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Boost for state's PPP model

  • 14-03-2010 9:10pm
    #1
    Registered Users Posts: 157 ✭✭ North Cork


    http://www.sbpost.ie/news/ireland/boost-for-states-ppp-model-47964.html

    The National Pension Reserve Fund (NPRF) has said it is prepared to finance large-scale infrastructure projects through public private partnerships (PPPs), after overcoming a number of obstacles that previously curtailed its involvement in the PPP model.

    The move is a boost to the government, which has been attempting to breathe life into the PPP model, which has been hit by the global credit crunch. The NPRF expects to be in a position to examine potential PPP infrastructure financing deals by the end of this year.

    The NPRF manages €20 billion of funds on behalf of the government. About €7 billion of this was used to recapitalise AIB and Bank of Ireland last year. The fund is governed by the National Treasury Management Agency (NTMA).

    The NTMA has informed the Da€ il Public Accounts Committee that it is ‘‘keen to access PPP investments where the risk-return characteristics satisfy its statutory commercial investment mandate’’.

    In correspondence with the committee at the start of this month, the NTMA said it was able to invest in the PPP model as a result of changes in the tendering process.

    Looking good for the M20 motorway


Comments

  • Closed Accounts Posts: 10,028 -Corkie-


    God its all good news here this evening for a change:):)


  • Registered Users Posts: 4,974 ✭✭✭ Chris_5339762


    Excellent. This is in effect a funding grant for Dart Underground and MN, and lesser so for the roads PPPs.

    Lets face it although everyone on here would love to drive anywhere in Ireland by motorway, DU and MN are more important overall.


  • Registered Users Posts: 2,623 ✭✭✭ Bards


    North Cork wrote: »
    http://www.sbpost.ie/news/ireland/boost-for-states-ppp-model-47964.html

    The National Pension Reserve Fund (NPRF) has said it is prepared to finance large-scale infrastructure projects through public private partnerships (PPPs), after overcoming a number of obstacles that previously curtailed its involvement in the PPP model.

    The move is a boost to the government, which has been attempting to breathe life into the PPP model, which has been hit by the global credit crunch. The NPRF expects to be in a position to examine potential PPP infrastructure financing deals by the end of this year.

    The NPRF manages €20 billion of funds on behalf of the government. About €7 billion of this was used to recapitalise AIB and Bank of Ireland last year. The fund is governed by the National Treasury Management Agency (NTMA).

    The NTMA has informed the Da€ il Public Accounts Committee that it is ‘‘keen to access PPP investments where the risk-return characteristics satisfy its statutory commercial investment mandate’’.

    In correspondence with the committee at the start of this month, the NTMA said it was able to invest in the PPP model as a result of changes in the tendering process.

    Looking good for the M20 motorway

    thread already started on this about an hour previous????

    http://www.boards.ie/vbulletin/showthread.php?t=2055854535


  • Banned (with Prison Access) Posts: 25,234 ✭✭✭✭ Sponge Bob


    Doubt if it is quite €20bn in the overall kitty but at any rate we are talking a pool of no more than €20-25bn.

    I very much doubt whether they would ever allocate more than around €2bn-€3bn to Infrastructure/PPP investing within the state.

    The M17 and Newlands(M7+M11) and Metro North have gone to tender, I doubt the NTMA will ever be involved in them although it could buy its way in with the winning finance partner/

    Looking at the next lot of PPP road announcements we should see these three next ( no particular urgency or order) .

    a) New Ross and Enniscorthy.
    b) M20 + Adare/Cork north
    c) Galway Bypass

    Rail Side....Dart Interconnector.

    Also ....energy!!! Interconnectors et al.

    The problem as I see it is this. WHAT would happen were the NTMA to REFUSE to get involved in one of these projects ????

    I can even see a particular problem if they do not announce their intended stance quite early on....maybe even before the last date of receipt for tenders for a particular project.


  • Registered Users Posts: 4,974 ✭✭✭ Chris_5339762


    The BIG ones are DU and MN, they'll be about €4 - 5 billion between them.

    M17/18 probably will be won by the group that involves AIB, which can then fund them [via the taxpayer I know]. Something similar with Newlands/Gap.

    M20 is quite big, will probably be €1 billion.

    Thats all that'll be funded out of this I reckon. The Galway bypass really is quite a small scheme by comparison. Its only ~25km in full so wont cost that much by comparison to other schemes. It'll basically be the same as Crusheen - Gort, with land prices a little higher. The fact that it's lower spec and that theres a river crossing probably balance eachother out.


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  • Closed Accounts Posts: 2,468 BluntGuy


    This is good news. We may be able to salvage some excellent infrastructure during this recession yet. This is the perfect time to do PPP deals, tender prices have been slashed signficantly.

    My guess is DART Underground and a major road project will be salvaged, with the rest of the money going towards other forms of Infrastructure.


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