Bernard J. Durkan
Question:110 Mr. Durkan asked the Minister for Finance if the development of public private partnerships in the future presents a liability to the State; and if he will make a statement on the matter. [7421/05]
View answerThursday, 3 March 2005
Questions (111, 112)
Bernard J. Durkan
Question:111 Mr. Durkan asked the Minister for Finance the extent to which he intends to utilise the concept of public and private partnership in the future; and if he will make a statement on the matter. [7422/05]
View answerWritten answers
I propose to take Questions Nos. 110 and 111 together.
The multi-annual capital investment framework set out in annex D of budget 2005 sets out targets for the period 2005-2009 for capital investment funded by PPP-National Development Finance Agency, NDFA. The total 2005-2009 PPP-NDFA targets, which would be remunerated by long-term unitary payments from Departments' Votes, is €3.675 billion; in addition, there is a target of €1.195 billion for PPPs remunerated by user charges. There has been good progress on PPPs overall since the first group of pilot projects were announced in 1999. Reasonable deal flow has been established in the roads and environment areas; progress in relation to projects remunerated by unitary payments from the Exchequer has been slower than anticipated. We are still learning and continue to keep our processes and procedures under review.
PPPs are acknowledged to be complex, involving, as they do, a long-term financial commitment for both the private and public sector partners for a period of anything up to 30 years. I believe that the PPP procurement option has an important role to play when applied to appropriate projects where there is the right scale, risk and operational profile to harness the benefits of this new approach.
Question No. 112 answered with QuestionNo. 70.