Ilex: Derry's urban regeneration company is to close with the loss of 18 jobs

Among Ilex's projects include the site of the former Ebrington Army barracks

Londonderry's urban regeneration company, Ilex, will close by 31 March 2016 with the loss of 18 jobs.

The Office of the First Minister and Deputy First Minister (OFMDFM) made the announcement on Thursday morning.

An independent review, published in July, criticised the company's failure to bring in private investment.

The remainder of Ilex's capital work projects will be managed by OFMDFM and Derry City and Strabane District Council.

The date of closure for the company is a year earlier than recommended in an official report.

Set up in 2003, the company was tasked with the regeneration of former army bases at Fort George and Ebrington.

Ilex lists among its successes helping deliver the Peace Bridge, the City of Culture year and the Science Park at Fort George.

Last month saw the resignation of Mel Higgins, the company's fifth chief executive in its 12 year history.

Ilex Failings: Summary of Report Findings July 2015

• Ilex has not been sufficiently focused on its core purpose, the development of Ebrington (or Fort George), over the period of this review.

• There has been mission drift as the organisation has been involved in other activities eg. City of Culture.

• The lack of business cases for new capital projects and the feedback from funders on the quality of business case information presented in the past, highlights concerns over Ilex's ability to deliver.

• A comparison of Ilex's costs as a percentage of capital spend against other comparators show it cost nearly four times that of the Department of Social Development.

• The lack of progress in infrastructure investment and specifically in developing business accommodation is particularly concerning.

• Ilex had a tendency to contact local politicians if they wish to try and achieve a result rather than working with the department concerned.

First Minister Peter Robinson said: "We are grateful for all the work undertaken by Ilex at Ebrington since 2003 which has opened the site up for all the people of Londonderry and beyond.

"The reviews concluded Ilex should have a limited lifespan and its work should ultimately move to the local council - that remains the long-term plan.

"However, in the short-term, given the recent resignations of the entire senior management team, we have decided that the development of Ebrington will be led by OFMDFM."

Deputy First Minister Martin McGuinness said: "The intention that the council should take responsibility for the Ebrington site to deliver the capital works remains our preferred option which we would wish to see achieved by 2017.

"The company will be closing by 31 March 2016 and all affected staff will be eligible to receive any redundancy entitlements."