Multi-million euro contract to build Luas rail system to be reviewed
Connex, the company which was awarded the lucrative 127 million deal to build the Luas light rail system, emerged last week as one of the worst performing train companies in Britain.
And it was reported yesterday that the board of the Railway Procurement Agency (RPA) here is to seek financial assurances from Connex after the British Government had to hand over a £58 million (90 million) to the rail company so it could stay in business.
This is over and above the £30 million in State aid which Connex, owned by French group Vivendi, is to get next year.
Connex was awarded the Luas contract last March and is due to operate the Dublin tram service for five years. The Government has allocated some 675 million for the project.
The first trains are not now expected to run until early 2004, a year after they were supposed to improve the transport situation for Dubliners.
A Sunday newspaper reported yesterday that a number of directors of the Railway Procurement Agency have confirmed that the issue of whether Connex is suitable to run
Luas will be on the agenda at the next board meeting.
However, this puts them at odds with the official line from the Railway Procurement Agency.
A spokesman told the newspaper that there were no plans to look for assurances from Connex and that there were no concerns about the company's ability to run a train service on a budget, despite the 58 million handout last week.
It has also emerged that Connex has the second-worst punctuality record in Britain.
Some 42% of its trains were late in a recent four-week period.
Connex currently runs services between London and Kent and Sussex in England.
The group, the largest private transport firm in the world, agreed to give up the London franchise in 2006, five years ahead of schedule, in return for the massive subsidy.
Yesterday's reports said Connex was the first company to need State aid on lucrative London routes, although it has been common practice to bail out troubled rail firms on poorly performing routes. In total, the firm charged with running Connex is also part of a consortium which was last week awarded a $1 billion contract to operate the
Massachusetts Bay Commuter railroad in the US.
