The Government last week presented its plans for public private partnerships (PPP) to financiers and construction companies from around the world.

Among those who gathered in the Gresham Hotel to hear the Minister for the Environment and Local Government, Mr Dempsey, explain the State's PPP programme were bankers and lawyers from Germany, France, Turkey and Portugal. According to Michelle Connolly, associate director of KPMG Corporate Finance, interest in PPP road projects was very good.

The State is hoping to attract about £1 billion in private investment from firms who are interested in a design, build, operate and finance partnership with the Government. In return, the private companies would be given the concessions to run toll roads for a period of probably 30 years.

However, negotiations are at an extremely early stage, with some European companies questioning the political climate in the Republic and a number of questions relating to the State's attitude to those who refused to pay the tolls.

Another problem for the European companies was the level of tolls, which the Government wants to keep at between £1 and £2. Some representatives of the British companies were heard to mutter that the Republic may not have the economies of scale to make roads pay, at that level.