Dáil Éireann Debate, Thursday - 25 November 2004
86 Mr. J. O’Keeffe asked the Minister for Education and Science the position with regard to the contract to manage five schools on behalf of the State; if the ongoing financial difficulties being experienced by the company holding this contract will impinge upon the contract entered into between her Department and a company (details supplied); and if she will make a statement on the matter. [30464/04]
View answerThe contract between my Department and Jarvis Projects Limited is in place and operating. The financial difficulties faced by the company do not impinge on the contract.
Should it arise that the company cannot provide the service for which it is contracted, my Department is entitled, under the terms of the project agreement, to make deductions from the monthly unitary payment in respect of non-performance. The project agreement further provides that the financial backers of the project may step in to replace the operating company to protect their investment. In addition, the project agreement further protects the State by allowing for the termination of the contact under various circumstances. This form of protection for the State is standard in educational public private partnership contracts.
