At least three groups have already expressed an interest in tendering for the new National Conference Centre project.
The Minister for Arts, Sport and Tourism, Mr O'Donoghue, said this afternoon that he is anxious that the conference centre be built as soon as possible.
Mr O'Donoghue would not identify any of the groups involved for reasons of confidentiality.
However, he refused to rule out the possibility that one of the number of consortia previously lined up to build the NCC had expressed an interest in it.
The NCC project has been on the agenda for at least 10 years, but previous efforts to build one fell through after they became mired in planning and tax incentive problems.
The Spencer Dock consortium led by entrepreneur Mr Harry Crosbie had been given the go ahead to build the NCC in the Dublin Docklands in 1998 following an open tender process. This plan fell through following planning objections and a refusal by the European Commission to sanction any new tax breaks for the docklands area.
Mr O'Donoghue agreed the Custom House docks site might be a possible location for the new NCC. However, he insisted the tender process would be an open and competitive one.
A high level steering group appointed by the minister will meet within the next week to 10 days to put together a specification for the centre.
The Office of Public Works will then be asked to examine its property portfolio for a suitable property. If one is not found, the project will proceed to tender.
A successful tenderer may build and operate the centre, which will be leased to the State.
"The intention is to have the centre up and running as soon as possible," the minister said.
He said he believed it would fill "one of the last remaining gaps" in Ireland's tourism infrastructure. Conference visitors were high spenders, yet Ireland was losing out on a large part of the conference market because of the absence of a dedicated national centre, he said.
Mr O'Donoghue said his proposal was brought to Cabinet after "extensive consultations" between himself and the Minister for Finance, Mr McCreevy.
He said the lease arrangement would ensure that the cost of the project did not affect the General Government Balance, which would also impact upon Ireland's compliance with the EU's Stability and Growth Pact.
The 2,000-seat centre, which will definitely be located in Dublin, should attract €25-30 million in additional foreign revenue each year.
Business interests and the tourism industry were consulted on the plan and have fully backed it.
The president of the Irish Hotels Federation (IHF), Mr Jim Murphy, said the news was a major positive development for the Irish economy.
"All other EU capitals boast such centres and Ireland has been at a distinct disadvantage."