An MLA has demanded answers after it emerged almost £10m has been spent on a green energy project at one of Northern Ireland’s main hospitals which has been put on indefinite hold.
Plans for the £50m energy centre in Belfast were scrapped in September amid rising costs and delays to the opening of the new maternity building and children’s facility.
The multi-storey centre was to be built to replace an existing boiler plant described in documents as nearing the end of its useful life. It was planned that the centre would power the Royal Group of Hospitals and was expected to be completed by this year.
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Computer-generated image of the energy centre
Planning documents have closely linked the project to the planned children’s hospital at the Royal Victoria Hospital site. Work will only begin on that site next year.
Health Minister Mike Nesbitt said £9,514,155 was spent on the project by December 10. He was responding to a question from DUP MLA Diane Dodds.
Mrs Dodds said: “I want to know who will be held accountable for this squander.” She added: “This appears to be the latest in a lengthy list of costly and misguided decisions by the Belfast Trust, and it cannot continue.
“The Minister needs to act to establish some level of public confidence in the planning and delivery of major projects”.
DUP health spokesperson Diane Dodds
Mr Nesbitt said the tenderer’s price had been four times the approved outline business case (OBC) cost and double their pre-tender estimate. The company’s construction period was also almost twice as long as the previous estimate.
He said the project was abandoned after a review undertaken in January 2024.
“A Gateway Review carried out for the Energy Centre in January 2024 received a delivery confidence rating of red,” he added. “The review panel recommended that the project should not proceed to the next phase until several issues are managed to an acceptable level of risk and the viability of the project/programme has been re-confirmed.
“The Trust accepted the findings and recommendations of the draft Gateway Review and acknowledged the shortcomings in terms of assurances around strategic need, options appraisal and procurement.
Health Minister Mike Nesbitt
“Following the concerns raised by the Gateway Team the Trust sought to develop an interim energy solution which would ensure the Trust were able to continue to deliver sufficient and reliable electrical and heating supplies to existing facilities on the Royal Hospitals site.”
Mr Nesbitt said the interim solution would provide for the site for around 10 years, while accommodating additional requirements for the new Children’s Hospital. He said the pause would also allow the department to take stock of the renewable technology market.
“The renewable technology market is going through a period of rapid change and a pause period would allow these technologies to be embedded before the Trust commits to a major project,” he added.