Catherine Murphy (Kildare North, Independent)
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Question 18: To ask the Minister for Transport, Tourism and Sport if he will provide figures as to the total cost to the Exchequer, in 2010 and 2011 respectively, of cash transfers to PPP toll road operators when traffic volumes in respect of the roads they operate do not meet minimum agreed levels; if he will also provide details of total receipts to the state from revenues generated from toll road operations in the same years; if he will provide estimates of these figures in respect of 2012; and if he will make a statement on the matter. [16915/12]

Leo Varadkar (Dublin West, Fine Gael)
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As Minister for Transport, Tourism and Sport, I have responsibility for overall policy and funding in relation to the national roads programme. The implementation of individual national road schemes, including Public Private Partnership projects, is a matter for the National Roads Authority in accordance with the Roads Acts 1993-2007. In particular, the statutory power to levy tolls on national roads, to make toll bye-laws and to enter into toll agreements with private investors in respect of national roads is vested in the NRA under Part V of the Roads Act 1993 (as amended by the Planning and Development Act 2000 and the Roads Act 2007).

The contracts for the privately-operated toll schemes are commercial agreements between the NRA and the Public Private Partnership (PPP) concessionaires concerned. There are eight such contracts in total. Two PPP contracts, the M3 Clonee-Kells PPP and Limerick Tunnel PPP incorporate a traffic guarantee mechanism, the purpose of which within the overall financial package for the project was to enhance the fundability of these projects and obtain competitive funding terms to the benefit of the taxpayer.

The balance between future toll revenue share and the Traffic Guarantee payments will depend on future traffic volumes. Over the past 12 months the pattern of traffic volumes on toll roads has varied considerably with growth ahead of expectations on some routes such as the M50 while traffic volumes on other tolled routes have been lower than estimated. However in relation to the two PPPs where there is a traffic guarantee arrangement, it is now evident that the NRA will be making traffic guarantee payments on the Limerick Tunnel scheme and M3 schemes for the foreseeable future. There is a somewhat better prospect of traffic increases on the M3 than the Limerick tunnel. The NRA's expected commitment for the Traffic Guarantee payments in 2012 is €6,995,164.

With regard to the remaining PPP schemes, all traffic risk remains with the operator while the State stands to benefit from the revenue share arrangement where average daily traffic ("ADT") exceeds scheme specific pre-defined threshold traffic. It is envisaged that future PPP projects will be funded by way of unitary/availability payments, that is by way of regular payments by the NRA for the duration of the contract. Under this arrangement it is envisaged that availability payments would be made on a regular basis with penalties applying in the event that the road or particular road lanes were not available. Essentially the cost of the road would be paid back through the unitary/availability payments.