Mary Hanafin (Dún Laoghaire, Fianna Fail)

I propose to take Questions Nos. 104 and 113 together.

In January of this year, I announced the bundling arrangements for the delivery of public private partnership, PPP, projects in nine separate third level institutions. The first bundle includes library projects at Limerick Institute of Technology, the University of Limerick and Cork Institute of Technology and a digital media building, workshops and multi-purpose hall at Dún Laoghaire Institute of Art, Design and Technology, DLIADT.

The second bundle includes an engineering and science building, architecture building and business and enterprise extension at the Waterford Institute of Technology; and a catering and tourism building, multi-purpose centre and engineering building at the Institute of Technology in Tallaght.

The third bundle includes a mathematical sciences and computer centre at the National University of Ireland, Maynooth; a teaching research wing, new administration and support centre at Carlow Institute of Technology; and an engineering school at the Galway-Mayo Institute of Technology.

Following my announcement, pre-procurement work consisting of the preparation of output specifications, the public service benchmark and applications for outline planning permission is ongoing in my Department for the first bundle of projects. On completion of these key tasks, it is envisaged that this bundle will be offered to the market by the National Development Finance Agency, NTFA, by the third quarter this year. In the meantime, work will continue on the second and third bundles.

As we are still at the pre-procurement stage, all technical, legal and financial matters including the interest rate being charged, will not be finalised until the tender process has been completed. Therefore, it is not possible to indicate the interest rate being charged by the successful bidders for the three bundles at this stage. It is proposed that the concession period for the operation of all three bundles will be 25 years.

All costs associated with the provision and maintenance of the buildings will be taken into account in the preparation of the public service benchmark, including the cost of repairs and maintenance for the duration of the contract. The cost of repairs and maintenance for the concession period must be included by shortlisted bidders in the overall contract and cost.

The buildings will remain in State ownership for the duration of the contract and the PPP company will be granted a licence to build the facilities and maintain and operate them for a period of 25 years.

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