Dr Rudy Berger, the chief executive of Media Lab Europe, the anchor tenant of the Government's €250 million Digital Hub project, resigned yesterday unexpectedly.

Media Lab Europe - which is a joint venture between the Government and the Massachusetts Institute of Technology (MIT) - would not comment on Dr Berger's future plans but said he would continue as an adviser to the Media Lab Europe board.

Professor Kenneth Haase has been appointed as acting director of the Lab for the next six months. Prof Haase, a long standing member of MIT, will guide the Lab until a permanent director is appointed, according to a statement by Media Lab Europe.

The statement also said Media Lab Europe would move into a period of consolidation and extend its relationships with partners. This acknowledges a difficult period for the institute, which was forecast to raise 80 per cent of its budget from corporate donors.

Media Lab Europe recently admitted it was having to look for funding elsewhere because of the severity of the downturn in the technology industry.

The announcement of Dr Berger's departure was made shortly after four consortia were short-listed to compete for the right to win a contract to develop the €250 million Digital Hub concept. Digital Media Development Limited, the firm which is managing the flagship project, said the consortia, which include Irish, Dutch and UK firms, were short-listed from 12 initial expressions of interest by different parties.

The Digital Hub is an urban regeneration scheme proposed for the Liberties area of Dublin. It is intended to attract millions of euro of investment from digital media firms targeting areas such as e-learning, gaming and internet publishing. Initially a pet project of the Taoiseach, Mr Ahern, it is now under the remit of the Department of Communications.

The successful consortia who will go forward to bid for the contract to develop the Digital Hub are: Bennett Construction and Jarvis Projects; HGB Ascon and HGB Hollandsche Beton Groep NV; Manor Park Homebuilders and G&T Crampton Holdings; Pierse Contracting and Earlsfort Centre Developments.

The bidders will be invited to participate in a consultation process with Digital Media Development Limited. They will submit bids in a tender that will include detailed urban design proposals for the project. It is anticipated about €120 million in private investment will be required to develop the Digital Hub project.

All four consortia made submissions for the development of the two different blocks of land available at the site.