Dáil Éireann Debate, Thursday - 6 May 2004
21 Dr. Upton asked the Minister for Finance the number of capital projects which have been referred to the National Development Finance Agency; the number which have been approved; the percentage that have been funded by PPP; and if he will make a statement on the matter. [12994/04]
View answerThe role of the National Development Financing Agency is to advise Departments about the optimum means of financing the cost of capital projects in order to achieve value for money, including those procured through a PPP approach or through traditional procurement. Departments and agencies, which are the decision-making bodies, are obliged to seek the advice of the National Development Finance Agency in relation to all capital projects valued in excess of €20 million. For projects valued under that amount the advice of the agency may be sought but is not obligatory. The National Development Financing Agency does not have a project approval role.
I am advised by the agency, which was established just over one year ago, that it has completed or substantially completed its input on six major infrastructure projects with a combined value of over €700 million. To date, all but one of the six projects have been approved. Two of these projects are PPPs involving private finance of €470 million. As I mentioned in my budget 2004 speech in December last I have initiated a major change in the financial treatment of capital spending by introducing a system of five year multi-annual capital investment 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 to 2008. A significant development of these capital envelopes is the setting of 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. This is in addition to a target of €1.3 billion for PPPs funded by user charges over the same period, giving a total target for PPP-NDFA funded investment of almost €5 billion by 2008. 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.
