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National Development Plan

Dáil Éireann Debate, Tuesday - 16 November 2021

Tuesday, 16 November 2021

Questions (80)

Dara Calleary

Question:

80. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the progress that has been made on initiatives to improve the delivery of capital investment projects and to achieve greater value for money as set out in the national development plan. [55837/21]

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Written answers

Delivering greater value for money in the expenditure of public funds is a key element of all public investment policy.

The update of the Public Spending Code in 2019 combined with lessons learned from domestic projects and international best practice highlighted the need for more structured scrutiny of major public investment projects, particularly in the areas of planned delivery, costings and risk. This is to ensure that Government is making decisions with a full picture of the proposal, its costs, risks and benefits.

The revised National Development Plan (NDP) 2021-2030 pledges to restructure the oversight and implementation of capital projects to strengthen scrutiny of major public investment proposals and to drive improved project performance and value for money.

In order to achieve this, my Department has put in place an External Assurance Process (EAP) to provide independent project scrutiny at key decision stages. It is a mandatory requirement for all funding departments to participate in the process for major projects over €100m. My Department has established a framework of suitable suppliers who can provide a range of independent specialist expertise, to conduct reviews at critical points in the decision-making and project development stages. This framework is in place and will be utilised once projects over €100m reach the key decision gates for Government approval.

The purpose of the EAP is to improve value for money and support funding departments and Government with expert insight relating to project risks, delivery feasibility, and robustness of costings, governance and procurement. The EAP for major public capital projects (projects which cost in excess of €100m) will focus on issues such as cost, risk and ability to deliver, at two key points in the project lifecycle, Decision Gate 1 (Approval in Principle) and Decision Gate 2 (Pre-Tender Approval).

To support the External Assurance Process a new Major Projects Advisory Group (MPAG) has been established to further strengthen project management. As a prerequisite to seeking Government approval for projects at the relevant decision gates, project proposals and external reviews will be scrutinised by the MPAG in advance of the decision to proceed. The new arrangements bring Ireland into line with leading international performers and meet a recommendation of the IMF’s Public Investment Management Assessment of Ireland.

These updates are due to be actioned imminently within November 2021 and have been discussed at Government in recent weeks.

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