Dara Calleary (Mayo, Fianna Fail)
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62. To ask the Minister for Public Expenditure and Reform the action being taken to in relation to delays in infrastructure projects under the public expenditure code; and if he will make a statement on the matter. [2227/22]

Michael McGrath (Cork South Central, Fianna Fail)
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The update of the Public Spending Code in 2019 combined with lessons learned from domestic projects and international best practice highlighted the need for more structured scrutiny of major public investment projects, particularly in the areas of planned delivery, costings and risk. This is to ensure that Government is making decisions with a full picture of the proposal, its costs, risks and benefits.

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.

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. However, having recognised the higher risk profile of larger projects, new procedures have been introduced in order to improve project outturns, avoid cost overruns and avoid scheduled delays.

In November, my Department put in place an External Assurance Process (EAP) to provide independent project scrutiny at key decision stages. This will involve independent expert reviews at two key stages in the project lifecycle under the Public Spending Code (approval in principal and prior to tender).  

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.

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.

It should be noted that timelines associated with Public Spending Code compliance are a fraction of the time required for compliance with the range of statutory requirements such as planning, environmental impact assessment, habitats directive and appropriate assessment. In addition, many Public Spending Code steps can be undertaken in parallel with other project development phases.

Experience in other countries which have introduced similar independent assurance processes show that such arrangements reduce project schedule delay and project cost overrun.