Written answers

Tuesday, 20 June 2017

Department of Housing, Planning, Community and Local Government

Social and Affordable Housing Provision

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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2192. To ask the Minister for Housing, Planning, Community and Local Government the details of the €300 million social housing PPP project that is currently progressing; and the estimated unitary payments that will be incurred, location of sites, number of units, ownership, maintenance structure and so on. [27381/17]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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The Social Housing PPP programme provides for an investment with a capital value of €300 million and is expected to deliver 1,500 social housing units in total, via three bundles.

Each PPP site is being developed in co-operation with the local authorities concerned.  The first bundle comprises six sites in the Greater Dublin Area, with provision for over 500 units.  Two of the sites are located in Dublin City, with one each in South Dublin, Kildare, Wicklow and Louth.  Dublin City Council has been appointed to act as the lead local authority for the delivery of this first bundle.

The second bundle comprises eight PPP sites which are to provide over 450 units.  Three of the sites are located in County Cork, with one each in the cities of Galway and Waterford.  There is a further one site in each of counties Clare, Kildare and Roscommon.  Cork County Council is the lead local authority for this bundle.

Sites for the third bundle are currently being identified and are to be announced in the coming months.

The process of seeking planning approval for the first bundle has commenced.  The procurement process is being led by the National Development Finance Agency.  The tender notice for the first bundle was published in the Official Journal of the European Union on 12 May 2017.   Planning  and tendering for the second bundle are expected to progress later in 2017, with arrangements for the third bundle to follow in 2018.

The payments made by the State are referred to as ‘availability’ or 'unitary' payments.  The payments commence once construction is complete and the units are ready to house tenants.  The amount of the payment is a bid item in the selection of the preferred tender.  When a bidder tenders for the PPP project, the level of unitary payment is considered in assessing the competing tenders.  This is to ensure that the State receives value for money.  The payment mechanism included in the contract incentivises the construction, maintenance, operation and return of quality public-sector assets to the State. 

Land for the PPP projects is provided by the relevant local authority by way of a licence.  Ownership of State land is not transferred to the private partner PPP company.

Tenants allocated to social housing PPP units will be nominated by the local authority, in the normal manner, from the local authority social housing waiting list in accordance with that local authority’s allocation scheme.

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