Companies have been asked to come up with an electronic tolling system that could dramatically free up congestion on the M50 in Dublin. Emmet Oliver reports.

The National Roads Authority (NRA) has invited applications from companies able to advise on the cost and installation of equipment that could replace the traditional toll booths or barriers on roads such as the M50.

The NRA says it wants to encourage a "free-flow environment" on the M50 and possibly across the national road network. It is anxious to hear from companies with ideas for electronic alternatives to the standard static toll booth, which is often blamed for causing major tailbacks during peak hours.

In some countries, a small electronic device allows cars to access tolled roads without having to use physical booths.

The invitation from the NRA says that it wants expert advice on the "feasibility, design, installation, commissioning, operation, enforcement and cost of electronic toll-collection services". The contract's value was not disclosed but it will be governed by government procurement agreements.

Traffic congestion on the M50 has been on the political agenda for some years and, last week, a major expansion of the road was announced.

Utility group NTR is responsible for the M50 tolls. It made profits of more than €18 million last year.

Turnover at the company grew by close to 30 per cent in 2004 to €273.6 million from €211 million the previous year.

Roads, including its Eastlink and Westlink tolling plazas in Dublin, generated € 45.5 million in revenue in 2004, compared with revenue of €35.6 million the previous year.

The company has defended its tolling business in recent weeks. NTR finance director Michael Walsh pointed out that it contributed €33 million to the public purse last year. This is because the State gets €1 from the current €1.80 toll charge. NTR makes an operating profit of 35 cent from this charge. The remainder was accounted for by costs.