BORD Gais has confirmed reports that it has met with a consortium which is planning to develop a marina, 1,200 housing units and a five star hotel on one of its sites in Dublin's Dockland.

A Bord Gais spokesman said the company had met with the internationally owned Dublin 2000 consortium last year, at the request of the Minister for Finance, Mr Quinn.

The company, he said, told the consortium at that time that it was not in a position to make a decision until it had received a report from its advisers on the various options open to the company in disposing of its sites.

It is believed that there has been no advance in these discussions to date.

According to the Sunday Tribune, the consortium has drawn up plans to develop a £200 million Millenium project in the south quays area of Dublin's city centre docklands.

The consortium has met with Mr Quinn - in whose constituency the Bord Gais site is located - and an official from the Department of Finance, about its proposals.

They then suggested the company should meet with Bord Gais.

The group made a presentation to representatives of Bord Gais last July outlining its plans to create an "urban village" designed by US architects Swanke Heyden Connell.

The Scottish managing director of Dublin 2000, Mr Alan Donoghue, told the newspaper the funding for the project was in place.

"All we need is BGE to join with us," he said.

Mr Donoghue said his consortium was planning to create a marina in the basin, together with 1,200 housing units, shops and offices.

Mr Donoghue indicated that a leading brewery was interested in building a five star hotel, incorporating a glass tower, on the banks of the Liffey.

Dublin 2000 has also had talks with AIB and Hamilton Osborne King. It has several Irish contractors lined up to become involved in the project.

Before any development could begin, however, all residue gases would need to be removed from the site, a factor which greatly reduces its commercial value.

But despite this, Dublin 2000 is understood to have put a value of £28 million on the site.

Mr Donoghue said it would pay Bord Gais that amount, less the costs of removing gas residues, which at a rough estimate could amount to £20 million.

Mr Donoghue said Bord Gais would get "nowhere near £8 million" because of the gas residues.

"The site would be guaranteed and insured against further contamination problems," he said.

He added that Bord Gais would also get a shareholding in the consortium.

A decision on the site is expected next year.