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Reduction of capital costs in current economic climate

Date: 09 July 2009

Dáil Question No: 449 *To ask the Minister for Transport the extent to which the Transport 21 capital costs may have reduced in the current economic climate; and if he will make a statement on the matter. - Bernard J. Durkan.

 

Answered by the Minister for Transport
(Noel Dempsey TD)
 
REPLY

The transport implementing agencies have indicated to the Department that there has been a general downward trend in tender prices and in the cost of land purchases in recent times. However, these changes are only of benefit for new projects going to tender or for which notices to treat in respect of the compulsory acquisition of land have not been issued.
A very high proportion of the expenditure in 2009 is in respect of existing contractual and legal commitments, particularly on the completion of the major inter-urban routes and on the construction of a number of large rail and light rail projects. As a result there has not been a sufficient number of tenders or land purchases in the transport sector to date in 2009 to draw firm conclusions as to the scale of the reductions.