Public-private partnerships (PPP) will increasingly be used address the issue of scarce government resources, according to a new report by Pricewaterhouse Coopers.

The Government has announced plans to set up a new centre of expertise responsible for the procurement of all new PPP projects, with the exception of road and rail, and intends to spend almost €5 billion by 2008 on PPP projects.

Indeed, PPPs are a growing element of public sector procurement processes across Europe, PWC said.

"We now have a unique opportunity to build on these solid foundations by applying the lessons learnt to new PPP projects in the education, health, transport, justice and social housing sectors," said Shane Lyons, the director of PWC's corporate finance unit.

Ireland's first national conference centre, to be built at Spencer Dock in Dublin, will also be constructed as a PPP.

Minister for Transport Martin Cullen expects to raise €240 million from PPPs, he said earlier this month. That is on top of the €1.3 billion the his department has budgeted for road improvements and the €55 million for road maintenance.

The N4/N6 road from Dublin to the north-west was the first PPP road project signed as part of the €52 billion National Development Plan for 2000-2006. Four PPP road projects have closed in the Republic in the past five years with a further six in procurement, according to the Pricewaterhouse report.

About 25 per cent of the Transport 21 programme announced earlier in November will be funded through PPPs. Of the €8 billion financed through PPPs, €2 billion will be toll-based road investment.

The State's experimentation with PPPs dates to 1999, when the Government introduced eight pilot PPP projects. By the end of 2001, more than 100 projects were earmarked for procurement through PPP.