Strabag refinances Ireland’s N17/N18 project between Gort and Tuam

The European-based technology group for construction services, Strabag, has initiated and led the first successful refinancing of an Irish motorway public-private partnership (PPP) project. In a written statement, Strabag said that the N17/N18 project between Gort and Tuam “is benefiting from improved financial market conditions while still in the construction phase”. Refinancing was successfully achieved on 27 May. Total private sector investment in this project amounts to €400 million. Strabag said
June 2, 2016 Read time: 2 mins
The European-based technology group for construction services, 945 Strabag, has initiated and led the first successful refinancing of an Irish motorway public-private partnership (PPP) project.

In a written statement, Strabag said that the N17/N18 project between Gort and Tuam “is benefiting from improved financial market conditions while still in the construction phase”.

Refinancing was successfully achieved on 27 May. Total private sector investment in this project amounts to €400 million. Strabag said that it has a stake in both the concession company DirectRoute (10%) – alongside the Marguerite Fund, John Sisk and Son (Holdings), 2340 Lagan Projects Investments, 5487 Roadbridge and HICL Infrastructure – as well as the construction consortium (25%).

Constsruction started following the financial close at the end of April 2014 and the motorway is to open to traffic in November next year. This will mark the start of the 25-year operation period for this section.

Last year the project was awarded the distinction of European PPP Deal of the Year by industry journal Project Finance International (PFI).
 
This section of the N17/N18 motorway is not the first PPP concession project for Strabag in Ireland: Together with the DirectRoute consortium, the company has completed the Limerick Tunnel and Fermoy PPP projects.
Finance & Funding Road Structures

For more information on companies in this article

Related Content

  • Ireland's budgert cuts impact on road projects
    May 14, 2012
    Ireland’s government is undergoing a period of belt-tightening, with a string of budget cuts that will directly impact on the transport sector. The country was in the process of spending heavily on its infrastructure but with the tough economic climate it is now facing, a number of road projects are among those facing the axe. The Irish government is slashing its infrastructure spending from €39.6 billion to €22.9 billion between now and 2013. This looks likely to result in 40 road projects, including hig
    Read More
  • New South Wales is seeking financial packers for WestConnex in Sydney
    June 19, 2015
    Investment bank Goldman Sachs will soon be sending out expressions of interest for backers to finance Australia’s biggest road deal, the three-stage WestConnex project to be rollout by the New South Wales government. According to a report by The Australian newspaper, initially around US$1.17 billion will be needed for the first phase of the Sydney toll road project. The first phase will likely cost between nearly $2.35 billion and $3.9 billion. Total cost of all three phases over 10 years could be as
    Read More
  • Colombia: Toyo Tunnel award to be made in September
    July 15, 2015
    The contract award for Columbia’s 9.75km Toyo Tunnel project will be made on September 28, according to Columbian media. The tunnel, costing almost US$760, will be part of a new 39km road between Santa Fe de Antioquia and Canasgordas. World Highways reported in January that the central government will contribute $216 million towards the project, the regional government of Antioquia department will contribute $337 million and the Medellin city government will pitch in with $212 million. Columbia’s N
    Read More
  • Delays on Slovakian projects
    July 9, 2012
    Work on several new highways being built in Slovakia as public-private partnerships (PPPs) will be delayed by six to 12 months. This means that the first sections of the Martin-Presov link will not open before 2011. The last section is expected to be completed in either late 2012 or early 2013.
    Read More

Highlighted Content