Campus and Stadium Ireland Ltd, the State company set up to plan the proposed sports campus at Abbotstown, Co Dublin, has said it will accept no liability for cost overruns beyond an agreed Exchequer contribution.
This is spelled out in a draft "heads of agreement" between CSID and the "preferred bidder" to be chosen later this year after outline bids are received from six competing international consortiums by the revised deadline of June 21st.
The draft, a copy of which has been seen by The Irish Times, says "full responsibility" for the provision of a national stadium, multipurpose arena and other facilities would fall to a special purpose company set up by the successful bidder.
According to the draft, which CSID has sent to the competing consortiums, all risks associated with the Abbotstown project must be accepted by this company, referred to throughout as "NewCo", with appropriate arrangements for insurance.
"CSID will not provide any further monies to NewCo over and above the agreed fixed capital contribution (currently set at £350 million), subject to any agreed increases as a result of any variations proposed by CSID after execution of the project agreement."
The draft says it is anticipated that the capital contribution "will be made at agreed intervals between commencement of construction and the end of the concession period", which is specified as 30 years or longer, if necessary, subject to agreement.
NewCo would finance the operation and maintenance of the facilities through "subscriptions, rental charges, entrance fees, concession fees and other sources of income".
However, it would also have to pay CSID an unspecified percentage of its annual turnover.
"The advertising and broadcasting rights in Stadium Ireland for certain events shall not be available to NewCo," according to the draft, which also says all advertising of alcohol or tobacco products "shall be prohibited . . . except where expressly permitted by CSID".
NewCo would also be required to build up a "sinking fund" to make "proper provision" for the restoration of the facilities at Abbotstown to an "appropriate condition" before handing back the site to CSID after the concession period expires.
If CSID and the preferred bidder were unable to agree on detailed terms, the draft makes it clear CSID would be entitled to terminate the status of the preferred bidder at no cost and enter into negotiations with another consortium.
CSID has also retained the right to "step in" if there is any breach of the agreed terms during the concession period "without prejudice to any other right or remedy".
Similar step-in provisions may also be exercised by providers of private funding.
In a letter to the competing consortiums, CSID declares that neither the company nor its advisers will accept any liability or responsibility for the "accuracy, adequacy or completeness" of the documentation detailing the terms for outline bids.
After assessing the submissions, CSID intends to conduct negotiations with a shortlist of three before selecting a preferred bidder by October 28th.
It is unclear if the timetable, or the bidding procedure, will be affected by the Government's decision to commission independent consultants to carry out an "overview" of the likely costs of the project, which could reach £1 billion.
