David Stanton (Cork East, Fine Gael)
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Question 710: To ask the Minister for Education and Science the situation with regard to the building of a new school of music in Cork; when construction will commence; the estimated cost and time for construction; and if she will make a statement on the matter. [22355/05]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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On 3 December 2004, Jarvis, the appointed preferred bidder for the Cork School of Music PPP project, announced that it had reached an agreement with Hochtief Developments (UK) Limited to purchase the PPP bidding arm of its business. Following the announcement, various issues surrounding the purchase were being completed and a revised proposal and documentation in connection with the project was received on 19 January 2005.

As Hochtief had replaced Jarvis as the main member of the bidding consortium, it had to 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. In addition to satisfying the pre-qualification conditions and in advance of any formal contract negotiations, over recent months my Department's specialist advisers to the project also had to undertake a full financial and legal due diligence to ensure that the new proposal met all EU procurement guidelines. Part of the due diligence process included contact with the relevant section of the EU Commission for clarification and advice on the procurement issue surrounding the change to the bidding consortia.

Formal detailed contract negotiations are now at an advanced stage and subject to the satisfactory completion of these negotiations I expect to be in a position to make an announcement on the project in the near future.