Minister briefed on extra €107m payment to firm building children’s hospital but official not told before PAC appearance

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Minister briefed on extra €107m payment to firm building children’s hospital but official not told before PAC appearance
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Details of largest additional payment to BAM over delays on State side of project not explained to committee when it heard from development board on Thursday

The Department of Health said senior civil servants were updated about the conciliation process on Wednesday evening and that the Minister, in turn, was briefed. Photograph: Stephen Collins/Collinsshould receive an additional €107 million, but an official who appeared before the Dáil Public Accounts Committee this week to answer questions about the project had not been told.

“Senior officials in the department did receive an informal update on the ongoing conciliation process on Wednesday evening. The Minister was, in turn, updated on this ongoing process,” it said. The original estimated cost of the project was put at €800 million in 2014, before construction costs were disclosed, by the then Fine Gael-led minority Government, to have risen to €1.433 billion in 2018. Another €300 million was expected to be spent on the integration and transfer of services from the existing three children’s hospitals in Dublin, including information technology and commissioning costs, bringing the total expenditure to €1.73 billion.

However, it said the net change to the overall contract value so far, including conciliations and adjudications, had been some €27 million - less than 3 per cent of the original contract value.

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