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

  • Construction to start on Hungary’s revamped M4 project in 2016
    July 7, 2015
    The Hungarian government has announced that it will restart work on a new section of the M4 dual carriageway between Albertirsa and Ullo in 2016. Hungarian media reported that the government will invest around €192 million and no funding will come from the European Union, of which the country is a member. The two towns are around 25.5km apart, with Albertirsa closest to the capital Budapest at around 60km. The project should be finished some time in 2019, according to Hungarian media. The announcem
    Read More
  • World Highways rewarded as one the best business magazines worldwide in the Tabbie Awards 2017
    June 30, 2017
    World Highways has once again been recognised as one of the best business magazines in the world. Our 25-year anniversary edition last November was highlighted in the Best Single Issue category in the globally-renowned Tabbie Awards 2017, announced this week. And World Highways Deputy Editor David Arminas has also recognised for his February 2016 feature on an historic bridge rebuild. The article, which was headlined “88-year-old Peace Bridge between the US and Canada to get a facelift,” was listed as one o
    Read More
  • Colombia: New decree allows pension funds to finance 4G projects
    June 25, 2015
    Columbian president Juan Manuel Santos Colombia has said pension fund money could help finance the country’s ambitious 4G motorway projects. Columbia has 35 road projects underway costing more than US$11.7 billion, including the first two 4G tender waves with six public-private partnerships that have already been approved. During a banking convention held in the coastal city of Cartagena in mid-June, Banco Davivienda president Efrain Forero lending capacity studies have been completed for 4GH projects
    Read More
  • Romanian roads for STRABAG
    February 28, 2012
    Austrian contractor STRABAG will build a 24km stretch of highway in Romania in a deal worth €166 million.
    Read More

Highlighted Content