I was informed by officials in my Department on 2 November 1999 of their concerns in relation to delays and contractual difficulties on the mini-CTC project. I was informed that one of the contractors involved had been taken over and that there had been a restructuring within the companies involved which had already led to delays and cost overruns. My officials informed me that it had been hoped these difficulties had been overcome but that it was now evident that this was not the case. I was further informed that Iarnród Éireann was attempting to resolve the contractual issues which had arisen with the contractors on the mini-CTC project. I asked clearly to be informed of developments.
My Department agreed with CIE that an independent evaluation should be carried out in relation to the ongoing contractual difficulties. In January 2000 my Department stopped a payment of EU funds in respect of this project because of its concerns about the ongoing delays and contractual difficulties. On 28 January my Department was advised by CIE that legal advice had been sought and that Iarnród Éireann was re-assessing the project with the assistance of external experts.
PricewaterhouseCoopers was engaged by CIE on 24 January 2000 to carry out an external review of the project and I was informed of same. My Department received a copy of its report on 21 September 2000. Following receipt of this report and the serious questions it raised in relation to the management of the mini-CTC project, I referred the matter to the Joint Committee on Public Enterprise and Transport.