Dáil Éireann Debate, Tuesday - 9 April 2024
647. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage further to Parliamentary Question Nos. 708 and 709 of 20 March, the percentage of the unitary payment for social housing PPP bundles 1 and 2 that is indexed or understood to be allocated towards operational costs; and if he will make a statement on the matter. [14369/24]
View answer648. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage when information on the anticipated total cost to the Exchequer of PPP bundles 3 to 7 will be made public; and if he will make a statement on the matter. [14370/24]
View answerI propose to take Questions Nos. 647 and 648 together.
During the life of the PPP contract (typically 25 years after construction), a portion of the unitary payment is adjusted annually by an inflation factor to reflect changes in a general inflation index specified in the contract (the Consumer Price Index or the Harmonised Index of Consumer Prices). This indexable portion represents costs incurred by the PPP company over the operational period (e.g. facilities management, maintenance and lifecycle costs); it excludes construction and finance costs.
As part of the annual indexation process, the indexable portion is adjusted by the actual inflation rate over the preceding 12-month period. The indexable portion for each project depends on the specific features of the project, i.e. the operational period costs as a proportion of the total costs will differ by project. The portion of the unitary payment that is subject to indexation is proposed by tenderers as part of the competitive bidding process. Due to the current status of Social Housing Bundle 3 and the commercially sensitive nature of procurement, it is not appropriate, at this time, to provide details of the indexable element for Social Housing Bundle 1 and Social Housing Bundle 2. Please note that for projects procured by the NDFA up to 2024 the average indexable portion is 33.7%.
Similarly, in relation to PPP bundles 3 to 7, due to the current status of the projects and the commercially sensitive nature of procurement, it is not appropriate, at this time, to provide details of anticipated costs.
