Framework for Action on - Department of Taoiseach
Framework for Action on - Department of Taoiseach
Framework for Action on - Department of Taoiseach
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DEPARTMENT OF THE TAOISEACH<br />
FRAMEWORK FOR ACTION ON INFRASTRUCTURAL DEVELOPMENT AND PPPS<br />
Secti<strong>on</strong> 3: Measures to address bottlenecks and c<strong>on</strong>straints including<br />
capacity, skills and instituti<strong>on</strong>al issues<br />
17. The Team recognise that the capacity <strong>of</strong> the c<strong>on</strong>structi<strong>on</strong> and ancillary sectors to fulfill the<br />
increased demand <str<strong>on</strong>g>for</str<strong>on</strong>g> infrastructural development will be critical to the achievement <strong>of</strong> the<br />
Nati<strong>on</strong>al Development Plan. The indigenous sector may not have, or be able to provide,<br />
adequate capacity to deliver the accelerated infrastructure programme proposed in the plan.<br />
There are also growing signs that capacity c<strong>on</strong>straints may be leading to above average price<br />
inflati<strong>on</strong> in the c<strong>on</strong>structi<strong>on</strong> area. Clearly if this trend is to c<strong>on</strong>tinue there would be adverse<br />
effects <str<strong>on</strong>g>for</str<strong>on</strong>g> the quantum <strong>of</strong> infrastructure delivered by the Nati<strong>on</strong>al Development Plan<br />
allocati<strong>on</strong>s. The Minister <str<strong>on</strong>g>for</str<strong>on</strong>g> the Envir<strong>on</strong>ment and Local Government has asked the Forum <str<strong>on</strong>g>for</str<strong>on</strong>g><br />
the C<strong>on</strong>structi<strong>on</strong> Industry to c<strong>on</strong>sider as a matter <strong>of</strong> urgency how capacity in the industry can<br />
be increased in order to ensure that this does not happen.<br />
18. The Team recommends that particular emphasis should be placed in this review <strong>on</strong> the<br />
availability <strong>of</strong> skilled pr<strong>of</strong>essi<strong>on</strong>al and technical pers<strong>on</strong>nel necessary to undertake the vastly<br />
increased planning and project management workload to implement an increased and<br />
accelerated infrastructural development programme.<br />
19. To complement this initiative, the Team recommends that the following programme to<br />
address these difficulties be put into operati<strong>on</strong> immediately:<br />
• Public Private Partnerships to be used:<br />
- to help increase capacity, particularly to supplement<br />
nati<strong>on</strong>al capacity with that from abroad,<br />
- to develop appropriate skills in Ireland both in the public<br />
and private sectors and<br />
- to obtain the benefits that such partnerships can bring not<br />
<strong>on</strong>ly in Design and Build but also in relati<strong>on</strong> to the<br />
Operati<strong>on</strong>al part <strong>of</strong> projects over their lifetime.<br />
• augment the overall capacity <strong>of</strong> the c<strong>on</strong>structi<strong>on</strong> industry, including through<br />
increasing the size <strong>of</strong> projects to stimulate the interest <strong>of</strong> <str<strong>on</strong>g>for</str<strong>on</strong>g>eign c<strong>on</strong>tractors<br />
• flexible and innovative pers<strong>on</strong>nel recruitment measures be used where necessary to<br />
augment the capacity <strong>of</strong> the implementing agencies.<br />
Public Private Partnerships<br />
20. PPP can play a significant role in enhancing capacity to deliver key projects, by<br />
harnessing private sector technical, financial and management skills as well as providing<br />
additi<strong>on</strong>al financial resources. Effective use <strong>of</strong> PPP requires implementati<strong>on</strong> agencies to<br />
adopt an innovative approach to the management <strong>of</strong> programmes as well as projects, such as<br />
identifying suitable classes <strong>of</strong> projects at an early stage and shifting their focus towards<br />
project outcomes and outputs. It is essential to take early decisi<strong>on</strong>s <strong>on</strong> approaches to PPP in<br />
the c<strong>on</strong>text <strong>of</strong> the accelerated programme. The pilot roads projects which are based <strong>on</strong> full or<br />
partial toll financing, are: (date planned to seek tenders)<br />
• Water<str<strong>on</strong>g>for</str<strong>on</strong>g>d By-pass, including a new bridge <strong>on</strong> the Suir, <strong>on</strong> the N25 (late 2000)<br />
• Sec<strong>on</strong>d West Link Bridge <strong>on</strong> the M50 (early 2000)<br />
• New Western River Crossing in Limerick <strong>on</strong> the N7 (mid 2001)<br />
It is also intended to actively explore the potential <str<strong>on</strong>g>for</str<strong>on</strong>g> a PPP to develop the Kilcock-Kinnegad<br />
secti<strong>on</strong> <strong>of</strong> the N4 (mid 2001)<br />
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