One of the unsuccessful bidders for the controversial national aquatic centre at Abbotstown is suing the Government. Dublin International Arena Limited is expected to begin the process of seeking a judicial review in the High Court as early as this morning.

The decision to sue follows study of the Government's own report into the awarding of the contract, according to sources. Dublin International Arena believes it can demonstrate instances of the correct procedures not being followed in the awarding of the contract.

The group, which includes building firm Sisk and the US-based International Swimming Hall of Fame is understood to be seeking damages in the region of €15 million, including some €800,000 worth of professional fees expended by members of the consortium.

The awarding last December of the €63 million contract to build the pool to Dublin Waterworld has become embroiled in controversy. In March it was revealed that the company which was awarded the contract by Campus Stadium Ireland Development (CSID) - the State agency responsible for the project - was dormant. Both the Tánaiste, Ms Harney, and the then Minister for Sport, Mr Jim McDaid, were unaware of this and sought a report from CSID and ultimately the Attorney General, Mr Michael McDowell, who is now the Minister for Justice.

The report was damming of the way that CSID had managed the process, and led to the resignation of Mr Paddy Teahon from his position as CSID executive chairman. Mr Teahon is a former secretary general at the Department of the Taoiseach.

The report concluded there was "no good reason" why the attention of the Department of the Taoiseach or the Department of Tourism, Sport and Recreation was not drawn to the involvement of a dormant company in the Dublin Waterworld structure.

It also emerged that there were serious flaws in the way the project was managed, with work commencing before contracts were issued. However, the Government proceeded to grant the contract on the basis of advice from the Attorney General that doing so was the "least risk" option.

But the report did not deal with the issue of whether the EU rules on the awarding of such contracts were followed " because it would not serve the public interest".

The National Aquatic Centre is part of a wider plan to construct a national stadium and sports campus in west Dublin, which was the remit of CSID. The aquatic centre project was fast-tracked to ensure that it was ready in time for the Special Olympics next year. As a consequence the process of assessing the competing bids was telescoped and Dublin Waterworld emerged as the winner.

The Attorney General's report also revealed that Dublin Waterworld had problems with its initial financing structure and that a number of new investors had to be introduced at short notice. These included the Co Kerry property developer Mr John Moriarty.

The project calls for the construction of a 50-metre swimming pool with seating for 2,500 spectators. There are a number of other aspects to it including a gym and catering facilities.