I propose to take Questions Nos. 496 and 497 together.
As the Deputy is aware, in 2006 the then Government approved capital funding for Phase 1 of the Western Rail corridor between Ennis and Athenry that opened in 2010 at a capital cost of €106.5m. This investment followed the Government approved Business Case prepared by Iarnród Éireann who conducted an economic cost-benefit analysis of the project. This analysis took into account the economic benefits of the project arising from the time savings, safety and environmental cost savings and that also considered the challenge to capture travel demand from the private car onto the railway in the context of improvements planned to the road network and competition from the bus sector which would benefit from these improvements (that have now been delivered).
The cost benefit analysis prepared by Irish Rail and submitted to Government indicated a negative Net Present Value (NPV) of minus €137 million over 30 years and with a CBA ratio of 1:0.056, the value of the benefits was estimated to just 6% (or, roughly, one-twentieth) of the value of the costs. Subvention was estimated at €24 per passenger per journey in year 1 (based on approximately 100,000 new rail passengers in year 1) and falling to half of this (on the basis that patronage was projected to double over the first five years of operation).
In light of Iarnród Éireann's responsibility in the issues raised by the Deputy, I am referring his question to IÉ for further information. Please advise my private office if the Deputy does not receive a response within ten working days.
I would like to advise the Deputy that officials in my department are considering how best to progress the published NDP commitment in relation to an independent costing of Phase 2 of the Western Rail Corridor.