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State in €1.5 million settlement with National Aquatic Centre underbidder
07 March 2010 By Pat Leahy, Political Editor
The state has paid about €1.5 million in a legal settlement with the underbidder for the contract to build the National Aquatic Centre. Dublin International Arena Ltd (Dial) tendered for the contract to build and operate the €64 million Abbotstown pool in 2000, but the contract was awarded to Dublin Waterworld.
It later emerged that Dublin Waterworld was a shelf company with no assets, and Dial took legal action claiming that Dublin Waterworld should not have been awarded the contract in the first place.
Dublin Waterworld was later removed from running the aquatic centre following a lengthy court battle. After part of the roof of the centre blew off in a storm, an engineering report revealed that the roof had not been constructed to the original specifications. The centre was closed for several months and the National Sports Campus Development Authority - the state body which runs the larger Abbotstown sports campus - sought to remove the operators.
However, the state body was also embroiled in a legal battle with Dial, which claimed that the original tender process was flawed.
The Sunday Business Post has learned that the government approved a settlement of €1.5 million with Dial. The Department of Arts, Sports and Tourism confirmed that it had reached a settlement, but did not comment on the amount.
Some government sources are worried that the settlement will encourage the unsuccessful bidders for the state’s second mobile phone licence to pursue their case if the forthcoming Moriarty Tribunal report finds that the licensing competition was flawed.
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