The Cork County Board says that it is aware of an EU investigation into the €30 million grant signed off last month for the re-development of Páirc Uí Chaoimh.
Reports on Sunday say that the EU is concerned the grant has breached some of the very strict rules around State aid.
The €70 million revamp is a key part of Ireland’s bid to host the 2023 Rugby World Cup as it is hoped that the ground can be developed into a modern 38,000 seater venue.
“The Páirc Uí Chaoimh stadium re-development project meets all the conditions for State funding under the Public Spending Code,” the statement said.
“The Board has been made aware of a process that has to be undertaken by Government with the EU with regard to State aid.
The Board and the Department of Transport Tourism and Sport are working closely together and the Board anticipates a speedy and successful conclusion to the process.”
If an investigation were to take place it could delay the re-development by up to 12 months, proving a major blow to the 2023 bid.
According to reports the projected estimates around revenues from concerts are understood to have formed part of the EU’s unease.
Last year planning permission for a proposed £77 million redevelopment of Casement Park was halted by a court ruling.
It is not clear whether the work currently underway on the stadium will continue or be deferred until the situation is resolved.
The Cork board had planned to reopen the ground by July 2017.
