STRABAG investing in N17_N18 section of the Irish motorway network
Public-private partnership project with a total private sector investment value of about € 330 million
STRABAG’s stake in the concession company 10 %
STRABAG’s stake in the construction consortium 25 %
Availability model with fixed payments
Dublin/Vienna, 5 May 2014 The publicly listed construction group STRABAG SE, as part of the DirectRoute consortium, will finance, plan, build and operate the 57 km long section of the Irish N17/N18 motorway between Gort and Tuam near Galway. The public-private partnership (PPP) project has a total private sector investment value of about € 330 million.
Equity funding represents 12 % of the overall funding for the project, with STRABAG’s share as investor amounting to 10 % of this equity. The Austrian-based STRABAG AG holds a stake of 25 % in the construction consortium.
After the financial closing last week, construction will begin in May 2014. The motorway is to be opened to traffic in November 2017. This will mark the start of the 25-year operating period for this section (with STRABAG’s share amounting to 50 % via its subsidiary A-Way Infrastructure Project Development and Operations GmbH).
On completion of the scheme, the concession consortium DirectRoute will receive monthly payments (“availability fee”) from the client, the National Roads Authority of Ireland. The consortium is owned 10 % each by STRABAG, John Sisk and Son, Lagan, Roadbridge, HICL Infrastructure Company Limited and 50 % by the EU-financed Marguerite Fund.
The N17/N18 motorway is the third concession project for STRABAG in Ireland: Together with the DirectRoute consortium, the company operates the Limerick and Fermoy PPP projects.
STRABAG SE is a European-based technology group for construction services, a leader in innovation and financial strength. Our services span all areas of the construction industry and cover the entire construction value chain. We create added value for our clients by our specialised entities integrating the most diverse services and assuming responsibility for them. We bring together people, materials and machinery at the right place and at the right time in order to realise even the most complex construction projects – on schedule, of the highest quality and at the best price. The hard work and dedication of our more than 73,000 employees allows us to generate an annual output volume of about € 14 billion. At the same time, a dense network of numerous subsidiaries in many European countries and, increasingly, on other continents is helping to expand our area of operation far beyond the borders of Austria and Germany. More information is available at www.strabag.com.
