Plans for a direct provision centre to be set up in Oughterard, Co Galway have been scrapped.
It's after the applicant withdrew from the tender process.
It had been proposed that the direct provision centre would be set up at the Connemara Gateway Hotel - a facility which has been closed for over 10 years.
Locals have been staging around the clock protest outside the hotel for the last 3 weeks in opposition to the decision to base up to 250 asylum seekers there.
Developer Sean Lyons says there was a lack of support from the Department of Justice "We were the ones left to the front, we had no communication given out by the Department of Justice. 90% of the problems that have been caused by this is the lack of information".
The Department of Justice says it's disappointed to see a bidder pull out of plans.
A Department spokesperson says other bids will now be evaluated, but Ireland is "perilously close" to having no accommodation to offer to asylum seekers.
