Mick Barry (Cork North Central, Solidarity)
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31. To ask the Minister for Public Expenditure and Reform if the public private partnership model of funding public projects has been reappraised in view of the winding up of a company (details supplied) which had publicly funded projects sub-contracted to it from another company which has also gone into liquidation; and if he will make a statement on the matter. [29099/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Public Private Partnership (PPP) model is an internationally recognised model to design, build, finance, operate and maintain public infrastructure. In accordance with international best practice, PPP contracts already typically include detailed provisions that apply in the event of the liquidation of a consortium member of the PPP company, or an entity under the contract, to protect the public interest and ensure that the project proceeds to completion.

Under the terms of such PPP contracts, in the case of liquidation of a consortium member, or an entity under the contract, the PPP consortium’s funders and remaining shareholders are required to intervene and implement rectification measures to ensure that the project is completed to the satisfaction of the State.  Liquidation of a company involved in delivering a public infrastructure project is an unfortunate and unforeseen development but would impact on any project where a supplier became insolvent during the delivery process, regardless of whether the project was being procured by PPP or by traditional means. The issue, therefore, is not PPP-specific, but where it arises in a PPP project, the provisions of the PPP contract ensure that the public interest is protected.

It is worth bearing in mind that this is not the first time a PPP in Ireland has experienced issues with its construction contractor, which is not uncommon given the risks inherent in the construction market. In all previous similar cases, the projects were completed successfully and are now fully operational. These examples demonstrate the resilience of the PPP contractual structure and underline the importance of adhering to the contractual documentation in resolving issues - which has previously been raised as a negative feature associated with PPPs.

In these circumstances, I think the current focus should be on resolving the immediate practical issues arising from the untimely and unfortunate liquidation of both Sammon and Carillion. Once these matters are fully and satisfactorily resolved, and the Schools Bundle is delivered to the Sponsoring Agency, I would be open to a review of the experience with the project at that point, that explores any lessons to be learned.