Brian Lenihan Jnr (Dublin West, Fianna Fail)

I thank the Senator for raising this issue on the Adjournment. As he is aware, the new Cork School of Music, a constituent part of Cork Institute of Technology, is being procured under the public private partnership model. The CSM provides training in a wide range of musical instruments, musical theory and speech and drama. The school caters for first, second, third and fourth level students, whether they are amateur musicians, music teachers or performers.

The tender for this project was advertised on a European basis in June 2000. Following the project launch in July 2000, 12 consortiums expressed an interest in bidding for the project. Following the presentation of outline proposals, the number of bidders was eventually reduced to three. These bidders were issued with an invitation to negotiate in November 2000. The consortium bids were submitted in February 2001 and were subject to detailed evaluation under design and construction, services, financial and legal headings by officials of the Department of Education and Science along with specialist advisers. Following this process, Jarvis Projects Limited was selected as the preferred bidder in March 2001.

The Department of Education and Science officials and advisers entered into a period of intense discussion with Jarvis with a view to finalising the project financially. During this period Jarvis, under the terms of the project, sought and received planning permission for the project from Cork City Council. However, An Taisce submitted a planning appeal to An Bord Pleanála. During the period of the appeal, work on the project was suspended and it was only resumed after An Bord Pleanála rejected the appeal and granted planning permission for the development, as the Senator pointed out, on 24 December 2001.

The Department of Finance has raised a number of issues in respect of the project. Officials from the Department of Education and Science, in conjunction with specialist advisers, are examining these issues and have been in contact with Department of Finance officials. In addition, the question of the involvement of the European Investment Bank must be addressed. Proposals have been tabled whereby the EIB will provide refinancing for the project two years into the operations phase, thus reducing the overall cost. Discussions with both the Department of Finance and the EIB are continuing. These should be completed in the near future and a definitive decision on the project will be made.