Dáil Éireann Debate, Wednesday - 9 March 2005
63 Ms O. Mitchell asked the Minister for Education and Science if, based upon her experience to date of the five PPP schools already delivered, she intends to make changes to the method of agreeing such contracts in the future; and if she will make a statement on the matter. [7859/05]
View answerMy colleague, the Minister for Finance, provided a capital envelope of €555 million in respect of education PPPs for the period 2005 to 2009 and I am currently examining how this may be best utilised. A key rationale underpinning the decision to proceed with the initial bundle of five schools was to test the PPP approach in the case of schools, to learn from the experience and thereby to inform future usage of a PPP approach to procuring schools.
Based on the experience to date, a number of issues are under active consideration by my Department and will inform my decision on the allocation of the funds available to me for PPP development. These include the type of PPP model to be used, the level of operation and service to be included in any new programme, how the projects should be bundled so as to provide the most cost effective procurement and the size and geographical spread of the bundles. New building projects on greenfield sites that have been prioritised using the criteria agreed with the education partners, and published by my Department, fit the PPP model best as distinct from projects that involve modernisation of existing buildings. I intend to announce my plans for a further PPP programme in the near future.
One of the attractions of PPPs is speed of delivery. The total time required to procure the five schools using the PPP approach was approximately three and a half years. Under the traditional approach to the procurement of new schools, the comparable elapsed time typically averages four to five years. One of the most striking aspects of the Department's PPP programme to date is the high quality of design and materials. It is clear from the proposals that Jarvis has "spent to save". By investing up front in quality design and construction, the cost of ongoing maintenance over the 25 year contract can be significantly reduced.
