SIAC Construction Ltd is seeking damages from the National Roads Authority (NRA) over the awarding of a contract worth some €150 million for the Western Dundalk Bypass, the High Court's Commercial Court was told yesterday.

Mr Justice Kelly yesterday reserved judgment on a preliminary issue in the case - a claim by the NRA that SIAC is out of time to bring its challenge to the decision awarding the contract to the Celtic Roads Group (CRG). The judge said he hoped to give his decision on that matter in two weeks.

In the main action, the NRA is denying SIAC's claim for damages for alleged breaches of EU law or of SIAC's legitimate expectation.

In opposing the NRA's bid to prevent the action proceeding, SIAC, of Monastery Road, Clondalkin, Dublin, says that, if necessary, the court should extend the time within which in can make its application for the decision awarding the contract.

SIAC has claimed the NRA published an advertisement calling for tenders for a contract for the design, construction and maintenance of some 11 km of motorway, forming part of the M1/N1 near Dundalk, with some 7 km of associated side roads and tie-ins. The contract notice also clarified that the contract involved the operation and maintenance of about 43 km of the existing adjoining M1.

Eurolink, a consortium including SIAC, had submitted requests to be selected to negotiate with NRA with a view to entering into the contract. In December 2001, the NRA announced a shortlist of four consortia, including Eurolink, who were to be invited to tender under an invitation to tender procedure.

Following that procedure, the NRA announced in July 2002 that two consortia, Eurolink and CRG, would be invited to the next stage of the procurement process, the submission of best and final offers.

On February 5th, 2004, the contract was awarded to CRG.

SIAC claims that the award of the contract was regulated by the Works Directive of the European Commission.

It claims that the NRA breached that Directive in that it failed to treat all tenders equally and to comply with the principles of non-discrimination, objectivity and transparency.

SIAC alleges that the NRA further breached the Directive in that it failed to award the contract on the basis of the applicable award criterion of "financial robustness". In modifying the requirements relating to debt financing, NRA discriminated against Eurolink and favoured CRG, SIAC contends.