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. PPPs projects are generally funded and constructed by the private partner, following which it is made available for public use and is paid for by the State and/or users over an extended period (typically 25-35 years), after which the asset comes into State ownership.


TII has entered into fifteen PPP contracts which consist of: eight Toll Concession Schemes PPPs, five Design Build Finance Operate Maintain (“DBFOM”) PPPs and 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).


The table below provides further detail on TII’s PPP Schemes. 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 Toll Concession Contracts and arises in circumstances where actual traffic volumes do not reach the threshold volumes that are specified in the respective PPP contracts. Further information on the VOP mechanism can be accessed here.

The Public Spending Code requires post project reviews to be completed in the case of all large scale public investment projects. Such reviews are completed a number of years after project opening. Completed TII PPP Post Project Reviews can be found here.

 

PPP TOLL CONCESSION SCHEMES

 

SCHEME DESCRIPTION OPERATIONS COMMENCED CONTRACT AWARD/ EXPIRY FURTHER INFORMATION
M4/M6 Kilcock/Kinnegad 40km motorway 2005 2003/2033 M4/M6 Kilcock/Kinnegad
M1 Dundalk Western Bypass 11km motorway & O&M 42km existing motorway with 361m cable stay bridge 2004 2004/2034 M1 Dundalk Western Bypass

M8 Rathcormac/
Fermoy

18km new motorway with 450m viaduct 2006 2004/2034 M8 Rathcormac/ Fermoy
N25 Waterford City Bypass 23km dual carriageway with 475m cable stay bridge 2010 2006/2036 N25 Waterford City Bypass
N18 Limerick Tunnel 10km dual carriageway with 900m immersed tube tunnel 2010 2006/2041 N18 Limerick Tunnel
M3 Clonee/Kells 50km Motorway & 10 km dual carriageway 2010 2007/2052 M3 Clonee/Kells

M6 Galway/
Ballinasloe

56km motorway
2010 2007/2037 M6 Galway/Ballinasloe

M7/M8 Portlaoise/
Cullahill

40km motorway 2010 2007/2037 M7/M8 Portlaoise/Cullahill

 

PPP DESIGN BUILD FINANCE OPERATE MAINTAIN (DBFOM) SCHEMES

 

SCHEME DESCRIPTION OPERATIONS COMMENCED CONTRACT AWARD/ EXPIRY FURTHER INFORMATION
M50 Upgrade Upgrade of 25km of 2+2 motorway to 3+3, Junction Upgrades and provision of auxiliary lanes / & O&M existing 10km 2007 2007/2042 (35 year term) M50 Upgrade
N7/N11 Arklow/Rathnew (incl Newlands Cross) 16km new build motorway / Newlands cross junction Upgrade & O&M 30 km of existing N/M11 2013 2013 / 2040 (25 years post opening of new build M11) N7/N11 Arklow/Rathnew (incl Newlands Corss)
N17/N18 Gort to Tuam 57km motorway 2017 2014 / 2042 (25 years post opening) N17/N18 Gort to Tuam
M11 Gorey-Enniscorthy 27km motorway Mainline M11 Operational July 2019 2015/ 2044 (25 years post opening) M11 Gorey-Enniscorthy
N25 New Ross Bypass 14.6km of dual carriageway with 900m bridge January 2020 2016 / 2045 (25 years post opening) N25 New Ross Bypass

 

PPP MOTORWAY SERVICE AREA SCHEMES

 

SCHEME DESCRIPTION OPERATIONS COMMENCED CONTRACT AWARD/ EXPIRY FURTHER INFORMATION
Motorway Service Areas – Tranche 1 3 Motorway Service Areas located on the M1at Castlebellingham and, Lusk and on the M4 at Enfield 2010 2009/2034 Motorway Service Areas - Tranche 1
Motorway Service Areas – Tranche 2 3 Motorway Service Areas located on the M6 (Athlone), M9 (Kilcullen) and M11 (Gorey). 2019 (phased opening across 3 locations). 2018/2043 Motorway Service Areas - Tranche 2