Bertie Ahern (Dublin Central, Fianna Fail)

Deputy Kenny raised the first issue on a previous occasion at which time I told him the Minister for Finance was working on an initiative. That is now complete and I will give some details of it. It is aimed at accelerating PPP projects for key capital infrastructural projects in central Government areas. A new centre of expertise will be established under the National Development Finance Agency, NDFA, whose role will be expanded to include procurement functions on behalf of Departments. This will be in addition to its existing role as adviser to Departments on PPP procurement. The agency has commenced this new activity on an interim non-statutory basis and the Department of Finance is working with its legal advisers, in consultation with the NDFA, to bring forward any necessary legislative amendments without delay. The Minister for Finance appointed two additional members to the board of the National Development Finance Agency and the appointments are interim and non-statutory in the first instance pending amendment of the National Development Finance Agency Act 2002. The additional board members are Mr. Fred Barry, chief executive of the National Roads Authority, and Mr. Stuart Harrington, chartered surveyor and director of Killeen Properties.

The centre will provide the skills and capacity required to support the procurement of key infrastructural projects by public-private partnership in the central government area. This relates to the point raised by Deputy Kenny. By concentrating initially on three key Departments, namely, the Departments of Education and Science, Health and Children and Justice, Equality and Law Reform, an approved flow of PPP projects will be generated and resources will be focused on bringing these projects to completion. This relates to the point raised by the Deputy whereby companies had to invest in a major outlay for contracts with no return and incurred a sizeable hit in terms of their own costs.

Ministers will continue to be responsible for the assessment and approval of projects, including decisions to procure the project as a PPP, the setting of project budgets, output specifications and other service requirements. The NDFA's centre of expertise will be responsible for procuring the projects within these parameters and carrying out any negotiations needed to the turnkey stage. It will hand over the completed project to the Department concerned after construction.

This development resulted following consultation which, as Deputy Kenny will recall, involved the Minister listening to the agencies and companies concerned make the point about the cost. This development will lead to a much more efficient operation and give a centre of expertise where the process involved will be centralised as opposed to the existing position.

There is no new discussion on the tolling issue other than the decisions that have already been made. Only a small number of the roads, in respect of which €1.5 billion will be invested, are tolled.

With regard to Transport 21 issues related to the orbital route, the Deputy will recall that the National Roads Authority has carried out preliminary work on the orbital route but has not yet decided on a route. It has broadly indicated that it wants to proceed on an outer line but the exact location of it and the related cost specifications of it will take some time to establish. It has said it will report back but it will take some time before it does that in a meaningful way in terms of it being costed. It is important to commence preliminary work on the orbital route for the longer term.

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