Paul Connaughton Snr (Galway East, Fine Gael)
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Question 53: To ask the Minister for Transport his views on whether the international credit crunch will have a negative effect on the roll out of metro north; and if he will make a statement on the matter. [21160/09]

John O'Mahony (Mayo, Fine Gael)
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Question 87: To ask the Minister for Transport if any of the consortia seeking to bid metro north have approached him to seek aid securing long term finance; and if he will make a statement on the matter. [21225/09]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 53 and 87 together.

Good progress continues to be made on the metro north project. The oral hearing before An Bord Pleanála on the railway order application for the project commenced on 1 April. In addition, the procurement process is being advanced. Four bidding groups submitted the first round of tenders for the public private partnership contract to the Railway Procurement Agency at the end of February last. These continue to be evaluated by the RPA.

The credit crunch and resultant lack of liquidity in funding markets has affected all forms of bank lending. PPPs, which rely on bank lending, not unexpectedly, have not been immune to these developments. The lack of liquidity in global financial markets is affecting PPPs internationally. It is widely acknowledged that funding of PPP deals is costing more and taking longer to agree than had been the case in the past. There is also greater competition amongst projects internationally for the limited bank lending resources available. The European Investment Bank has become a very important source of finance for PPP projects and is supporting many projects throughout the EU.

Metro north is being procured as a PPP and, therefore, faces the same challenges as other PPPs in securing funding. However, the metro north contract is not due to be finalised until 2010 which allows time for the global funding markets to achieve greater stability. The RPA, the agency responsible for delivering the project, is also in discussions with the European Investment Bank in regard to the project.

The RPA remains of the view that the procurement and funding can be successfully concluded. This is based on the ongoing active participation by the international consortia in the PPP tender process and recent trends which indicate a continuing easing in the global financial markets. This easing is anticipated to continue further in 2010, when metro north is due to reach financial close.

I have no function in regard to the procurement of this project. I have not been approached by any of the bidding consortia to seek aid securing long-term finance.

Fergus O'Dowd (Louth, Fine Gael)
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We all agree it is very important that metro north proceeds. Members of the Opposition have been approached by the different consortia in regard to the issues which have arisen. I have no preference for any one nor have I any interest in it but the point has been made to us that some consortia cannot raise the funds to tender for this project while others can do so.

The Minister referred to the European Investment Bank. The key point is that we ensure whoever gets this project gives value for money. If one of the companies bidding cannot put the financial package together out of its own resources and if it cannot get the money from the European Investment Bank or other sources, it places it at a competitive disadvantage. I appreciate what the Minister said about not having been approached on this issue but what else, if anything, can be done to create a level playing field?

Noel Dempsey (Meath West, Fianna Fail)
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I do not believe anything can be done, in particular by Government, in the middle of a procurement process.

Fergus O'Dowd (Louth, Fine Gael)
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I am not talking about that.

Noel Dempsey (Meath West, Fianna Fail)
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I know the Deputy is trying to be helpful in this regard and I am not trying to be smart about it. However, I do not believe anything can be done in the middle of a tendering process. One of the criteria which must be used by the RPA in deciding on the preferred bidder will be whether or not it is financially able to support the project. The RPA and others would be in a position to talk to the European Investment Bank and to ascertain what might or might not be available because they are responsible for the tender. I am sure that facility is also available to the consortia. However, I do not believe we can become directly involved or give any kind of preferential treatment. Those who bid must be in a position to put the finances in place because it is one of the criteria.

Tommy Broughan (Dublin North East, Labour)
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I agree with the Minister on this. A prerequisite for the four groups, which I understand are at the first tender stage, is that they are in a financial position to meet the Government's requirements in regard the private sector financing. Does the Minister agree there is a sort of nervousness, to put it mildly, among some of the tenderers in regard to the general financial position facing the Government, the evolution of the National Asset Management Agency and the fact the Government might have considerable financial burdens which could impact on this? There is certainly a sense of nervousness there.

Like Deputy O'Dowd, I believe the best proposal, or the best man or woman, should win. That is the best way for a competition to be run. Does the Minister agree there is a nervousness in regard to his commitment?

How much money will be spent in 2009 on bringing forward the proposal? At the beginning of the year, the Minister's officials told me approximately €80 million or €90 million would be spent? I understand the tenderers are spending up to €50 million. What is the Department's commitment in this financial year?

Noel Dempsey (Meath West, Fianna Fail)
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I cannot answer the Deputy's last question off the top of my head. If he will accept a broad figure, it could be in the region of €30 million to €40 million but I will not be held to that. If he wants, I can ascertain the figure.

The sense of nervousness which might be felt by the tenderers has nothing to do with the National Asset Management Agency or Government finances, rather it relates to their ability to raise finance for the project on the international money markets. That is where they may be making approaches to different people to try to see what assistance and help they can get.

There has been a considerable amount of commentary since the project was first mooted. It is at oral hearing stage at present. The oral hearing has been adjourned in order that further information may be looked at in depth and so on. I presume that will delay the decision. Not as much will need to be spent this year as we anticipated. However, that is a function of the planning system and that is why I do not like to make predictions about when a project will finish until it has gone through the planning system.

Fergus O'Dowd (Louth, Fine Gael)
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I will make the point I made earlier but perhaps in a better way. I appreciate nobody can intervene in this process but if there are two competitive tenderers and the cheaper of the two does not have the same access to finance it would have had if the financial crisis had not occurred, it would be reasonable to try to ensure, through the RPA or otherwise, that every effort is made to make finance available from international sources without political involvement, interference or whatever. If it would be cheaper for the taxpayer in the long run to do that, it should be done.

Tommy Broughan (Dublin North East, Labour)
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When does the Minister expect the four tenders to be reduced to two and when will the preferred bidder emerge? Does he have a timeframe in that regard?

Regarding preparations for the project, when did he last meet the Dublin City Manager, Mr. John Tierney, whom I understand is directing all the preparations for central Dublin in the city centre region and when does he expect the bus gate to be up and running?

Noel Dempsey (Meath West, Fianna Fail)
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I understand the city council has now decided the bus gate will operate from July. That decision was made about a week or ten days ago, two days after I met the city manager, the Dublin City Business Association, Dublin Chamber of Commerce, the CIE companies, the RPA and the Garda Síochána - in the stakeholders' group I meet on a quarterly basis, to keep myself updated on what is happening and the issues that are arising.

On the other point made by Deputy O'Dowd, it is the responsibility of the consortiums, if they have worries or fears about being able to finance their bids, to do the business themselves in relation to this matter. I emphasise, however, by way of being helpful, that in recent days the M25 road widening scheme, a major PPP, similar to the metro north in the UK, was successfully funded with the support of the EIB. This would indicate that matters are loosening up somewhat on that particular front and that should provide some hope and comfort to those who might be bidding.