36. Deputy Edward Timmins asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if detailed cost scrutiny can be done in capital expenditure projects in advance of contracts being signed. [74930/26]

My Department is responsible for the Infrastructure Guidelines, which 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. 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.

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 cost implications of a project at various stages of the project lifecycle.  Cost estimates are refined as a project progresses through the approval gates and more information becomes available. This includes detailed financial appraisal and sensitivity analysis, accounting for behavioural influences such as optimism bias as well as consideration of appropriate levels of contingency.

Once a capital project’s business case has been presented to the Approving Authority for approval at an approval gate, the Accounting Officer of the Approving Authority must assess the business case and be satisfied that it represents value for money before approving the project to move to the next stage of the project lifecycle. Where a project is considered a major project, the Infrastructure Guidelines require that this project must be reviewed by the relevant DPER Vote section and the Major Projects Advisory Group (MPAG) at Approval Gate 1, to allow for greater scrutiny and clarity, prior to going to Government for consideration.

The Final Business Case, developed following the tender process, is the last approval gate in the project lifecycle, and by this stage there will be a much greater understanding of the costs involved in delivering a project. If at this stage the Accounting Officer of the Approving Authority is satisfied that the project meets the required standard, they may then grant approval for the contract to be awarded, or, in the case of major projects, send the Final Business Case forward for Government consideration.