Clare Daly (Dublin North, Socialist Party)
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Question 92: To ask the Minister for the Environment, Community and Local Government if he will produce a cost benefit analysis in relation to the design build operate models in existence in relation to water services investment. [12277/11]

Clare Daly (Dublin North, Socialist Party)
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Question 93: To ask the Minister for the Environment, Community and Local Government the reason design build operate contracts have been awarded in relation to water services investment despite the local authority model being demonstrated to be more cost effective. [12278/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 92 and 93 together.

The procurement option chosen for any scheme under the Water Services Investment Programme 2010 – 2012 is based on an assessment of the best value for money from a whole life perspective. Each proposal is examined on a case by case basis and local authorities are obliged by the Department to examine all potential options before deciding on an appropriate procurement option.

The overriding consideration is that all projects must deliver value for money and to this end Department Circular L5/06 of 29 May, 2006 - 'Water Services Public Private Partnerships - Public Sector Benchmark and Post Project Review' – sets out the need for a Public Sector Benchmark (PSB) in each case where Public Private Partnership (PPP) approach is the preferred procurement option. The PSB approach consists of a comprehensive risk adjusted costing of the project elements over the whole life of the project, and enables a comparison to be made on a like for like basis between traditional and PPP - Design/Build/Operate procurement to ensure that the best value for money procurement option is chosen. This normally relates to projects with a value in excess of €5 million.