Michael Finucane
Question:38 Mr. Finucane asked the Minister for Finance the progress, if any, made on the public private partnership programme; and if he will make a statement on the matter. [9192/00]
Written Answers. - Public Private Partnerships.
Substantial progress has been made in implementing the PPP process since the announcement of pilot projects on 1 June last year.
An ambitious programme has been set for the delivery of the pilot PPP roads projects. The National Roads Authority is aiming to seek tenders for the Waterford scheme in late 2000 and the Limerick scheme in mid 2001. In the case of the M50-west link second bridge scheme, I am informed that negotiations between National Toll Roads, NTR, and the National Roads Authority on a design, build, finance and operate scheme have concluded, with construction to commence in 2001. The NRA is also investigating the feasibility of a PPP approach to the provision of the Kilcock-Kinnegad project. I understand that the route selection is under way and the NRA aims to be in a position to seek tenders in late 2000. The NRA is in the process of engaging both legal and also financial and technical consultants to assist in the procurement of the pilot projects.
The Department of Education and Science has made significant progress in relation to its pilot projects. A third level project, the redevelopment of the Cork School of Music, was announced by the Minister for Education and Science on 18 October 1999 and a package of pilot second level schools has also been selected. The Department of Education and Science are engaging advisors to assist in the delivery of these projects; the projects are expected to go to tender in mid 2000.
I understand that, following consultations with interested parties, my colleague, the Minister for the Environment and Local Government, has recently approved a pilot water supply project for Ballymore Eustace on a design, build, operate and finance basis. A further project has been approved for Clareville in Limerick on the same basis. Also, work is continuing on PPP projects in the water supply area which do not involve private finance such as wastewater treatment facilities in Dublin and Cork. Feasibility studies are under way for projects in the solid waste area. More generally, a major consultancy study for the Department of the Environment and Local Government on legal, financial and technical issues in relation to their pilot project areas is nearing completion. This will enable detailed advice and guidance on PPP projects to be provided to local authorities and the NRA, and will be another important stage in the development of the PPP process in Ireland.
In relation to the Dublin light rail project, the target date for the operation of the first two lines is winter 2002. Initial preparatory construction work for the Tallaght line has begun. My colleague, the Minister for Public Enterprise has recently obtained Government approval for a PPP approach to the operation of the project.
The National Development Plan, NDP, 2000-2006, which was launched in November 1999, clearly demonstrates the Government's commitment to the PPP approach. In the plan, PPPs are particularly focused on the economic infrastructure programme. Provision is included for £1.85 billion of PPP funding, including £1 billion for roads, £300 million for public transport and £550 million for environmental projects. This is a minimum target for PPPs. The responsible agencies are already actively identifying possible PPP projects, to follow the pilots above.
As well as bringing pilot projects to market, further projects are being identified for possible implementation as PPPs. The relocation of the Dublin Institute of Technology to the Grangegorman site is being examined as a potential PPP project. I understand that the National Roads Authority is actively considering a further tranche of PPP roads projects, with the aim of being in a position to announce them as quickly as possible. The PPP fund for local authorities, which will provide seed funding for feasibility studies of possible PPP projects in sectors outside the main programme areas, is also an important and innovative development which will help to bring forward further PPP projects. I may add that the scope for PPPs is also being looked at positively in other areas by other Departments.
The Programme for Prosperity and Fairness also recognises the importance of PPPs in contributing the delivery of the NDP. Under the PPF, elements of an appropriate framework to assess the appropriateness of PPPs and to guide their implementation are to be developed by the PPP advisory group, if possible, within the first six months of the programme. In addition, standard PPP contracts and tendering conditions and procedures will be considered. Through the pilot process and using the effective framework of co-operation already in existence, we can make progress on the commitments relating to PPPs in the PPF.
Finally, the structures put in place to forward the process are working well. For example, the PPP advisory group has identified key issues to be tackled to facilitate the PPP process. This work is already shaping the roll-out of the process. For instance, in the taxation area, this year's Finance Act includes a significant change to the consortium relief provisions and the Revenue Commissioners have issued tax briefing on key issues. Other recommendations are also being pursued as a matter of urgency by the relevant Departments. Within the public sector, progress is being made on key issues, both within individual Departments and under the aegis of the interdepartmental PPP group.