Opening statement by National Transport Authority’s CEO Anne Shaw, at the Committee of Public Accounts:
“Cathaoirleach, Committee Members, thank you for the invitation to appear before the Committee today to continue its consideration of the National Transport Authority’s 2024 Financial Statements, with particular focus on the National Train Control Centre project and the associated Traffic Management System contract.
I am joined by Hugh Creegan, Deputy Chief Executive and Director of Transport Planning and Investment at the National Transport Authority.
I also welcome representatives of Iarnród Éireann, the delivery agency for the NTCC programme. Together, we will seek to address the Committee’s questions fully and transparently where possible, recognising that some issues remain commercially and legally sensitive. We have provided a detailed briefing document and other information as part of our submission last Friday.”
NTA’s responsibilities in relation to major transport investment projects
“Firstly, it is worthwhile clarifying the NTA’s responsibilities in relation to major transport investment projects.
The NTA is the statutory body responsible for the planning, provision and funding of public transport and active travel infrastructure. We also act as the Approving Authority for major public transport investment programmes, including BusConnects, DART+, MetroLink and the National Train Control Centre programme.
The Government’s Infrastructure Guidelines clearly distinguish between the roles of the Sponsoring Agency and the Approving Authority.
The Sponsoring Agency
Under those arrangements, the Sponsoring Agency is responsible for the planning, procurement, contract management and delivery of a project, including the achievement of its approved scope, budget, programme and intended benefits.
The Approving Authority
The Approving Authority is responsible for funding the project, approving key decisions at defined stages of delivery and overseeing implementation through appropriate reporting and assurance arrangements.
In its role as Approving Authority, the NTA provides oversight of delivery of the capital programme by the various sponsoring agencies, and reports progress to the Department of Transport through the Major Projects Governance Oversight Group. We work closely with project delivery bodies to address risks, assess proposed changes and consider any implications for budgets, delivery schedules and the wider investment portfolio.
Successful major transport investments continue
Many major transport investments continue to progress successfully, including BusConnects which continues to advance, with all 12 Core Bus Corridors having received planning permission and construction underway on two schemes, plus procurement of a third corridor to commence shortly. The DART+ Programme also continues to advance with confirmed railway orders and construction procurement underway. MetroLink has also received planning consent and is now moving into its procurement and construction stage. Active travel investment is also delivering real benefits for the public.
The NTA is also investing in new bus depots to support service expansion, with Jamestown Depot now operational, planning consent secured for a new bus depot in Blanchardstown, a new Go-Ahead Ireland depot opening shortly in Northwest Business Park Dublin, and the Tivoli depot in Cork due to open in Q3 2026.
National Train Control Centre programme
In the case of the National Train Control Centre programme, the NTA is the Approving Authority and Iarnród Éireann is the Sponsoring Agency. Accordingly, while the NTA is responsible for funding, oversight and approval at key decision points, responsibility for project delivery, procurement and contract management rests with Iarnród Éireann.
The Committee is rightly concerned about the write-down reported by Iarnród Éireann and the delays affecting the Traffic Management System project.
Let me be clear: the NTA takes these issues extremely seriously. Protecting public funds and ensuring value for money are central to our assessment of all requests and recommendations from sponsoring agencies.
Over the lifetime of the project, Iarnród Éireann, with the support of the NTA, has sought to address delivery challenges through revised programmes and alternative implementation strategies. Whilst an alternative delivery model remained an option, no formal recommendation seeking such a change was made by the Iarnród Éireann Board to the NTA until recently. Instead, Iarnród Éireann and the NTA engaged extensively with Indra to develop and implement revised delivery strategies to progress the project. These approaches were informed by commitments and actions by Indra to address the issues on the project, recognising the risks inherent in all approaches. At the centre of these efforts was the objective of ensuring the successful delivery of a Traffic Management System capable of supporting both current operations and future network expansion.
The existing role of Indra
Following its internal governance processes, Iarnród Éireann formally informed the NTA on 29th June of the decision by its Board regarding the existing role of Indra and their proposed way forward.
The NTA requested additional information on the 30th June to support consideration of the decisions by the NTA, including its Board and Capital Programme Committee. The NTA reviewed this extensive supporting information, including project risks, privileged legal advice, potential liabilities, future delivery options and implications for the wider NTCC programme.
As Approving Authority, the NTA considered the implications of Iarnród Éireann’s decision for the overall project, as well as the wider capital programme. The evidence indicates that the supplier is unlikely to deliver the required system to full specification within any reasonable time frame and an alternative delivery approach is needed.
Given the ongoing costs, the matter was considered as a priority through the NTA’s governance processes, and the NTA Board has now accepted Iarnród Éireann’s decision regarding the role of Indra going forward. This was communicated to Iarnród Éireann on the 13th July.
Continuing to assess the implications of this decision
Both organisations, together with the Department of Transport will continue to assess the implications of this decision, including additional funding requirements for delivering the traffic management system within the overall Rail Investment budget envelope to achieve the best possible outcome.
Independent review of the project
Separately, the NTA has commissioned an independent review of the project, due to report in September. The review will examine governance, delivery and project oversight arrangements within both Iarnród Éireann and the NTA, and identify lessons to strengthen the delivery of future major infrastructure projects and in particular technology projects.
Next Generation Ticketing project
Committee members may also be aware of the Next Generation Ticketing project, which is being delivered directly by the NTA with Indra as supplier. I can confirm that this integrated ticketing project remains on budget and on schedule. The contracting mechanism is different to that of the NTCC contract, with payment due only following the successful delivery of each of 34 key milestones.
Bus fleet electrification
We understand the Committee is also interested in progress in delivering bus fleet electrification and in particular the cost of buses in storage pending absorption into the fleet. This information is detailed in a note provided to the Committee. Whilst there have been delays in delivering charging infrastructure accounting for these buses needing to be in storage, the costs incurred are offset by the avoidance of inflationary increases that would have arisen on later purchases.
In the meantime, the buses are stored and maintained by the manufacturer to ensure they remain in optimal condition and are expected to be fully absorbed into both Dublin Bus and Bus Éireann fleets by Q1 2027.
Cathaoirleach, I welcome the opportunity to assist the Committee today and to outline the actions being taken to protect public funds and secure the best outcome for the public.
Thank you.”