Fergus O'Dowd (Louth, Fine Gael)
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Question 31: To ask the Minister for Finance the number of projects which have been considered by the National Finance Agency for funding under PPP; the number which have been approved for PPP; and the number for which a PPP consortium has been appointed. [18365/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The National Development Finance Agency, NDFA, was established on 1 January 2003. One of its roles is to advise Departments about the optimum means of financing the cost of capital projects in order to achieve value for money, whether procured through a PPP approach or through traditional procurement and to advise State authorities on all aspects of financing, refinancing and insurance of such projects. The NDFA does not have a project approval role nor does its advice have to be taken. Where it is optimal to do so, the NDFA has the power to raise funds for projects itself. To date, this has not arisen and I am advised by the NDFA that it does not see it as likely to arise in the near future.

Under my Department's guidelines for the appraisal and management of capital expenditure proposal in the public sector and under PPP guidelines and circulars, the sponsoring agency is required to seek the advice of the NDFA on all projects above €20 million.

There are a number of steps in the process on which the NDFA is consulted. The sponsoring agency is required to seek the advice of the NDFA at the preliminary appraisal stage and in any event no later than before tender documents are finalised. Many projects on which the NDFA is advising were already designated for PPP prior to the establishment of the NDFA. In such cases, the NDFA advises on the projects going forward.

A key step in the appraisal of a PPP project proposal is the preparation of the public sector benchmark. This represents the risk-adjusted estimated whole-life cost of the project — expressed in terms of net present value — were it to be provided by the public sector. It forms the basis for setting an overall budget for the process and for the subsequent evaluation of private sector bids on a value for money basis.

The final decision on any project is one for the Government, the relevant Minister or the sanctioning authority, having consulted with the NDFA as appropriate. The relevant authority is not obliged to take the NDFA's advice. Details on specific projects are a matter for the relevant Minister.

I am advised that 80 projects have been referred to the NDFA for advice at varying stages of the appraisal and procurement process. I am advised that the NDFA has completed its advice on 13 projects, of which six are PPPs.