Tuesday, 27 February 2018

Questions (203)

Dara Calleary

Question:

203. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the number of projects that will be subject to the revised public private partnership rules as announced in the NDP; and if he will make a statement on the matter. [9266/18]

View answer

Written answers (Question to Public)

The National Development Plan 2018 – 2027 summarises the key findings and recommendations agreed as part of the PPP review and the detailed report of the review will be published shortly.  When the PPP review is published, the recommendations will be included in the PPP policy guidelines and will apply to all future PPP projects. 

The programme of existing approved PPP projects, announced under Phases 1 – 3 of the Government’s Stimulus PPP programme, will continue to be procured under the pre-existing policy framework, as already planned, and will be unaffected by the changes being introduced. 

In ensuring Departments obtain the best value-for-money from public capital investment, PPPs, just as traditionally procured projects, are subject to the same robust and rigorous project appraisal process as traditionally procured projects. 

All projects over €20m are subjected to a Cost Benefit Analysis or Cost Effectiveness Analysis.  In addition, all public investment projects valued at €20m or above must also be referred to the NDFA for advice in terms of the options for financing and procuring the projects.   

PPPs will therefore continue to be a procurement option available to Government 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.

It is essential that projects are judged on their merits and if PPPs offer better value-for-money than traditional procurement in a particular case, they should be selected on that basis.