The Government is expected to re-invite tenders for the national convention centre, reversing an earlier decision approving an application from the RDS. Yesterday, the Cabinet discussed a proposal from the Minister for Trade and Tourism, Dr Jim McDaid, to re-advertise the competition to build and run a national convention centre, which will receive substantial EU Structural funds. A formal decision to re-invite tenders for the conference centre was, however, not taken at yesterday's meeting.

The Government is expected to opt for a new tendering process after doubts were expressed about the project being completed within the time constraints set by the EU Commission for funding to be guaranteed.

The earlier decision to approve the RDS as the location for the centre has been the subject of controversy for some years. One of the unsuccessful consortiums involved in the last competition, the Carlton Group, lodged a formal complaint about the tendering procedure, which it claims was not in keeping with EU public procurement rules. It is understood the EU Commission believes there is some validity to the complaint.

Because of this uncertainty, the Government is understood to be concerned that, if the RDS plan went ahead, it could be the subject of legal action, delaying the project and putting EU funds in jeopardy.

The other reason the tendering process is beginning again is that the Government does not believe the current RDS plan can be completed by the deadline set by the EU. The "absolute" deadline for the completion of the project is December 31st, 2001.

According to Government sources, the new competition will mean extending the deadline imposed by the EU, although this will be subject to further negotiation.

Mr Shane Cleary, chief executive of the RDS, said he was "disappointed" the Government now seemed set to "re-start the process again". He said the convention centre was "badly needed" and it was regrettable the whole project "seemed to be back at square one".

It is estimated a national convention centre could generate up to £30 million in revenue, although others predict a much lower return. Meanwhile, the EU Commission is expected today to issue a series of warnings about delays in some major projects earmarked for structural funds, including the convention centre. Commission sources say a "shot across the bows" will be delivered by EU officials who are understood to be "concerned" about the rate of progress of the light rail project, LUAS, and the competition to build a peat-fired power station in the midlands. Both projects will lose their EU funding if they are not completed by deadlines set down by the EU.

A study assessing the option of running LUAS underground is currently being undertaken and may add some delay.

Speaking yesterday, Mr Donal Mangan, one of the chief engineers behind the LUAS project, said he was confident all EU funding would "be successfully drawn down".

A spokesman for the Department of Public Enterprise said the competition to build a peatpowered 120 megawatt power station in the midlands was "progressing".

He admitted there had been "some slippage in the time scale", but was confident the station would be "built on time". There are five consortium competing for the final contract to build and operate the station, among them the ESB.