Frequently Asked Questions

Information about the role of the NDFA is available at About the NDFA.

Information on the progress of any project being procured by the NDFA is available on the Sectors & Projects page, where it is possible to search for a project by sector, procuring authority or project type.

A PPP or Public Private Partnership is an arrangement between a public sector contracting authority and a private sector PPP company (PPP Co.) in which PPP Co. provides public works and/or services. In exchange for this, the State pays a monthly unitary charge commencing when construction of the building is complete and it is available for occupation. The duration of the services element of a PPP contract (and payment of the unitary charge) is usually 25 years.

There are different models of PPP contract however the NDFA typically pursues the “availability” based model. Under this type of contract PPP Co. designs, builds, finances and maintains public buildings on sites provided by the State. Payment of the full amount of monthly unitary charge is dependent on the building (or parts thereof) meeting both the defined availability criteria and the satisfactory provision of associated services by the PPP Co.

The benefits of PPP include the following:

• Efficient and cost effective project delivery
• Value for Money for the taxpayer through optimal risk management and transfer
• Delivery of critical public infrastructure without incurring upfront exchequer cost
• Efficiency and innovation through integration of design and construction with financial, operational and maintenance solutions for a project
• Incentivised quality in design and construction through the transfer of building lifecycle and maintenance risk to the private sector
• Competition and greater construction capacity (including the participation of overseas firms, especially in joint ventures and partnering arrangements).
• Accountability for the provision and delivery of quality project outcomes through performance incentive contract mechanisms.

The NDFA provides a financial advisory service to State authorities in respect of all capital projects over a certain size – at present €20m.

In addition to this the NDFA provides assistance to the Department of Education & Skills in the procurement and contract management of certain non-PPP school building projects.

PPP Companies appointed by the NDFA are selected via advertised tender competitions held in accordance with EU and national procurement regulations. Competitions are typically two-stage with between 2 and 4 qualified parties invited to tender following an open, competitive, pre-qualification stage.

The objective of the tender stage is to identify the Most Economically Advantageous Tender (“MEAT”) based on pre-defined award criteria. Usually a combination of price and qualitative criteria (which may include for example design quality and quality of services) based on the specific characteristics of a project which will have been defined prior to tenders being submitted. Following assessment the tenderer that submitted the MEAT is then appointed as the successful PPP Company subject to passing the final value for Money tests described above.

All appointments of external advisers are made via competitive tender. Adviser competitions are advertised in the appropriate forums and in accordance with national and EU procurement regulations. See www.etenders.gov.ie

PPPs rely on a broad supply chain, from professional service providers to construction and maintenance providers.

All competitions in which the NDFA are procuring works and/or services are advertised on www.etenders.gov.ie and/or the OJEU.

Subcontracting opportunities exist throughout the PPP supply chain and from time to time the NDFA, in conjunction with Enterprise Ireland, organizes “Meet the Buyer Events” for specific projects or programmes.

Whilst timelines may vary depending on the scale and complexity of a project, the NDFA’s target PPP procurement timeline is sixteen months from publication of a contract notice in the OJEU to contract award.

PPP projects should only be carried out where a PPP approach offers the potential to deliver Value for Money (VfM) for the Exchequer when compared to conventional public capital procurement on a like for like basis as calculated in a project’s Public Sector Benchmark (PSB). The Department of Finance central guidance “Value-for-Money-and-the-PPP-Procurement-Process” outlines four formal VfM tests to be carried out at the following stages during the PPP procurement process:

• Detailed appraisal
• Compile Output Specifications and Public Sector Benchmark
• Tender Evaluation
• Award of Contract

The final VfM test is undertaken prior to PPP contract award, when all costs are known, and is undertaken by comparison of the finalized PPP contract costs with the approved PSB for the project.