Dáil Éireann Debate, Tuesday - 13 December 2005
55 Mr. Bruton asked the Minister for Finance the value of investment undertaken in 2004 and to date in 2005 under PPP, distinguishing those involving tolling; and if he will make a statement on the matter. [38850/05]
View answerOn the basis of the information available to me, the following is the position in regard to privately financed PPP projects being procured under the multi-annual capital envelope investment framework and by the NRA in the roads area. For the years in question, I am informed that the estimated level of capital construction investment in privately financed PPP projects, to be paid for by means of ongoing unitary payments from Departments' Votes, was €25.6 million in 2004 and is projected to be €25 million in 2005.
With regard to PPPs funded by user charges, the Department of Transport informs me that the NRA has advised that private investment in roads amounted to €160 million in 2004. The NRA also advised that the estimated total private investment to end 2005 is €137 million. In addition, there are a wide range of PPP projects being procured by local government, in the solid waste, water-wastewater and social housing sectors, which are not comprehended in these figures. Such projects can take a number of forms, including design, build and operate or design, build and finance, and involve land swaps, own resources, some Exchequer funding or a mix of these.
While deal flow has been established in the roads area and in the local government sector, progress was slower than anticipated in the area of PPPs funded by unitary payments from Departments' Votes. There are a variety of reasons for this but, principally, the need for specialised skills and capability to manage the process was identified as a key factor. Accordingly, the Government decided in July to establish a centre of expertise in the National Development Finance Agency to accelerate progress in developing PPP deal flow in the central Government area. These new arrangements will not apply to the roads and rails sectors where existing procurement arrangements in place will continue.
