STORY OF THE WEEK - STATEMENT: Campus and Stadium Ireland Development Ltd (CSID) issued the following statement last night, outlining what it said were the facts relating to the award of the Aquatic and Leisure Centre Contract at Abbotstown to the Waterworld/Rohcon consortium:
"On July 12th 2000, the Government decided to add an Aquatic and Leisure Centre to the decision already made about the development of Sports Campus Ireland. It was a central part of that decision that the Aquatic and Leisure Centre should be completed in time to host the Special Olympics World Games in the summer of 2003.
"On July 17th, 2000, CSID dispatched to the Official Journal of the European Communities an advertisement for a contract to design, build, finance, operate and maintain an Aquatic and Leisure Centre. Criteria were laid down in the advertisement, including sufficient financial and economic standing, and sufficient technical knowledge and ability.
"Expressions of Interest were received from eight consortia, comprising more than 20 companies, on August 25th, 2000. Those expressions of interest were assessed on Monday, August 28th, 2000, by a panel consisting of senior CSID and OPW [Office of Public Works\] personnel, with technical and legal support.
"At that stage, the assessors examined all the original information furnished by the different consortia, including financial and economic information received. In the view of the panel of assessors, five consortia qualified for the next stage. These five included the consortium which included Waterworld (UK) Ltd.
"It is worth pointing out that this particular consortium (at the expression of interest stage) consisted of Multi Development Corporation NV [MDC NV\], with €336.9 million turnover in 1999; S&P Architects as designers, with a very substantial track record of successful design of swimming pool and leisure facilities primarily in the UK, including Cambridge Parkside Pool, Tonbridge Swimming Pool and more than 15 others (including the Aquadome in Tralee); and Waterworld (UK) Ltd as operator of the complex.
"Waterworld (UK) Ltd was described at that stage as closely linked to the world's leading aquatic operators (Schlitterbahn) and manufacturers of leisure pool attractions (NBGS). They outlined in their submission that the operation of the pool at Abbotstown was well-matched to their portfolio and capability, and that NBGS would offer site planning and patented attractions. This was signed by Keith Palmer, director of Waterworld (UK) Ltd.
"Following this initial assessment, Multi Development Corporation NV withdrew from the competition. Rohcon Ltd replaced MDC NV prior to the consortium making an outline bid. The replacement was accepted on the basis that the consortium would have pre-qualified had Rohcon been party to the original consortium, and that a replacement was allowed under EU procurement rules on that basis. CSID sought and received legal advice to this effect.
"In addition to this consortium, four others were qualified to make outline bids, and three qualifying outline bids were received on October 9th, 2000.
"The outline bid in respect of the consortium which now included Rohcon made it clear that Waterworld (UK) Ltd were closely linked to NBGS International, a US company with many years of design, manufacturing and consulting in the waterpark industry - 'the NBGS executive management team has decades of experience in building and operating waterparks'. NBGS provided a client list, which included Disney (MGM Studios and Tokyo Disneyland); Butlins in the UK; and approximately 45 other waterparks.
"In addition, details were provided on the associate company Schlitterbahn, which is owned by NBGS and their waterpark operation.
"Meanwhile, as part of normal diligence, CSID commissioned PricewaterhouseCoopers to carry out a detailed review of the many different companies involved in all of the bidding consortia. These searches were commenced on November 22nd, 2000.
"The outline bids were examined by a panel consisting of senior CSID personnel, the OPW, the Irish Sports Council, and Fingal County Council, with appropriate technical and legal assistance. This panel did not assess financial or economic standing, but rather the quality of the bids under the criteria set out - design, building plans, operational proposals, financial and maintenance plans for the Aquatic and Leisure Centre.
"On the basis of their examination at that stage, the panel decided that three consortia should now proceed to make detailed proposals. Again the consortium containing Waterworld UK was among the successful proponents. These detailed proposals were received on 15th December 2000.
"On their receipt, a two-day technical analysis was carried out on behalf of the assessment panel by technical and financial advisers. This analysis was considered by the assessment panel consisting of representatives of CSID, the OPW, Fingal County Council, the Irish Sports Council, and the National Coaching and Training Centre in Limerick. This panel recommended that the Rohcon/ Waterworld proposal be selected as the preferred bidder on December 19th.
"The assessment panel made its decision based on the criterion in the bid documentation of 'most economically advantageous proposal'. The detailed proposal from the Rohcon/Waterworld consortium provided for a special purpose company to be established to operate the centre.
"All the other bids did the same. The proposed managers, their track record and experience, and a detailed operational plan were included in the bid and considered by both the technical advisers and the assessment panel in their deliberations.
"In order to meet the very tight deadline for completion of the Aquatic Centre imposed by the holding of the Special Olympics, planning permission was applied for by CSID on December 22nd. In order to be able to do this in advance of any contractual commitments, CSID obtained a special licence to use S&P's designs for planning application purposes.
"CSID received a preliminary report from PricewaterhouseCoopers on December 18th, 2000, and a full report on December 21st, 2000, of its review of the companies involved in the different consortia. At this stage (on the 18th) CSID were made aware of the fact that Waterworld (UK) Ltd required further investigation as it appeared to be a dormant company. This was confirmed by PricewaterhouseCoopers on the 21st December 2000.
"CSID immediately sought legal advice on this issue from its solicitors, and were advised that notwithstanding its 'dormant' status, Waterworld (UK) Ltd was entitled, under EU Procurement Rules, to proceed as part of the bid, provided it was in a position to satisfy CSID that it had available to it the resources from a third party or parties on which it could rely in the performance of the contract (if awarded).
"Following the assessment of the panel on December 19th, 2000, CSID sought on December 21st, 2000, unequivocal comfort from the members of the Rohcon/Waterworld consortium as to their financial standing.
"On the question of financial capacity, CSID sought confirmation that guarantees from each consortium member by way of parent company or other guarantees, which would be acceptable to CSID, would be provided such that the relevant parties would be in a position to meet all of their obligations. The relevant amounts of guarantee and their structure were recommended to CSID by its financial and legal advisers respectively.
"On February 7th, 2001, CSID received a satisfactory confirmation of willingness to provide a guarantee for Waterworld (UK) Ltd from Anglo-Irish Bank. Had CSID not received this, it would not have been possible to proceed with heads of agreement. In the event, because satisfactory provisions for guarantees were received, the heads of agreement were signed on 24th February 2001. Detailed negotiations on the terms of the project agreement then commenced, leading to the execution of the contract.
"In summary, CSID confirms that the contract was awarded to a consortium, and not toa shelf company. CSID has always understood, and is happy to confirm, that Waterworld (UK) Ltd as part of that consortium was backed by NBGS International, who was in fact willing to provide financial guarantees for the operation of the centre.
"Mr Keith Palmer, a director of Waterworld (UK) Ltd, is also a director of NBGS (UK), the European branch of NBGS International.
"One of the principals of Waterworld UK is Mr Roger Currie. Mr Currie has confirmed to us throughout the process that Waterworld (UK) Ltd's involvement in the bid is supported by NBGS. NBGS will be one of the major suppliers to the Aquatic Centre, and are one of the largest suppliers of water rides and features in the world.
"The successful bid for the design, bid, finance, operate and maintain contract, proposed by Rohcon and Waterworld (UK) Ltd provided for the establishment of a company to operate the aquatic and leisure centre, as did all the other bids. This company is Dublin Waterworld Ltd. CSID is satisfied that Dublin Waterworld Ltd has the necessary operational and financial resources required to successfully operate the Aquatic and Leisure Centre.
"In summary, the project, which is on schedule and within budget, was secured on an entirely proper and above-board basis. Everyone associated with the project is backed by appropriate levels of financial strength and has all relevant experience.
"The winning bid had an outstanding design incorporating all of CSID's requirements; construction and operational expertise; provided value for money; and appropriate operational proposals, which included significant amounts of free time and training for elite swimmers, in addition to a world-class amenity for the entire community."
