The Minister for Education and Skills, Ruairí Quinn T.D., today welcomed the €280 million of investment in the Education sector, announced as part of the Government’s economic Stimulus Package.
The education sector is to benefit in two main ways: the planned consolidation of the Dublin Institute of Technology (DIT) at the Grangegorman campus is to progress and two new public private partnerships (PPPs) school bundles will be rolled out, consisting of a total of 12 schools.
Minister Quinn said, “The Government’s commitment to providing additional funding for the DIT higher education campus will allow commencement of the enabling works at the Grangegorman site next year – a prelude to the start of the roll out the PPP element of the project at the site.”
“This demonstrates the determination of the Government to effectively tackle the needs of the DIT, currently the largest provider of higher education in the State. This is also very good news for the Grangegorman area and its residents as this major project will assist greatly in rejuvenating a large part of the inner city. Jobs will be created and, as the campus is developed, we expect other businesses and services to be attracted to the area.”
Some €180 million of the Government’s estimated €2.25 billion stimulus package announced today will go towards the Grangegorman project. DIT is currently located in 39 sites across the capital, some of which are in poor condition. The plan for Grangegorman is to combine these sites into one single world class educational facility. Stage 1 of the consolidation process will be progressed in Phase 1 of this stimulus package.
The other major part of the education sector package announced today is the roll out of two further bundles of school projects to be delivered through PPPs worth a total of €100 million. Bundles 4 and 5 were already announced for delivery as part of the five year schools capital investment programme unveiled by the Minister earlier this year. However, today’s announcement means that the private sector, rather than the State, will bear the initial costs of the job rich schools projects and they are expected to be delivered more quickly. Procurement will commence on a rolling basis next year, with the completion of the schools bundles during 2017 and 2018.
Schools Bundle 4 will consist of one primary and five post primary schools (see Editor’s notes for school names) with an estimated value of €50 million. Details of the six schools that will make up Bundle 5, also with an estimated value of €50 million, are currently being finalised.
Minister Quinn said, “The progressing of PPPs for the twelve schools involved in today’s announcement will be a significant boost to the construction industry. Despite our economic difficulties, the need to build new schools and replace inadequate accommodation remains, and through the use of PPPs and today’s stimulus package we can continue to deliver for our growing school going population.”
ENDS
Editors’ Notes:
PPPs
Public Private Partnerships (PPPs) allow the burden of State investments be borne upfront initially by the private sector when the State is experiencing fiscal difficulties that are curtailing investment and leading to consequential impacts on economic activity. Utilising PPP opportunities allows the private sector address these infrastructural needs with the State sector paying for this investment over an extended period of time usually 25 years. Delivery of educational infrastructure through PPPs usually results in delivery costs, maintenance and operational costs all being borne upfront by the private sector. The public sector repays the private’s sector investment in the form of annual unitary charges encompassing maintenance elements / operational elements and building element. In this way and particularly at a time when there are strains on the public purse the costs to the public sector are distributed over a prolonged period but the needs are addressed and economic activities enabled.
Grangegorman
The decision to consolidate DIT at Grangegorman dates back to 1999 when it was recognised that the country’s largest higher education institution was in need of investment. Enrolments in 2010/11 amounted to 18,115 made up of 10,094 full time undergraduates, 1,207 full time post graduates, 2,833 part time undergraduates, 1,187 part time post graduates with others making up 2,794. Existing accommodation consists of 125,000m² spread across 39 locations much of which is of poor standard.
DIT is committed to selling assets to raise funds to defray costs as the project proceeds. DIT and the Grangegorman Development Agency (GDA) are committed to working together to achieve this end and to working with the DES and NDFA in this regard also.
The initial investment including the first phase of the PPP investment is expected to give rise to a sizeable presence of students at Grangegorman. The College of Art and Tourism, the College of Sciences and Health and the College of Engineering and Built Environment (part) are expected to be relocated to the campus.
School Bundle 4 of PPPs
Schools proposed for PPP Delivery - Bundle 4
62062F St Josephs, Tulla Clare Replacement school building Replacement school (500 pupils)
62490T Skibbereen Cork Replacement school New amalgamated school (approx 1000 pupils) Mercy Heights, De la Salle, Rossa College)
66666A Celbridge Kildare New School Primary
66666A Celbridge Kildare New School Post Primary (750 pupils)
63890R St Mary's College, Dundalk Louth Extension Post primary
72400B Comeragh, Carrick-on-Suir Tipperary Replacement school Post primary 500 (+210)