Dáil Éireann debate -
Tuesday, 29 Feb 2000

Vol. 515 No. 3

Written Answers. - Water Supply.

Eamon Gilmore

Question:

66 Mr. Gilmore asked the Minister for the Environment and Local Government the new water treatment facilities or water supply schemes, if any, to be provided by public-private partnerships; the arrangements, if any, being made for charging for water supplied through these schemes; and if he will make a statement on the matter. [5967/00]

Minister for the Environment and Local Government (Mr. Dempsey)

Significant progress has already been made in the development of the PPP approach to water services. Details of projects which have already been initiated on a PPP basis are set out in the following table. Based on experiences so far, the Department considers that this approach offers potential benefits over traditional procurement for certain major projects. Consequently, in January 1999, my Department issued a circular to local authorities on procurement through the use of design-build and design-build-operate contracts. This circular indicated that while each case would be determined on its merits, for projects involving the provision or upgrading of major water or wastewater treatment works, the policy would be to favour the DB or DBO approach unless there were strong reasons against it.

The national development plan includes a target of £100 million in private finance to support public investment in the area of water supply. In seeking to meet this target the Department has identified the sector involving the provision or upgrading of water supply and treatment facilities as being the most suitable for the use of private finance.

Further details on PPP projects in water services can be expected when the water services investment programme for the year 2000 is announced. In the context of the serviced land initiative, a number of projects are being examined for implementation using the PPP route.

I propose to issue a circular shortly clarifying Government policy in regard to the application of the polluter pays principle to the non-domestic water services sector. No change is proposed to the present policy regarding domestic water consumers. The procurement method of a project, through PPP or traditional arrangements, is a separate matter which will not affect Government policy in this regard.

PPP projects in the water services sector

Project Title	PPP approach approved	Current Stage
Osberstown Treatment Works	DB	Under Construction
Ringsend Treatment Plant	DBO	Under Construction
Swords Treatment Plant	DB	Contract Awarded
Cork Treatment Plant	DBO	Evaluation of Tenders
Limerick Sludge Treatment	DBO	Evaluation of Tenders
Ballymore Eustace Water Supply	Design/Build/Operate/Finance (DBOF)	Approved – *
Clareville Water Supply	DBOF	Approved *

*Approved in this context indicates that the local authority has been approved to appoint a client's representative to prepare tender documentation on the basis of the PPP model.