Written answers

Thursday, 1 February 2018

Department of Education and Skills

Schools Building Contractors

Photo of Mick BarryMick Barry (Cork North Central, Solidarity)
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28. To ask the Minister for Education and Skills the consequences of the collapse of a company (details supplied) on six school build projects here; and if he will make a statement on the matter. [4657/18]

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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35. To ask the Minister for Education and Skills the position regarding the six schools and colleges affected by the collapse of a company (details supplied); if he has made contact with another company; his views on whether there will be a delay in completing the works; if a contingency plan has been developed for same; and if he will make a statement on the matter. [4858/18]

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Solidarity)
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56. To ask the Minister for Education and Skills if he will report on the delivery of schools following the collapse of a company (details supplied); and if he will make a statement on the matter. [4897/18]

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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I propose to take Questions Nos. 28, 35 and 56 together.

In respect of the Schools Bundle 5 PPP programme, a contract exists between my Department and the Principal contractor, Inspiredspaces. Inspiredspaces is the Special Purpose Vehicle (SPV) responsible for the design, construction, finance, operation and maintenance of the schools.

The company referred to by the Deputies has been a 50% shareholder in the SPV. The other shareholder in the SPV is the Dutch Infrastructure Fund (DIF).

Inspiredspaces remains in place as the SPV responsible for delivery of Schools Bundle 5. The PPP contract between my Department and the SPV equally remains in place. The National Development Finance Agency (NDFA) manages that contract on behalf of my Department.

The Dutch Infrastructure Fund is now required to intervene to ensure that the schools in the PPP programme are completed to the satisfaction of the State. It is currently in the process of developing a rectification plan and remains in close contact with the NDFA in that regard. The outcome of this process will provide greater clarity in relation to likely school completion dates.

The Dutch Infrastructure Fund has confirmed that resolution of the situation is its top priority.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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29. To ask the Minister for Education and Skills his views on whether the implication of the collapse of a company (details supplied) is that all PPPs should be taken back into public ownership; and if he will make a statement on the matter. [4646/18]

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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46. To ask the Minister for Education and Skills his plans for the services in the six schools and colleges under the remit of a company (details supplied); if his Department will take over the running of the non-academic services in these schools and colleges; if a new tender process for private contractors will be established; and if he will make a statement on the matter. [4859/18]

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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I propose to take Questions Nos. 29 and 46 together.

In respect of the Schools Bundle 5 PPP programme, a contract exists between my Department and the Principal contractor, referred to by Deputy Wallace.  This company is the Special Purpose Vehicle (SPV) responsible for the design, construction, finance, operation and maintenance of the Schools Bundle 5 PPP programme.  The SPV is a joint venture between the company referred to by Deputy Boyd Barrett and the Dutch Infrastructure Fund (DIF). 

DIF is now required to intervene to ensure that the schools in the PPP programme are completed to the satisfaction of the State.  DIF is currently in the process of developing a rectification plan, which will include arrangements both for completion of the construction and for the facilities management. It remains in close contact with the National Development Finance Agency (NDFA), which manages the contract on behalf of my Department.  DIF has confirmed that resolution of the situation is its top priority.

It is unfortunately the case that companies involved in both traditional and PPP projects can go into liquidation. In the case of PPPs, the construction and funding risk is transferred to the private partner. It is a feature of these contracts that there are legal, contractual and financial imperatives for the SPV and its funders to deliver the buildings within the shortest possible timeframe.  This is why DIF is now responsible for ensuring completion of the schools.  

It should also be noted that the State does not commence payments to the SPV until construction is complete. The PPP company is incentivised to ensure that the buildings are completed as soon as possible in order to secure payment from the State.

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