Development of the main elements of the Government's flagship digital hub project will not begin until September 2003 under the terms of a lengthy competitive tender that will begin next month.
But Digital Media Development, the firm established by the Government to manage the project, will provide some temporary office space for digital media companies from next month.
The digital hub project, which was first announced in December 2000 by the Taoiseach, Mr Ahern, plans to create an international digital media enterprise centre in the Liberties area of Dublin.
It will seek to attract companies working in Web-based services, telecoms software, e-learning, video gaming and others sectors.
Details of the €250 million public-private partnership project published in tender documents yesterday show firms will be invited to develop two lots of land with a combined area of 6.8 acres. This will require the refurbishment of properties fronting both sides of Thomas Street and the construction of several new buildings.
It is expected that private-sector developers will have to invest about €120 million in the area to meet the criteria laid down in the strategy for the digital hub.
Under guidelines outlined in the tender, half of the site will comprise office space, a quarter of the land will be used to provide residential accommodation, and the remainder will be used for educational and retail activities.
Developers will make a return on their investment by renting out offices and properties in the area to firms and individuals. There are no special tax incentives available for developers in the digital hub area, according to the tender document.
Strict pre-qualification criteria have been laid down in the tender, which require firms to have a minimum annual turnover of €60 million to be considered as developer for the smaller 0.8 acre site, and €150 million annual turnover to develop the larger six-acre lot.
Sources said last night this may be a response to the recent controversy surrounding the contract to operate the National Aquatic Centre at Abbotstown for which a shelf company was selected.
Mr Paddy Teahon, who was chairman and chief executive of the Campus and Stadium Ireland Development, which made that decision, is also executive chairman of Digital Media Development.
The tender process will not be completed until September 2003, suggesting the main development of the digital hub project will not be completed for several years.
The development of the digital hub area has already been delayed by up to six months due to a Government decision to review the project in early 2001 following the downturn in the technology sector. At that stage, the Government reduced the scale of the project, limiting public funding to €130 million.
It is expected the first digital media firms attracted to the area will begin to locate in temporary accommodation provided by Digital Media Development from next month. Some 8,000 sq ft of office space will be offered to firms through a competitive tender shortly.
Development of the first permanent office space at the digital hub began earlier this year and is being funded by the Government. This will fit out the Print Depot building on the site.
