30. Deputy John Clendennen asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the measures he is introducing to strengthen accountability and oversight of projects funded under the National Development Plan particularly on projects experiencing significant delays or cost overruns. [74579/26]

My Department is responsible for the Infrastructure Guidelines, which replaced the Public Spending Code for capital appraisal since end 2023. These set the value for money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects to ensure that vital infrastructure projects will be delivered on time and in a manner that ensures value for money through detailed evaluation, appraisal and planning. Management and delivery of investment projects and public services within allocation and the national frameworks, including the Infrastructure Guidelines, is a key responsibility of every Department, Accounting Officer and Minister.

Under the Accelerating Infrastructure Action Plan, a number of reforms to the Infrastructure Guidelines have been progressed and implemented under Action 23. In February, the following changes were implemented:

• In relation to Major Projects, the threshold will increase from €200m to €500m for sectors with a well established track record of delivery (Transport, Energy and Water);

• For all sectors, the External Assurance Process (EAP) will be replaced with a streamlined and time-bound internal review by the relevant Vote section in DPER; and

• Major projects at Approval Gate 2 will no longer need Ministerial approval and may now be approved solely by the Accounting Officer of the Government Department that is funding the proposed project.

Further Action 23 updates in the Accelerating Infrastructure report were implemented in July, introducing target approval timeframes for all projects seeking approval at the different approval Gates:

• Preliminary Business Case approval (AG 1) – no longer than 3 months (or 6 months for Major Projects). For major projects, this includes DPER and MPAG review; and seeking consent from Government.

• Pre-Tender approval (AG 2) – no longer than 2 months (or 3 months for Major Projects).

• Final Business Case approval (AG 3) – no longer than 1 month (or 2 months for Major Projects).

These changes aim to speed up, streamline and ensure consistency in the project approvals process, while also maintaining robust governance arrangements, ensuring that projects are still subject to appropriate levels of scrutiny and oversight to secure value for money. These changes to the Infrastructure Guidelines are being progressed in parallel with other reforms under the Accelerating Infrastructure Action Plan, which is working to address identified barriers to the timely delivery of infrastructure in Ireland.

Adherence to the Infrastructure Guidelines, is ultimately the responsibility of the Accounting Officer of the relevant funding department. It is a matter for each Accounting Officer to decide whether processes in place in his/her department/ office/body and associated agencies are appropriate to ensure compliance with the Infrastructural Guidelines, manage capital budgets overall and manage budgets at an individual project level.

As part of the appraisal process for projects under the Infrastructure Guidelines, Sponsoring Agents and Approving Authorities for the projects are asked to critically consider the potential schedule and cost implications of a project, which is further developed as a project progresses through the approval gates and more information becomes available as it moves from the preliminary to final business case before the awarding of the contract. This includes both detailed financial and economic appraisal, sensitivity analysis, accounting for behavioural influences such as optimism bias as well as consideration of appropriate levels of contingency.

To further ensure value for money, where a project is considered a major project, the Infrastructure Guidelines require that this project must be reviewed by the Major Projects Advisory Group (MPAG) at Approval Gate 1, overseen by my Department, to allow for greater scrutiny and clarity regarding such projects.