Written answers

Thursday, 10 July 2008

Department of Transport

Airport Development Projects

4:00 pm

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
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Question 238: To ask the Minister for Transport if a cost benefit analysis has been carried out for terminal two and the proposed new runway at Dublin Airport; if project managers have been appointed for terminal two and the proposed new runway at Dublin Airport; and if he will make a statement on the matter. [28351/08]

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
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Question 239: To ask the Minister for Transport the benefit cost ratios and internal rates of return for terminal two and the proposed new runway at Dublin Airport; and if he will make a statement on the matter. [28352/08]

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
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Question 240: To ask the Minister for Transport if evaluations of terminal two and the new runway at Dublin Airport have been published and submitted to the relevant select committees of the Houses of the Oireachtas; if so, the findings of same; and if he will make a statement on the matter. [28353/08]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 238 to 240, inclusive, together.

The Dublin Airport Authority (DAA) operates under a clear commercial mandate and its capital investment programme, including Terminal Two and the proposed new parallel runway, is entirely funded from its own internal resources.

Proposals in relation to the development of Dublin Airport are, in the first instance, a matter for the DAA which has statutory responsibility to manage, operate and develop the airport and to provide such facilities and services as it considers necessary for aircraft and passengers. Accordingly, the issues of cost benefit analysis, cost benefit ratios and internal rates of return in relation to the new terminal and runway are matters that fall within the responsibility of the management and board of the DAA.

I understand that the DAA evaluations in respect of these two projects have not been published or submitted to committees of the Houses of the Oireachtas, nor is there a requirement to do so.

The DAA, of course, is required to comply with the value for money provisions of the National Development Plan to the extent that is appropriate to a commercial State Body that funds its capital expenditure programme from its own resources. I should also add that responsibility for compliance with Department of Finance capital appraisal guidelines rests with the Board of the DAA.

Finally, I would point that, in line with the Government decision of May 2005 mandating the DAA to build Terminal Two, independent experts have since reported on the specification and cost of the new terminal. The experts appointed by my Department concluded that the methodology, approach and execution of the planning objectives and considerations for passengers adopted by the DAA accords with best practice. They also found that the estimated cost of the new terminal is within industry norms for this type of project in a European capital city. The verification team report has been lodged in the Oireachtas library and is available on my Department's website. (www.transport.ie)

A project manager has been in place for Terminal Two for some time now, as work on the project is well underway and is due to be completed in early 2010. A project manager has not yet been appointed for the proposed new runway, as work on it has not yet commenced.

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