The Social Housing Public Private Partnership (PPP) Programme represents an additional strand of delivery to increase the supply of social housing. Housing for All includes a specific objective to increase the use of PPPs to deliver social housing and significant progress is being made under the new programme. My Department is actively working with relevant stakeholders including the National Development Finance Agency (NDFA), the Housing Delivery Co-ordination Office, and relevant local authorities to progress further bundles of projects. The programme currently consists of 6 bundles of sites.
Bundles 1 and 2 delivered almost 1,000 units in 2020 and 2021, while there are in excess of 2,500 units in the pipeline. My Department publishes the Social Housing Construction Status Report (CSR), which provides details of social housing developments that have been completed, are under construction or are progressing through the various stages of design and tender processes, including the PPP projects. The most recent CSR (Quarter 4 2022) provides details of the sites in Bundles 1 - 5 and is available at the following link: www.gov.ie/en/publication/14f82-social-housing-construction-projects-status-report-q4-2022/
Details of the Bundle 6 sites will be included in the CSR for Quarter 1 2023, which will be published shortly. A Design Team is currently being procured for this bundle to bring the projects forward through design development.
Details in relation to the PPP consortia for the completed Bundles 1 and 2 can be found at the following links:
www.ndfa.ie/projects/social-housing-ppp-bundle-1
www.ndfa.ie/projects/social-housing-ppp-bundle-2
The construction capital cost for bundle 1 amounted to €119 million (excluding VAT) while the construction capital cost for bundle 2 amounted to €129 million (excluding VAT). Further information on the total contract values and project payments for each project is available at: ppp.gov.ie/ppp-projects/. The duration of both contracts is the construction period plus a 25-year operating period. Payment is made by the State only once construction of the buildings is complete and the units are ready for occupation. The payment comprises a monthly ‘availability’ and performance-based payment (or unitary charge) made over the term of the 25-year contract, which incorporates all costs under the contract, including construction, the upkeep and maintenance of the developments, tenancy management services, financing costs and inflation.
The Public Sector Benchmark (PSB) is an essential part of any PPP project. It contains commercially sensitive information in relation to the methodology used for costing public sector projects and for the pricing of risks by public sector bodies. In accordance with guidelines issued by the Department of Public Expenditure, NDP Delivery and Reform (Guidelines for the use of Public Private Partnerships), the final PSB, or any element thereof, is not made public during the tendering process nor where it is intended to procure further similar projects in the near future (e.g. subsequent project bundles as part of an ongoing PPP programme).
As Bundle 3, which is currently progressing through the tender process, will follow the same structure as Bundles 1 and 2 and given the potential impact on value for money for the State, it is not appropriate to release the PSB for Bundles 1 and 2 at this time. However, the Department of Department of Public Expenditure, NDP Delivery and Reform has agreed, in the interest of transparency and timing, that the PSB may be published when the tender process for Bundle 3 has been finalised and the contract is awarded.
