Wednesday, 31 January 2018

Questions (149)

Pearse Doherty

Question:

149. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if all tenders for public private partnerships pending the implementation of a system that allows for a full cost-benefit analysis of such projects will be suspended; and if he will make a statement on the matter. [4930/18]

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Written answers (Question to Public)

I should first explain that PPPs are already subject to the same robust and rigorous project appraisal process as traditionally procured projects.  In ensuring Departments obtain the best value-for-money from public capital investment, PPPs, just as traditionally procured projects, are subject to the project appraisal requirements contained in the Public Spending Code.

The Public Spending Code (PSC) is designed to ensure that the State gets the best possible value for the resources at its disposal. The requirements of the Code are based on employing good practices at all stages of the expenditure life cycle. Departments and other public service bodies need to satisfy themselves that the expenditure practices they employ are of an acceptable standard, and that they consistently maintain these standards.  All projects over €20m, which would include all PPPs, should be subjected to a Cost Benefit Analysis (CBA) or Cost Effectiveness Analysis (CEA).  

In addition, all public investment projects valued at €20m or above must also be referred to the NDFA for advice in terms of the best way of financing the projects, which would also include all PPP projects.

PPPs will continue to be a procurement method available for appropriately structured projects which demonstrate value for money over a traditional procurement option and which meet the robust and rigorous tests for project appraisal that apply to all public investment projects under the Public Spending Code.