Denis Naughten
Ceist:4 Mr. Naughten asked the Minister for Transport the projected cost of the airport metro; if he has received Cabinet approval for the project; and if he will make a statement on the matter. [16013/04]
Amharc ar fhreagraThursday, 27 May 2004
Ceisteanna (5)
Freagraí ó Béal (7 píosaí cainte)
The programme for Government contains a commitment to develop a metro with a link to Dublin Airport. I have received the revised outline business case for line one of the metro from the Railway Procurement Agency, which involves a line from the airport to the city centre. The estimated direct cost of physical construction in 2002 prices is €1.2 billion. This excludes financial costs.
The timescale, precise cost and route, number and location of stations and arrangements for a connection to the green Luas line will depend on a number of factors including: the Government's decision; geo-technical surveys; negotiations with bidders; and railway order processes, including the public inquiry. In preparing a submission for the Government on this matter, the merits of all alternative solutions and routes will be considered.
I am currently finalising my proposals on the metro in the context of the wider transport needs of the greater Dublin area. In advance of the Government considering these proposals, it would not be appropriate for me to comment further on the matters raised in any great detail. However, I expect to bring my proposals to the Government before the summer.
With respect, the Minister is like a broken record. He has been saying for the past 12 months that the metro proposals will be going before Government shortly. However, nothing appears to have been finalised in respect of this matter. Will he provide a revised estimate on when he expects the metro to be completed in line with the commitment in the programme for Government. Would 2010 be a more accurate date for its completion?
The Minister stated that the projected cost of the metro is €1.2 billion. Does he have any realistic idea of what will be the actual cost? Is he going to bring forward proposals to Government to address the serious cost creep that is affecting infrastructural projects in this country? This matter has been highlighted by the ESRI in the mid-term review of the NDP. There does not appear to be competence within the Government to address the cost creep that has been taking place in construction and infrastructural projects throughout the country. Will the critical infrastructure Bill be published before the metro goes to tender?
If decisions are made within the timeframe in which I hope and intend them to be made, I am informed by the RPA that the metro should be operational by 2008 or 2009, depending on how quickly it can move in terms of proceeding to tender stage.
It depends on how quickly the Minister can move.
The RPA is ready to go. The costs stand at €1.2 billion but this figure excludes financial costs and only relates to the direct cost of physical construction. I would, therefore, expect the final cost to be substantially more than €1.2 billion. The RPA focused on the physical construction costs because, in terms of obtaining bids and sorting tenders, it needed an indicative figure.
The critical infrastructure Bill is being brought forward by the Minister for the Environment, Heritage and Local Government. I have been involved in a number of discussions with him about the legislation. It is my intention, however, to introduce a separate critical infrastructure (metro) Bill to deal with metro related issues. The start-up of any metro would not necessarily have to await the introduction of such legislation and could happen in parallel.
The Minister stated that the start-up of the metro would not be reliant on the legislation already being in place. Professor Melis and many other experts considered this issue and that of the serious cost creep that has taken place in respect of the Luas project. On foot of their findings, does the Minister not agree that it is critically important to have such legislation in place prior to the commencement of work on the metro?
What discussions have taken place with the Department of Finance regarding the establishment of an independent infrastructural review unit? Does the Minister agree it is not acceptable that the Department which is in charge of putting forward the proposals for the metro is also responsible for project management and the final outturn and that it does not seem logical that one arm of the State is supposed to police itself? Does he also agree this is part of the reason for the significant cost creep in infrastructural projects?
The Minister will need to be more specific with regard to figures if he is bringing them to Cabinet. I understand — perhaps the Minister will clarify the position — that in providing the figures, the RPA was quite specific as regards the number of stations that should be included.
The advisers engaged by the RPA have estimated that the cost of the various options for phase 1 of the project is €1.2 billion in terms of total direct construction costs at 2002 prices. These figures increase substantially when one estimates a final cost which takes account of expected inflation during the period between now and the date on which services commence, VAT, fees, interest charges, the cost of risk transfer and a provision for risk and contingency. A more accurate cost can only be determined when the final structure of the project is decided and, more importantly, when competitive bids are received from the interested parties. I would seek to move on that as a matter of urgency.