Ciarán Lynch (Cork South Central, Labour)
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Question 245: To ask the Minister for the Environment, Community and Local Government the direction he has given Cork County Council with regard to the Lee Road water treatment works upgrade or replacement project; if he will confirm that the plant will continue in public ownership on completion and that the treatment works will be incorporated into the national water utility envisioned in the programme for Government; and if he will make a statement on the matter. [12660/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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An upgrade of the Lee Road Water Treatment Plant is included in my Department's Water Services Investment Programme 2010-2012 as a contract to advance to construction during the period of the Programme. The planning of this project including the appropriate form of procurement has been underway for some time. 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 an appropriate procurement option is decided upon.

My Department has considered the appraisal in this regard conducted by Cork City Council in respect of the proposed upgrade of Lee Road Water Treatment Plant. The results of this consideration were communicated to Cork City Council in relation to the procurement route to be adopted for the investment in April 2011. Having regard to the need to secure optimum value for money and timely delivery, and ensure compliance with the drinking water standards, the Council was advised that the Department considered that the project should be advanced using the Public Private Partnership (PPP) - Design/Build/Operate approach.

A fundamental principle of water services PPPs is that, while the infrastructure is operated under contract to the local authority, it remains at all times in the authority's ownership. The Water Services Act 2007 underlines that position by expressly prohibiting the transfer of any water services assets or infrastructure, or any part of such assets or infrastructure, to any person.

The Programme for National Recovery 2011-2016 states that the Government will create Irish Water, a new State company that will take over key water/waste water functions from the 34 existing local authorities. The Programme of Financial Support for Ireland agreed between the Government and the EU/IMF refers to the conduct of "an independent assessment of the transfer of responsibility for water services provision from the local authorities to a water utility". The independent study required under the EU/IMF agreement is being progressed and will guide the implementation of the strategy set out in the Programme for Government, identifying the optimum role and functions of the proposed company. Among the issues to be consideration in the study will be the management of the water services investment programme, the management of existing contracts for capital projects and the operation of existing plants.