The Railway Procurement Agency (RPA) is finalising a defence against a High Court claim by its former acting head over its failure to appoint him as chief executive.
Mr Dónal Mangan has been attending the agency's offices since last summer, despite Mr Frank Allen's appointment as chief executive last August.
The former head of infrastructure finance at KBC Bank in the IFSC in Dublin, Mr Allen was selected in June after a recruitment process which Mr Mangan entered. He was regarded as an outstanding candidate.
However, Mr Mangan was widely expected to secure the post because he had led the initiative since its inception in 1994. The agency has stated that Mr Mangan is no longer a member, but he is still drawing a salary which is believed to be at the rate agreed when he was chief executive designate.
While Mr Mangan was thought to have been very reluctant to be interviewed for what he regarded as his own job, he still entered the recruitment process. Observers believe this weakens his position.
Referring to Mr Mangan's action, the agency's chairman, Mr Pádraic White, said: "He has filed a statement of claim and we're in the course of replying to that. We're just finalising it now. Our position is that we intend to defend our position and we have been consistent in that."
It is thought no efforts are under way to settle the case, although it is unclear when any hearing might take place. In the meantime, Mr Mangan is expected to continue attending the agency.
The RPA was formally established a year ago to oversee the multi-million euro Luas network and develop plans for a metro system in Dublin. Mr White said the agency was "on the countdown" to the introduction of Luas.
While advertisements appeared early last year stating that the service would be initiated this year, delays mean that services on the first line to central Dublin from Sandyford will not be introduced until the first quarter next year. The second service, from Tallaght, will be launched in summer 2004.
Mr White said the budgeted cost of the system was €700 million but money from a risk budget of "roughly €100 million" would have to be used also. "I would hope we won't use all of it but it's there," he said.
The use of such funds was normal in major infrastructure projects, particularly where there was a requirement to acquire property for the initiative. The price of much of the Luas land was determined through arbitration, he said.
In November the RPA submitted an outline business plan for a metro system to the Government. Mr White said the RPA would make a formal presentation of the plan to the Government this month.
With underground and overground tracks, it is understood such a system will be designed to link Dublin Airport with St Stephen's Green in the city and it is understood that three options are outlined in the report. These are believed to be: Metro East, via Santry and Griffith Avenue; Metro Central, via Ballymun; and Metro West, via an interchange with the M50 motorway. Mr White said the cost involved would be "substantial" but he declined to quantify it. Private-sector investment was anticipated through a "sophisticated" public private partnership (PPP) mechanism, he said.
It is believed the price range mooted is €2-€10 billion, although the ultimate price will depend on the specification of the system and the number of stops between the airport and city. It is understood that a system without such stops has been ruled out as it would not be economic.
With the public finances tight, the Government would be unable to proceed with the plan without significant private-sector support.
