Richard Bruton (Dublin North Central, Fine Gael)
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Question 39: To ask the Tánaiste and Minister for Finance if he has accessed the success to date of the Public Private Partnership projects; and the prospects for use of this system in the future. [7761/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As of December 2007, there were 12 Public Private Partnership (PPP) projects with a capital value of over €20 million operational in three sectors: four in the roads sector, three in the education sector, and five in the environmental services sector. Fuller information on these is provided by the relevant sponsoring Department/Agency and is available at www.ppp.gov.ie

In general, under the Capital Appraisal Guidelines and the system of delegated capital sanction, the appraisal and management of PPP projects is a matter for the Accounting Officer in the Department/Agency sponsoring the project. Where specialist agencies are in place in particular sectors, such as the National Roads Authority and the Railway Procurement Agency, it would be a matter for these agencies in the first instance to assess the success of individual projects. As the Comptroller and Auditor General pointed out in reporting on PPPs, however, it will take some time to assess the full value for money of particular PPPs.

I am satisfied that the PPP mechanism, in general, is a viable option for the delivery of infrastructural projects. Some have been notable successes in bringing in projects ahead of time; some others less so. PPPs will continue to be used where justified.

For this reason, medium term targets for the use of PPP procurement are contained in the Multi-Annual Capital Investment Framework 2008 to 2012. The total PPP target for the period 2008 to 2012 is €7.7bn which represents over 13% of the envelope overall. This target relates to projects remunerated over the long term (typically 25-30 years) by unitary payments from Department/Agencies' Votes. In addition, a target of €1.6bn has been set for PPP projects remunerated by user charges which brings the overall target for PPP funded capital investment to approximately 16% of the envelope overall. These targets illustrate the important role that PPP procurement will play in the delivery of public infrastructure and services.