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More than half of these are likely one Public Private Partnership (PPP) deal, where the contractor won’t receive any payment until homes are occupied.. & then €1m /month, every month for 25 years (avg €570,000 per new house or apartment) https://www.irishtimes.com/business/construction/up-to-1-000-social-housing-units-to-be-completed-says-housing-agency-1.4233514
& it’s taken five years to get here https://twitter.com/orla_hegarty/status/1250360556063797251?s=21 https://twitter.com/orla_hegarty/status/1250360556063797251
& paying very high finance costs for private investment, when govt could borrow for free (PPPs are said to be like buying houses on a credit card) https://twitter.com/paulodonoghue93/status/1250733214148308992?s=21 https://twitter.com/paulodonoghue93/status/1250733214148308992
& missing the opportunity for limited available finance to be stretched further to build more homes https://twitter.com/orla_hegarty/status/1250368519495127040?s=21 https://twitter.com/orla_hegarty/status/1250368519495127040
Link to PPP costs: https://www.kildarestreet.com/wrans/?id=2019-03-27a.659&s=PPP+%E2%82%AC1+month+Eoghan+Murphy#g661.r
Link to NTMA PPP Bundle 1 (534 homes) https://www.ndfa.ie/project/social-housing-ppp-bundle-1
Link to DPER comparison costs: https://igees.gov.ie/wp-content/uploads/2018/07/19.-Current-and-Capital-Expenditure-on-Social-Housing-Delivery.pdf
Link to NTMA PPP Bundle 1 (534 homes) https://www.ndfa.ie/project/social-housing-ppp-bundle-1
Link to DPER comparison costs: https://igees.gov.ie/wp-content/uploads/2018/07/19.-Current-and-Capital-Expenditure-on-Social-Housing-Delivery.pdf
European Court of Auditors on PPPs:‘widespread shortcomings & limited benefits’.. ‘value for money & transparency widely undermined.. by unclear policy & strategy, inadequate analysis, off-balance-sheet (that hides the true costs) & unbalanced risk-sharing’ https://www.epsu.org/article/european-court-auditors-report-public-private-partnerships-ppps
UK government abandoned these types of deals in 2018, ‘the model is inflexible & overly complex, &.. a potential risk to government finances’ https://commonslibrary.parliament.uk/parliament-and-elections/government/goodbye-pfi/
Meanwhile, in Ireland more PPPs are underway & planned: https://www.independent.ie/business/personal-finance/property-mortgages/uk-led-torc-starts-work-on-465-social-housing-units-in-ppp-deal-38769512.html
the ‘risk’ of PPPs highlighted by Carillion collapse that brought down a contract for schools in Ireland & caused contagion, liquidations, financial loss & delay across construction sector, govt report: https://ptfs-oireachtas.s3.amazonaws.com/DriveH/AWData/Library3/Report_on_PPPs_-_Carillion_Liquidation_Final_161429.pdf
