Ministers Donohoe, Howlin & TII announce €230m N25 New Ross Bypass PPP project
Tuesday 26 January 2016
· Construction includes 14.8km of new national roads
· Between 250-300 jobs during construction phase
· Scheme scheduled for completion in 2019
Minister for Transport, Tourism and Sport, Paschal Donohoe TD, together with Minister for Public Expenditure and Reform, Brendan Howlin TD, this afternoon (Tuesday) announced the contract award for new N25 New Ross Bypass PPP scheme. The construction of the N25 is included in the Government’s Capital Plan 2016-2022 and will be developed over three years. The project is scheduled for completion in 2019. The N25 PPP is the first project in Ireland to benefit from the European Investment Bank’s Project Bond Credit Enhancement (PBCE) mechanism. The debt funding for the scheme is being provided by Allianz Global Investors GmbH.
The €230 million scheme will involve the construction of approx. 13.6km of new dual carriageway and 1.2km of new/upgraded single carriageway to bypass the town of New Ross. The scheme will employ between 250-300 people during construction phase. The N25 scheme is the fourth transport PPP to be signed by the Government since 2012. It follows the M11 Gorey to Enniscorthy PPP project, which was signed in October 2015; the Gort/Tuam PPP project, which commenced construction in 2014 and which is on target for completion in 2018; and the Newlands Cross/M11 Arklow to Rathnew scheme which was completed in July 2015.
Speaking this afternoon, Minister Donohoe said: ‘The N25 New Ross Bypass has been eagerly awaited and will be warmly welcomed by all in the south east. This is the second road PPP event I have attended in three months and it is the fourth transport PPP signed by this Government since coming into office. The N25 PPP scheme will bring important economic benefits to the south east and improve regional and international connectivity (through Rosslare Europort). It will also reduce traffic congestion and provide economic benefits regionally and locally by increasing the attractiveness of bypassed communities as places to shop, to visit, to work and to live.
Minister for Public Expenditure and Reform Brendan Howlin said: ‘This project uses our successful Public Private Partnership model and will be of huge economic benefit to the south east, as well as improving the quality of life for the people of New Ross. I am also especially pleased that between 250 and 300 jobs will be created during construction. I would like to congratulate and acknowledge the efforts of all those involved in the project including TII, the Department of Transport, the NDFA and the European Investment Bank, as well as our other funding partners. Once again, the successful completion of this procurement process illustrates the high level of investor confidence in Ireland. The NDFA were able to successfully leverage Ireland’s strong economic recovery to attract high quality investors at competitive long term rates’.
Michael Nolan CEO, Transport Infrastructure Ireland stated: ‘The N25 New Ross Bypass will improve safety and ease congestion within New Ross town. Additionally, when this scheme opens it will enhance regional and national connectivity for all road users along the N25 corridor’.
Jonathan Taylor, EIB Vice President responsible for Ireland said: ‘The New Ross Bypass will provide an alternative for drivers in the south east of Ireland to avoid the often congested town centre and enjoy shorter journey times on the N25, one of the main routes in the country. This is the fourth road project backed by the European Investment Bank in Ireland in the last three years in cooperation with the National Roads Authority, alongside support for transport investment at the Port of Dublin and extending the Luas tram. As the first project in Ireland to be financed through the Project Bond Credit Enhancement scheme institutional investors will join the EIB to support this crucial road link’.
Minister Donohoe concluded: ‘I wish to thank Transport Infrastructure Ireland, the project sponsors, the EIB, international investors and the County Councils for their hard work in getting this scheme over the line and making this important project a reality. I wish BAM Civil and Dragados every success during the construction phase’.
- The N25 scheme will remove a major bottleneck in the south east and involve the construction of 13.6km of dual carriageway and 1.2km of single carriageway road to bypass the town of New Ross on Ireland’s N25 Cork to Rosslare Europort route.
- The scheme will also link the N25 with the N30 New Ross to Enniscorthy route.
- Traffic on the N25 between Cork and Waterford will be able to entirely bypass the town of New Ross.
- The main structural feature of the scheme will be the construction of the River Barrow Bridge, a 900m long crossing (an eight pier and three tower extradose bridge), connecting Pink Point in Co. Kilkenny and Stokestown in Co. Wexford.
- The debt funding for the project is being provided by Allianz Global Investors GmbH and the N25 is the first project in Ireland to benefit from the European Investment Bank’s Project Bond Credit Enhancement (PBCE) mechanism.
- The PBCE mechanism is a joint initiative between the European Investment Bank and the European Commission that seeks to stimulate capital market financing for large-scale transport, energy and communication infrastructure from institutional investors such as insurance companies and pension funds.
- The proceeds from the Bonds will be used to fund (in part) the design, construction, operation and maintenance of the scheme.
- The project sponsors are BAM PPP PGGM Infrastructure Coöperatie U.A. and Iridium Concesiones de Infraestructuras S.A.
- The Construction Joint Venture is between BAM Civil and Dragados.