Bidders for the contract to develop Sports Campus Ireland are uncertain about the risks associated with the project following last week's Government decision to commission an "independent overview".
Though a spokesman for Campus and Stadium Ireland Ltd (CSID) said it had "no indication that anyone wants to pull out", other sources close to the process detected "a degree of nervousness" among the six international consortiums involved. "In terms of the procurement process, the whole thing is in some chaos at the moment," said one of the architects involved. Matters were not helped by the long delays in issuing bid documents, attributed to foot-and-mouth.
CSID has declined to release the names of the interested bidders on grounds of confidentiality. However, it is understood from other sources that they include major firms such as Bovis, Multiplex and Bougoyes, which built the Stade de France in Paris.
"These guys are reading the papers and they know what's going on," one source said. "They've got other big projects in Germany, Spain or wherever and they've got to decide whether the uncertainty now hanging over Abbotstown is worth the risk."
Another source said one firm of international architects had been told by their clients to put the design of Stadium Ireland "on hold" until its status was clarified. CSID will shortly hold a series of workshops for bidders to provide any clarifications they require.
Another architect said confidence in the future of Sports Campus Ireland had been "undermined by the public wrangling over the project" and by uncertainty over the outcome of the "independent overview" by consultants who have yet to be appointed.
DBFOM (Design, Build, Finance, Operate and Maintain), the form of procurement chosen by CSID, effectively shifts the risk element of a project from its promoters to the winning consortium. In return, it receives most of the revenue over a 30-year period.
The draft "heads of agreement" between CSID and the "preferred bidder" to be chosen later this year specify that the State company will accept no liability for cost overruns beyond an agreed Exchequer contribution - set at £350 million.
CSID anticipates that the winning consortium would contribute £150 million towards the cost of the overall project, mainly by funding its more commercial elements, such as the 15,000-seat indoor arena as well as hotels, restaurants and other money-spinners.
But the financial model for the arena would have to take account of its out-of-town location. "Most successful arenas are on brownfield sites in an urban setting where they generate a huge amount of retail, hotel and other development," one architect said.
"Like the new Odyssey complex in Belfast, the whole financial model for the arena would look completely different if it was in the city - say in the Grand Canal Docks or adjoining the Point Depot. Putting it out in Abbotstown is a recipe for failure," he added.
There is also a fear that the rules for assessing the outline bids may be altered after June 21st - the deadline for submissions - following the overview. However, CSID's spokesman insisted that all six of the consortiums "are still working away on their bids". He also emphasised that the series of clarification workshops due to be held within the next two weeks were a normal part of the tendering process.
