€1.93bn price tag derailed Dart-Metro projects

THEY HAD the potential to get Dublin moving, but the combined €1

THEY HAD the potential to get Dublin moving, but the combined €1.93 billion required in exchequer funding in the period up to 2016 resulted in the Metro North and Dart Underground commuter rail projects being postponed earlier this year.

This emerges in the transport capital investment programme documents produced by the Department of Transport in July at the request of the Department of Public Expenditure and Reform.

The 15-page document, released last night, also states that Iarnród Éireann warned the department that it would have to close a large portion of the country’s rail network if it was given anything less than €105 million annually over the next five years for safety maintenance.

The document states Metro North would have required exchequer funding of €730 million by 2016 while Dart Underground would have needed “in the region of €1.2 billion” up to 2016.

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Both were deemed too expensive in the context of the State’s public finance difficulties and the absence of external funding by way of public private partnerships (PPPs).

It also states that it would be possible to provide about €100 million to progress Bus Rapid Transit on some quality bus corridors (QBCs) in the Dublin area.

“The NTA [National Transport Authority] in conjunction with the RPA [Railway Procurement Agency] are conducting a feasibility study on a pilot corridor to identify all the issues and test the system concept,” the document states. Funding for this project is still pending.

The department was advised by Iarnród Éireann it would require €105 million a year for rail safety.

“According to IE, unless a decision is taken to close a significant portion of the rail network, there is no possibility of reducing the cost of the safety programme. IE emphasises that lack of maintenance is short-sighted as apart from increasing risk levels it eventually leads to more and earlier renewal costs.”

Iarnród Éireann said its total minimum funding requirement to 2016 should be €570 million.

In addition to safety, this included funding for “essential rolling stock”, ongoing ticketing systems and equipment and other small projects.

The department’s submission says that in order to provide Iarnród Éireann with its baseline figure, an increase to the allocation in the National Recovery Plan of €101 million would be required for the years 2014 to 2016.

The document notes that while travel on public transport had declined sharply in the recession, car travel has been largely unchanged.

It argues that ongoing investment is required for public transport to avoid congestion and help retain the country’s attractiveness for foreign investment.

The document also claims that 10 to 14 jobs can be supported by each €1 million of capital spending, depending on the “type of project”.

It concluded by stating that the 10 per cent reduction in spending outlined could deliver a “balanced transport programme for the next five years”, while also achieving savings for the exchequer.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times