The Digital Hub will have to locate firms temporarily in portacabins because of a delay in the development of its main site.
The State agency has issued an urgent tender for a company to supply 186 square metres of temporary accommodation, which is needed to house new clients at the digital media centre.
Two US technology firms are negotiating with management at the Digital Hub and IDA Ireland about locating operations at the seven-acre site in Dublin. Several Irish firms also want to set up in the Digital Hub, which currently hosts 40 digital media firms employing about 400 staff.
But due to delays over the development of the main Liberties site over the past four years, there is no extra office space to accommodate new firms.
The Digital Hub was given the go ahead by the Government in 1999 and was initially championed by the Taoiseach, Mr Ahern. So far the State has spent about €130 million to purchase land and fit out 30,000 square feet of office space to locate technology firms.
However, a second phase of the Digital Hub project to appoint a private developer to fit out 450,000 square feet of commercial and retail space at a cost of about €120 million has been delayed by almost two years. The Government delayed the project in 2001 because of the downturn in the technology industry and fears over the project's viability. The Departments of Finance and Communications spent several months reviewing the project.
Following this review, management at the Digital Hub issued a tender to begin developing the main site from September 2003. However, delays in the public procurement process mean that the contract to develop the site will probably not be signed before the end of 2004.
The developer, Manor Park Homebuilders, has been involved in exclusive negotiations with the Digital Hub since August. But it is understood concerns remain over whether its proposal offers the State value for money.
Mr Philip Flynn, chief executive of the Digital Hub Development Agency, said yesterday the public-private partnership process was quite complex.
"There are quite extensive commercial, technical and legal aspects to it, but we hope to be in a position to make a proposal to government within a few months," he said.
Extra space is needed because demand has exceeded expectations, added Mr Flynn.
The tender for the temporary buildings shows that 186 square metres of office space is required as "a matter of urgency".
But firms should provide a quote to cover up to 1,800 metres of space.
The Digital Hub says the temporary accommodation will be required to house firms for a period of up to 18 months until development work on the main site is further advanced.
A spokesman for the Digital Hub said the temporary accommodation at the Digital Hub would not cost much because it would mainly be portacabins.
