On 1 June 1999, I announced a list of pilot projects which had been agreed by the Government to pilot the public private partnership approach in Ireland. The pilot projects are concentrated in the economic infrastructure sector, including transport and environmental services, with the key considerations being long-term value for money and their priority at national level. A central element in delivering value for money from PPP projects is the proper allocation of risk. One of the risks for the private sector, of course, will be on the return they achieve on their investment.
The Departments directly responsible for the programme areas, in co-operation with the Department of Finance, will develop the selected projects for speedy implementation with particular reference to the potential for private sector finance, with the aim of seeking tenders or other proposals from the private sector as quickly as possible.
When the Government adopted the PPP approach, the potential to generate revenue to remunerate the investment was included as one of the criteria to be used in deciding on the merits of the PPP approach in any particular case. Projects can be financed from private sources, remunerated by user charges or in other ways, by payments from public sources, including the Exchequer, and by a combination of payments from both sources. The relative contributions from both sources will vary depending on the nature of the project and the feasibility of having the private sector implement steps to remunerate its contribution. This is one of the matters which will be examined in developing detailed proposals for the pilot projects.
Any specific proposal relating to road tolls is subject to the relevant statutory provisions. The statutory power to levy tolls on national roads and to enter into toll agreements with private investors is vested in the National Roads Authority under Part V of the Roads Act, 1993. Before a toll can apply to a national road, a number of procedures have to be complied with. These include the making of a toll scheme by the National Roads Authority after consultation with the local authority concerned; the giving of public notice; the submission of the scheme for consideration by the Minister for the Environment and Local Government; and the holding of a public inquiry where objections are received.