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Capital Expenditure Programme

Dáil Éireann Debate, Tuesday - 22 June 2021

Tuesday, 22 June 2021

Questions (239)

Cormac Devlin

Question:

239. Deputy Cormac Devlin asked the Minister for Public Expenditure and Reform when he expects Departmental permission for a development (details supplied) to be signed off; and if he will make a statement on the matter. [33021/21]

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Written answers

A Preliminary Business Case, Detailed Project Brief and Procurement Strategy document, and other supporting documents for the development referred to by the Deputy were first received by my Department on 17 May 2021. On receipt of these documents, and based on further communication with the responsible Department, which is the Approving Authority for the project, some further clarifications and material to underpin the review were sought.

These clarifications and updated documents were received from the Approving Authority on 11 June 2021. My Department is now prioritising the technical review of these Business Case documents and will conclude its technical review shortly. These typically can take 4-6 weeks depending on the complexity of the project, and my Department is handling this matter as expeditiously as is possible.

It must be noted that the technical review conducted by the Department of Public Expenditure and Reform focuses on the robustness of the appraisal and whether the analysis supports the conclusions drawn and is neutral from a policy perspective. It does not convey approval or permission. For a project of this nature, with exchequer funding expected to be in excess of €100 million, the Government is the Approving Authority for the next stage in the project lifecycle. The responsible Department is the day-to-day approving authority and funder for the project. It is their responsibility to seek approvals and ensure compliance with the requirements of the Public Spending Code.

As part of the technical review, my Department will not have verified input data or the calculations included in the analysis. My Department will not have verified the forecast cost or delivery schedule for the proposal. The day-to-day Approving Authority must be satisfied that the appraisal adequately accounts for the range of risks that may have an impact on delivery and cost. It should ensure that the forecasts are informed by past experience on completed projects and outturn data on earlier investments, for instance using practices such as reference class forecasting or benchmarking.

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