Dáil Éireann Debate, Tuesday - 16 July 2013
839. Deputy Mary Lou McDonald asked the Minister for the Environment, Community and Local Government if he will provide, in tabular form, a list of public private partnership projects that have proceeded under traditional procurement methods and the cost of each project. [35454/13]
View answer840. Deputy Mary Lou McDonald asked the Minister for the Environment, Community and Local Government if he will provide, in tabular form, a list of public private partnership water infrastructure project private investors and the project in which they invested. [35455/13]
View answer841. Deputy Mary Lou McDonald asked the Minister for the Environment, Community and Local Government if he will provide the experience to date of the design, build and operate model advantages of public private partnerships referred to on page 85 of the report on the value for money review of the water services investment programme 2007 to 2009. [35458/13]
View answerI propose to take Questions Nos. 839 to 841, inclusive, together.
Public Private Partnership (PPP) is a well established procurement option in the water services sector but is only considered where it is clearly established that it provides best value for money. Local authorities are required to examine all potential options in an even-handed manner before determining an appropriate procurement option.
The overriding consideration is that all projects must deliver value for money and to this end each potential project is subjected to a Public Sector Benchmark (PSB) report. This report consists of a comprehensive risk adjusted costing of the project elements over the whole life of the project on the basis of conventional procurement and enables a comparison to be made on a like for like basis between traditional and PPP procurement to ensure that the best value for money procurement option is chosen.
A project is not categorised as a PPP project until the PSB report is completed and a decision is made on the procurement route. Therefore there are no Public Private Partnership projects which have proceeded under traditional procurement methods.
The following table lists all the water services PPP projects with a value in excess of €20 million and includes details of the PSB findings and the contractor engaged to carry out the project. The PSB exercise shows on average a 10% to 20% reduction in capital cost and a 5% to 10% reduction in O&M cost as compared to pre-tender estimated costs for a traditional procurement exercise.
Contractors are engaged to design, build and operate the plants and are not considered to be financial investors.
|
Local Authority |
Scheme name |
Description |
Cost comparison/PSB report |
Contractor |
|
Fingal |
Balbriggan / Skerries Wastewater Treatment plant |
This project involved the construction, operation and maintenance of a sewage treatment plant with an initial capacity to serve a population of 30,000. There is potential to expand the capacity of the plant to serve a population of up to 100,000, if required. The plant became operational in September 2006. |
Pre-dates Departmental Circular L5/06 – PSB. Tender cost comparison with pre-tender estimate: - DBO capital cost 12% less than traditional procurement. - A pre-tender estimate for the DBO Whole Life Cost (WLC) is not available. |
Earthtech Ireland Ltd |
|
Kildare |
Barrow Abstraction – Srowland Water Treatment Plant |
This project involves the design and building of a water treatment plant followed by a 20 year operation and maintenance period. The contract commenced construction stage in 2011. The plant is intended to provide 31 million litres of drinking water per day. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 20.4% less than traditional procurement. - DBO WLC is 21.3% less than PSB WLC. |
Veolia Water Ireland |
|
Mayo |
Castlebar Wastewater Treatment plant |
This project involves the construction, operation and maintenance of a treatment plant with a capacity to serve a population of 35,000. The plant is now fully operational. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 22% less than traditional procurement. - DBO WLC is 23% less than PSB WLC. |
Veolia Water Ireland |
|
Limerick City |
Clareville Water Treatment Plant |
This project involves the construction, operation and maintenance of a water treatment plant to cater for the needs of Limerick city and its environs. The plant, which was officially opened in June 2010, has the capacity to treat around 100,000 cubic metres of water a day. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 13% less than traditional procurement. - DBO WLC is 12% less than PSB WLC. |
Veolia Water/Ascon Consortium |
|
Cork City |
Cork Wastewater Treatment plant (Cork MD -Carrigrennan) |
Construction of the treatment plant, with the capacity to serve a population of 413,000, was completed in September 2004. The plant is now in operation. |
Pre-dates Departmental Circular L5/06 - PSB. DBO WLC was virtually equal to pre-tender estimated WLC without retained risks being costed in the latter |
Degermont Consortium |
|
Donegal |
Donegal (Group A) Wastewater Treatment plants |
This project involves the construction, operation and maintenance of three sewage treatment plants (in Donegal Town, Ballyshannon and Rossnowlagh). The combined capacity of the plants is designed to serve the needs of a population totalling 22,000. The plants became operational in June 2008. |
Pre-dates Departmental Circular L5/06 – PSB. Tender Cost comparison with pre-tender estimate: - DBO capital cost is 10.6% less than traditional procurement. - A pre-tender estimate for the DBO WLC is not available |
Veolia led consortium |
|
Dublin City |
Dublin Bay Wastewater Treatment Plant (Ringsend) |
Construction of the treatment plant, designed to serve a population of 1.64 million, was completed in June 2003. While the plant became operational, there were persistent odour problems which ABA, the private sector partner, had to address. Because of a conflict between the odour standards prescribed in the Environmental Impact Statement and the contract documents for the plant, the responsibility for solving the issue did not rest solely with the ABA consortium and the cost of rectifying the problem was borne by both the contractor and Dublin City Council. Odour control equipment now installed has eliminated odour nuisance in the locality. |
Pre-dates Departmental Circular L5/06 - PSB.Tender cost comparison with pre-tender estimate: - DBO capital cost is 15% less than traditional procurement. - DBO WLC 18.8% less than the pre-tender estimate. |
ABA consortium |
|
Waterford County |
Dungarvan treatment plant |
Construction of the treatment plant, with the capacity to serve a population of 35,000, was completed in July 2007. The plant is now in operation. |
Pre-dates Departmental Circular L5/06 – PSB. Tender Cost comparison with pre-tender estimate: - DBO capital cost is 4.7% less than traditional procurement. - A pre-tender estimate for the DBO WLC is not available. |
ABV consortium |
|
Donegal |
Letterkenny Wastewater Treatment plant |
This project involves the design and building of a wastewater treatment plant followed by a 20 year operation and maintenance period. The contract commenced construction stage in 2011 and became operational in 2012. The plant is intended to cater for a population equivalent of 40,000 and a sludge treatment centre to treat up to 2,500 tonnes dry solids per annum. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 6.5% higher than the PSB. - DBO WLC is 3.5% less than PSB WLC. |
Response Engineering/Severn |
|
Meath |
Meath Villages Wastewater Treatment plant group |
This project involves the provision, operation and maintenance of treatment plants for seven villages in County Meath. The combined capacity of the plants will serve the needs of a population of 5,000. All eight plants are now operational. |
Pre-dates Departmental Circular L5/06 – PSB. Tender Cost comparison with pre-tender estimate: - DBO capital cost is 6% more than traditional procurement. - A pre-tender estimate for the DBO WLC is not available. |
EPS consortium |
|
Westmeath |
Mullingar Wastewater Treatment plant |
This project involves the construction, operation and maintenance of a treatment plant with an initial capacity to serve a population of 30,000, increasing within three years to a capacity sufficient for a population of 55,000. The plant became operational in 2011. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 1.5% less than traditional procurement. - DBO WLC is 2.3% less than PSB WLC. |
Veolia Water Ireland |
|
Laois |
Portlaoise Wastewater Treatment Plant |
Construction of the treatment plant, which has the capacity to serve a population of 39,000, was completed in March 2009. The plant is now in operation. |
Pre-dates Departmental Circular L5/06 – PSB. Tender Cost comparison with pre-tender estimate: - DBO capital cost is 3% less than traditional procurement. - A pre-tender estimate for the DBO WLC is not available. |
Earthtech/Bowen Construction consortium |
|
Fingal |
Portrane/ Donabate/ Rush/Lusk Wastewater Treatment plant group |
A design, build and operate PPP is being used to provide an updated and expanded main drainage system in North County Dublin, including a single waste water treatment plant at Portrane. It will cater for a population equivalent of 65,000 and have a two-year construction phase followed by a 20 year operation and maintenance period. The plant commenced construction in March 2010. The plant became fully operational in May 2012. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 17% less than traditional procurement. - DBO WLC is 46.7% less than PSB WLC. |
Aecom Design Build Ireland (formerly Earthtech Irl.) and Siac Construction Ltd |
|
Dún Laoghaire |
Shanganagh Wastewater Treatment plant |
This project involves the construction, operation and maintenance a of a treatment plant with a capacity to serve a population of 103,000. The plant became operational in 2012. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO Capital cost is 7.7% higher than the PSB. - DBO WLC is 13.3% less than PSB. |
Consortium involving Sisk, Dragados and Drace |
|
Sligo |
Sligo treatment plant |
Construction of the treatment plant, with the capacity to serve a population of 47,000, was completed in October 2008. The plant is now in operation |
Pre-dates Departmental Circular L5/06 – PSB. Tender Cost comparison with pre-tender estimate:- DBO captial cost is 20% less than traditional procurement. - A pre-tender estimate for the DBO WLC is not available. |
Anglian Water International |
|
South Tipp |
South Tipperary treatment plant group |
This project involved the upgrading of seven existing sewage treatment plants and the construction of five new ones. The combined capacity of the plants serves the needs of a population of up to 123,100. The plants became operational in 2007. |
Pre-dates Departmental Circular L5/06 – PSB. Tender Cost comparison with pre-tender estimate: - DBO capital cost is 25% less than traditional procurement. - DBO WLC is 9.4% less than the pre-tender estimate. |
Earthtech Ireland Ltd |
|
Offaly |
Tullamore Wastewater Treatment plant |
This project involves the design and building of a waste water treatment plant over a two-year construction period followed by a 20 year operation and maintenance period. The plant is intended to cater for a population equivalent of 45,000. The plant became operational in May 2012. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 8.7% higher than the PSB. - DBO WLC is 8.1% less than PSB WLC. |
EPS/Siac Construction Ltd |
|
Waterford City |
Waterford City MD Wastewater Treatment plant |
This project involves the construction, operation and maintenance of a treatment plant with the capacity to serve a population of 100,000. This plant is now fully operational. |
Pre-dates Departmental Circular L5/06 – PSB. Tender Cost comparison with pre-tender estimate: - DBO capital cost is 9.7% less than traditional procurement. - DBO WLC is 19.3% less than the pre-tender estimated WLC. |
Anglian Water International |
|
Wexford |
Wexford Wastewater Treatment plant |
Construction of the treatment plant, which has the capacity to serve a population of 30,000, was completed in September 2004. The plant is now in operation. |
Pre-dates Departmental Circular L5/06 - PSB. Tender cost comparison with pre-tender estimate: - DBO capital cost is 6% more than the pre-tender estimate but the latter does not include for risk transferred to the DBO contractor. - A pre-tender estimate for the DBO WLC is not available. |
Brent Consortium |
|
Wicklow |
Wicklow treatment plant |
This project involves the construction, operation and maintenance of a treatment plant with a capacity to serve a population of 34,000. The plant is now operational. |
PSB in accordance with Departmental Circular L5/06 completed. - DBO capital cost is 37% less than PSB. - DBO WLC is 30% less than PSB WLC. |
Veolia Water Ireland Ltd |
