for                               a community of                                                This technology allows
                                         This project                                for all the standard functionality
                   Java beans                                buyers and sellers.                                          independent IT contractors to
                                        complied with                                  of applications software, but
                    software                                  The products and                                             enter in a new marketplace,
Orbism Ltd        components.
                                      project objectives
                                                            services on offer are
                                                                                          may be purchased and
                                                                                                                           which opens up significant
                                       as set out in the                             downloaded from the Internet in
                                                                  centred on                                               global opportunities with a
                                      Call for Proposals                             small units, therefore geographic
                                                            community, content                                                limited upfront cost.
                                                                                      location is not a disadvantage.
                                                               and commerce.
                   Web-based                                 Provide affordable
                    Contact                                products and services
                  Management.                              to enable SMEs with
                                                           common e-commerce
                                         This project      needs and individual                                            Piercom built a tailored web
                                        complied with       SMEs to avail of the                                            site for CVA and hosts the
                                                            benefits of a local e-   Regional community approach
Piercom                               project objectives
                                                                                     minimises individual SME cost.
                                                                                                                                contact management
                                       as set out in the          commerce                                                application supporting CVA‟s
                                      Call for Proposals          community                                                            needs.
                                                                infrastructure.




                 Web-based order
                                         This project      Enabling order intake      A sales channel on the Internet      Ventilux developed a web-
                processing system
                                        complied with       via the Internet and     this system reduces the costs for       based order processing
                 to integrate with
Ventilux Ltd.      computerised
                                      project objectives     processing of the        Irish companies located on the       system to integrate with an
                                       as set out in the    orders to the Back         periphery of trying to reach a        existing manufacturing
                  manufacturing
                                      Call for Proposals       Office system                   global market.                   system software
                      system.
                   e-Commerce                                                                                              A system like this enables a
                                         This project                                Because of this initiative a large
Viking            enabled supply                                                                                              company to compete
                                        complied with                                 percentage of the companies
                chain focussing on                          An improved value                                             aggressively and to provide a
Components          fulfilment.
                                      project objectives
                                                                 chain
                                                                                       business will be conducted
                                                                                                                            more efficient service for
Europe                                 as set out in the                             electronically thereby reducing
                                                                                                                           their customer by reducing
                                      Call for Proposals                                   geographic barriers.
                                                                                                                                 costs and delays.
                     e-Kiosk
                                                             Providing Internet
                  deployment in                                                         At the time of the project,
                                         This project          access to both
                 small towns and                                                     private Internet access was low      An novel business initiative,
                                        complied with           experienced
Circle              peripheral                                                       in Ireland, public access points      Circle Networks e-Kiosks
                                      project objectives    computer users and
Network            locations in                                                       such as those provided in this       brought the Internet to the
                                       as set out in the   those who have never
                    Kilkenny,                                                         project increased the internet           wider community.
                                      Call for Proposals      used a computer
                  Waterford and                                                                 population.
                                                                  before.
                    Wexford.
                On-line electronic       This project      Enabling customers
Working and        publishing.          complied with      to purchase on-line         This is a pre-emptive model,        The project reflects a new
Living                                project objectives   and select paper or         which threatens the existing        view to publish books and
Publications                           as set out in the    electronic format.            nature of publishing.              keep them up to date.
                                      Call for Proposals




26 March 2003                                                  250
                                             APPENDIX 15


                  Questionnaire for Verification of EIOP Measures


Verification Checks of Measures under the Economic Infrastructure
                      Operational Programme (EIOP), 1994-1999

   As part of the Closure Process for the Economic Infrastructure Operational Programme (EIOP), the EIOP
    Secretariat is overseeing verification checks of the individual Measures under the EIOP. The verification checks
    will be carried out in the Divisions of the Department that have responsibility, both as Measure Leaders and
    Measure Teams, for the different Measures under the EIOP. The checks will complement checks that have been
    carried already on EIOP Measure, by external consultants and external auditors.


   The verification checks now to be undertaken on the EIOP Measures relate to Article 3.1 (b) of EC Regulation
    2064/97; that Article refers specifically to the need to “… verify selectively, on the basis of risk analysis,
    expenditure declarations made at the various levels concerned”. The specific focus of this series of checks is on
    the Divisions themselves, having regard to their role as EIOP Measure Teams. The accompanying article of the
    Regulation, Article 3.3, gives guidance as to the controls that should be taken into account in the selection of
    projects for verification.


   This verification process will be carried out over the coming weeks, using the Verification Checks setout in the
    Questionnaire attached. The Verification is being carried out with the assistance of an EIOP Verification Group,
    that has been convened especially for this purpose from within the Department, and that will be making a report
    to the EIOP Secretariat. Members of the Group will liaise with individual EIOP Measures to facilitate
    completion of the questionnaire. The amount of time that needs to be spent by Divisions in completing the
    questionnaire will depend on the extent to which other independent verification has already been carried out on
    the different Measures.


   This Draft Questionnaire was discussed at the EIOP Workshop that took place on 4 th April 2002. It was also
    considered by the EIOP Verification Group at its meeting on 12th April 2002. This final version has taken into
    account the views of those who supplied comments and observations.


EIOP Secretariat
18th April 2002




26 March 2003                                           251
                                                       Verification Checks
                                                                fo r
                                       Economic Infrastructure Operational Programme




     This is a three-part questionnaire, which is to be completed in part by the Measure Leader and in part by a
     member of the EIOP Verification Group.
             Part A to be completed by the EIOP Measure Leader.
             Part B to be completed by the EIOP Measure Leader, in consultation
                       with a member of the EIOP Verification Group.
                 Part C to be completed by a member of the EIOP Verification Group,
                            once it is clear from the responses to Parts A and B that additional verification work is
                            required to be undertaken.

Separate verification replies to the questionnaire are required to be completed for each Measure under the Economic
                                         Infrastructure Operational Programme




PART A: Information on EIOP Individual Measures, as at the time of this Verification Check, to be completed by the
                                          EIOP Measure Leader



        A.1: SPECIFIC EIOP MEASURE:




        A.2: NAME OF MEASURE LEADER:




        A.3: NAME OF DIVISION RESPONSIBLE FOR MEASURE:




      A.4: NAMES OF MEASURE TEAM MEMBERS
            (in hierarchical order of reporting into Measure Leader):


      _______________________________________________________________________________________________
      _______________________________________________________________________________________________
      _______________________________________________________________________________________________
      _______________________________________________________________________________________________
      ___________________




      A.5: ARE THERE DEDICATED EIOP MEASURE FILES IN YOUR DIVISION FOR YOUR EIOP MEASURE ?

                  IF YES, PLEASE ATTACH A COPY OF THE FILE LIST


        26 March 2003                                          252
            IF NO, EXPLAIN HOW EIOP RECORD KEEPING IS ACHIEVED
                      (Attach explanations in separate Appendix if necessary)


  _______________________________________________________________________________________________
  _______________________________________________________________________________________________
  _______________________________________________________________________________________________
  ___________________________________




  A.6 TOTAL ELIGIBLE EXPENDITURE ALLOCATED FOR THIS EIOP MEASURE
         (Quote from latest European Commission Decision for EIOP, in euro)




  A.7 TOTAL ELIGIBLE EXPENDITURE INCURRED FOR THIS EIOP MEASURE (€)




  A.8: EU FUNDS‟ ALLOCATED TO THIS EIOP MEASURE
           (Quote from latest European Commission Decision for EIOP, in euro)




A.9: EU FUNDS‟ SPENT ON THIS EIOP MEASURE (€)




A.10: WHAT IMPLEMENTING BODIES/AGENCIES REPORT TO THE EIOP MEASURE LEADER (AND
      MEASURE TEAM), UNDER THE EIOP; WHAT ARE THE EU FUNDS ALLOCATED AND SPENT BY
      EACH SUCH IMPLEMENTING BODY ?


IMPLEMENTORS/       TOTAL ELIGIBLE      TOTAL ELIGIBLE         EU AMOUNT            EU AMOUNT
CONTACTS            EXPENDITURE         EXPENDITURE             ALLOCATED (€)         SPENT(€)
                         ALLOCATED (€)       SPEND ( €)
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
___
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
_____


A.11: IF THE “IMPLEMENTING BODIES/AGENCIES”, LISTED IN RESPONSE TO QUESTION A.9 ARE NOT
         THE “FINAL RECIPIENTS”, THEN LIST THE “FINAL RECIPIENTS”, INDICATING FOR EACH
         RECIPIENT AND FOR EACH PROJECT, THE FOLLOWING INFORMATION:

                   TOTAL ELIGIBLE EXPENDITURE ALLOCATED


    26 March 2003                                       253
                   TOTAL ELIGIBLE EXPENDITURE INCURRED

                   EU AMOUNT ALLOCATED

                   EU AMOUNT SPENT


                        (If list is extensive please attach responses in a separate Appendix)


IMPLEMENTORS/       TOTAL ELIGIBLE      TOTAL ELIGIBLE         EU AMOUNT            EU AMOUNT
CONTACTS            EXPENDITURE         EXPENDITURE             ALLOCATED (€)         SPENT(€)
                         ALLOCATED (€)       INCURRED ( €)
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
_______




                      SIGNED (EIOP Measure Leader):           __________________________________________



                      NAME (IN CAPITAL LETTERS)___________________________________



                      DATE:        _____________________________________________________




    26 March 2003                                       254
   PART B: Completed Verification Checks of EIOP



THIS SECTION TO BE COMPLETED BY THE EIOP MEASURE LEADER, IN CONSULTATION WITH A
                     MEMBER OF THE EIOP VERIFICATION GROUP.


        B.1: CAN YOU CONFIRM THAT VERIFICATION CHECKS, IN LINE WITH Article 3.1 (b) of EC
        Regulation 2064/97, WERE CARRIED OUT IN RELATION TO THIS EIOP MEASURE, AT THE
        DIFFERENT LEVELS ?

                 IF YES, MOVE ON TO ANSWER THE NEXT QUESTION, NUMBER B.2

                 IF NO, THEN ONLY ANSWER THIS PARTICULAR QUESTION FOR PART B

                       WHAT PLANS HAVE YOU TO ENSURE THAT VERIFICATION CHECKING, IN
                        LINE WITH Article 3.1 (b) of EC Regulation 2064/97 IS UNDERTAKEN, RIGHT
                        THOUGH THE WHOLE CHAIN OF THE EIOIP MEASURE, INCLUDING YOUR
                        OWN DIVISION?
 _______________________________________________________________________________________________
 _______________________________________________________________________________________________
 _______________________________________________________________________________________________
 _______________________________________________________________________________________________
 ______________________________________________________________________________________________



 B.2: DID THE VERIFICIATION CHECKS, IN LINE WITH Article 3.1 (b) of EC Regulation 2064/97, EXTEND
 RIGHT THROUGH THE WHOLE CHAIN OF EIOP MEASURE RESPONSIBILITY, INCLUDING YOUR OWN
 DIVISION ?

           IF YES, MOVE ON TO ANSWER THE NEXT QUESTION, NUMBER B.3

           IF NO, ANSWER THIS NEXT QUESTION BEFORE MOVING ON TO THE NEXT QUESTION IN
            SECTION B

                       WHAT PLANS HAVE YOU TO ENSURE THAT VERIFICATION, IN LINE WITH
                        Article 3.1 (b) of EC Regulation 2064/97, IS UNDERTAKEN FOR THE EIOP WORK
                        OF YOUR OWN DIVISION?
 _______________________________________________________________________________________________
 _______________________________________________________________________________________________
 _______________________________________________________________________________________________
 _______________________________________________________________________________________________
  26 March 2003                                      255
_______________________-
_____________________________________________________________________________


B.3 WHO PERFORMED THE COMPLETED VERIFICATION CHECKS?


                     DEPARTMENT‟S INTERNAL AUDIT UNIT              _______________

                CONSULTANTS                   _________________________________

                OTHER      _____________________________________________




B.4: WHAT PERCENTAGE OF THE EIOP MEASURE FOR WHICH YOU ARE
        RESPONSIBLE HAS BEEN CHECKED?




                                       Percentage Checked ? ______________________




B.5 HAS YOUR DIVISION A COPY OF THE VERIFICATION REPORT PREPARED IN
    RESPECT OF THE CHECKS PERFORMED ON YOUR MEASURE?


           IF YES, PLEASE ATTACH A COPY OF THE FINAL VERIFICATION REPORT AND ANY
            UNDERPINNING REPORTS SETTING-OUT THE METHODOLOGY AND PROCEDURES FOR THE
            VERIFICATION CHECKS UNDERTAKEN

 (list the documents attached in the response to this question)


                     IF NO, PLEASE
                 1.   INDICATE HOW THE RESULTS OF THE CHECKS WERE UNDERTAKEN, DOCUMENTED
                 2.   WHAT WAS THE METHODOLOGY ADOPTED AND THE PROCEDURES USED ?
                 3.   SUPPLY COPIES OF ANY RELEVANT DOCUMENTATION FILED IN THE DIVISION


        _________________________________________________________________________________________
        _________________________________________________________________________________________
        _________________________________________________________________________________________
        _________________________________________________________________________________________
        _________________________________________________________________________________________
        _____


B.6: HAS FOLLOW-UP ACTION (IF ANY HAS BEEN IDENTIFIED IN THE VERIFICATION REPORT), BEEN
      UNDERTAKEN BY THE MEASURE LEADER?


               IF YES, PLEASE SUPPPLY DOCUMENTED EVIDENCE OF FOLLOW-UP


      IF NO, PLEASE INDICATE WHEN FOLLOW-UP ACTION WILL BE COMPLETED
 26 March 2003                          256
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
___________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
__
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_____




                    SIGNED (EIOP MEASURE LEADER):
                 _____________________________________



                   NAME IN CAPITAL LETTERS_____________________________



                   DATE:       _____________________________________________



                       Part B completed in consultation with the following Member

                       of the EIOP Verification Group:_______________________

                             PART C: Planned Verification Checks of EIOP Measures




    THIS SECTION TO BE COMPLETED BY A MEMBER OF EIOP VERIFICATION GROUP.
 IT FOCUSSES ON MEASURES STILL REQUIRING “VERIFICATION” WITHIN DIVISIONS, IN THE
                  CONTEXT OF DIVISIONS’ROLE IN VERIFICATION PROCESS




        C.1: HAS THE EIOP MEASURE NOW BEEN “VERIFIED” FOR THE DIVISION RESPONSIBLE FOR
        THIS EIOP MEASURE ?




        C.2: ON WHAT BASIS WERE PROJECTS SELECTED FOR VERIFICATION WITHIN THE
        DIVISION RESPONSIBLE FOR THE EIOP MEASURE ?



 26 March 2003                                    257
C.3: WAS A RISK ASSESSMENT USED IN THE SELECTION OF PROJECTS FOR
     VERIFICATION WITHIN THE DIVISION RESPONSIBLE FOR THE EIOP MEASURE ?




C.4: DID THE VERIFICATION CHECKS COVER THE ENTIRE PERIOD OF THE EIOP
     PROGRAMME, FROM 1994 THROUGH 2001, WITHIN THE DIVISION RESPONSIBLE
     FOR THE EIOP MEASURE?



         IF NO, WHAT YEARS WERE CHECKED?


         IF YES, HOW DID YOU ENSURE THAT ALL YEARS WERE CHECKED?




      C.5 HOW DID YOU ENSURE THAT A REPRESENTATIVE SAMPLE OF PROJECTS WERE
      CHECKED, WITHIN THE DIVISION RESPONSIBLE FOR THE EIOP MEASURE?




C.6 WERE ANY PROJECTS WITHIN THE MEASURE, WHICH YOU CHECKED IDENTIFIED AS A
      PROJECT OF A HIGH-RISK NATURE?


         IF YES, PLEASE SPECIFY.




C.7: WERE ALL EXPENDITURE ITEMS WITHIN A PARTICULAR PROJECT CHECKED?


         YES?



         IF NO, HOW WAS THE SAMPLE CHECKED SELECTED?

      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      _____________________



      C. 8: WAS A REPORT PREPARED IN RESPECT OF EACH OF THE VERIFICATION CHECKS
      PERFORMED WITHIN THE DIVISION RESPONSIBLE FOR THE EIOP MEASURE?


         IF YES, PLEASE ATTACH A COPY OF THE REPORT


         IF NO, PLEASE INDICATE HOW THE RESULTS OF THE CHECKS WERE DOCUMENTED



26 March 2003                              258
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ________




C.9: HAVE ANY FOLLOW-UP ACTIONS BEEN IDENTIFIED BY THE VERIFICATION CHECKS THAT
      REQUIRE ACTION BY THE DIVISION RESPONSIBLE FOR THE EIOP MEASURE?


           IF YES, IS THERE A TIMEABLE FOR COMPLETION OF THIS WORK?

      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      _____________________




          C.10: WHAT WAS THE PROCEDURES ADOPTED FOR ADDRESSING DISCREPANCIES/
          IRREGULARITIES, WHICH WERE ENCOUNTERED DURING THE VERIFICATION CHECKS?




          C.11: PLEASE SETOUT ANY ADDITIONAL INFORMATION, WHICH MAY BE RELEVANT IN
          RELATION TO VERIFICATION, CARRIED OUT FOR THIS EIOP MEASURE.

      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      ______________________________________________________________________________________
      _____________________




                SIGNED (EIOP VERIFICATION GROUP):        _______________________________


                NAME IN CAPITAL LETTERS:_____________________________________


                DATE:               ___________________________________________




26 March 2003                                259
                Appendix 16: List of Audits and Verification Checks by Measure

Peat Generation:
Helm Consultants: September 2001
Andersen Consulting, May 2002

Energy Efficiency:

Internal Audit (National Authority‟s Annual Audit Plan): May 2002

Integrated Engineering Consultancy, May 2001

Renewable Energy:

Irish Management Energy Ltd, November 2001

Cutaway Bogs:

PricewaterhouseCoopers, 1998-1999

Andersen Consulting, May 2002

Internal Audit (National Authority‟s Audit Plan), July 1999

Rural Networks:

KPMG, May 2000

KPMG, August 2002

Internal Audit, May 2001

Telecommunications:

PricewaterhouseCoopers, August/December 1999

PricewaterhouseCoopers, December 2001

Helm Consultants, October 2002

Internal Audit (National Authority’s Audit Plan).

Postal Measure:

KPMG, December 1999

Chapman, Flood Mazars, June 2002

Broadband:

Verification Check (Ernest and Young): 16 full reports on a claim by claim basis


26 March 2003                                 260
E-Commerce:

Verification Check (BCW Consultancy): June 2002

Internal Audit (National Authority‟s Audit Plan): Review of EIOP Systems Audit conducted by the
Internal Audit Unit, Department of Transport, by the Internal Audit Unit of the Department of
Communications, Marine and Natural Resources, November 2002.

Technical Assistance:

Internal Audit, September 2002

IS Awareness:

Becker, Cresswell and Watters (BCW), March 2002

Audit of EIOP

Helm Consultants: Audit of closure of Economic Infrastructure Operational Programme, October
2002

ERDF Financial Control Unit

Control Check Report, August 2000

European Commission DG Financial Control

Report of on-the-spot check of OP Economic Infrastructure Ireland, May-June 2000




26 March 2003                               261
                               Appendix 17: Schedule of Irregularity Reports
     Yr/Qtr           Sub-               Measure           Amount *       Follow up     Systemic   Reported   Further    Company
                      Programme                                           Action **     Error      under      Action
                                                                                                   Reg        required
                                                                                                   1681/94
     980715           Energy             Peat Gen (1)            70,000   Recovered     No         Yes        No         Edenderry
                                                                          (16,100)                                       Power
     990426           Energy             Peat Gen (2)             6,538   Recovered     No         Yes        No         Edenderry
                                                                          (1,504)                                        Power
     000211           Energy             Peat Gen (3)             2,234   Recovered     No         Yes        No         Edenderry
                                                                          (514)                                          Power
     000720           Energy             Peat Gen (4)               300   Recovered     No         Yes        No         Edenderry
                                                                          (69)                                           Power
     001003           Energy             Peat Gen (5)             2,443   Recovered     No         Yes        No         Edenderry
                                                                          (562)                                          Power
     950000-          Energy             Energy Eff (1)       2,030,249    Reporting    No         Yes        No         Irish   Energy
     980000                                                               procedure                                      Centre    (now
                                                                          s adjusted                                     SEI)
     950601           Energy             Energy Eff (2)         392,140   Reporting     No         Yes        No         Irish   Energy
                                                                          procedure                                      Centre    (now
                                                                          s adjusted                                     SEI)
     960000-          Energy             Energy Eff (3)       5,042,172   Reporting     No         Yes        No         Irish   Energy
     980000                                                               procedure                                      Centre    (now
                                                                          s adjusted                                     SEI)
     970000-          Energy             Energy Eff (4)         122,279   Reporting     No         Yes        No         Irish   Energy
     980000                                                               procedure                                      Centre    (now
                                                                          s adjusted                                     SEI)
     970101-          Communications     Postal (1)             352,134   Recovered     No         Yes        No         An Post
     980130                                                               (165,503)
     981223           Communications     Postal (2)               7,310   Error         No         Yes        No         An Post
                                                                          Corrected
     981223           Communications     Postal (3)              40,000   Error         No         Yes        No         An Post
                                                                          Corrected
     1998             Communications     Postal (4)               8,470   Error         No         Yes        No         An Post
                                                                          Corrected
     1998             Communications     Postal (5)              16,564   Error         No         Yes        No         An Post
                                                                          Corrected
     1999             Communications     Postal (6)               8,859   Error         No         Yes        No         An Post
                                                                          Corrected
     1999             Communications     Postal (7)              22,821   Error         No         Yes        No         An Post
                                                                          Corrected
     001201-          Communications     Broadband (1)           39,777   Recovered     No         N/A        No         Princes
     011130                                                               (39,777)                                       Holdings
     2000             Communications     Broadband (2)        12,807.27   Recovered     No         Yes        No         Suir       Nore
                                                                          (12,807.27                                     Relays(J.Cranw
                                                                          )                                              ell)
     2000             Communications     Broadband (3)           20,794   Recovered     No         N/A        No         Chorus
                                                                          (20,794)
     2000             Communications     Broadband (4)           20,000   Recovered     No         N/A        No         HEA net
                                                                          (20,000)
     990100-          Communications     E-Commerce               1,947   Recovered     No         Yes        No         EDI Factory
     000630                              (1)                              (779)
     990110-          Communications     E-Commerce              25,314   Ongoing       No         Yes        Yes        CR2
     000603                              (2)                              (10,126)
     990100-          Communications     E-Commerce               1,263   Recovered     No         Yes        No         Kilkenny
     000731                              (3)                              (505)                                          Information
                                                                                                                         Age
     990110-           Communications E-Commerce                    747 Ongoing          No        Yes        Yes        Magic Lamp
     000630                             (4)                                (299)
     990110-           Communications E-Commerce                  6,200 Ongoing          No        Yes        Yes        Working       &
     000603                             (5)                               (2,400)                                        Living
     000401-           Communications E-Commerce                15,312 Recovered No                Yes        No         Orbism
     000630                             (6) (Orbism)                      (6,125)
     000401-           Communications E-Commerce                13,200 Recovered No                Yes        No         Orbism
     000630                             (7)                               (5,280)
     000110-           Communications E-Commerce                  1,400 Recovered No               Yes        No         Orbism
     000630                             (8)                               (560)
   *Amount of irregular expenditure ** Amount recovered or due to be recovered in brackets




26 March 2003                                                  262

				
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