IBEC and the Construction Industry Federation have complained to Finance Minister Charlie McCreevy about the costs involved in bidding for Public Private Partnership contracts.
These contracts are being used by the Government to encourage private investment in vital infrastructure projects in the transport, health and education sectors.
Both IBEC and the CIF cited the €10m bid costs incurred by firms who pitched to build the recently awarded Kilcock-Kinnegad by-pass project.
IBEC's Peter Brennan the private sector's confidence in PPPs was waning because of the lack of new projects in the pipeline. The CIF's Don O'Sullivan said the number of bidders for new contracts was less and less on each new project.
Speaking at the launch of the National Communication strategy on PPPs, Charlie McCreevy said as more projects came on stream more companies should succeed in making successful bids.
He said he did not plan to offer compensation to firms who lose out in the bidding process, saying companies had to compete in the market to win their reward.
He said the aim of the strategy was to develop the profile of Public Private Partnerships, to educate participants and interested parties on the potential advantages and disadvantages of PPPs and to promote best practice in the development and application of the PPP approach.
Mr McCreevy said the Public Private Partnership approach to infrastructural investment is being developed on a pilot projects basis to ensure 'learning by doing'.
He said there are currently 40 PPP projects at various stages of procurement ranging from roads to environmental services, public transport and third-level education.
The National Roads Authority has identified 11 PPP projects as part of its overall strategy to deliver the national roads element of the National Development Plan.
The Minister said his central aim is to equip the country with the best possible administrative structures and systems needed to deliver priority economic and social infrastructure projects.
Charlie McCreevy said as more projects came on stream more companies should succeed in making successful bids. He said he did not plan to offer compensation to firms who lose out in the bidding process, saying companies had to compete in the market to win their reward.
Mr McCreevy was joined at the publication of his Communications Strategy document by representatives from IBEC, ICTU, the Construction Industry Federation and the newly formed National Development Finance Agency.
Jim Farrell, the Chief Executive of the National Development Finance Agency, said its key objective with regard to Public Private Partnerships is to provide value added through quality advice, and to source funding for PPP projects if necessary.
ICTU General Secretary's David Begg also attended today's lunch of the PPP Communications Strategy. He said he would be concerned if the capacity for project management in the public sector was dissipated as a result of the pursuit of the PPP strategy for the delivery of major infrastructural projects.
