Richard Bruton (Dublin North Central, Fine Gael)
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Question 184: To ask the Minister for Communications, Marine and Natural Resources the tender procedures which were used for the disposal of retail shops by the ESB to ensure that maximum value was obtained for the public from the disposal of these assets; and his involvement in this decision. [9749/05]

Noel Dempsey (Meath, Fianna Fail)
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The disposal of retail shops is a matter for the board of the ESB in the first instance. However, the ESB informed me of the outline of the proposed transaction shortly before the meeting on 16 March 2005 at which the board approved, in principle, the sale to Bank of Scotland (Ireland) Limited, BOSI, of its retail outlets. The full details of the proposal are currently under negotiation so, therefore, I am limited in what I can say pending conclusion of that process and taking account of confidentiality agreements between the ESB and BOSI.

I understand from the ESB that, although a tender procedure was not a feature of the proposed transaction, the company is satisfied that it is complying with the requirements of the code of practice for the governance of State bodies. The ESB has also informed me that negotiations have yet to take place on individual and portfolio valuations. The board of the ESB approved the proposed methodology to develop a price and this will be subject to final board approval before the asset disposal. The ESB has also informed me that before the final legal documentation is completed and the final price package for the deal is agreed, each of the retail shops will be independently valued for ESB by a leading nationwide valuer and the separate valuations prepared will form the basis from which the ESB will work in pricing the retail units within the deal package. In this way, the ESB proposes to maximise the value from the disposal of its retail units.