An Esat cabling system built on the Iarnród Éireann rail network was linked to a signalling project from the planning stages, an Oireachtas inquiry heard today.
Mr Seán Doherty TD, chairman of the inquiry, said that it is contended that cost overruns and delays on the as yet unfinished signalling system for the rail company were linked to laying of the Esat cable, referred to as "the Esat Legacy".
Mr Doherty said recent estimates suggested the system may yet cost Iarnród Éireann £50 million (euro 64 million), more than 3 times the original £14 million valuation.
The agreement between Esat and the rail company has resulted in a 2,000 km telecoms system being completed for Esat.
The 900 km rail siginalling network is incomplete and concerns remain about the safety of the network.
Mr Doherty told the first subcommittee meeting of the Oireachtas Joint Committee on Public Enterprise and Transport, a "significant proportion" of the $1.22 billion valuation placed on Esat's non-mobile business ahead of its sale to British Telecom in January 2000 was based on the infrastructure along the railway.
To date, revenue due to the CIÉ Group under the licence agreement would have amounted to between £1 million and £2 million per annum along with an annual maintenance fee of £500,000.
Mr Doherty said the sub-committee would examine CIÉ's links with the contractors engaged to build the signalling systems - Dublin firm Modern Networks Ltd (MNL) and Italian firm Sasib.
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