Written answers

Thursday, 17 January 2019

Department of Transport, Tourism and Sport

State Airports

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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228. To ask the Minister for Transport, Tourism and Sport the original expected cost of the second runway at Dublin Airport; the estimated cost of the project; and if he will make a statement on the matter. [2234/19]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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As the deputy is aware, daa holds statutory responsibility for the management, operation and development of Dublin Airport, including the delivery of the North Runway project.

Work on the North Runway Project is underway, with preliminary works under the first phase of construction, including preparation of the site, realignment/building of new roads, fencing and landscaping completed in late 2017.

Following a competitive tender process, a contract has been awarded to a joint venture comprising Irish firm Roadbridge and Spanish infrastructure company FCC Construcción (FCC) for phase 2 (construction of runway). Work will commence shortly and the runway is expected to be operational in 2021. The cost of the runway had been estimated to be approximately €320m (in 2016 prices).

Once operational, the runway will provide much needed capacity to enhance connectivity e.g. 31% gain by 2034, underpinning Dublin’s position as a leading European airport, a key European gateway to North America and an even greater driver of sustainable economic growth. In the short term, daa estimates that the project will support over 500 construction jobs and support a further 31,000 jobs over the next two decades, contributing €2.2 billion to GDP.

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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229. To ask the Minister for Transport, Tourism and Sport the estimated cost of building a third terminal at Dublin Airport; and if he will make a statement on the matter. [2235/19]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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The question of a potential third terminal at Dublin Airport is raised in the context of the high-level strategic capacity review of Ireland’s State airports which I commissioned in line with a commitment in the National Aviation Policy, 2015.

Oxford Economics in conjunction with Cambridge Economic Policy Associates were contracted by my Department to conduct the review which was published on 24 October 2018. It provides an assessment which is both specific about short terms actions as well as identifying further work that needs to be undertaken to assist in decision-making for the longer term to 2050, including options for a third terminal at Dublin Airport.

I am now consulting with stakeholders through a public consultation process to get their views on the consultants’ findings. I have also asked my officials to undertake additional work on issues relating to Dublin Airport with regard to the cross wind runway and surface transport access.

The review and public consultation represent the first stages in a process to make strategic decisionsonthe long-term development of the three State airports to 2050. When I have all the views and information, I will carefully assess the issues and make recommendations to Government in the matter. In the meantime, it is far too early in the process for estimates to be made on the cost of a third terminal or any other infrastructural projects referred to in the review. The assessment by the consultants in the review is based upon a base cost for a new terminal similar to that of Terminal 2 and simulations of regulated charges indicate that airport charges would most likely end up no more than 5 percent higher than 2016 charges as a result of the construction of a third terminal.

It is important to note, however, that any terminal being built, past, present or future is ultimately paid for by the travelling public that use it. That is a given, regardless of who finances it initially, State or private sector.

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