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

  • Sourcing road financing for East Africa’s network expansion
    December 4, 2015
    East Africa’s ambitious road expansion programme is seeing the network expand significantly – Shem Oirere writes The East Africa countries of Kenya, Tanzania, Uganda and Rwanda have announced ambitious road sector expansion plans in the 2015/16 financial year. This is despite their national budgets being weighed down by huge deficits and persisting lack of capacity to spend resources allocated to the sector in previous years. With the huge budget deficits, the countries will have to look for alternati
    Read More
  • STRABAG will lead A4 highway deal in Poland
    May 9, 2013
    Austrian contractor STRABAG is heading a consortium handling work to complete a section of Poland’s A4 highway between Krzyż and Dębica Pustynia. STRABAG’s subsidiary Heilit+Woerner is responsible for the contract, which was awarded by Poland’s General Directorate for National Roads and Highways (GDDKiA). The contract is worth €236 million (PLN 981 million), of which Heilit+Woerner has a 50% share. The work will be carried out over a 35km section of the route over and 18 month period. The work includes the
    Read More
  • Czech project set to benefit from EU fundin
    February 14, 2013
    A highway project in the Czech Republic looks set to benefit from EU funding. The highway is being established under a public private partnership model and will receive €700,000 of co-financing from the TEN-T Programme. The project was selected for funding under the 2011 TEN-T Annual Call. The funding will be used for a series of legal, financial and technical studies that will support the Czech authorities in planning its highway. The study will evaluate the construction, operation and maintenance through
    Read More
  • Poland eyes PPP for four major highway sections worth €2.32 billion
    June 18, 2018
    Poland will use the public-private partnership model for four road sections worth in total €2.32 billion. The roads are the S6 running from Koszalin to the DK6 at Bozepole Wielkie, the S10 from Bydgoszcz to Torun, the western ring-road of Szczecin and the ring-road around the TriCity metropolis. Tenders will be issued likely by the end of the year or the first quarter 2019, according to Polish media. The decision to adopt the PPP model for infrastructure projects is partly a response to the reduction
    Read More

Highlighted Content