Alan Dillon (Mayo, Fine Gael)
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97. To ask the Minister for Public Expenditure and Reform the status of efforts to streamline the delivery of large-scale capital projects; his plans to ensure future projects are more likely to be delivered on a cost-effective and timely basis; and if he will make a statement on the matter. [55885/21]

Michael McGrath (Cork South Central, Fianna Fail)
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The publication of the National Development Plan (NDP) 2021-30 is accompanied by a continued focus on improving the delivery of investment under Project Ireland 2040. This will mean increasing the efficiency with which investment is delivered and achieving greater value for money within the available budget.

It is important to acknowledge that the majority of public investment projects are delivered on budget and on time and there is a high level of professionalism across the sectors. Reforms are ongoing in governance and broader capability to help ensure successful delivery.

The revised NDP pledges to restructure the oversight and implementation of capital projects to strengthen scrutiny of major public investment proposals and to drive improved project performance and value for money.

In order to achieve this, my Department has put in place an External Assurance Process (EAP) to provide independent project scrutiny at key decision stages. It is a mandatory requirement for all funding departments to participate in the process for major projects over €100m. My Department has established a framework of suitable suppliers who can provide a range of independent specialist expertise, to conduct reviews at critical points in the decision-making and project development stages. This framework is in place and will be utilised once projects over €100m reach the key decision gates for Government approval.

The purpose of the EAP is to improve value for money and support funding departments and Government with expert insight relating to project risks, delivery feasibility, and robustness of costings, governance and procurement. The EAP for major public capital projects (projects which cost in excess of €100m) will focus on issues such as cost, risk and ability to deliver, at two key points in the project lifecycle, Decision Gate 1 (Approval in Principle) and Decision Gate 2 (Pre-Tender Approval).

To support the External Assurance Process a new Major Projects Advisory Group (MPAG) has been established to further strengthen project management. As a prerequisite to seeking Government approval for projects at the relevant decision gates, project proposals and external reviews will be scrutinised by the Advisory Group in advance of the decision to proceed. The new arrangements bring Ireland into line with leading international performers and meet a recommendation of the IMF’s Public Investment Management Assessment of Ireland.

These updates are due to be actioned imminently within November 2021 and have been discussed at Government in recent weeks.