I thank the Deputy for his question and for the opportunity to update the House on this matter.
As he will be aware, my Department has undertaken a detailed appraisal of the development proposal put forward by Waterford Airport. That appraisal has included the assessment of significant documentation and responses to queries raised by Department officials and addressed by the airport, some as recently as this summer. The substantive application was received last December but items remained outstanding until just before the summer break. The level of appraisal is necessary to ensure that due diligence is exercised in accordance with my Department’s transport appraisal framework and the Government’s infrastructure guidelines, previously known as the public spending code.
The transport appraisal framework requires that in the transport sector where a project has an estimated potential cost of €15 million or more, the sponsoring agency must produce a project outline document to be reviewed by the relevant approving authority, in this case the Department of Transport. The purpose of the project outline document is to outline the rationale for an intervention and the intended impacts, verify the alignment of the proposal with wider government strategy and policy and describe the appraisal, governance, and financial approach.
My Department has completed its assessment of the detail submitted by Waterford Airport in line with the project outline document requirements. This assessment was recently submitted to both myself and the Minister for our consideration.
The project costings have increased substantially above the original estimated cost of €12 million to €27 million, deviating significantly from the airport’s proposal in 2019. Furthermore, the Deputy will appreciate that a project completing construction is not an end in itself. Successful operational activity would also be considered to be a key metric. Value-for-money criteria for any investment proposal extends well beyond the construction phase and into the operational phase, including projected activity in the succeeding years. Building a runway in itself is not an end goal; flying planes from it successfully for a number of years is.
I would be happy to update the House further when both the Minister and I have performed that assessment and given it our full consideration. I do reserve an open mind on the matter. I am aware of the desire of the Deputy and others, including the Minister of State, Deputy Butler, in the area and in the constituency to advance this project but it is State money. There is no impediment whatever to a private sector project running start to finish but if the State is asked to make a contribution, the State must have assurances that it is going to work.