Dáil Éireann Debate, Thursday - 11 May 2023
22. Deputy Alan Farrell asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the measures he is taking to prevent the incidence of the cost over-runs and project delays regarding the National Development Plan; and if he will make a statement on the matter. [22170/23]
View answerThe Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2023, almost €12 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. Achieving value for money and reducing cost and schedule overruns is a vital part of delivering the NDP.
My Department is responsible for the Public Spending Code (PSC)/Infrastructure Guidelines which sets the value for money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister.
In March, I announced a number of reforms to this code aimed at enhancing project delivery for the NDP. Some specific changes designed to streamline the project lifecycle and approval process include:
• The general threshold for major projects increasing from €100m to €200m, allowing for projects below this limit to progress more speedily through the appraisal and evaluation process.
• The reduction of the number of approval stages prior to implementation from 5 to 3, reducing the administrative burden on Government departments charged with developing and delivering projects.
The Infrastructure Guidelines are intended to ensure that the State gets the best possible value for the resources at its disposal. The requirements in the Infrastructure Guidelines will be based on employing good practices at all stages of the expenditure life-cycle. The present update relates to the requirements for evaluating, planning and managing public investment proposals. All Government Departments, local authorities, the Health Service Executive, public bodies, and all bodies in receipt of public funding must comply, as appropriate, with the relevant requirements of the Infrastructure Guidelines.
This is a significant policy development that allows departments responsible for delivering projects greater autonomy to pursue the delivery of their priority projects, while still complying with overall value for money principles. Crucial oversight processes for major projects are maintained through the retention of the External Assurance Process as well as by review by the Major Projects Advisory Group prior to seeking Government Approval to proceed, in line with international best practice.
The Major Projects Advisory Group was set up by the Department to assist us in our project oversight role. Five external experts with extensive experience in planning, managing and delivering major projects were appointed to the Group. This Group scrutinise major project proposals prior to Government consideration and over the last two years have been carrying out this role across significant NDP projects in healthcare, transport and housing, helping to ensure improved project outturns, avoid cost overruns and avoid delays to project delivery’s.
Experience from other countries which have introduced similar independent assurance processes shows that such arrangements reduce project schedule delay and cost overruns. These arrangements are in line with leading international performers and meet a recommendation of the IMF’s Public Investment Management Assessment of Ireland.
