The PPP model has been endorsed by Finance Minister Brian Cowen as a positive element in the public procurement process, and his commitment to the appropriate use of these mechanisms has been reinforced by changes to the structure of the procurement of PPPs.

Previously, there had been an emerging deal flow in the roads area (managed and progressed by the NRA), and in the area of the environment (where local authorities were advancing waste projects and social housing projects by this method of financing).

But in July of last year, the Government decided to change the structure for the procurement of PPPs in the central government area, and to this end, it established a new Centre of Expertise in the National Development Finance Agency. So the NDFA undertakes the procurement stage of PPP projects for government departments, and its priority is to focus on a programme of projects in a small number of key areas (Justice, Education and Health), before considering other possibilities after that. As of June of this year, the Centre for Expertise has a statutory footing.

From a practical perspective, the sponsoring ministers of this project continue to be responsible for all aspects of the assessment and approval of projects referred to the Centre of Expertise, including the decision to procure the project as a PPP, the setting of project budgets, the output specifications and other service requirements.

The NDFA is responsible for procuring the projects within these parameters.

"The new legislation will formally allocate the new procurement function to the NDFA by giving it the power to enter into PPPs with a view to transferring them to the relevant state authorities, or to act as agent for state authorities in regard to PPP procurement, " said Minister Cowan.

Of course, outside of the priorities of the NDFA, there is still what the Minister describes as "impressive progress taking place in the national roads programme".

Examples of current projects include the N25 Waterford Bypass project, which consists of a bypass of Waterford City (include a new river crossing and a cable stay bridge), as well as a new connection, known as the Western Link, which connects the bypass to industrial areas to the South West of the City and links the N9 and N24 to the Grannagh Interchange.

The scheme construction includes approximately 23 km of dual carriageway and 14 km of single carriageway.

Another current PPP project undertaken by the NRA is phase two of the Limerick Southern Ring Road. This project will comprise about 10 km of standard dual carriageway and 4km of single carriageway and will incorporate a 900m tunnel under the River Shannon. Both of these projects are expected to be operational by 2010.

In terms of the importance of PPPs to the overall development of state infrastructure, the total allocation of capital investment for the next five years by government departments is 43.5 billion - 5.5 billion (or 13%) is to be provided for under the PPP/NDFA line. There will also be an additional allocation of over 2 billion for PPPs funded by user charges.

"Of course, PPP is ultimately only a means to an end, " explained Minister Cowan. "That end is putting in place public services and infrastructure on a value for money basis for the taxpayer so that Ireland remains wellplaced to meet the challenges which it will face in the coming decades."

Some of these challenges will come within the timeframe of the successor to the current National Development Plan. The next NDP will cover the period 2007-2013 and its preparation is currently being co-ordinated by the Department of Finance.

"A prominent feature of all Government expenditure, including capital investment, is that it must deliver value for money, " said Minister Cowan. "Of course, establishing the value for money of deals has been an aim of the PPP technical assessment procedures from the outset.

We must make them work in a practical and commercial manner.

"I would expect the use of public-private partnerships to play a bigger part in delivering the next NDP, " he continued. "I believe that the steps we have put in place will facilitate the better use of the PPP option."