An Post has entered into exclusive negotiations with Mr Donal Curtin, a former ESB director, with a view to appointing him as the company's new chief executive, writes Emmet Oliver

Mr Curtin's appointment is expected to be announced shortly, although An Post declined to comment last night. Mr Curtin will replace Mr John Hynes, who is retiring.

Mr Curtin is currently abroad, but it is understood he has held talks on terms and conditions with An Post. The remuneration package for the post, according to An Post's last annual report, is €285,000 a year, plus pension contributions.

Mr Curtin worked with the ESB since the early 1970s and a year ago he applied for the managing director's post, but lost out to Mr Padraig McManus. He subsequently left the ESB and has been working on a number of business projects for the last nine months.

Mr Curtin faced stiff competition in the two rounds of interviews and some early reports suggested that Mr Eamonn Ryan, a senior An Post manager, would be chosen for the post.

Mr Curtin, an engineer, built his reputation in the ESB via major international projects. He was for many years director of several ESB International (ESBI) companies and for a time held the post of group managing director, ESBI Contracting.

He worked for the ESB extensively in Britain, the Middle East and Far East. He was involved in a major power project in Bilbao in Spain and also worked on the Coolkeeragh project in Derry. He also helped to develop the first combined cycle gas plant in Britain at Corby in the East Midlands.

Mr Curtin, as a senior manager and later as a director of the ESB, dealt with industrial relations issues and he will have to draw on this experience in An Post, which is also heavily unionised.

An Post is facing a difficult period with operating losses this year of 20 million expected to be announced shortly.

The Department of Communications is believed to have written to the company last November, citing concern about the financial situation. This led to the initiation in recent months of regular monitoring meetings between the company and Department officers. There has been some concern in Government circles about the deterioration in the company's reserves.

This week, the company threatened a price rise following a decision by the communications regulator that the company cannot force customers to accept road- side letter boxes.

ComReg chairwoman Ms Etain Doyle said An Post would be breaking the law if it went ahead with plans to oblige customers to accept deliveries to a postbox at the side of the road in place of a doorstep service.

However, An Post has claimed that the plan is "fundamental" to its survival. The company is also facing problems with international postal deliveries with an EU agreement preventing the company from charging higher rates for deliveries.