James Reilly (Dublin North, Fine Gael)
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Question 224: To ask the Minister for Health and Children the position regarding the 120-bed unit for cystic fibrosis patients at St. Vincent's Hospital, Dublin 4; the reason for the delay to the project; the number of builders who tendered for the project; the reason a firm was not appointed in October 2009 or November 2009 as expected; the estimated cost to build the project in 2008; the estimated cost to build the project as at 2010; if she will provide details on the status of the tender and when it will be confirmed; and if she will make a statement on the matter. [31408/10]

Mary Harney (Dublin Mid West, Independent)
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The project continues to be a priority for the Government and the HSE.

Following work with the HSE's senior management, St. Vincent's Hospital and the Department of Finance, I announced in 2009 that the project would proceed to construction on the basis that the building will be paid for at the end of the construction phase.

The site at the hospital is cleared and ready for construction to commence and the HSE's capital funding remains ring-fenced for the new development.

In the normal course payments for construction of a project such as this would have been phased over the construction period. However under the financing method being utilised for this project, the construction company will source bridging finance for the project until the construction is complete.

Following receipt of tenders for construction, the procurement process has been particularly difficult and protracted in this case, due to prevailing conditions in the Irish construction industry. The Hospital has now issued a "letter of intent" to a preferred bidder in the tender process for the building of the new ward block.

It is hoped to award the contract in the next few weeks after which construction of the new facility will take about 18 months. The process is under continuous review in order to ensure earliest possible delivery of the new ward block. St Vincent's University Hospital and the HSE remain committed to this project, and are taking every possible step to expedite contract award and earliest commencement of construction on site.

As the contract has not yet been awarded it is inappropriate to provide any further information on the specific points raised by the Deputy in the question.