Written answers

Wednesday, 23 May 2012

Department of Finance

Public Infrastructure Funding

10:00 pm

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
Link to this: Individually | In context

Question 26: To ask the Minister for Finance the manner in which any loans from the European Investment Bank to fund investment projects are treated in the Government accounts; his views on the possibility of the State drawing down additional funds from the EIB to fund infrastructure projects; and if he will make a statement on the matter. [25577/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Exchequer does not currently have any loans from the European Investment Bank (EIB) but is negotiating a loan of €100 million from the Bank to part-fund the 2012 Exchequer Schools Programme. Any such borrowing would be carried out by the National Treasury Management Agency (NTMA) and would form part of the National Debt. The Bank is also an important provider of funding to semi-states and the private sector, including the funding of infrastructure through Public-Private Partnerships and lending to SMEs via the banks. In relation to capital investment projects, the Department of Public Expenditure and Reform has a role in terms of setting the overall capital investment framework and the basic principles to be observed for the appraisal, assessment, procurement and evaluation of projects. Individual Ministers are responsible for projects and programmes in their areas, within that overall framework. Decisions on the funding arrangements for those projects are also the responsibility of individual departments. Departments are obliged to seek the opinion of the National Development Finance Agency whose statutory role is to advise any State authority of what, in the opinion of the Agency, are the optimal means of financing the cost of public investment projects in order to achieve value for money.

Details about the funding arrangements for individual projects can be obtained directly from the relevant Department. However, I am aware that the European Investment Bank has given provisional approval to co-finance a number of PPP projects in the transport and education sectors, in addition to the €100 million towards the Schools Programme referred to above.

Comments

No comments

Log in or join to post a public comment.