I propose to take Questions Nos. 74, 97, 107, 121, 389 and 393 together.
As provided for in the national development plan, a number of major road improvement projects will be undertaken by the National Roads Authority as public private partnerships, based on user tolls. User tolls are now in widespread use throughout the developed and developing world and are especially favoured where rapid expansion in major road networks is required. They are a considerably more widely used instrument of roads financing than shadow tolls and more readily permit the transfer of economic risk, which is desirable in PPP projects. While the use of shadow tolls has not been ruled out, road user tolling is, on the basis of the above considerations, more likely to be relied upon in the earlier stages of national roads PPP development.
The NRA's current PPP programme comprises 11 high quality projects spread throughout the country. The position at present in relation to these projects is that one, the second Westlink bridge on the M50, is under construction and is expected to be completed next year; one is at final negotiation stage, (Kilcock-Kinnegad), and a preferred bidder has been selected; initial tendering has been completed and bidders shortlisted in respect of two of the projects, N25 Waterford bypass and Dundalk western bypass; one is at tender stage with tenders due to be submitted during December 2002, N8 Rathcormac-Fermoy bypass; one, M3 Clonee to Kells, is at oral hearing stage; the remaining five schemes are at an advanced design stage which includes the preparation of statutory documentation for publication.
It is estimated that these projects will involve a total private sector investment of approximately €1.27 billion, which is in line with the monetary target set in the NDP. The exact figure will depend on the outcome of negotiations on the individual projects. The total cost of the 11 projects is estimated at €3.2 billion.
This level of private sector finance is of critical importance for the funding of the national roads development programme. It will ensure the earlier provision of much needed higher quality roads than would otherwise be the case. Through PPPs, private sector innovation will be harnessed in the areas of scheme design, construction and long-term operation and maintenance.
The roads involved will remain in public ownership. The private sector will design, build, part-finance and operate the schemes for a 30 year concession period after which they will return for operation and maintenance to the public sector.
Each PPP project is subject, in accordance with Department of Finance guidelines, to rigorous assessment and evaluation by the NRA and engineering, financial and legal consultants which it has engaged to advise on the PPP programme. The NRA is also considering the scope for additional user-tolled PPP schemes.