Eamon Ryan (Dublin South, Green Party)
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Question 117: To ask the Minister for Finance the reporting and accountability procedures which have been put in place by his Department to oversee the National Development Finance Agency's new role of managing the procurement of PPP projects and bringing them through to completion; and if he will make a statement on the matter. [26553/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The National Development Finance Agency Act 2002, No. 29 of 2002, provides for accountability and reporting arrangements for the National Development Finance Agency, NDFA, in regard to its functions. Under section 12 of the Act, the board of the agency is charged with ensuring that its functions are performed effectively. Under section 20 of the Act, the agency is subject to audit and examination by the Comptroller and Auditor General. The chief executive officer and the chairperson are required to give evidence to the Committee of Public Accounts, whenever required, primarily through the examination of the annual report and accounts and any other special report of the Comptroller and Auditor General.

My Department is examining, in conjunction with the NDFA and the Office of the Attorney General, whether legislative amendments may be required to allocate the new functions to NDFA and related matters.

In order to ensure maximum impetus to the new initiative, the Government decided that NDFA should commence the new role on an interim non-statutory basis. The NDFA will report directly to me in relation to its procurement functions. The board will be strengthened by the appointment of two additional board members, in due course.

Ministers sponsoring individual projects will continue to be responsible for all aspects of the assessment and approval of such projects, including the decision to procure the project as a PPP, signing off on project budgets, output specifications and other service requirements. The NDFA will be responsible for procuring the projects within these parameters. The NDFA will be tasked with the management of the procurement delivery stage of the PPP projects and carrying out any negotiations needed. They will hand over the completed project to the Minister-Department concerned after construction.