The projects which have been subjected to detailed cost benefit appraisal in the past six months

Date: 29 November 2005


Dáil Question No: 300 To ask the Minister for Transport the projects which have been subjected to detailed cost benefit appraisal in the past six months; the benefit cost ratio which emerged from this test; if he has satisfied himself that projects being selected not only pass this test but represent a better return than competing uses for the same limited funds; and the way in which this process influences the size of the capital envelope for different project areas. - Richard Bruton.

Response
by the Minister for Transport
(Martin Cullen)

As the planning, design, and implementation of transport infrastructure improvement projects including the carrying out of Cost Benefit Analysis (CBA) is a matter for the implementing agencies as part of the appraisal process applicable to capital projects the information sought by the Deputy in relation to individual projects is held by these agencies.

It should be noted that cost benefit analysis is only one element in the appraisal of transport investment projects.
The appraisal also addresses environmental issues, safety benefits etc. In this context the outcome of a cost benefit analysis is not simply a pass / fail criteria.

The development of Transport 21 took account of investment priorities under the five-year capital envelope to end 2009 and of the various strategic studies already completed by my Department and its agencies, including A Platform for Change, the Strategic Rail Review and the National Road Needs Study. More specifically, my Department also engaged with Coras Iompair Eireann, the Railway Procurement Agency, the National Roads Authority and the Dublin Transportation Office.

This process enabled my Department to identify the broad direction and investment priorities for the 10-year period. From this, the Department and its agencies developed the full scale of projects to be implemented under Transport 21.

The projects within Transport 21 will be subject to:

normal statutory procedures where required;
capital appraisal in line with the Department of Finance guidelines; and
the value for money initiatives set out in the Minister for Finance’s speech of 20th October last.

Some elements of the overall investment programme, including Metro North and the rail investment programme for the Greater Dublin Area, have had business cases prepared for them by their promoting agencies. These business cases included an economic evaluation.

The outcomes of these processes will of course be kept under review to ensure that the projects continue to be in sympathy with the investment priorities and outcomes set out in Transport 21.