Construction BUSINESS

Ireland’s National Development Finance Agency (NDFA) will present at the National Construction Summit 2024 in Dublin, writes David Keniry.

Eamonn Halpin from the NDFA will provide an update on key infrastructure projects and programmes at the National Construction Summit on 18th April 2024.

The National Treasury Management Agency (NTMA) provides asset and liability management services to Ireland’s Government. The NTMA primarily manages Ireland’s National Debt. It also controls and manages the Ireland Strategic Investment Fund (ISIF), and performs certain statutory functions as the National Development Finance Agency (NDFA), the State Claims Agency (SCA) and the New Economy and Recovery Authority (NewERA).

The NTMA also assigns staff to the National Asset Management Agency (NAMA) and the Strategic Banking Corporation of Ireland (SBCI) and provides each of these bodies with business and support services and systems.

Acting as the National Development Finance Agency (NDFA), the NTMA provides financial advice to State authorities in respect of those public investment projects which are referred to it, with a capital value over €75 million. The NDFA may also provide financial advice to State authorities on certain projects below this threshold. In this role, the NDFA advises State authorities on the optimal financing of public investment projects in order to achieve value for money.

The NDFA also procures and delivers Public Private Partnership (PPP) projects as requested by State authorities (with certain exceptions such as Transport Infrastructure Ireland). In this role, the NDFA is responsible for delivering the procurement of a project referred to it and hands it over to the relevant sponsoring body after construction is complete and the asset is operational.

In addition, the NDFA provides contract management and support services in respect of the operations and management of certain existing PPP facilities, and the direct procurement of certain Exchequer-funded projects on behalf of the Department of Education.

The NDFA are currently advancing the Dublin Family Courts project as well as national housing and education programmes.

In July 2023 the Department of Justice approved in principle a proposal for the development of a family law courts complex at the Hammond Lane site as a Courts Service PPP project. The Dublin Family Courts PPP project will deliver a modern, fit for purpose family law court complex in Dublin and will be an important step towards reforming the family courts system in Ireland. On completion it will replace the existing family court facilities in central Dublin at Dolphin House, Chancery Street, Phoenix House and in the Four Courts.

The Higher Education PPP programme investment under Project Ireland 2040 will be in two bundles with a focus on STEM, ICT, Engineering and Life Sciences at 11 Higher Education Institutions located around Ireland. The first bundle is under construction. The second bundle includes sites in Galway, Waterford, Carlow, Limerick, and Letterkenny.

The Social Housing PPP Programme has already provided 1,000 new social homes in two bundles with a further 3,500 homes in the pipeline. In November 2023 Minister for Housing, Local Government and Heritage, Darragh O’Brien announced the seventh bundle with sites in Dublin City Council, Galway County Council, Limerick City and County Council and Wexford County Council areas. Minister O’Brien will provide the keynote address at the National Construction Summit.

Welcoming the new phase of social housing, O’Brien said: 

“Housing for All commits to increasing the supply of new build social housing to an average of 10,000 per annum between 2022 and 2030 and we are employing every resource at our disposal to achieve this.

“The Social Housing Public Private Partnership (PPP) Programme represents one of the many strands of delivery to increase the quantity of social housing. Housing for All also includes a specific objective to increase the use of PPPs to deliver social housing and today’s announcement is a significant contributor to achieving this.

“The success of this model for social housing delivery is evident as it has already provided 1,000 high-quality new homes, with another 3,500 in the pipeline.’

The Infrastructure Guidelines published by the Department of Public Expenditure, NDP Delivery and Reform’s National Investment Office in December 2023 states that:

‘Public Private Partnerships are an alternative way of financing a project. A PPP is an arrangement between the public and private sectors (consistent with a broad range of possible partnership structures) with clear agreement on shared objectives for the delivery of public infrastructure and/or services by the private sector that would otherwise have been provided through traditional public sector procurement. 

A PPP has the potential to offer value for money and timely delivery of infrastructure when applied to projects of the right scale, risk and operational profile. For investment proposals with particular characteristics, Sponsoring Agencies may wish to explore the potential to progress the project as a public private partnership with the National Development Finance Agency (NDFA). The NDFA is the financial advisor to state authorities, agencies, and departments. 

The NDFA’s advice should, in general, be sought out at an early stage on a) All PPP projects, and, b) all projects with a capital value exceeding €75 million. The NDFA’s functions include advising public bodies on the optimum means of financing the cost of public investment projects to achieve value for money and providing advice in relation to all aspects of financing, as well as the provision of technical, design and construction advice. The NDFA is also available to provide financial advice on projects below €75 million as appropriate. 

The separate guidelines on Public Private Partnerships should be followed when considering the PPP option.’

The tenth edition of the event will take place at the Sport Ireland Campus, Blanchardstown with key topics will include planning, sustainability, and accelerating the delivery of housing, infrastructure, and a decarbonised built environment.