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

  • Salini Impregilo expands in the US with purchase of Lane Industries
    November 12, 2015
    Italian global infrastructure group Salini Impregilo has agreed to buy 100% of Lane Industries, an American highways contractor and the “top private asphalt producer” in the US. Lane, a family-owned business based in Cheshire, Connecticut, was bought for US$406 million and has a turnover of around $1.5 billion. The company has three divisions: asphalt production, road projects and other infrastructure projects, in domestic and international markets. A statement from Salini said Lane is participating i
    Read More
  • Drones in construction, the future of surveying?
    August 21, 2015
    It may be early days for using drones – unmanned aerial systems (UAS) -- to map construction sites, but technology and legislation are moving in that direction. At the moment drones can fly within only a 500m radius of the ‘pilot’ standing on the ground, making the flight area a 1km diameter. This is the key limiting issue for any sector, especially road construction, says Jonathan Gill, a robotics engineer and a qualified drone pilot for the past seven years.
    Read More
  • Colombian concession contracts cause concern
    June 13, 2014
    A report from insurance firm AIG warns that up to half of Colombia's 4G highway concessions could face financial hurdles due to over-estimated predictions of traffic flows. Colombia is at present putting out to tender its fourth generation (4G) concessions, which involve some US$25 billion in investment, reports Business News America. This investment is impressive and is Latin America's biggest move to expand and improve road infrastructure. But while many companies have shown interest and were prequalified
    Read More
  • Norway’s E10 project is officially underway
    August 7, 2023
    Hålogalandsvegen/Skanska will finance, build, maintain and operate a section of the E10 Hålogalandsvegen and Highway 85 Tjeldsund–Gullesfjordbotn–Langvassbukt north of the Arctic Circle.
    Read More

Highlighted Content