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

  • Canada: National Bank and Axium refinance Sea-to-Sky Highway
    July 19, 2016
    National Bank Financial and Axium Infrastructure have refinanced the Sea-to-Sky Highway Improvement Project in the Canadian province of British Columbia. A statement from Axium said that the US$427 million 25-year public-private-partnership had “strong investor support and an A2 rating from Moody’s”. The Sea-to-Sky Highway Investment Limited Partnership - Axium Infrastructure, Régime de Rentes du Mouvement Desjardins and Nova Scotia Pension Agency - is the consortium in charge of the concession. In
    Read More
  • How Florida paved the way for availability payments in the US
    November 21, 2014
    New financing models have been used to deliver key transport links in the US - * Patrick D Harder and Brandon J Davis Florida Department of Transportation’s (FDOT) public-private partnership (PPP) programme has made impressive progress, setting precedents for US transportation planning and funding. On March 26th 2014, FDOT opened 16km of new reversible express lanes as part of its US$1.8 billion I-595 Corridor Roadway Improvements Project. Just a few months later, on August 3rd 2014, FDOT opened twin tunnel
    Read More
  • We're here to help
    July 16, 2012
    Formed at the end of the Cold War, the European Bank for Reconstruction and Development has raised, and loaned, billions to revitalise infrastructure from central Europe to central Asia as Patrick Smith reports One of the highlights of the year for Thomas Maier has been the recent trip to Bratislava, the capital of Slovakia, where history was made. As the Business Group director in charge of the infrastructure sector at the European Bank for Reconstruction and Development (EBRD) he was present when contract
    Read More
  • Slovakia’s Cabinet to have final say on D4 Bratislava bypass
    February 9, 2016
    The government of Robert Fico has said it will decide the fate of the controversial €1 billion Bratislava bypass, the D4 motorway project, possibly ahead of a national parliamentary election next month. Fico, who also was prime minister from 2006-2010, was re-appointed after leading his Direction Social Democracy party (SMER-SD) to a landslide victory in the 2012 parliamentary election. His party won 83 seats and formed an absolute majority government, Slovakia’s first since 1989. Controversy continue
    Read More

Highlighted Content