Written answers
Wednesday, 20 March 2024
Department of Housing, Planning, and Local Government
Public Private Partnerships
Rose Conway-Walsh (Mayo, Sinn Fein)
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708. To ask the Minister for Housing, Planning, and Local Government to provide details on all planned PPP projects and ongoing PPP contracts; the status of each project; the anticipated or known capital cost; the anticipated or known cost to the Exchequer over the lifetime of the contracts; the annual total payment of PPP unitary charges and the percentage share of the total capital budget for his Department and all public bodies under the aegis of his Department; and if he will make a statement on the matter. [13199/24]
Rose Conway-Walsh (Mayo, Sinn Fein)
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709. To ask the Minister for Housing, Planning, and Local Government the PPP social housing bundle 1 and 2; the total capital cost; the total projected Exchequer cost spread over the lifetime of the contract; the hand back date; the cost per unit on the capital cost; the cost per unit on the projected Exchequer cost, in tabular from; and if he will make a statement on the matter. [13216/24]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 708 and 709 together.
Oversight for the Public Private Partnership (PPP) process across all Government Departments rests with the Department of Public Expenditure, NDP Delivery and Reform, which develops the general policy framework and provides guidance to Government Departments. My Department is currently progressing the Social Housing PPP Programme, which represents an additional strand of delivery to increase the supply of social housing. Housing for All includes a specific objective to increase the use of PPPs to deliver social housing.
The current Programme consists of 7 bundles of projects which will provide over 4,500 social housing units and is being delivered through the ‘availability’-based PPP model. Under this type of contract, a PPP consortium, as the private partner, designs, builds, finances, maintains and operates the relevant bundle of social housing units in return for a monthly ‘availability’ and performance-based payment (or unitary charge) made over an operating period of 25 years. Payment is made by the State only once construction of the buildings is complete and the units are ready for occupation and incorporates all costs under the contract, including construction, the upkeep and maintenance of the developments, tenancy management services, financing costs and forecast for inflation. In addition, the monthly unitary charge payment is subject to performance of required services and availability of the homes, with deductions to these payments being applied where required standards are not met.
Significant progress is being made under the programme:
- Bundle 1 delivered 534 houses and apartments in 2020 and 2021 across six sites.
- Bundle 2 delivered 465 homes in 2021 across eight sites.
- Bundle 3 comprises 486 units across 6 sites and the tender process commenced in Q4 2022.
- Bundles 4 and 5 comprise 1,900 units across 18 sites which are advancing through design development.
- Bundle 6 comprises 480 units across 7 sites and Technical Advisors are due to be appointed shortly to bring the projects forward through design development.
- Bundle 7 was launched in November 2023 and comprises 650 units across 6 sites.
Further information on the total contract values and annual unitary charge amounts for all State PPP projects including social housing Bundles 1 and 2 is available at:
.
Bundles 1 and 2 were delivered in 2021, therefore the 25 year operating period will end in 2046, at which time the units will be handed back to the relevant local authorities in a predefined condition as agreed in the PPP Project Agreement.
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