Leo Varadkar (Dublin West, Fine Gael)

At the outset I should clarify that as Minister for Transport I have responsibility for overall policy and funding in regard to the national roads programme. However, the planning, design and implementation of individual national road projects are matters for the National Roads Authority under the Roads Acts 1993 to 2007 in conjunction with the local authorities concerned. Noting this I have referred the issue raised by the Deputy to the NRA for direct reply. I would ask the Deputy to advise my office if he does not receive a direct reply within ten days.

With regard to the specific project, the House may wish to note that the N17-N18 Gort to Tuam project is being tendered by the NRA as a public private partnership, PPP, but due to concern in the capital markets regarding Ireland's overall financial situation the NRA has had difficulty concluding this PPP contract.

The successful awarding of a major PPP contract involving private funding is challenging at any time but is particularly challenging in current circumstances where Ireland has been the subject of intervention by the IMF and the European Union. Until financial credibility is restored the international debt funding market will be reluctant to lend funds to finance projects in Ireland, the repayment of which is ultimately dependent on the Irish State.

This project remains a priority for the Government and the Government is committed to this PPP. The NRA has my full support in seeking to get the project to a financial close this year. I can undertake to keep the Deputy and other Deputies for the region informed of progress as it is made, and also the county and city managers. The NRA and my Department have not given up on this PPP and intend to pursue it for as long as we can.

Should the project not become possible I would agree with the Deputy's suggestion that an alternative arrangement should be made to proceed with part of the project on a traditional Exchequer funding basis but I want to make it clear that we are still trying to get this PPP over the line.

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