A new "centre of expertise" within the National Development Finance Agency (NDFA) is to take over the initial planning for major public capital projects, including the €275 million radiotherapy project announced yesterday by the Government, and up to 18 secondary schools.

The Minister for Finance, Brian Cowen, is to announce plans today for the new centre within the NDFA, which will assess a series of projects from the Department of Health, Education and Justice, for their suitability in relation to public private partnerships (PPP).

A number of financial and legal experts are expected to be recruited by the NDFA to work on the projects, which they will manage from planning to completion.

The centre will first identify the projects that are suitable for the PPP process and what elements of the projects will designed, built and operated by the private companies.

Experts from the NDFA, a section of the National Treasury Management Agency, will then oversee the planning, design and construction in conjunction with the private partner. The management of the projects, once built and operational, will then be handed back to the relevant Government department.

The sole project to go through the process from the Department of Health will be the design and construction of the new radiotherapy facilities costing €275 million, as part of a nationwide plan announced yesterday. The centre will also examine proposed projects costing €555 million in the Department of Education.

It is believed that PPP schemes for primary schools are likely to be ruled out, and that the centre will concentrate on 20 second-level schools and a number of third-level projects.

The department has already run a pilot project relating to five second-level schools and a third-level maritime training college in Co Cork. The second-level school project was criticised by the Comptroller and Auditor General over the capital cost, which was nearly 20 per cent higher than the average for non-PPP projects.

It will also be examining and managing two major projects under the Department of Justice: the proposed prison at Thornton in North Dublin and the new courts complex in Kilmainham.

Mr Cowen said projects would have to be appraised not only on cost grounds but on the speed of delivery and future savings.