The Government has stepped up its drive to earn greater value for money from its €36 billion capital programme by issuing tighter guidelines on spending.
The guidelines issued by the Department of Finance deal at the project appraisal stage with the need to provide for future cost increases related to price increases and variations in outputs.
All capital programmes with an annual value in excess of €50 million and of five years duration or more will for the first time be required to be evaluated at the beginning and mid-point of each 5-year cycle, unless otherwise agreed by the Department of Finance.
Formal structures for the monitoring and management of investment programmes to include the appointment of a programme coordinator and a monitoring committee must also be put in place.
While progress has been made in infrastructure projects, the Minister for Finance, Mr Cowen, also acknowledged that cost overruns have plagued many projects.
"I am determined that we should intensify our efforts to get better value for money so that we maximise the return from all this investment," Mr Cowen said.
The new guidelines also provide for a clearer definition of the respective roles and responsibilities of all involved in the management and appraisal of capital programmes and projects including the Government, Ministers, the Department of Finance, Government Departments and public bodies.
The Minister has sent copies of the new guidelines to the Comptroller and Auditor General and the Public Accounts Committee for their information. The full text of the guidelines is available on the website.