Written answers

Tuesday, 20 November 2012

Department of Transport, Tourism and Sport

Road Toll Operators

Photo of Seán KennySeán Kenny (Dublin North East, Labour)
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To ask the Minister for Transport, Tourism and Sport if the State is paying significant sums annually to some of the companies that built roads and tunnels under public/private partnerships because traffic numbers did not reach the targets set in the contracts; and if he will make a statement on the matter. [51017/12]

Photo of Leo VaradkarLeo 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 (PPP) projects, is a matter for the National Roads Authority (NRA) under the Roads Acts 1993-2007.  In addition, 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 (as amended).  The contracts for the privately-operated toll schemes are, therefore, commercial agreements between the NRA and the PPP concessionaires concerned.

Two PPP contracts, the M3 Clonee-Kells PPP and the Limerick Tunnel PPP, incorporate a traffic guarantee mechanism. 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 the average daily traffic ("ADT") exceeds scheme specific predefined threshold traffic. Noting the above position, I have referred the Deputy's question to the NRA for further reply. Please advise my private office if you do not receive a reply within 10 working days.

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