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Lack of accurate estimate for National Children's Hospital final costs 'unacceptable' - PAC

The Public Accounts Committee has said it's "absolutely unacceptable" that nobody can offer a "re...
Stephen McNeice
Stephen McNeice

16.09 9 Jul 2019


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Lack of accurate estimate for...

Lack of accurate estimate for National Children's Hospital final costs 'unacceptable' - PAC

Stephen McNeice
Stephen McNeice

16.09 9 Jul 2019


Share this article


The Public Accounts Committee has said it's "absolutely unacceptable" that nobody can offer a "reasonably accurate" estimate for the final costs of the new National Children's Hospital.

They've also found that the tendering process for the National Broadband Plan may have "partly deterred" interested parties from bidding for the contract.

The PAC has today published its latest report, which looks at a range of public projects.

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It covers meetings held between the committee and officials between December 2018 and March 2019.

The committee says it's "unacceptable" that major changes resulting in a dramatic escalation of estimated costs for the almost €3 billion broadband plan were made without a new cost-benefit analysis being carried out.

PAC chair Sean Fleming said: "The procurement process for the National Broadband Plan may have partly deterred parties interested in tendering for the project from doing so.

"The Committee recommends that a review of the procurement process for the National Broadband Plan is undertaken by the Department of Public Expenditure and Reform to inform future procurement processes and ensure maximum competition."

On the subject of the National Children's Hospital - which has seen major cost increases - the PAC suggests a two phase tender process was a "very significant contributing factor" in the escalating costs.

Some estimates have put the expected cost at between €1.4 billion and €1.7 billion.

The PAC suggests that a similar tender process not be used again for any major capital projects unless the phases are 'fully designed' in advance.

Mr Fleming added: "The Committee find it absolutely unacceptable that nobody can give a reasonably accurate estimate of the expected final costs for the completion and fitting out of the National Children’s Hospital.

"The sudden increase in costs for the on-going construction of the National Children’s Hospital is extremely worrying and indicates that the tendering process for the project was totally inadequate."

The report also calls for changes to ensure the situation is not repeated in the future.

Elsewhere, the report calls for immediate changes to the Department of Housing's system for gathering information in relation to housing provision - saying the current work is "not satisfactory".

It also criticises the failure to reach agreed carbon emission and renewable energy targets for 2020.

Main image: Members of the PAC discuss the launch of their new report. Photo: Shane Beatty

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