State advised of need for 'proven' track record in management team

It is believed that the operator of the aquatic centre could earn profits of €1

It is believed that the operator of the aquatic centre could earn profits of €1.9m per annum over the 30-year term of the contract, writes Arthur Beesley.

The genesis of the plan to develop a national aquatic centre at Abbotstown, Dublin, lies in preparations for the Special Olympic Games in 2003. When the initiative was approved by the Government on July 12th, 2000, it wanted the centre ready in time for the competition next summer.

By all accounts, the centre will be opened at the end of this year. Facilities will include a 50-metre swimming pool, a diving pool and warm-up pool, leisure waters including adventure water rides and seating for 2,500 spectators. Given the poor state of swimming facilities in the State, this will bring significant improvements to watersports devotees.

In keeping with the description by the Taoiseach, Mr Ahern, of the Abbotstown initiative as a "stadium for the new century", the emphasis since the very beginning of the project has been on the need to provide facilities of "international standard".

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With other statements referring to "an icon for the island of Ireland in the new Millennium", a PricewaterhouseCoopers (PwC) report to the Government underlined that the importance of choosing the right operator of the centre. Produced in June 2000, a month before the aquatic centre plan was sanctioned, the report said: "It is considered essential that the management team of the organisation selected to run the centre has significant experience and a proven track record of managing aquatic centres of similar scale internationally."

The project is large, prestigious and ambitious. It is also expensive - the Government is spending more than €62 million. According to informed estimates, it is believed the operator of the centre could earn annual profits of about €1.9 million for the 30-year duration of the contract. In that context, the demonstration of a solid management track record would appear to be a basic requirement.

A competition set up in July 2000 sought tenders under the EU Public Procurement Directive to design, build, finance, operate and maintain the centre. According to a press release issued on January 23rd last by the Minister for Tourism, Sport and Recreation, Dr McDaid, the process identified five groups that were identified to submit outline bids. Three groups were later selected to proceed to "detailed negotiation" stage. They were: Prospero, a division of the Australian construction multinational, Bovis Lend Lease; Dublin International Arena Ltd, supported by the building group Sisk and the US-based International Swimming Hall of Fame; and Waterworld UK, supported by the building firm Rohcon and S&P Architects.

The "Waterworld-Rohcon" proposal was recommended by the assessment panel in December 2000, according to that press statement. It said heads of agreement were signed by Rohcon and Waterworld UK on February 22nd, 2001.

Only 10 days previously, Dublin Waterworld was "set up as a special purpose company" to operate the pool when built. Dublin Waterworld had been registered in January 2001, five months after the tender process began. Filings in the Companies Registration Office said Waterworld UK - winner of the competition - took only a 5.1 per cent shareholding in Dublin Waterworld.

Rohcon is building the centre to design by S&P Architects. As per contracts sanctioned by the Government, the centre will be operated by Dublin Waterworld, which did not exist as a corporate entity when the procurement process began.

When the controlling shareholder in Dublin Waterworld, Mr John Moriarty, was asked why this was so, he said it was "clearly stated in our bid" that a new company would be set up. He also said that the "only two people" named in relation to Dublin Waterworld were Mr Kieran Ruttledge, who is chief executive of the Aquadome in Tralee, and Mr Liam Bohan, a former international swimmer.

Despite PwC's stipulation that the management team should demonstrate "significant experience" and a "proven track record", it has now emerged that Waterworld UK, the entity which initially sought the contract, filed dormant accounts for the period to May 30th, 2000, just two months before the bidding process began. The £4 sterling in issued share capital in the company was held by an firm registered in the British Virgin Islands, Ealing Trading Corp. Mr Moriarty, who holds about 60 per cent Dublin Waterworld, has said that he had "no interest" in Ealing Trading.

This indicates that whoever owns Waterworld UK effectively divested the rights to the benefits of the contract to Mr Moriarty and his colleagues. According to an informed observer with knowledge procurement procedures, this is seen as a significant factor. For the record, Mr Ruttledge holds about 20 per cent of Dublin Waterworld. Mr Bohan holds about 15 per cent. Neither Mr Moriarty nor a director or Waterworld UK, Mr Roger Currie, have explained why the London-registered firm took only 5.1 per cent of Dublin Waterworld.

As the Tánaiste, Ms Harney, expressed concern again yesterday about the award of the contract to Waterworld UK, a report was expected from the awarding authority, Campus and Stadium Ireland Development. It was delivered to Dr McDaid's office just be 8 p.m. No statement was issued by either Campus and Stadium Ireland Development or the Minister's office. However, Ms Harney's spokesman said the report did not answer her concerns.