Latest news with #PPPs
The Journal
08-07-2025
- Business
- The Journal
500-home housing project that was culled by minister had seen costs 'effectively double'
LAST UPDATE | 43 mins ago COSTS FOR A multi-partner project containing almost 500 social homes that was suddenly halted last month had 'effectively doubled', according to internal warnings from housing officials weeks ahead of the cancellation. In correspondence seen by The Journal , they warned that 'development costs and interest rates' had combined to see the price rise for the multimillion euro project, which was to deliver 486 homes across six sites in Dublin, Kildare, Wicklow and Sligo. It was also revealed today that judicial review proceedings have been initiated by a construction company over the cancellation against the Department of Housing, following Minister James Browne's cost-related decision to stop the project from going ahead last month . All 486 homes were due to be delivered under a public private partnership (PPP) scheme. This model is essentially a long-term contract sometimes used to deliver infrastructure, where the private partner provides funding and operational management of the project as part of its delivery. The model for the delivery of such largescale social housing projects has been thrown into doubt as a result of this cancellation. New details at Oireachtas committee Today's Oireachtas Housing Committee heard Browne say that judicial review proceedings had been initiated by one of the parties involved in the PPPP in recent days against the department because of the cancellation. Court records show builder JJ Rhatigan has lodged papers against the minister and Dublin City Council. Social Democrats housing spokesperson Rory Hearne said the situation was now an 'utter mess', telling the minister that the legal proceedings will likely further delay the delivery of the homes through alternative means. Browne told the committee he could not discuss the cancelled PPP as it was now the subject of legal proceedings, but, speaking generally, he said the model of housing needs to be 'completely overhauled' to make it better for the taxpayer. Four upcoming PPPs – set to contain several thousand homes – have been stalled with a review now being carried out into each project. The Wexford Fianna Fáil TD also said he was not happy about the 'length of time' it took for the project to 'land on my desk for a final decision'. Advertisement It's likely to raise further questions about management of the scheme, as the PPP had twice passed government financial appraisals – including last October. Emails between officials The Journal can also now report that housing officials raised significant concerns around the costs involved in the project in late March, just weeks before cancelling the project. The claim was made in emails – seen by The Journal – between the Department of Housing to their counterparts in the Department of Public Expenditure and Reform. The latter department has responsibility for the purse strings on projects backed by the State. They repeatedly sought a meeting on the project, with housing officials later requesting discussions 'asap' as they were due to have a decision made on the future of the homes by May. In one email, housing officials sought an urgent meeting with the Department of Public Expenditure and Reform about the project. The project is known as Bundle 3 as it is the third of the social housing projects delivered under the model. 'The costs have risen significantly since the last bundle closed in 2019/2020 (effectively doubled),' the officials said in an email from 27 March. 'These costs include the whole lifecycle including development, funding, operations for 25 years etc.' Housing officials added that they were working with the State-backed financial institution National Development Finance Agency (NDFA) and said it had reviewed different aspects of Bundle 3. The official said that Bundle 3 had 'passed' its value for money tests – which were conducted last year – but raised concerns over the costs now presented. 'The cost of delivery of Bundle 3 has doubled when compared to Bundles 1 and 2, reflecting current development costs and interest rates,' the official told the Department of Public Expenditure and Reform. The Housing official continued in the email, outlining that the NDFA have provided a report 'detailing the costs and the reasons for the increases over previous bundles'. The NDFA's cost report was not released by the department due to commercial information contained within the report. The homes were due to be delivered by the Torc Consortium , a partnership for all six sites between Galway-based developer JJ Rhatigan, London-based financier Equitix, Japanese developer Kajima and housing body Túath Housing Association. Although no final contract had been awarded, it is understood that the second Value for Money check last October resulted in developers proceeding to work on the site, leading the consortium's partners to spend upwards of €8 million on the six sites to get them shovel-ready . A total of 1,400 workers had been assigned to work on the homes for the next 18 months before the plug was pulled. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Yahoo
06-07-2025
- Business
- Yahoo
Cost of living: Which are the cheapest and most expensive countries in Europe?
Prices vary significantly between countries in Europe. Significant differences exist even between neighbouring countries such as Austria and Hungary — or Germany and Poland. But how can we best compare prices across Europe? And what are the most expensive and cheapest countries across the continent? Price level indices are a good way to help us understand how expensive or cheap goods and services are in each country. They compare national price levels to the EU average and are calculated using Purchasing Power Parities (PPPs). According to Eurostat, PPPs act like an artificial common currency, as they show how much people can buy with the same amount of money across countries. The results are based on price surveys covering more than 2,000 consumer goods and services, conducted across 36 European countries. There are several price level indices that compare the cost of different goods and services — such as food, drink, clothing, hotels, and more. In addition to these individual or group indices, there are two main indicators that show the 'overall' price level of consumer goods and services: One is actual individual consumption (AIC), which measures all goods and services actually consumed by households. It includes consumer goods and services purchased directly by households, as well as services provided by non-profit institutions. The indicator also includes services provided by the government for individual consumption such as health and education services. Another indicator is household final consumption expenditure (HFCE), which studies total spending on individual goods and services by resident households. In other words, AIC looks at what households use — including services they don't directly pay for — and HFCE shows what they spend money on. Eurostat notes that AIC is often used in international comparisons, as it captures more than the narrower concept of household consumption. Euronews has therefore used AIC figures for comparisons, although consumption data is also included in the chart. As of 2024, out of 36 countries, Switzerland is the most expensive, with prices at 184% of the EU average — 84% higher than the average. Turkey is the cheapest, with prices at 47% of the EU average, meaning they are 53% lower than the EU average. This makes Switzerland 3.9 times as expensive as Turkey, revealing the sharp contrast in price levels across Europe. A price level above 100 means a country is more expensive than the EU average; below 100 means it's cheaper. In the EU, Luxembourg is the most expensive country, with prices 51% higher than the EU average. Bulgaria and Romania are the cheapest members, at 57% of the EU average. This means Luxembourg is about 2.7 times as expensive as Bulgaria and Romania, showing a significant but smaller gap compared to the difference between Switzerland and Turkey. Ten EU countries have prices above the EU average. Denmark (143%) and Ireland (141%) follow Luxembourg as the most expensive. Among the EU's four largest economies, Germany (109%) and France (108%) are slightly above average, while Italy (98%) and Spain (91%) are below. Western and Northern European countries tend to have high price levels. Switzerland, Iceland, Luxembourg, Denmark, Ireland, Norway, and Finland all show significantly above-average prices. These are generally high-income countries with strong currencies and higher living costs. All five Nordic countries— Denmark, Finland, Sweden, Norway, and Iceland — also consistently rank near the top. In contrast, Central and Eastern European countries generally have lower price levels. Romania, Bulgaria, Hungary, Poland, and the Baltic States — Latvia, Lithuania, and Estonia — are all below the EU average. These regions typically record lower labour costs. Price levels are also lower in the EU candidate countries. They included Turkey, North Macedonia, Albania, Serbia, and Bosnia and Herzegovina. Two European Free Trade Association (EFTA) countries — Switzerland and Iceland —rank first and second in 2024, with Norway in sixth place. In a 2018 analysis based on 2017 figures, Lars Svennebye of the EFTA Statistical Office explained that high workforce productivity and corresponding high salaries were key factors behind the high price levels in EFTA countries. Individual or household incomes are not included in price level comparisons. 'These figures are pure price comparisons of goods and services. They do not take the level of wages, salaries or other measures of personal income into account,' Lars Svennebye told Euronews Business. This means that someone living in a country with a high price level may still be able to buy more goods and services than someone in a country with a lower price level, depending on income. Price levels vary significantly across different categories. For example, the price level for alcohol and tobacco in the EU was nearly three times higher in Ireland (205%), the most expensive country, than in Bulgaria (69%), the cheapest. Restaurants and hotels showed the second-largest gap. Denmark had the highest prices at 148% of the EU average, while Bulgaria again recorded the lowest, at 53%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Khaleej Times
24-06-2025
- Business
- Khaleej Times
Social infrastructure drives progress, and the UAE is taking the lead
The country is modernising procurement and embracing digital platforms,ensuring efficient, transparent delivery of critical healthcare, education, and community services Dubai's shimmering skyline is a testament to what visionary infrastructure can achieve. But the UAE's most transformative opportunity today lies not only in its skyscrapers or airports, but in the everyday spaces that shape community life, such as in schools, hospitals, public spaces and community hubs. With the UAE's population growing at an accelerated rate of 4% annually, and approximately 88% of the population residing in urban areas, the demand for healthcare, education, and community services is surging. The country's rapidly expanding youthful demographic, with a median age of just 35.8, further amplifies this need. Social infrastructure is quickly emerging as the nation's opportunity to take the next great leap forward. In October 2024, the UAE Cabinet approved a balanced Dh71.5 billion federal budget for 2025, and almost 40% of that budget was allocated to social development, with education accounting for the majority of spending in that sector, followed by healthcare. Dubai's 2040 Urban Master Plan will increase land allocation for educational and healthcare facilities by 25%, ensuring tomorrow's communities have access to essential services close to where they live. Meanwhile, newly introduced federal legislation on Public-Private Partnerships (PPPs) in 2024 provides a modern, investor-friendly framework to accelerate social infrastructure delivery. These reforms underscore a broader shift: one that sees liveability, inclusion and resilience as pillars of national competitiveness. New insights from Ansarada's Social Infrastructure Outlook 2025 align with this momentum. Insights from the report, developed in partnership with Infralogic, predict a 25% rise in project activity across the Middle East by 2027, pushing annual transaction values to an estimated US$2 billion. Already, the UAE has committed more than Dh27 billion (US$7.4 billion) to upgrade and expand its social infrastructure footprint. These figures are encouraging, yet they spotlight the one process that has the potential to slow momentum: procurement. Traditional procurement processes often rely on sprawling email threads, unsecured document transfers, and cumbersome spreadsheets, which can significantly delay project delivery. If the UAE is to fully unlock the potential of social infrastructure, a smarter and more innovative path from concept to contract is essential. Digital, transparent and standardised procurement systems are critical. By modernising procurement, the UAE can reduce delivery risk, fast-track approvals, and strengthen investor confidence. Digital procurement platforms can automate compliance, reduce risk, enhance transparency, and accelerate deal flow. In short, they turn procurement into an engine of innovation, not an obstacle to it. The future of the UAE The UAE is uniquely positioned to move into this next phase of societal growth. It has the vision, the capital, the regulatory framework, and a clear demographic mandate. What remains is to match the scale of ambition with the processes needed. Social infrastructure is more than steel and concrete. It's about enabling people to thrive through education, healthcare, housing, and community. By embracing digital delivery tools and prioritising smarter procurement, the UAE can ensure its next chapter of growth is defined not only by what it builds, but by how its people thrive within it.
RNZ News
15-06-2025
- Business
- RNZ News
Government considers Crown contributions to partnership projects
PPPs were considered for court construction, but not included in Budget 2025. Photo: RNZ / Anneke Smith Government agencies are looking into how the Crown could put capital directly into Public Private Partnership projects. This is among moves to get try to get more partnerships underway to build a wider range of public infrastructure, from courts to health facilities. Minutes from the NZ Transport Agency show it has explored direct Crown contributions to PPPs for several months. Treasury said these were used in other countries to improve value for money or project outcomes. Infrastructure Minister Chris Bishop said PPP guidelines due out later this year would show how to consider Crown contributions. "The inclusion of a Crown capital contribution will be considered on a project-by-project basis throughout the business case and procurement processes," Bishop said. Officials did not believe legislative or regulatory change would be required to implement contributions. A blueprint to change PPPs was put out late last year, as the Government sought to get the private sector, including international companies, enthused about investing. "The blueprint signalled that their use would be carefully considered on a project-by-project basis," Treasury said of the contributions. At the Government's infrastructure investment summit in March, PPPs were raised as an option in health. PPPs to build three new courts in Waitākere and Rotorua, and a Māori Land Court in Rotorua were initially considered by justice officials, but the courthouse builds did not receive funding in Budget 2025. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
