Written answers

Wednesday, 26 September 2012

Department of Finance

Strategic Investment Fund Capital

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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To ask the Minister for Finance the amount of funding held within the Strategic Investment Funds; the level of fund earmarked for particular projects; and the amount of funds spent to date from the SIF on infrastructure projects. [40796/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The establishment of the Strategic Investment Fund (SIF) was announced by the Government in September 2011. The SIF will channel commercial investment from the National Pensions Reserve Fund (NPRF) towards productive investment in the Irish economy. The amount of the fund earmarked for potential projects requires an amendment of the investment policy of the NPRF, which is set out in the National Pensions Reserve Fund Act 2000. Officials of my Department are liaising with the National Treasury Management Agency, which is the Manager of the NPRF, in identifying and drafting the necessary amendments to the legislation. I am informed by the National Treasury Management Agency, that the NPRF announced in November 2011 a commitment of €250 million to a new Irish infrastructure investment fund which is seeking up to €1 billion from institutional investors in Ireland and overseas and which will invest in infrastructure assets in Ireland, including assets designated for disposal by the Government and commercial State enterprises and also new infrastructure projects. Marketing of this fund commenced in the first quarter of 2012 (in Ireland by Irish Life Investment Managers and abroad by AMP Capital). Normally the period from commencement of marketing of an investment fund targeting illiquid assets to closure of financial commitments by investors in such a fund can extend up to one year.

The NPRF has also committed, subject to certain pre-conditions, €450 million to finance the national roll out of domestic water meters.

In July 2012 Minister Howlin announced the €2.25 billion Government Infrastructure Stimulus comprising a number of PPP projects in Education, Health, Transport and Justice. It is anticipated that the funding structure would involve a combination of funding from a number of sources including the domestic banks, the European Investment Bank and the National Pensions Reserve Fund.

It is anticipated that the NPRF will be an important investor in Phase 1 of the PPP programme and will decide on investment in individual projects in accordance with its commercial investment mandate.

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