Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My Department does not have any planned Public Private Partnership (PPP) projects or ongoing PPP contracts.

The National Treasury Management Agency (NTMA) is a body under the aegis of my Department. My Department has not sponsored any PPP projects. However, the NTMA acting as the National Development Finance Agency (NDFA), procures and delivers PPP projects where requested by State authorities. Current PPP projects, at procurement or pre-procurement, referred to the NTMA for delivery are set out in the table below. Due to the current status of these projects and the commercially sensitive nature of procurement, the NTMA has advised that it is not appropriate, at this time, to provide details of anticipated costs.

In terms of costs for the completed projects, the payments made by the State over the life of the PPP contract (typically 25 years after construction) include not just the cost of design and construction but also the cost of financing, operating and maintaining the facility (including services such as planned and reactive maintenance, grounds maintenance, cleaning, caretaking, security and waste management). The PPP company must provide a fully maintained facility for the duration of the contract and carries the risk in relation to rectification of any construction defects that occur during the term. If a facility is not available or services are not provided in accordance with the standards set out in the contract, the State is entitled to reduce its monthly payment until the required standard is restored.

Further information on the total contract values and project payments for all State PPP projects is available at: www.gov.ie/en/publication/6f72b-projects/.