More than €147 million has been spent so far on preparations for the planned new National Maternity Hospital in Dublin.
The Department of Health has told the Dáil Public Accounts Committee that design teams working on aspects of the project have so far received fees of more than €36 million.
The Irish Times reported in May that senior health service figures believe the final cost of the new maternity facility, which is to be developed on the campus of St Vincent’s hospital in Elm Park in Dublin, was likely to be in the region of €2 billion. This would be more than 10 times the amount originally allocated when the project was announced more than a decade ago.
The Public Accounts Committee had asked the department for a report on the costs.
RM Block
Department of Health secretary general Robert Watt told the committee in a letter that the tender and procurement process for the new hospital had now been completed by the HSE.
He said a final business case had been submitted to the department.
“It is important not to pre-empt the cost at which the market determines it can build this hospital for. This is a commercially sensitive process and an informed estimate of the cost of the new National Maternity Hospital cannot be made until this tender process and the subsequent reviews in line with the infrastructure guidelines, including ongoing demonstration of value for money and affordability, have been completed,” he said.
[ National Maternity Hospital bill projected to reach 10 times original costOpens in new window ]
Mr Watt said significant enabling works were required for the National Maternity Hospital project.
He said an initial series of works were conducted “to de-risk the campus” in advance of the main construction.
He said several new buildings were also being constructed elsewhere on the Elm Park campus.
Mr Watt said total expenditure to date was about €147 million including VAT of €23 million.
A breakdown of costs provided by Mr Watt showed that €36.2 million had been paid out in design team fees relating to different parts of the overall project including the hospital building itself as well as a new pharmacy, a multistorey car park and various other enabling works on the site.
Expenditure on design team fees had increased by €4.4 million since a previous report had been provided to the committee in July.
Mr Watt also said new safeguards were being put in place based on lessons learned from the development of the National Children’s Hospital.
He said in parallel to the review of the final business case, the successful tenderers for the project would “enter into a non-binding pre-construction services agreement (PCSA)”.
“This process, which is the application of a direct learning from the National Children’s Hospital Ireland project, is bringing the successful tenderers together with the project team to ensure that all tenderers and suppliers are agreed on a detailed programme of works before they begin.
“The PCSA will enable more effective monitoring of works. It will also enable successful tenderers to begin mobilising their supply chains. The completion date is informed by the programme of works developed by the successful tenderers and will be fully confirmed by the PCSA process. During the PCSA there is no ability for the tenderer(s) to adjust their tender offer(s).
“Once the PCSA is sufficiently advanced, and Government can be provided with a more robust schedule and time frame for completion of the NMH [ National Maternity Hospital], Government approval will be sought to enable the HSE to proceed to sign contracts with the successful tenderers and begin main building works.”
[ New financial safeguards planned for national maternity hospital projectOpens in new window ]
