Michael Healy-Rae (Kerry, Independent)
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1392. To ask the Minister for Health the current projected final cost of the national children’s hospital; if he is satisfied that the projected final cost is accurate; the quantum of claims and variations issued by the contractor; the quantum of claims and variations agreed with the contractor to date; the amount of money certified to date and the quantum of claims and variations certified to date; if the contractor has an entitlement to seek an increase in costs in light of the inflation experienced in 2022; and if he will make a statement on the matter. [19416/22]

Stephen Donnelly (Wicklow, Fianna Fail)
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The new Children’s Hospital (NCH) project comprises the main hospital on a shared campus at St James’s, the Outpatient and Urgent Care Centre at Connolly Hospital, Blanchardstown, and the Outpatient and Emergency Care Centre at Tallaght University Hospital.

 In 2018, Government approved a capital budget of €1.433bn for the NCH project. This included the capital costs for the main hospital at St James's Hospital campus, the two satellite centres, equipment for the three sites, and the construction of the carpark and retail spaces. The capital budget has not yet been depleted and to date, €964.1m of the €1.433bn budget has been drawn down for works on the project across the three sites.

 There are a number of items not included in this investment figure as there was no price certainly for them and nor can there be, for some, for the duration of the project. These include construction inflation, the impact of Covid-19, statutory changes, any change in scope resulting in healthcare policy changes, and the Employment Order.

 Additional costs in relation to the integration and transfer of the services of the three children’s hospitals to the new sites brings the total programme cost to €1.73bn. This includes investment in ICT, a new Electronic Health Record system, and the Children's Hospital Integration Programme (the merging of three paediatric hospitals) including commissioning.

 Brexit, the pandemic and recent geopolitical developments have severely impacted supply chains and the NCH project is not immune to these external challenges. Every effort is being taken to mitigate the risks but these externalities beyond the control of the contractor and the NPHDB make speculation and more definitive forecasting unwise.

 The construction contract between the NPHDB and the main contractor permits the contractor to recover the cost of national construction inflation in excess of 4% and this came into effect from August 2019. Inflation above 4%, as defined by the average of three defined tender price indices, can be claimed for annually, on a compound basis, based upon the revised contract amount.

 The NPHDB has statutory responsibility for planning, designing, building, and equipping the new children's hospital. This includes assessment and defence of claims/disputes submitted by the contractor under the construction contract and certification of contractual payments to date.  I have therefore referred these elements of your question to the NPHDB for direct reply.