NRA to raise PPP funding for 200km of roads

THE GOVERNMENT has approved €1 billion in new Public Private Partnership (PPP) funding for the building of almost 200km of national roads.

Minister for Transport Noel Dempsey recently instructed the National Roads Authority (NRA) to proceed with raising the private finance for the construction of two sections of the N20; a 43km section of the N11 between Gorey and Enniscorthy, and the 52km-long stretch of the N17 between Galway and Claremorris.

The N20 and N17 are significant sections of the proposed Atlantic road corridor linking Donegal to Cork, via Galway and Limerick, and the project is provided for in Transport 21 with a completion date of 2013.

A spokeswoman for the Minister said work on the projects would begin in 2010, once construction of motorways linking Dublin to the other major cities was complete. She said the completion date for the PPP roads was 2013 and stressed that they would not be subject to tolls.

The N17 will see the removal of all regional traffic from Claregalway, whose residents have long sought a bypass to alleviate severe congestion. However, it is likely that a smaller ring road or local bypass will also be constructed around the town.

A spokesman for the NRA said the benefit of PPP funding was that it releases revenue for other projects. "The costs are with the vendor and the State does not have liabilities assurance. And you are freeing current revenue for other projects," he said.

Asked about the difference in cost to the State between paying for a road directly, and using a PPP that will see a contractor paid an annual fee to design build and operate the road for 30 years, the Department of Finance said the decision to use a PPP funding depended on whether it would offer value for money.

The NRA added that the Comptroller and Auditor examines all PPP tenders before they are signed.