John Perry (Sligo-Leitrim, Fine Gael)
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Question 88: To ask the Minister for Finance if he is arranging to receive regular reports on the progress of major capital projects in relation to cost over-runs and scheduled delivery times. [18416/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Primary responsibility for managing capital programmes and the evaluation, planning and execution of capital projects on time and in line with budget rests with line Departments and the relevant implementing agencies.

The Department of Finance's role is to agree with Departments, subject to the direction of the Government, the policy framework for capital programmes and projects, to advise Government on the global provision in the rolling five year multi-annual capital envelopes and to put in place best practice guidelines for the appraisal and management of capital projects. Line Departments and their agencies are responsible for managing their programmes and projects within budget and in compliance with the policy framework and with guidelines laid down by my Department. In general, therefore, Departments have delegated sanction to execute projects at programme level.

In line with the above arrangements it is the responsibility of line Departments and implementing agencies to monitor major capital projects in relation to budget and timetable. This requirement is included in my Department's general sanction for expenditure under the five year multi-annual capital envelopes.

Departments are also required to put in place a system to carry out annual spot checks of projects to ensure compliance with the requirements of the capital appraisal guidelines, including those relating to the appraisal and management of project costs and to report the findings of such spot checks annually to my Department. The NDP-CSF evaluation unit will carry out periodic reviews of these spot check reports on behalf of my Department.