Paul McGrath (Westmeath, Fine Gael)
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Question 78: To ask the Minister for Education and Science the position with regard to the construction of a new building for the Cork School of Music; and if she will make a statement on the matter. [7886/05]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Government decided last July that my Department should finalise contractual negotiations with Jarvis Projects Limited with the view to commencing construction of the Cork School of Music as soon as practical. Shortly thereafter Jarvis Plc, preferred bidder for the CSM project, announced a profit warning on the London Stock Exchange. To help solve its financial difficulties the company commenced selling off non-core elements of the company. One of the areas to be disposed of was the PPP bidding business that included the CSM project. On 3 December 2004, Jarvis announced that it had reached an agreement with Hochtief Developments (UK) Ltd to purchase this arm of the business.

Following the announcement, various issues surrounding the purchase were being completed and a revised proposal and documentation in connection with the CSM PPP project were received on 19 January 2005. As Hochtief has now replaced Jarvis as a member of the bidding consortium, it must satisfy the Department that had it applied under the terms of the original PPP advertised in 2000 it would have been one of the consortia that pre-qualified for the project. The new documentation is currently being examined by my Department's specialist advisers to the project who are also undertaking full financial and legal due diligence to ensure that the proposal meets all EU procurement guidelines. Part of the due diligence process includes contact with the relevant section of the EU Commission for clarification and advice on the procurement issue.

It is expected that this examination will be completed and a report submitted to my Department's public private partnership unit for consideration shortly. Subject to all of the necessary financial and legal issues being in order, it will then be possible to commence formal negotiations with Hochtief Developments to complete the contract details to allow financial and commercial close for the project take place.