Written answers
Thursday, 11 May 2023
Department of Public Expenditure and Reform
National Development Plan
Alan Farrell (Dublin Fingal, Fine Gael)
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22. To ask the Minister for Public Expenditure and Reform the measures he is taking to prevent the incidence of the cost over-runs and project delays regarding the National Development Plan; and if he will make a statement on the matter. [22170/23]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2023, almost €12 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. Achieving value for money and reducing cost and schedule overruns is a vital part of delivering the NDP.
My Department is responsible for the Public Spending Code (PSC)/Infrastructure Guidelines which sets the value for money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister.
In March, I announced a number of reforms to this code aimed at enhancing project delivery for the NDP. Some specific changes designed to streamline the project lifecycle and approval process include:
- The general threshold for major projects increasing from €100m to €200m, allowing for projects below this limit to progress more speedily through the appraisal and evaluation process.
- The reduction of the number of approval stages prior to implementation from 5 to 3, reducing the administrative burden on Government departments charged with developing and delivering projects.
This is a significant policy development that allows departments responsible for delivering projects greater autonomy to pursue the delivery of their priority projects, while still complying with overall value for money principles. Crucial oversight processes for major projects are maintained through the retention of the External Assurance Process as well as by review by the Major Projects Advisory Group prior to seeking Government Approval to proceed, in line with international best practice.
The Major Projects Advisory Group was set up by the Department to assist us in our project oversight role. Five external experts with extensive experience in planning, managing and delivering major projects were appointed to the Group. This Group scrutinise major project proposals prior to Government consideration and over the last two years have been carrying out this role across significant NDP projects in healthcare, transport and housing, helping to ensure improved project outturns, avoid cost overruns and avoid delays to project delivery’s.
Experience from other countries which have introduced similar independent assurance processes shows that such arrangements reduce project schedule delay and cost overruns. These arrangements are in line with leading international performers and meet a recommendation of the IMF’s Public Investment Management Assessment of Ireland.
Bernard Durkan (Kildare North, Fine Gael)
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23. To ask the Minister for Public Expenditure and Reform the most salient issues to be addressed to bring about a more expeditious delivery of the National Development Plan; and if he will make a statement on the matter. [21472/23]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Minister for Public Expenditure, NDP Delivery and Reform is responsible for setting the overall capital allocations across Departments. Management and delivery of individual investment projects within the allocations agreed under the National Development Plan (NDP) is a key responsibility of every Department and Minister.
The NDP delivers total public investment of €165 billion over the period 2021-2030. The renaming and reconstitution of the Minister’s Department, to specifically include NDP Delivery, brings about a greater emphasis and mandate for the delivery of the NDP. In light of this new role, a review of the support structures and levers available across Government to maximise delivery of projects was undertaken. As a result, a series of actions and reforms were identified as priorities to improve delivery of NDP projects. The Minister secured Government approval for that package of measures in March which include:
- Significant changes to reduce the administrative burden in delivering major capital projects;
- The Minister is now taking a direct role in overseeing delivery of the NDP through chairing the Project Ireland 2040 Delivery Board;
- Capacity reviews of departments and agencies with significant delivery programmes to ensure that adequate resources for project delivery are in place;
- Additional reforms to the Capital Works Management Framework, which sets out the contracts used for public capital projects;
- Direct reporting to Government on NDP delivery on a quarterly basis throughout 2023 and 2024 will now also take place and
- An independent evaluation of NDP priorities and capacity will be conducted over the coming months.
The Minister is confident that the combination of all these actions will support the delivery of the critical infrastructure we need to support a growing economy and higher living standards for those living here. I believe input of experts on the Project Ireland 2040 Delivery Board will highlight the key impediments to project delivery and I will work towards delivering mitigating actions to boost project delivery.
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