I propose to take Questions Nos. 11 and 14 together.
The Government established the National Development Finance Agency, NDFA, on 1 January 2003. The NDFA has, inter alia, the function of advising State authorities on the optimum means of financing public investment projects, whether procured through a PPP approach or through traditional procurement. The NDFA does not have a project approval role.
I am advised that the National Pension Reserve Fund Commission, which makes investment decisions independently of the Minister for Finance, has made an initial €200 million allocation to PPPs in Ireland. It has also announced that it has joined a consortium tendering for the M50 motorway upgrade.
I am advised that the commission's involvement with PPPs is consistent with the fund's purpose and statutory investment policy and, on that basis, I can see no difficulty with it.
I am advised by the NTMA that, while it performs the function of manager of the NPRF and also performs the functions of the NDFA, there is a robust Chinese wall between the two functions. However, given that the NPRF is charged with maximising the gains for the Exchequer from its investments, while the NDFA is required to advise on the optimal means of financing public investment projects, there could, in some circumstances, be a perceived problem, even though both are seeking to work in the best interests of the taxpayer. I am advised that, in its press release of 9 February last on the publication of its annual review, the NPRF commission stated that, in future, rather than joining particular consortia in tendering for projects, it will make finance available to the winning bidder provided it is satisfied with the prospective rates of return.
Because of the perception I have referred to, I am advised by the NTMA that the NDFA withdrew from providing advice to the NRA on the M50 project as the NPRF commission had decided to join a consortium in tendering for the project.
