Leo Varadkar (Dublin West, Fine Gael)

The question relates to the renegotiation of public private partnership, PPP, contracts. I have responsibility for overall policy and funding in regard to the national roads programme. The implementation of individual national road schemes, including PPPs, is a matter for the National Roads Authority In particular, the statutory power to levy tolls on national roads, make toll by-laws and enter into toll agreements with private investors in respect of national roads is vested in the NRA under Part V of the Roads Act 1993, as amended by the Planning and Development Act 2000 and the Roads Act 2007. Contracts for privately operated toll schemes are commercial agreements between the NRA and the PPP concessionaires concerned. Two PPP contracts, the M3 Clonee-Kells and Limerick tunnel PPPs, incorporate a traffic guarantee mechanism.

With regard to the remaining PPP schemes, all traffic risks remain with the operator, while the State stands to benefit from the revenue share arrangement where average daily traffic volumes exceed scheme specific predefined thresholds. At current traffic levels, a revenue share only arises on two of these schemes, the M1 Dundalk-Drogheda bypass PPP and the M4 Kilcock-Enfield-Kinnegad PPP.

With regard to the traffic guarantee mechanism, such difficulties will not arise because it is envisaged that future PPP projects will be funded by way of unitary-availability payments rather than through tolling. Under this arrangement, it is envisaged that availability payments would be made on a regular basis by the NRA for the duration of the contract, with penalties applying in the event that the road or particular road lanes were not available.

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