Enda Kenny (Mayo, Fine Gael)
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Question 104: To ask the Minister for Finance the terms on which funds in the National Pensions Reserve Fund have been made available for public sector projects; and the reason they have not been taken up. [38838/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The National Pensions Reserve Fund Commission is independent of Government in the exercise of its functions. It controls and manages the fund with discretionary authority to determine and implement the fund's investment strategy. This investment strategy is based on a commercial investment mandate with the objective of securing the optimal return over the long term, subject to prudent risk management.

With regard to commercial investment in public sector projects, it is open to the fund to become involved in public private partnerships, PPPs. The annual report of the National Pensions Reserve Fund Commission for 2004 states that the commission has made an initial allocation of €200 million for investment in PPPs in Ireland and will increase this allocation should suitable opportunities arise. The report for 2004 also states that the commission will, in future, rather than join particular consortia in tendering for projects, make equity and-or debt finance available to the winning bidder, provided it is satisfied with the prospective rate of return.

The participation of the fund in any consortium, at any stage, is of course subject to the relevant EU and national public procurement rules.