Dáil Éireann Debate, Wednesday - 2 October 2024
77. Deputy Matt Shanahan asked the Minister for Transport the reason for the technical financial analysis in full detail that has delayed a Department review of the Waterford airport business case, with the understanding that private equity commitment is provided for over half the project cost; and if he will make a statement on the matter. [39392/24]
View answer78. Deputy Matt Shanahan asked the Minister for Transport with regard to the Waterford airport business case funding request, if he can confirm whether the full costs capital works schedule must be borne by the airport investors to a completed project on which the Government then agrees to refund an agreed grant amount as part of those incurred costs, or whether the process requested envisages grant drawdown as the project schedule rolls out; and if he will make a statement on the matter. [39393/24]
View answerI propose to take Questions Nos. 77 and 78 together.
I thank the Deputy for his continued interest in this matter. As you are aware my Department has undertaken a detailed appraisal of the development proposal put forward by Waterford Airport. This appraisal has included the assessment of significant additional documentation, including audited financial statements which had been outstanding from the airport, and responses to queries raised by Department officials and addressed by the airport up until 17 July. This level of appraisal is necessary to ensure that due diligence is exercised in accordance with my Department’s “Transport Appraisal Framework” and the Government’s “Infrastructure Guidelines” (Previously known as the Public Spending Code).
The Transport Appraisal Framework requires that in the transport sector, where the proposal has an estimated potential cost of €15m or more, the Sponsoring Agency (in this case Waterford Airport) must produce a Project Outline Document, to be reviewed by the relevant Approving Authority (in this case the Department of Transport). The purpose of the Project Outline Document is to outline the rationale for an intervention and the intended impacts; verify the alignment of the proposal with wider government strategy and policy; and describe the appraisal, governance, and financial approach.
I am pleased to advise the Deputy that my Department has completed its assessment of the detail submitted by Waterford Airport in line with the Project Outline Document requirements. This assessment was submitted to both Minister Ryan and I recently for our consideration.
In relation to the funding mechanism query raised, as the Deputy will be aware in June 2019 the Government decision made at that time was, in principle, to provide Exchequer funding that would be made only on completion of the runway and all associated works. Confirmation by the Irish Aviation Authority to show that any expanded runway was authorised for service was also a necessary condition along with any risks relating to cost escalation to be borne by the non-State investors. These are conditions which were accepted by Waterford Airport at that time.
Such conditions are in line with policy on funding to regional airports, which provide that grant aid may be drawn down towards the cost of approved projects on a recoupment basis only and at a rate provided for within State aid rules.
