Mary Harney (Dublin Mid West, Progressive Democrats)

I propose to take Questions Nos. 2 and 4 together.

The co-location initiative is a complex process but it is an efficient means of delivering extra bed capacity. Significant progress has been made in advancing the individual projects involved. The board of the HSE has approved preferred bidder status for the development of co-located hospitals at Beaumont Hospital, Cork University Hospital, the Mid-Western Regional Hospital, Limerick, St. James's Hospital, Waterford Regional Hospital and Sligo General Hospital. Project agreements for the projects in Beaumont, Cork, Limerick and St James's have been signed.

Planning permission was granted by An Bord Pleanála for the Beaumont project late last year. Planning permission for the Cork and Limerick projects has been granted by the local authorities concerned and appealed in each case to An Bord Pleanála. The preparatory work required to make the planning application for the St James's project is under way.

The necessary preparatory work for the project agreements in respect of Waterford Regional Hospital and Sligo General Hospital is proceeding. A tender in respect of Connolly Hospital has been received and is under consideration. Work is being undertaken to finalise the invitation to tender for Tallaght Hospital.

It is a matter for each successful bidder to arrange its finance under the terms of the relevant project agreement. It is the case that the funding environment has changed significantly in recent months, and that has affected both the public and private sectors. The co-location initiative, like other major projects, has to deal with the new situation. The successful bidders are working on the details of contractual terms with banks and other arrangers of finance. The HSE is continuing to work with the successful bidders to provide whatever assistance it can to help them advance the projects.

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