The European Investment Bank has agreed to provide €144 million (US$ 164.74 million) for construction of a new motorway link in the west of Ireland. Contracts for the M17/M18 Gort to Tuam PPP Scheme were signed in Dublin earlier today by the Minister for Transport, Tourism & Sport Leo Varadkar and Minister for Public Expenditure & Reform Brendan Howlin and the European Investment Bank for the project that will create up to 450 jobs, boost local economies in western Ireland and ease congestion on the key transport route.
The new four lane motorway will replace the existing N17/N18 roads, and reduce end-to-end journey times by around 20 minutes. The overall cost of the scheme is estimated at €550 million (US$ 629.25 million) and the road will be toll-free. This is the second transport Public Private Partnership to be signed under this Government, following the M11/Newlands Cross project, and will create up to 450 jobs during the construction and post-construction phases. The entire PPP programme had been frozen since the economic crisis of 2008 but is now fully operational again.
The European Investment Bank will provide €144 million (US$ 164.74 million) over 26 years for the scheme, representing a saving to the State. Another €150 million (US$ 171.61 million) will be provided by commercial funders, with a mix of international and domestic project finance banks represented alongside new international institutional investors. This diverse funding group is a strong signal of the international project finance market’s confidence in Ireland.
The new road will take thousands of vehicles away from the centres of Clarinbridge, Claregalway and Tuam every day and form part of the Atlantic Corridor along Ireland’s west coast. Construction is expected to take less than four years and the first traffic along the route is expected in late 2018.
All archaeological sites along the route have been investigated under licence from the National Museum and any compulsory purchase orders required to develop the road have already been completed.
