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Failed €50m IT project write-down to delay Irish rail service expansion
🇮🇪 Ireland /Economy & Trade

Failed €50m IT project write-down to delay Irish rail service expansion

From Irish Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • New rail service expansion plans may be delayed or reprioritized due to a €50 million write-down on a failed IT project.
  • An additional €3 million spent on a traffic management system (TMS) is also considered wasted.
  • Irish Rail is seeking a new TMS system, with an independent report on the IT controversy due in September.

Irish rail expansion projects face potential delays and reprioritization following a significant financial setback. The National Transport Authority (NTA) indicated that a €50 million write-down on a failed IT project, coupled with at least €3 million wasted on a traffic management system (TMS), will impact future service plans.

You are talking about a significant figure

— Mary ConsidineIrish Rail chief executive, responding to a question about the cost of a new TMS system.

Irish Rail's chief executive, Mary Considine, confirmed that a new TMS system is necessary for both existing and planned services, though its cost remains undetermined. Anne Shaw, CEO of the NTA, stated that the agency must assess the financial implications and adjust the wider program to ensure continued delivery of services, necessitating "rephasing and reprioritising" of certain initiatives.

The failed TMS project was initially contracted to Spanish company Indra in 2020 for an estimated €20 million, which later rose to over €30 million. Irish Rail's board wrote down the value of its investment in Indra's software by approximately €28 million after it failed tests in May. An additional €20 million was spent on consultants supporting the project. Concerns were raised about the substantial expenditure on project support, which nearly matched the amount paid to Indra.

We need to consider what that financial impact requirement is and to look across the wider programme to make sure we can continue to deliver that as well. It will be a case of rephasing and reprioritising certain things over that period of time but ultimately to make sure that we deliver that.

— Anne ShawNational Transport Authority chief executive, explaining the impact of the IT project write-down on future rail services.

Irish Rail's board decided to terminate the contract with Indra and explore a new arrangement with Siemens Mobility, bypassing regular tendering processes. The NTA has accepted this decision but warned of "significant financial consequences." An independent report by consultants EY into the IT controversy is expected by September and will cost around €250,000.

That is a serious, serious red flag and should have been picked up

— Grace BolandFine Gael TD, commenting on the high cost of project support for the failed IT project.
DistantNews Editorial

Originally published by Irish Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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