There has been no progress on securing a multi-million pound funding package for the city’s airport due to the lack of Stormont Executive, the Derry News has learned.
The news comes after it emerged in September of last year that a £7m funding package to help attract new airlines and improve infrastructure at City of Derry Airport (CoDA) was handed back.
The funding package was announced by the Northern Ireland Executive in September 2016 when the future of the airport, which is was in doubt.
The airport (pictured above), which is owned by Derry and Strabane District Council, is currently operating at a loss of £2.145m a year.
In 2016 the Northern Ireland Executive pledged the £7m to improve connectivity through route development and infrastructure enhancement, in order to drive local economic investment.
£2.5m of that was to be spent on route development, while a further £4.5m was to be used to invest in the airport's infrastructure.
However, the Department for the Economy has revealed that this funding was ‘surrendered’ as it ‘could not be utilised in part or full in that financial year’.
A letter from a senior official which was made public in September of last year also revealed that no more funding had been allocated for the airport, and any future funding would have to be signed off by the Northern Ireland Executive.
The letter also stated that there was no ‘existing budget’ within the department for such a commitment.
Council officers stated at the time that the airport was being treated as an 'ongoing concern' and was funded by council until March 2019.
Concerns were raised at last week’s monthly meeting of Derry City and Strabane District Council over the lack of progress being made in securing funding package, where the SDLP’s John Boyle, who is also of the airport board, said that the government needed to ‘meet their promises’.
His comments were echoed by the independent unionist councillor Maurice Devenney, who said that the funding package, when announced, had been a ‘sigh of relief’ for the airport, but its ongoing absence had now ‘cast a shadow’ over the facility.
The Derry News has now learned that no letter of offer has been received by the local council for the £7m funding rescue package for the airport, meaning that there is currently no funding available for either route development or infrastructure improvement.
In a statement issued to the Derry News, a spokesperson for Derry City and Strabane District Council said: “No formal letter of offer has yet been received in relation to the funding package for the airport, adding that funding has been stalled due to the lack of a functioning Stormont Executive.
“In 2016 the Executive pledged the £7m to improve connectivity through route development and infrastructure enhancement, in order to drive local economic investment.
“The business case for the investment has been completed, however, funding has been stalled due to the current political impasse.”
The spokesperson added: “This remains a key priority and Council continues to liaise with the relevant government departments to ensure the delivery of these funds, which are vital to the economic regeneration of the North West.”
Meanwhile, a spokesperson for Department for the Economy said that it would continue to ‘engage’ with the council to ‘progress route development options’ for the facility.
“The Northern Ireland Executive announced a £7m support package for the airport in October 2016, which included £2.5m for air route development,” the spokesperson said.
“The Department for the Economy was subsequently allocated the funding for the air route development element of the support package for the 2016/17 financial year.
“However, following engagement with Derry City and Strabane District Council, this funding was surrendered as it could not be utilised in part or full in that financial year.”
The spokesperson continued: “Department for the Economy officials continue to engage with Council officers to progress route development options for the airport.”
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