National Development Finance Agency (NDFA)
The National Development Finance Agency was established in 2003 under the National Development Finance Agency Act 2002. The role of the NDFA is to advise State Authorities on the optimum means of financing public investment projects in order to achieve value for money and to provide advice in relation to all aspects of financing, refinancing and insurance, including risk analysis, of public investment projects. All PPP projects involving the use of private finanace must be referred to the NDFA. In addition, all projects valued at €20 million or above, whether traditional or PPP, must be referred to the NDFA for advice.
In addition to its advisory role, the NDFA has the vires to advance moneys and to enter into other financial arrangements in respect of projects approved by any State authority. To date, the Agency has not exercised the option of raising finance itself.
In July 2005, the role of the NDFA was expanded to include a specialised PPP procurement delivery function. This role was given a statutory basis with the enactment of the National Development Finance (Amendment) Agency Act 2007. The Act expanded the role of the NDFA to enable it to:
- enter into a PPP arrangement with a view to transferring the rights and obligations under such an arrangement to any State authority
- act as agent for any State authority in connection with the entry or proposed entry by that State authority into a PPP arrangement
These arrangements do not apply to the road and rail sectors, where existing procurement arrangements will continue. Similarly, existing arrangements will remain in place in the local government sector.
When the NDFA is procuring a PPP project on behalf of a State authority, sponsoring Ministers continue to be responsible for all aspects of the assessment and approval of the project. The NDFA is responsible for procuring the projects within the parameters set out by the sponsoring Department/Agency. The NDFA hands responsibility for the operational phase of projects over to Departments after construction is complete and the asset is ready for use.
Contact details for NDFA:
National Development Finance Agency
Grand Canal Street