Dáil Éireann Debate, Tuesday - 23 March 2004
40 Mr. Ring asked the Minister for Finance the number of projects examined to date by the National Development Finance Agency; and the outcome in terms of the recommended system of funding of these projects. [8663/04]
View answerI refer the Deputy to my reply of 17 February 2004. I am advised there have been no further developments requiring any update on the information provided last month.
The National Development Finance Agency (NDFA) was established on 1 January 2003. One of its functions is to advise State authorities on the optimal means of financing the cost of public investment projects in order to achieve value for money. The NDFA's role includes advising on the financing and risk evaluation of Ireland's public private partnership procurement projects and raising or arranging finance for national development plan projects. In this respect it provides a centralised expert service to Departments and certain other State authorities. In addition to its advisory role, the NDFA has the power to raise funding itself or through special purpose companies up to a total of €5 billion to finance infrastructure projects. I understand that this facility has not been invoked so far.
I am advised that the agency has completed or substantially completed its input on six infrastructure projects with a combined value of more than €700 million and has organised EIB and other private lending facilities of some €250 million for these projects.
In my recent budget speech I initiated a major change in the financial treatment of capital spending by introducing five year capital envelopes. These envelopes include a commitment to keep the level of Exchequer funded capital investment at close to 5% of GNP over the period 2004-08. A significant development in these capital envelopes are specific targets for projects financed through public private partnership or by the NDFA. These targets increase from 3% of total spending in 2004 to 15% by 2008 and amount to €3.6 billion in total. The NDFA will have an important role to play in advising Departments and agencies in regard to the optimum financing of these projects to achieve value for money.
