Court hears potential €165m funding loss in €650m Enterprise train contract dispute
A High Court case in Ireland could lead to the loss of €165 million in EU funding related to a €650 million contract for the Dublin-Belfast Enterprise train service. Judge Mark Sanfey addressed the challenge during a recent hearing. The lawsuit, initiated by the transportation company Construcciones Y Auxiliar De Ferrocarriles (CAF) SA, contests the contract awarded to Stadler Bussnang AG.
Legal Proceedings and Claims
The challenge under EU procurement regulations has resulted in an automatic stay on the contract award, pending court decisions. CAF claims that the awarding process lacks transparency, alleging its inclusion in a UN blacklist concerning business activities in occupied Palestinian territories.
Project Timeline and Funding
The contract was officially granted on September 18th. The Chief Mechanical Engineer at Iarnród Éireann, Peter Smyth, stated that the current rolling stock is nearing the end of its operational life, with significant investments needed to maintain services beyond 2027. An investment of €650 million is aimed at enhancing the rail service between Dublin and Belfast.
- Current service frequency: 8 per day
- Planned frequency: 16 per day
- Expected passenger journeys by 2030: 4 million
- Projected passenger journeys by 2033: 2.4 million
- Current maximum speed: 90 mph
Importance of EU Funding
Up to €165 million in funding is expected from EU programs, contingent on project completion by December 31, 2029. If deadlines are not met, costs may become ineligible for reimbursement. Smyth noted that during tendering, it was discovered that none of the bidders could deliver the full order on time. Approval for EU funding has been sought on the basis that at least four sets will be ready by that date.
Urgency of the Case
Catherine Donnelly SC, representing the defendants, highlighted the urgency of resolving the matter to avoid losing EU funding. However, Jonathan Newman SC, representing CAF, expressed concerns about the claims regarding funding loss, questioning the scoring system that favored timely deliveries while acknowledging that the successful tenderer might not meet the established deadlines.
Next Steps in the Legal Process
Judge Sanfey indicated that the case may proceed swiftly and could set the stage for an expedited hearing. The court has been adjourned for two weeks, with further developments anticipated. The outcome of this case will have significant implications for the Dublin-Belfast rail service and its funding.
