Written answers
Wednesday, 29 May 2024
Department of Transport, Tourism and Sport
Airport Policy
Matt Shanahan (Waterford, Independent)
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51. To ask the Minister for Transport, Tourism and Sport the main sectors of analysis his Department is applying to the present Waterford airport runway extension review; the number of similar reviews using the same analysis template that have taken place in his Department over the past five years; and if he will make a statement on the matter. [24242/24]
Jack Chambers (Dublin West, Fianna Fail)
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I thank the Deputy for his question in relation to the submission made by Waterford Airport for Exchequer funding to support proposed development works. I wish to advise the Deputy that this document is currently being reviewed by my Department in accordance with the requirements of a Project Outline Document (POD) as set out under my Department’s Transport Appraisal Framework and the Infrastructure Guidelines.
In accordance with this Framework, where a proposal seeking Exchequer funding has an estimated potential cost of €15 million or more, the Sponsoring Agency must produce a POD, to be reviewed by the Approving Authority (in this case, my Department). The purpose of the POD is to summarise the proposed scheme, assess alignment with national and local policies, outline the range of options to be considered to address the issue, identify the potential range of costs and assess the proposal's affordability, propose an appraisal plan and outline the governance plan for the project.
The POD was introduced as part of the TAF in 2023. The POD requirements ensure investment schemes in the transport sector can comply with the Infrastructure Guidelines while allowing for early assessment of proposals.
Since the publication of the TAF in June 2023, the Department has been involved in the review of approximately 5 PODs. Since June 2020, the Department has also been involved in the review of approximately 35 Strategic Assessment Reports (SARs) – the SAR being a precursor to the POD under the Public Spending Code. This gives a total of approximately 40 early-stage review documents.
Further detail on both the TAF and POD are available as follows:
Transport Appraisal Framework:
www.gov.ie/en/publication/c9038-transport-appraisal-framework-taf/#:~:text=The%20Transport%20Appraisal%20Framework%20%28TAF%29%20provides%20appraisal%20and,in%20accordance%20with%20the%20Public%20Spending%20Code%20%28PSC%29
Project Outline Document:
www.gov.ie/pdf/?file=https://assets.gov.ie/260302/cf0dcac3-ac50-42fc-8a05-309ea9bf3728.pdf#page=null.
Matt Shanahan (Waterford, Independent)
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52. To ask the Minister for Transport, Tourism and Sport if he will outline, regarding the Waterford airport runway extension business review, the way in which the exposure of the Exchequer being capped at maximum €12 million liability is captured in the present review report; to detail any other projects reviewed by his Department requesting Government funding where a similar ‘costs cap guarantee’ was provided to Government; how this cost benefit is weighted in terms of the overall review report; and if he will make a statement on the matter. [24243/24]
Jack Chambers (Dublin West, Fianna Fail)
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I wish to advise the Deputy that I cannot comment on the review report referenced as it is not yet finalised. As you will be aware, in June 2019, the then Government gave an approval in principle of an expression of support for development at Waterford Airport and to providing Exchequer funding of €5 million towards this development project.
Government support was not only contingent on local authority and private investment necessary to complete the project being committed and any risks relating to cost escalation being borne by the non-State investors, but also on full details of the project being provided to my Department for appraisal. Despite engagement with the airport over the intervening period, this detail remained outstanding from Waterford Airport until 13 December 2023.
As set out to you previously, this detail is being reviewed by my Department in accordance with the Project Outline Document (POD) requirements of the Department's Transport Appraisal Framework (TAF) and the Infrastructure Guidelines.
My Department has prioritised this review, which will take account of the increased Exchequer funding contribution of €12 million now being sought. As would be expected with an appraisal process of this nature, a number of clarification requests and questions seeking further detail have been raised by the Department.
I wish to advise the Deputy that while an updated submission was received from the airport on 23 April, further outstanding supporting detail was only received this week (27 May). While this detail has addressed a number of matters raised, some detail remains outstanding. Officials are continuing to engage with airport management on these matters. Timely responses from the airport to all information sought will have a bearing on the timeframe for the completion of this present review.
Regarding other project proposals, I wish to advise the Deputy that the assessment of affordability is a key consideration in the appraisal of all investment proposals reviewed by my Department. As part of POD under the TAF, any transport investment proposal must outline the potential range of costs involved and outline the potential sources of funding, including consideration of existing public capital budget envelopes. If the proposal is developed further, the examination of affordability within existing resources must be updated appropriately in Preliminary and Final Business Cases. This assessment forms a crucial element of the overall appraisal document, alongside other elements like Cost-Benefit Analysis or equivalent analysis, and seeks to ensure that every transport investment proposal secures value for money in the use of scarce public resources.
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