Ireland’s N25 road PPP reaches financial close

On 26 January 2016, the BAM PGGM Iridium consortium reached financial close on its N25 New Ross Bypass PPP in Ireland.  Construction will be undertaken by a BAM Civil Ltd and Dragados Ireland Ltd joint venture and will start in March 2016. The road is expected to be operational in January 2019.

Steer Davies Gleave acted as the funders’ technical advisor for the scheme, and will continue in this role throughout the construction period and into operation and maintenance. The availability-based PPP project involves the design, construction, finance, operation and maintenance of 14.6km of dual carriageway, including a major extradosed bridge with 230m main spans, and 1.2km of single carriageway in County Wexford and County Kilkenny, South East Ireland. 

The deal includes the first use of the European Investment Bank (EIB) Project Bond Credit Enhancement (PBCE) facility in Ireland, and it constitutes the third transport project to use the PBCE since its creation.  

Steer Davies Gleave also successfully led the funders’ technical advisory team for the first transport project to use the EIB PBCE, the A11 Bruges PPP, Belgium, which reached financial close in March 2014.  

The project director said: “The N25 adds to Steer Davies Gleave’s growing portfolio of technical due diligence and associated technical advisory commissions. We are active in the main PPP/P3 markets, including developments in Canada and Germany. Recent successes reinforce our unique offering in the market, which is underpinned by our complete independence from any vested interests. We are constantly refining our approach to technical due diligence in general, and to technical advisory services to debt providers in particular, in order to maximise value for money”.

Contact our Technical Due Diligence team at TDD@sdgworld.net to discuss how we could help to create the conditions for a successful project finance-related transaction, whether in the primary market, refinancings, or the secondary market.