Vol. 505 No. 6
24 Mr. Shatter asked the Minister for the Environment and Local Government the types of infrastructure projects falling within the ambit of his responsibilities being considered as potential areas for public or private partnership; and if he will make a statement on the matter. [14439/99]
Following the Government's decision in August 1998 to pursue a public private partnership approach for public capital projects on a pilot basis, my Department has identified a number of areas where this approach may be appropriate. The key areas where PPP may play a role in addressing the major infrastructural investment needs are roads, water supply and waste water treatment, solid waste infrastructure and medium sized developer led projects to service land zoned for residential development. The types of public private partnership projects will vary, depending on the nature of the investment required, but will include design and build, design, build and operate, design, build, operate and finance and concession contracts.
A specially dedicated unit has been established in my Department to promote and develop the approach on PPP. The National Roads Authority is developing a PPP programme in national roads projects. Some projects have already advanced on a PPP basis, such as the concession contract for vehicle testing signed last year and some design and build and design, build and operate projects in the roads and water services areas. Projects within my area of responsibility which are already under way were outlined in my reply to Question No. 275 of 9 March 1999.
The process of assessing other projects suitable for a PPP approach is continuing and a series of pilot projects will be announced by the Government shortly. These projects will be monitored and evaluated to allow for the dissemination of information on best practices and the standardisation of contract documentation and procedures. In this way, further PPP projects can be advanced with greater speed and efficiency.
I am sure the Minister agrees that the PPP principle is useful and is something we need to encourage in all aspects of our infrastructure. Is he aware that earlier this year the Government promised a PPP approach to building the north Dublin interceptor for more than 16,000 new houses in that area. What work has been done on that project?
That is a specific question about a specific project and I will furnish the details to the Deputy.
The Minister's reply was expressed very much in terms of general principles. Will he outline to the House two or three of the major road projects under consideration for the PPP approach?
I do not want to pre-empt any Government decisions.
I appreciate that. I refer to those under consideration.
Any of the major projects in the initial tranches of the NRA roads study will be included for consideration under the PPP approach. Specifically, the Government intends to run a number of pilot schemes. Obviously, we will take a number of the more urgent projects from the NRA needs study and consider whether they are suitable for the PPP approach.
The Minister indicated that he felt water supply, waste water treatment and the treatment of solid wastes would be suitable as PPP projects. Does he agree that the design, build and operate formula would be most relevant for such projects? Will he indicate the type of formula he envisages for roads development, particularly given that the ESRI has made a recommendation that road use should be priced? In that context, what is his view on tolls?
Any project that we intend to advance under the PPP initiative will be considered carefully in terms of what is the best approach. Generally, we have had a positive experience in regard to waste water projects with the design, build and operate formula referred to by the Deputy and it will also be considered. A number of options could be put forward in regard to roads, such as tolling, shadow tolling and systems that operate on the basis of road usage, etc. The Government's position on tolling is the same as it was prior to the last general election. We will not introduce tolls on roads that are already in place and which were provided through taxpayers' money. However, any new projects will be open to such consideration if it will advance them.
When assessing PPPs should the Minister have regard to the national sustainability strategy and the COf7>2 abatement strategy? Does he accept that it was remiss of him not to mention those in his reply on infrastructural needs?
It was not remiss of me because Government policy clearly states that legislation and proposals that come before Government from all Departments must be eco-audited, environmentally proofed and comply with our national sustainable development policy. Any of those projects, whether they are PPPs or Departmental proposals, must conform with that policy. If they do not, they will not be approved.
In regard to roads projects, I understand the Minister's reply to mean that any existing roads will not be tolled. Will future road projects, such as motorways and town bypasses, be considered for tolling?
In terms of PPPs any road project will be open to such consideration but the initial analyses of various road schemes indicate that very few could operate purely on the basis of tolls. There would not be an economic return from the majority of them.
They are totally impractical.
