Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 750: To ask the Minister for the Environment, Heritage and Local Government the extent to which the projects identified in the economic and social infrastructure element of the National Development Plan 2000-2006 have been completed; the cost of the elements that have been completed; the way in which this compared with the original assessment of their cost; the elements and their associated cost which have been completed by way of PPP. [32572/05]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 751: To ask the Minister for the Environment, Heritage and Local Government the extent to which projects identified in the economic and social infrastructure element of the National Development Plan 2000-2006 have yet to be completed; the expenditure to date on those elements; the expected cost of completing them; the way in which the projected cost at completion compares with the original projection; the elements and their associated cost which have been completed by way of PPP; and the projected expenditures and years in which they will be incurred to complete the remaining projects. [32575/05]

Dick Roche (Wicklow, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 750 and 751 together.

My Department implements two priorities of the economic and social infrastructure operational programme, ESIOP, of the National Development Plan 2000-2006, the housing priority and the environmental infrastructure priority. The housing priority of the economic and social infrastructure operational programme sets out a seven-year programme of investment in housing. The priority is managed on a programme rather than a project basis and investment for the 2000 to 2004 period, at €6.86 billion, was almost 8% ahead of NDP estimates at the end of 2004. At the end of June 2005, investment totalled €7.34 billion.

Detailed financial progress under the five measures that comprise the housing priority is set out in the following table.

Investment in water services is covered by the environmental infrastructure priority. That priority is divided into five measures, four of which are implemented by this Department. The four water services infrastructure measures in this priority are implemented through the water services investment programme, WSIP. This is a three-year rolling programme intended to facilitate annual adjustment of priorities in response to emerging needs in a structured fashion. The current WSIP was rolled out in May 2004, covering the years 2004 to 2006, and contains 869 individual water and sewerage schemes at various stages of construction and planning.

The initial programme complement contained individual targets relating to the number of schemes completed for each of the measures. A revised programme complement containing progress indicators reflecting (a) population equivalent, pe, served and (b) environmental targets attained will form the backdrop to future NDP reporting. At the end of June 2005, completed projects had generated an additional capacity of 3 million pe and an increase in water treatment capacity of 578,000 pe.

The original financial allocations of the ESIOP environmental infrastructure priority in the national development plan published in 2000 totalled €3.8 billion, broken down as follows: waste water measure —€1.657 billion; water supply measure —€579 million; management and rehabilitation measure —€862 million; support for economic activity measure —€ 702 million.

The revised programme complement envisages an outturn of €3.1 billion rather than the original €3.8 billion Exchequer expenditure and is generally in line with original projections. However, from an overall perspective, private and non-Exchequer expenditure has not materialised as envisaged.

As regards the cost of those elements completed to the end of June 2005, the following table sets out the position.

Reflecting the emphasis placed on the completion of major waste water projects during the early NDP period, spending on measure 1, waste water, is well ahead of forecast with the other water infrastructure measures behind forecast to varying degrees.

A factor behind the underspend on measure 2 is that private capital investment for suitable projects has not been forthcoming regarding the €127 million originally earmarked for financing from this source. In addition, the required level of local authority financial input into measure 3 has not materialised. In practice, the implementation of the polluter pays water pricing framework has to date yielded less capital investment than was estimated.

The following is a summary of progress under the individual measures from January 2000 to June 2005. On measure 1, waste water schemes, cumulative expenditure has totalled €1.756 billion — 121% of the original cumulative end-2005 forecast and 99% of the revised forecast. Some 96 schemes have been completed. The high rate of expenditure on this measure is reflected in the progress outlined above regarding compliance with the end-2005 requirements of the EU urban waste water treatment directive and the additional capacity provided.

On measure 2, water supply schemes, cumulative expenditure has totalled €308 million, 78% of the revised end-2005 forecast. Water supply schemes funded under this measure ensure a continuing high rate of compliance with national and EU requirements regarding drinking water quality and the availability of capacity to service economic and demographic expansion. A total of 44 schemes have been completed.

On measure 3, the rehabilitation and management of infrastructure, cumulative expenditure has totalled €169 million, 72% of the revised end-2005 forecast. A total of 19 schemes have been completed. The objective of this measure is to address the need for renewal and rehabilitation of local authority water distribution and waste water collection systems to improve overall efficiency.

On measure 4, economic activity schemes, cumulative expenditure has totalled €304 million — 89% of the revised forecast for end 2005. A total of 162 schemes, 139 serviced land initiative and 23 rural towns and villages initiative, have been completed. More than 75,000 sites have been provided under the serviced land initiative, with a further 94,000 sites at construction stage. Some 250,000 sites in all are expected to be provided under this initiative.

More than 100 public private partnership, PPP, projects are at various stages in the water or waste water and housing sectors, primarily in the water or waste water sector. The water or waste water sector projects are design, build and operate projects and the expenditure on them is included in the relevant tables above. There are several design, build and finance PPPs for housing, such as Fatima Mansions and O'Devaney Gardens in Dublin which form part of the ESIOP and do not involve Exchequer expenditure.

I am satisfied that my Department is making good progress overall in meeting the budgetary and output targets associated with the implementation of measures contained in the economic and social infrastructure operational programme of the national development plan. Where specific measures are running below target, in particular, smaller water schemes operated by local authorities, steps are being taken by my Department to secure greater progress.