Kevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

434. To ask the Minister for Public Expenditure and Reform the cost of the value for money assessment by the National Development Finance Agency on the proposed waste to energy incinerator in Poolbeg, Dublin, in 2007; the projected cost of the current value for money assessment under way; his views on whether this is an appropriate use of public funds; and if he will make a statement on the matter. [35387/13]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

As the Deputy is aware from my reply to a related question on 4th July my Department has the same role in relation to PPP projects as it does in relation to capital investment projects generally. It sets the overall capital investment framework and the basic principles to be observed for the appraisal, assessment, procurement and evaluation of projects. It does not have a direct role in delivering individual projects (either PPP or traditional Exchequer capital projects). This is primarily the responsibility of the Sponsoring Department/Agency.

In accordance with the guidance issued by my Department, the National Development Finance Agency (NDFA) has the role of providing an opinion to the Sponsoring Agency (Dublin City Council) in relation to the value for money testing on a PPP project. In essence, the NDFA role in this project boils down to comparing the Net Present Value (“NPV”) of the private sector bid with the NPV of the agreed benchmark. The Value for Money assessment will be completed internally by the NDFA on receipt of all required documentation, and without the use of consultants. Careful consideration of all aspects of a project including costs, benefits and financing, before significant commitments are entered into, represents value for money and accords with best practice.