Tuesday, 2 July 2013

Questions (655)

Pearse Doherty

Question:

655. Deputy Pearse Doherty asked the Minister for Health further to Parliamentary Question Nos. 541 of 30 April 2013 and 531 of 12 February 2013, if he will now consider allocating the proposed grant for primary health care centre in Dungloe under the PPP programme to the capital programme; and if he will make a statement on the matter. [31674/13]

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Written answers (Question to Health)

PPPs are arrangements between the public and private sectors for the delivery of public infrastructure and/or public services by the private sector that would otherwise have been provided through traditional public sector procurement. The procurement of infrastructure projects via PPP involves a tendering process, whereby consortia are invited to Design, Build, Finance, Maintain and Operate a particular piece of public infrastructure. The consortium, which must be in a position to secure private debt financing and private equity to support its bid, is also subject to an extensive financial due diligence process by the private funding providers prior to loan approval.

As a consequence of this financial structure, the impact of the infrastructure investment on the General Government Balance is gradual rather than up-front, thereby allowing the Government cost of financing infrastructure to be spread over the lifetime of the asset. The Public Private Partnership (PPP) process involves a large element of up-front funding by the private sector. The €115m referred to in the July 2012 Stimulus Package announcement is the public sector's best estimate of what it could cost the private sector to deliver the PPP bundles. This indented €115m is not public funding which can be allocated to the direct-build capital programme.

The delivery of primary care infrastructure is a dynamic process and must take account of changing circumstances including the feasibility of implementing the delivery of the centres by means of lease, direct- build or PPP. GP engagement and agreement to deliver primary care services from primary care centres is central to delivery of the necessary infrastructure. Regardless of the method of delivery or deprivation ranking, locations cannot be progressed unless there is committed GP engagement.