Vol. 574 No. 2
165 Ms Burton asked the Minister for Education and Science his views on the report of the Comptroller and Auditor General on the Cork School of Music; his further views on the escalation in the cost of the project, especially in view of the need to ensure value for money in respect of all projects; and if he will make a statement on the matter. [25796/03]
In 1999 the Hardiman review group recommended the construction of a 5,400 sq. m. extension to the Cork School of Music. The estimated cost of providing for the extension under traditional procurement was circa €15 million. This figure was the basic estimated cost of the extension and did not take into account the cost of design and planning, loose furniture and fittings, equipment including musical instruments and information technology, or the maintenance and operation of the school over the proposed 25 year contract. All these items are included under the proposed PPP project and are reflected in the cost.
During the PPP procurement process, the project scope changed as it became clear that the fabric of the existing school of music building had deteriorated significantly. It had deteriorated to such an extent that the cost of restoration, refurbishment and remodelling would be poor value for money and the only option available was for its demolition and replacement with an entirely new building. Therefore, the current net present value cost of the project at €100 million, capital cost €62.9 million, provides for the demolition of the existing building and its replacement with a new building that will include the additional area proposed in the Hardiman report, allow the amalgamation of all 17 venues currently used by the school in a single location, the cost of design and planning, all fittings, furniture and equipment, the cost of operating and maintaining the school for 25 years and the cost of servicing the financing of the project over that period.
I am satisfied that the current estimated cost of this PPP project properly reflects the actual costs of providing a fully equipped and serviced school of music. However, as the Deputy will be aware, issues surrounding the effect of the project on the general Government balance and its affordability in the context of the current economic climate are currently being examined.
