Written answers

Tuesday, 27 May 2008

Department of Transport

Public Private Partnerships

9:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 276: To ask the Minister for Transport the projects under Transport 21 that are to be financed by public private partnerships; the cost expected to the Exchequer for each project; the reason a PPP financing process was chosen for each project; and if he will make a statement on the matter. [20588/08]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 277: To ask the Minister for Transport the number of projects under Transport 21 that are to be financed by public private partnerships but were originally meant to be financed entirely from public funds; and if he will make a statement on the matter. [20589/08]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 276 and 277 together.

The overall Transport 21 capital envelope provides for Exchequer funding of €26 billion and Public Private Partnership (PPP) funding of €8 billion.

The NRA is in the process of completing its first phase PPP programme involving private funding of €2.1 billion on toll-based projects. The projects involved are:

M50 Second Westlink Bridge

M1 Dundalk Western Bypass

N4 Kilcock to Kinnegad

M8 Fermoy to Rathcormac Bypass

M3 Clonee to North of Kells

N6 Galway to Ballinasloe

N7 Limerick Tunnel

M7/M8 Portlaoise to Cullahill/Castletown

N25 Waterford City Bypass

M50 Phase 2 Upgrade.

The first four of these projects are now open to traffic and the remainder are under construction.

In addition, the following projects will be procured as unitary payment PPP's under Transport 21:

Metro North

Metro West

Luas Lucan line

the DART Interconnector

N20 Cork-Limerick (2 projects)

N17 Galway-Claremorris

N11 Gorey-Enniscorthy/New Ross Bypass.

The use of Public Private Partnership procurement in relation to each of these projects represents an opportunity for value for money, innovation and optimal transfer of risk over the lifetime of the infrastructure.

The Metro North, Metro West and Luas Lucan line projects were identified at an early stage of Transport 21 for procurement as unitary payment PPPs. The Government, decided, earlier this year, that certain national road projects and elements of the DART Interconnector which were originally planned to be Exchequer funded would now be procured as unitary payment PPPs. The NRA subsequently identified the N11, N17 and N20 projects outlined above, as suitable for procurement as PPPs. The total amount of Exchequer and PPP expenditure under Transport 21 remains unchanged.

The Exchequer will usually fund the planning phase of PPP projects, including obtaining the relevant statutory consents. It may also fund advance land acquisition and preparatory works and in appropriate circumstances may provide a capital contribution towards the construction costs. The cost to the Exchequer will be decided on a case-by-case basis for each PPP project and will be met from the overall Exchequer allocation in the Transport 21 capital envelope.

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