Ireland’s first healthcare PPP reaches financial close

• First Irish healthcare scheme to be backed by the EIB
• Construction to commence shortly on 14 new Primary Care Centres

The National Development Finance Agency (NDFA) today announced the contract award in respect of the Primary Care Centres PPP to preferred tenderer, the Prime Balfour Beatty consortium. The project involves the provision of 14 new Primary Care centres across the country. Construction will commence shortly and the first centres are due to open in mid-2017.

The European Investment Bank (EIB) will fund €70 million of the project debt through the European Fund for Strategic Investment (EFSI), a new initiative between the EIB and European Commission. The project will be the first healthcare project in Ireland to benefit from EIB support and one of the first PPPs in Europe to benefit from EFSI funding.

Brian Murphy, Director of the NDFA said: “This is an innovative PPP project addressing vital health infrastructure needs in Ireland and will provide 14 communities with new facilities including a range of primary healthcare facilities in addition to social services with the objective of facilitating a shift towards community based care across the country.

The PPP model has not been used heretofore in Ireland for the delivery of Primary Care facilities. The project is facilitating the construction and long-term management of multiple centres in parallel which will revert to the State following the 25- year concession period.”

The NDFA, part of the National Treasury Management Agency (NTMA), acted as agent of the HSE, the sponsoring agency, in the procurement of the project, with the Department of Health in the role of Sanctioning Authority.

Financial close, which refers to the point in the project when all the project and financing agreements have been signed and all of the required conditions contained in them have been satisfied, has been reached on the project following negotiations with the Prime Balfour Beatty consortium.

Each of the new facilities will include accommodation for Primary Care team services which include a GP and practice nurse, community nursing services, occupational therapy, physiotherapy and home help/support staff. In addition a number of the centres will provide dental, mental health, early intervention and doctor on call services to the local communities.

The 14 centres will be based in the following regions:

About the National Development Finance Agency

Acting as the National Development Finance Agency (NDFA), the NTMA is the statutory financial advisor to State authorities in respect of all public investment projects with a capital value over €20 million. It also has full responsibility for the procurement and delivery of Public Private Partnership (PPP) projects in sectors other than transport and the local authorities. In addition, the NDFA provides contract management of the operations and maintenance of certain operational PPP schools, and the direct procurement of certain Exchequer-funded projects on behalf of the Department of Education and Skills.

In its financial advisory role, the NDFA advises State authorities on the optimal financing of priority public investment projects by applying commercial standards in evaluating financial risks and costs. The NDFA’s overriding objective is to maximise value for money for the Exchequer.

In its procurement role, the NDFA is responsible for all aspects of delivering the procurement of projects and hands them over to the sponsoring body after construction is complete and the asset is operational.