Public-Private Partnerships

A public-private partnership (PPP) is an arrangement between a public authority and a private partner designed to deliver a public infrastructure project and service under a long-term contract. Under this contract, the private partner bears significant risks and management responsibilities. The private partner finances and manages the project, and is compensated by the State and asset users over 25-35 years. Following this, ownership of the asset transfers to the State.

TII has entered into fifteen PPP contracts which consist of:

• Eight Toll Concession Schemes PPPs

• Five Design Build Finance Operate Maintain (DBFOM) PPPs

• Two Motorway Service Area PPPs.

Toll Concession PPPs are partly or fully financed by the private sector and remunerated by user charges (tolls) and TII payments. DBFOM PPPs are financed by the private sector and remunerated by payments from TII (termed availability payments or unitary payments).

Further details in TII's PPP Scheme are provided in the table below. Financial information on the PPP Schemes, including estimates of future annual payments, are available from the Central PPP Unit of the Department of Public Expenditure and Reform’s website.

The M3 Clonee-Kells and N18 Limerick Tunnel PPP contracts both provide for Variable Operation Payments (VOPs) also referred to as “Traffic Guarantee payments”. The VOP risk-sharing mechanism is unique to these two PPP contracts and applies when actual traffic volumes fall below the threshold volumes specified in the respective contracts.

PPP Toll Concession Schemes

PPP Design Build Finance Operate Maintain (DBFOM) Schemes

PPP Motorway Service Area Schemes