DUBLIN CITY COUNCIL has extended the contract for the Poolbeg incinerator until May 2011, and could extend it even further, RTÉ reports.

The contract, which was due to expire yesterday, contained a clause allowing DCC to extend, renegotiate or terminate the contract.

DCC will undertake a review of the contract because it says that conditions set out for the original contract were not met before yesterday’s deadline.  That review could take eight months to complete.

The company involved in the contract, Covanta Energy, has criticised Minister John Gormley’s delay in granting the company an offshore licence.

Gormley is against the proposed project, as are a number of local residents who fear the facility is too large.

Dublin Observer reported on Twitter this evening that DCC Manager John Tierney said he had not foreseen the delay which resulted in the contract expiring yesterday.

Tierney said this evening that renegotiating the deal to reduce the capacity of the incinerator would cost more money and any revised plan would have to go out to tender.

He said €60m has already been spent on the incinerator, and the same again was likely to be spent on claims arising from a compulsory purchase order.