A joint venture between Dutch pension fund PGGM and local developer BAM PPP reached financial close on a road public-private partnership (PPP) in Ireland earlier this week.
The 25-year contract calls for the design, build, finance and maintenance of parts of the N11/N7 and is worth €282 million. Debt is being provided by Bank of Ireland and the European Investment Bank to the tune of circa €160 million, with a maximum maturity of 25 years, the joint venture partners said.
Construction is due to start this July and wind down by November 2015. The PPP contract will be backed by availability payments from Ireland's National Roads Authority.
With the addition of the Irish road contract, the BAM PPP/PGGM joint venture now holds investments in 11 PPP projects and is worth in excess of €140 million. Earlier in April, PGGM said the joint venture was involved in bidding for 13 PPP projects across BAM PPP's target markets of the Netherlands, Belgium, the UK, Ireland, Germany and Switzerland.
PGGM is a pension fund service provider for five Dutch pensions, managing just over €133 billion for 2.5 million people.