Dáil Éireann Debate, Thursday - 17 January 2013
26. Deputy Micheál Martin asked the Minister for Finance the amount of the project finance to be advanced by the National Assets Management Agency that has been drawn down to date; the nature of the projects funded; the expected drawdown by the end of 2013; and if he will make a statement on the matter. [2016/13]
View answer39. Deputy Sandra McLellan asked the Minister for Finance further to the publication of the IMF staff report in December 2012 which commented that the National Assets Management Agency’s investment of €2bn would be back-loaded to the end of the four year period ending in 2016, the rationale for this approach in view of the immediate economic situation and the anticipated effect of NAMA’s investment on employment and economic activity. [1779/13]
View answerI propose to take Questions Nos. 26 and 39 together.
I am advised by NAMA that it is currently assessing a wide range of projects in Ireland that may be suitable for development by reference to projected demand and that decisions to invest will be based on those projects that are likely to generate a strong commercial return to the taxpayer. NAMA advises that project appraisal is still on-going and in majority of cases is subject to achieving suitable planning and resolving infrastructural issues with local authorities. Based on its analyses to date, it expects, as announced in May 2012, to invest at least €2 billion in its Irish assets over the next four years, including new development where this makes commercial sense. Based on recent Government and industry studies, NAMA’s €2 billion investment, which it advises is in addition to the €500 million that had been advanced for projects in Ireland prior to May 2012, would be expected to generate up 25,000 direct and indirect construction jobs and potentially an additional 10,000 jobs in the wider economy.
As set out in NAMA’s end-of-year review for 2012, which is available on the NAMA website, the timing of actual drawdowns in Ireland is dependent, for certain of the proposed projects, on resolution of planning matters and a number of infrastructure issues with various local authorities. NAMA advises that this is necessary to enhance the commercial viability of these projects. A number of projects within NAMA’s portfolio currently have either an unviable planning permission, reflecting the environment in which they were conceived, or no planning permission. NAMA advises that it is working closely with local authorities within the Greater Dublin Area and the other metropolitan areas in which its debtors and receivers hold properties to overcome these challenges. NAMA also advises that, where appropriate, it is funding some infrastructure works to unlock strategic land banks for future development where demand has been confirmed and that its plans are, in this respect, aligned with other state agencies, including IDA.
NAMA advises that to end-November 2012 it had approved €1.7 billion in advances to debtors, of which over €1 billion has been drawn down to date, including over €460 million drawn down in respect of a range of commercial, retail and residential development projects across its Irish portfolio. NAMA is seeking to fund projects which are commercial and in a position to proceed wherever possible but the majority of projects require resolution of planning and infrastructural issues which are outside of NAMA’s control to resolve.
NAMA’s Annual Report and Financial Statements for the period to end-December 2011 contains extensive information on its working capital and development capital advances, including the structures and mechanisms in place to ensure the delivery of projects and examples of projects funded in line with proven and anticipated market demand. Additional information will I expect be provided by NAMA in its 2012 Annual Report in due course.
