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/ |
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/ |
56km motorway
|
2010 | 2007/2037 | M6 Galway/Ballinasloe |
|
M7/M8 Portlaoise/ |
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 |