Transport companies have been invited to apply to operate Dublin's first Luas light rail-lines which are due to begin carrying passengers in 2003.
The successful company will operate the Tallaght to Connolly Station line and the Sandyford to St Stephen's Green line.
The Minister for Public Enterprise, Ms O'Rourke, yesterday announced a competition for the franchise which she expects to be awarded by next autumn.
Ms O'Rourke said the lines were likely to attract bidders experienced in operating similar transport systems in the UK and continental Europe. She said the franchise would be awarded for five years, with a renewal option for a further five years.
The competition has been designed and will be conducted by a consortium of consultants comprising Masons Solicitors, Booz Allen Hamilton and Babtic Group Ltd.
The consultants have advised the Department that there is no legal impediment to the participation of any of CIE's operating companies or other State-aided companies in the competition.
Ms Olivia Mitchell, a Fine Gael TD for South Dublin, said last night it was difficult to see how Luas as planned would attract even a reasonable number of cost efficient tenders.
"The Minister's optimism that the competition will attract `considerable interest from Irish and international transport operators' is, I believe, misplaced," she said. "The public will pay heavily for the additional costs of operating the Minister's revised Luas scheme, of which potential operators will be very wary."
Ms Mitchell said that ideally the operator of a light rail system should be involved at the planning stage, but in this case an operator will be asked to run a system without having had any input into its design.
She said it would be difficult to imagine a design which would be less attractive and more expensive for a potential operator.
"The original integrated Luas network has now been reduced to two distinct and unconnected lines from Tallaght and Sandyford with all the overheads associated with the operation of two systems rather than with a single integrated network," she said.
"The fact that the two lines do not connect not only reduces its attraction to customers but incurs additional costs in maintaining and operating two depots and their associated service crews.
"These additional costs will be borne by the user or the tax payer and probably by both."
Meanwhile, a delay in building the Dundrum by-pass which will intersect the Sandyford to St Stephen's Green Luas line has been resolved. Work on the by-pass was held up after Dun Laoghaire-Rathdown Council submitted a revised costing for the work to the Department of the Environment during the summer.