Capital Expenditure Programme

Dáil Éireann Debate, Wednesday - 17 January 2024

Wednesday, 17 January 2024

Questions (1815)

Matt Shanahan

Question:

1815. Deputy Matt Shanahan asked the Minister for Further and Higher Education, Research, Innovation and Science his Department’s processes that consider the value for money question understanding that in 2017 a project build (details supplied) was estimated at less than €50 million, in 2021 it was estimated to cost close to €90 million and today the engineering block build is estimated to be costing over €100 million; if, given that this project cost has moved over €50 million from the last Programme for Government and over €20 million in the lifetime of this Government’s programme, he will outline how the delay process to funding this long-awaited capital programme demonstrates the decision delay has proven ‘beneficial in value’ to the State capital programme; and if he will make a statement on the matter. [56390/23]

Written answers

Minister for Further and Higher Education, Research, Innovation and Science

The new engineering block at South East Technological University (SETU) Waterford Campus is a high priority project for my Department.  It is one of five projects in the Higher Education PPP Bundle 2 project, two of which are for SETU; one at the Waterford campus and one at the Carlow campus.  The SETU Waterford project is the largest in the Higher Education PPP Programme and will be transformative for SETU and indeed the region.

The Higher Education PPP Bundle 2 procurement process is ongoing and currently at tender stage. Construction price inflation and volatility in the construction market is presenting challenges, however, my Department, the National Development Finance Agency and the Higher Education Authority are working within the parameters of the procurement process to manage these challenges. Due to the commercially sensitive nature of the tender process, the Department is unable to comment on the financial details.