The purchase by the Government of the site of the Battle of the Boyne was the result of a "joint initiative" by the Taoiseach, Mr Ahern, and the then minister for foreign affairs, Mr David Andrews.
The sale, which is now being investigated by the Flood tribunal, made a significant profit for Mr Tim Collins, a close associate of the Taoiseach and a trustee of his St Luke's constituency organisation in Drumcondra, in Dublin.
The Taoiseach pushed to have the development of the site included in the Government's Millennium Programme. The Millennium Committee subsequently made a £500,000 contribution towards the project. The extent of Mr Ahern's and Mr Andrew's involvement is indicated by correspondence on the subject released under the Freedom of Information Act.
In a letter dated July 20th, 1998, the then minister for foreign affairs says: "We can both be extremely pleased with the reaction to our initiative to develop the Battle of the Boyne site." The letter also referred to "your [Mr Ahern's] wish that the project should form part of our Millennium Programme".
A letter from Mr Andrews to Mr Seamus Brennan, the Government Chief Whip and chairman of the Millennium Committee, also dated July 20th, 1998, referred to the Taoiseach's "wish" that the project should become part of the Millennium Programme.
It emerged at the weekend that Mr Collins had an interest in Deep River, the shelf company that owned the 500-acre site bought by the Office of Public Works. The main shareholders in Deep River were the family of Mr Neil McCann, which controls Fyffes, the fresh fruit distribution business.
Deep River bought the Oldbridge Estate in Drogheda, Co Louth, for £2.7 million in November 1997, just weeks before Mr Andrews announced the initiative to look at developing the site as a gesture of reconciliation.
The Office of Public Works agreed to buy the estate for £7.7 million in December 1999, in a deal which is reported to have netted £250,000 for Mr Collins.
Mr Collins's business partner is Mr Liam Moran, a solicitor based in Swords, Co Dublin, who negotiated the deal. The Louth businessmen who sold the estate in 1997 to Deep River also dealt with Mr Moran.
It is understood the Louth businessmen were unaware the State was considering developing the site when they sold to Deep River.
A spokesman for the Taoiseach said yesterday the Government was co-operating with the Flood tribunal and was unable to comment. Sources close to officials familiar with the transaction said it was unlikely that the Deep River group bought the site because it was aware in advance of the Government's intention.
"It would have required considerable foresight to know in November 1997 that the IRA ceasefire would hold and there would be a successful agreement the following Easter," said the source. Mr Moran and Mr Collins were not available for comment.