The National Development Finance Agency (NDFA) has announced the contract award financial close and start of construction to deliver courthouse facilities in seven different locations around Ireland under the public private partnership (PPP) model.

The €135 million (ex-VAT) project will see new courthouse buildings in Drogheda, Letterkenny, Limerick and Wexford and refurbishment and extension works carried out to existing courthouses in Cork, Mullingar and Waterford.

BAM PPP PGGM Infrastructure Cooperatie U.A, a joint venture between Royal BAM Group and Dutch pension fund administrator PGGM, was awarded the contract to design and build the courts and maintain them over the 25-year service period.

Construction will begin immediately, with final delivery due by December 2017.

The financing structure is a fully funded solution structured and arranged by the Bank of Tokyo-Mitsubisihi UFJ, Ltd (MUFG) which includes:

• MUFG providing senior debt
• MUFG arranging a private placement solution placed with Talanx Asset Management GmbH
• BAM PPP PGGM Coöperatie Infrastructure U.A. are equity investors

The NDFA, part of the National Treasury Management Agency, is the procuring body and financial adviser for and on behalf of the Courts Service on the project.

NTMA Director Brian Murphy said:

“This project is an excellent example of the high-quality infrastructure that Ireland needs and which can be delivered successfully using the PPP model.

This project will deliver quality court buildings and value for money for the taxpayer; jobs throughout the supply chain for construction companies and tradespeople; and significant investment in the Irish economy.

There was very strong interest among both Irish and international construction and investment groups in tendering for this project and I congratulate BAM on their appointment at the end of an exceptionally competitive tender process. ”

The Courts project is among €650 million of PPP projects which the NDFA is responsible for delivering as part of the Government’s 2012 Infrastructure Stimulus Programme. Construction is already underway on the Schools Bundle 4 PPP and preferred tenderers have been appointed for the Primary Care, Grangegorman DIT  and Schools Bundle 5 PPP projects.

The NDFA recently set out its plans to procure and provide financial advice on new infrastructure PPP projects with a combined value of almost €1 billion. The NDFA, in conjunction with the sponsoring departments and agencies, will in the course of 2016 begin the pre-procurement and procurement processes for major PPP projects in social housing, education, justice and healthcare.