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

  • Serbia reduces cost of highway construction
    March 22, 2012
    Serbia has managed to reduce the cost of building the Corridor 10 highway by €80 million. These funds will instead be used to pay for upgrades and improvements needed for the second section of the highway project, close to Neradovci. So far some 180km of the Corridor 10 highway has been built over a 40 month time frame. A further 150km of the highway has still to be built. Work on the Corridor 10 motorway is also being financed by the European Bank for Reconstruction and Development and the state budget.
    Read More
  • IRF running Zimbabwe workshop
    July 29, 2016
    The IRF is running a workshop in Zimbabwe intended to highlight key success factors for PPPs. The event is looking closely at PPPS, due to the issues seen in many nations, where there are dwindling funds for infrastructure development. As a result of this funding shortage, many governments and infrastructure providers are now considering the prospect of taking up Public Private Partnerships (PPPs for financing of roads and surface transport infrastructure. With this in mind, the International Roa
    Read More
  • Italian highway deals moving ahead
    January 21, 2022
    Important Italian highway deals are moving ahead.
    Read More
  • Isle of Wight road stability scheme ‘first’ at Niton’s Undercliff
    February 19, 2014
    John Peck Construction has been awarded the contract to carry out the first major road stability scheme at Niton’s Undercliff on the Isle of Wight, England’s largest island. This project is part of a major programme of special geotechnical schemes being delivered by Island Roads (made up of VINCI Concessions, Meridiam Infrastructure and Ringway) under the Highways PFI to maintain the highway at locations prone to ground movement.
    Read More

Highlighted Content