Oireachtas Joint and Select Committees

Thursday, 6 December 2012

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Financial Commitments under Public Private Partnerships
Chapter 16 - Central Government Funding of Local Authorities

11:40 am

Ms Geraldine Tallon:

It is our job, in an operational sense. I absolutely accept that.

The operation of PPPs is a relatively new area for us. We had some discussion earlier on this with Deputy Connaughton. Of the 20 projects, nine have a public sector benchmark. The other 11 predate the requirement for public sector benchmarking and the DBO is based against a pre-tender estimate.

We have specific information for each of the nine projects that are subject to the public sector benchmark. The DBO capital cost for the Castlebar waste water treatment plant, for example, was 22% less than traditional procurement and the DBO whole life cost was 23% less than the public sector benchmark. We have to review the project in construction and in operation. My information on the Castlebar waste water treatment plant is that the operational cost for 2009 was €720,000 and the operational cost for 2010 was €676,196.

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