Dáil Éireann Debate, Wednesday - 20 March 2024
316. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if all PPP unitary payments are classified as capital expenditure; and if he will make a statement on the matter. [13214/24]
View answerI can confirm to the Deputy that all PPP unitary payments are classified as capital expenditure. PPPs are generally considered to mean projects financed and constructed by the private sector and remunerated by deferred annual payments (unitary payments) from the Exchequer for the design, build, operation and maintenance of the project. Upon completion of the construction of the project it is made available for public use and is paid for by the State and/or users over an extended period (typically 20-25 years), after which the asset comes into State ownership. When a PPP is classified as ‘off balance sheet’ from a General Government perspective, the initial capital cost of the project does not impact on the General Government Balance (GGB) over the construction period, nor does the debt associated with the project impact on General Government Debt (GGD). Rather, the cost of such projects is spread over the lifetime of the projects, by way of annual unitary payments.
