The current arrangements in place in relation to the control and monitoring of PPP contracts are in line with EU law in this area and are consistent with the approach adopted in the UK and other countries.
PPP contracts involve the private sector partner designing, building, financing, operating and/or maintaining the asset over a 25-30 year period. By their nature PPP sector-specific contract provisions can be generic. For instance, contract provisions can be broadly similar for education, health, justice accommodation type projects, with certain individual differences or commercial arrangements. The model contract template for use in PPPs in Ireland is available on my Departments website www.ppp.gov.ie.
However signed contracts are ‘commercially sensitive’ reflecting the negotiated commercial positions consistent with the above template parameters and I am not convinced that publishing market sensitive information ensures value for money, and in fact can have the opposite effect.
In accordance with our Public Financial Procedures (PFP) the Comptroller and Auditor General has for audit purposes unlimited access to the files of the NDFA and the NRA in relation to procedures adopted in procuring PPPs.
In addition throughout the contract period (both construction and operation) the contracting authority will:
- monitor private partner performance (assisted by its own process monitor);
- monitor the financial accounts of the PPP Co (monthly, semi-annual, annual);
- inspect the site as appropriate;
- review correspondence with the private consortium funders etc. on a needs be basis.
From the above, the contracting authority has visibility as to whether or not the private sector partner is performing its obligations, providing services in line with its contract and paying its debt obligations throughout the contract.
Again, the Comptroller and Auditor General has access to all such information in the course of auditing these bodies.
