Rose Conway-Walsh (Mayo, Sinn Fein)
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233. To ask the Minister for Public Expenditure and Reform the rationale for introducing the technical reviews conducted by his Department with external assurance process; if he will outline any research that supported the policy decision; and if he will make a statement on the matter. [23929/23]

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), 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.

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, noting the higher risk profile of larger projects, it was recognised that new procedures were required in order to improve project out-turns, avoid cost overruns and avoid delays to project delivery.

Responding to this need, my Department put in place an External Assurance Process (EAP) to provide independent scrutiny for major public capital projects (projects which cost in excess of €200m). This involves an independent expert reviews at the key Preliminary Business Case stage of the project lifecycle (when approval in principle is sought). Incorporating the external reviews before this approval stage enables the Approving Authority to take account of any recommendations and mandate further action before proceeding with the next substantive decision regarding whether and how to proceed with the project.

The purpose of the EAP, for major projects, 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. Funding departments can avail of external assurance services and independent expertise through a framework of qualified service providers which has been established by my Department.

In addition to the EAP process, the Major Projects Advisory Group was set up by the Department to assist us in our project oversight role. Four 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.

The External Assurance Process replaced the technical reviews undertaken by the NIO in DPENDR. However Government departments, as Approving Authorities, are to still carry out assessments of proposals at each stage of the project lifecycle. The Accounting Officer for the relevant Government department must ensure:

• Compliance with the Public Spending Code;
• Compliance with sector-specific appraisal guidance; and
• Appropriate policy and programme fit.