Dáil Éireann Debate, Tuesday - 29 July 2025
789. Deputy Aindrias Moynihan asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation what data is available on the cost-benefit analysis conducted for major infrastructure projects in Cork County, including the methodologies used, the projected versus actual economic benefits; what can be learned from these analysis for cost saving; and if he will make a statement on the matter. [40945/25]
View answerAs Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, I am responsible for setting the overall multi-annual capital expenditure ceilings for each Ministerial Vote Group as set out in the National Development Plan and Project Ireland 2040. My Department is also responsible for maintaining the national frameworks within which Departments operate to ensure appropriate accounting for and value for money in public expenditure such as the Infrastructure Guidelines. The Infrastructure Guidelines set the value for money requirements and guidance for evaluating, planning and managing capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister.
Under the Infrastructure Guidelines, when evaluating potential capital projects, economic appraisal is required for all capital projects with an estimated cost greater than €20m. For those projects less than €20m, Approving Authorities should engage with Sponsoring Agencies as to whether an economic appraisal is required and the appropriate type of economic appraisal. This is set out in sector-specific guidance where relevant, which are prepared by funding Departments/Accounting Officers to meet the specific requirements of their sectors while being in line with the Infrastructure Guidelines.
The economic appraisal assesses the desirability of a proposal from the broader societal perspective. This form of appraisal differs from financial appraisal because financial appraisal is generally focused primarily on cashflows and is done from the perspective of a particular stakeholder such as the Sponsoring Agency or the Exchequer. Economic appraisal takes a wider view in analysing the costs and benefits of a project and considers non-market impacts which may not a clear monetary value such as impacts on health, potential time savings, effect on the environment etc. The economic appraisal also takes account of the level of deadweight and displacement associated with a proposal.
Under the Infrastructure Guidelines, the recommended methodology for conducting economic appraisal where possible is a comprehensive Cost-Benefit Analysis (CBA). However, in some instances, a CBA may not be possible and provided there is sufficient justification provided, other methodologies such as Cost Effectiveness Analysis (CEA) and/or Multi-Criteria Analysis (MCA) may be more appropriate, provided they adhere to best practice and are supported by a robust evidence base.
Ultimate responsibility for the management and evaluation of a project, including the choice of methodology, is with the Accounting Officer of the relevant Department and is a matter for them to be satisfied that all aspects of the project, from conception to completion, are compliant with the requirements of the Infrastructure Guidelines and the relevant sectoral guidance.
It is the responsibility of the relevant Accounting Officer to publish the business cases of projects as they progress through the different Approval Gates within the project lifecycle. The provision of data in relation to the economic appraisal of individual infrastructure projects is also a matter for the relevant funding department.
