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Irish Water Expenditure

Dáil Éireann Debate, Tuesday - 28 January 2014

Tuesday, 28 January 2014

Questions (519, 520, 521, 522, 523, 524, 525, 526)

Barry Cowen

Question:

519. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the total duration of a contract (details supplied); the date it ended; and the final cost for the full implementation of this contract. [3750/14]

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Barry Cowen

Question:

520. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the tasks a company (details supplied) carried out in regard to the May 2012 contract. [3751/14]

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Barry Cowen

Question:

521. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the criteria under which a company was selected for the contract (details supplied). [3752/14]

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Barry Cowen

Question:

522. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the specific areas of expertise a company provided in the contract (details supplied) that Bord Gáis Éireann-Irish Water was not able to provide in-house. [3753/14]

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Barry Cowen

Question:

523. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if an open competition was held prior to the awarding of a contract (details supplied). [3754/14]

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Barry Cowen

Question:

524. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if other companies were afforded the opportunity to bid for a project (details supplied); if a number of quotes from other companies were sought prior to signing this contract; the companies that bid for the project and reasons given for their rejection. [3755/14]

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Barry Cowen

Question:

525. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government in view of the fact that a contract (details supplied) was issued as part of the unbundling provision of the EU third directive, if the costs of this project were paid for by Irish Water or by Bord Gáis Éireann or a subsidiary. [3756/14]

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Barry Cowen

Question:

526. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if he will list in tabular form all the contracts a company (details supplied) has received from Irish Water since May 2012; the value of each contract; and if he will make a statement on the matter. [3757/14]

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Written answers

I propose to take Questions Nos. 519 to 526, inclusive, together.

As Irish Water is a commercial utility and a subsidiary of Bord Gáis Éireann (BGE), formed and registered under the Companies Act, I and my Department will not necessarily have access to details of, or direct accountability for, expenditure and other organisational matters in relation to the company. Procurement by Irish Water of external resources is a matter for the company and I have no role in approving individual contracts.

However, data supplied by Irish Water indicate that an open tender competition was conducted in 2010 to appoint a service provider to provide services in relation to organisation structure, governance and capabilities arising from the unbundling of BGE's energy business from its networks business. Following an initial shortlisting of candidates through a pre-qualification process, four tenders were received for this contract. The identity of the unsuccessful tenderers is confidential information. The most economically advantageous tender was awarded the contract with cost having a 35% weighting among the criteria for purposes of the award.

The impact of the establishment of Irish Water within the BGE group could not be technically or economically separated from the initial contract awarded to Accenture and it was necessary for Accenture to give consideration to the establishment of a new subsidiary on organisation structure, governance and capabilities in the implementation of unbundling.

The services relating to the establishment of Irish Water commenced on 10 May 2012. This followed the Government's decision of 17 April 2012 to establish Irish Water as an independent State owned subsidiary within the Bord Gáis Éireann group. The performance of the services took place over a period of 12 weeks up to 31 July 2012 for a fixed fee of €398,689 (excluding VAT) and expenses of €16,500. In August 2012, a requirement arose for related services for programme management and data strategy and integration. These services were drawn down under the 2011 contract with Accenture. The services commenced on 27 August 2012 and concluded on 23 October 2012 and were for a fixed fee of €220,000 excluding VAT.

The initial mobilisation period of 12 weeks was an aggressive timeframe. Specialist external expertise was necessary in conjunction with BGE's in-house expertise to deliver in the timeframe for mobilisation and in a cost effective manner. BGE paid for the costs of the unbundling provision of the EU Third Directive. Costs relating to services associated with the establishment of Irish Water were allocated to Irish Water.

Accenture has been awarded one framework agreement by Irish Water since May 2012. Details of this framework were provided to the Joint Oireachtas Committee on the Environment, Culture and the Gaeltacht on 14 January 2014. Specifically, Accenture were awarded lots 4, 5 and 8 to provide services to support the delivery of the Irish Water implementation programme. This work involves Programme Management across the Business Capability areas of Irish Water as well as developing an integrated operating model. The operating model includes the detailed development of an organisation structure. Central programme management across the entire programme is also included in the scope.

Irish Water has assured my Department that the award of the additional services to Accenture complied with EU procurement rules.

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