PPP model for building schools to be used despite cost fears

The Department of Education and Science is to approve public-private partnership (PPP) projects for up to 20 second-level schools…

The Department of Education and Science is to approve public-private partnership (PPP) projects for up to 20 second-level schools, despite a warning that five schools built under a previous pilot project could end up costing more than if they were built by the State.

Outlining details of this year's education budget, the Minister for Education and Science, Ms Hanafin, said funding for school buildings is to increase by 14 per cent next year and will allow for more than 300 major projects to be approved.

The multi-annual capital budget for education now stands at €3.4 billion for the next five years.

A total of €493 million - €270 million at primary level and €223 million at post-primary level - is to be spent on projects in primary and post-primary schools next year. Of this, €50 million is a "carry-over" of unspent funding from this year's Budget.

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Next year's budget will include approval for between 18-20 post-primary schools to proceed as PPP projects, with a total of €555 million worth of such projects to be developed over the next five years. While some primary schools will be covered, most PPPs are likely to be at second and third levels.

Earlier this year, a report by the Comptroller and Auditor General (C&AG) said five pilot schools in Ballincollig, Clones, Dunmanway, Shannon and Tubbercurry built under a PPP agreement could end up costing up to 13 per cent more than if built by the State.

But commenting on the decision to use PPPs for the schools in question, Ms Hanafin said she would be taking into account the C&AG's report. While there had been some problems, the five schools had been built as pilot projects and had been completed quickly, she added.

Ms Hanafin also said that following her decision to lift the pause on third-level capital funding last month, she would be making a further announcement about projects at third level in early 2005.

Details of the primary and post-primary schools that will receive funding would be made available early next year, she added.

Among the projects to be supported under the school building programme are:

141 major building projects already on site and a further 28 due to commence in the coming weeks;

75 major primary and 30 major post-primary projects which are already at an advanced stage of design;

up to 120 primary schools which will be invited to take part in the small and rural schools initiative and the devolved scheme for providing additional accommodation.

a doubling of the summer works scheme to €60 million.

The INTO yesterday welcomed the "significant increase" in funding, and said it represented a clear indication that the Minister understood the scale of the problem at primary level and indicated her determination to take positive action in relation to primary school buildings.

The ASTI, while welcoming the announcement, also warned that it was "essential" that the full school buildings budget be expended next year.

The TUI labelled the Budget a "missed opportunity" to bring about change in the area of educational disadvantage. It also questioned the need for PPPs, given the current budget surplus, and called for future budgets to reflect the academic calendar.