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Construction Contracts

Dáil Éireann Debate, Tuesday - 22 May 2018

Tuesday, 22 May 2018

Ceisteanna (612)

Thomas Pringle

Ceist:

612. Deputy Thomas Pringle asked the Minister for Housing, Planning and Local Government if his attention has been drawn to the concerns regarding housing construction in County Donegal in respect of PPP contracts which preclude local contractors from tendering for local public works and the knock-on effect this will have on the SME sector, which will also be precluded from working on future local projects; the reason he is focusing on the traditional procurement model which means only the top contractors in the country will be able to compete for public works; and if he will make a statement on the matter. [22555/18]

Amharc ar fhreagra

Freagraí scríofa

My Department is currently responsible for the development of one PPP programme for housing, which involves an investment with a capital value of €300 million, with the aim of delivering 1,500 social housing homes in total, via three bundles. Other PPP programmes, such as those designed to deliver schools or medical facilities, would be the responsibility of the Ministers for Education and Skills, and Health, respectively, while more general policy on PPPs is the responsibility of the Minister for Public Expenditure and Reform.

The first bundle in the social housing PPP programme, comprising a total of six PPP sites, will provide over 500 homes in the Greater Dublin Area. Two of the sites are located in the Dublin City Council area with one each in the County Council areas of South Dublin, Kildare, Wicklow and Louth. The second bundle, comprising eight PPP sites, will provide over 450 new homes. Three of the sites are located in County Cork, with one in each in the cities of Galway and Waterford, and in the counties of Clare, Kildare and Roscommon. The identification and selection of sites for the third project bundle is at a preliminary stage.

The social housing being developed at all these sites is in co-operation with the relevant local authorities. It is expected that construction on the first bundle of sites will commence later this year, with homes becoming available towards the end of 2019.

Each of these bundles has a capital value in the region on €100 million. Bundling a number of sites together from across the country generates economies of scale, which ultimately results in improved value for money for the Exchequer.

As part of each PPP bundle, Enterprise Ireland organise a "Meet the Buyer" event during the preferred tenderer stage. This event gives an opportunity for smaller contractors to meet with the consortia that are bidding for the tender. This engagement gives local SMEs from across the country, and from the local areas where the housing units are to be built, an opportunity to become involved in working on individual elements of these broader projects, including both the construction phase as well as the 25-year management and maintenance phase. The "Meet the Buyer" event for the first bundle of housing sites was held in the Mansion House in Dublin on 14 March 2018, and it was well attended by a range of relevant companies.

In addition, it should be noted that the proportion of social housing homes being built using this availability-based PPP model, as compared to traditional means, is very low. The Rebuilding Ireland Action Plan has set a target of delivering 50,000 social housing homes during its lifetime. At present, the 1,500 social housing homes under the PPP programme are the only social housing units that my Department plans to fund using this method, and none of these units are located in Donegal.

Questions Nos. 613 and 614 answered with Question No. 586.
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