A surge in international interest among investors in Irish infrastructure projects is a welcome sign of Ireland’s economic recovery, the Chief Executive of the National Development Finance Agency (NDFA) said today.
NDFA Chief Executive and National Treasury Management Agency (NTMA) Director Brian Murphy said there has been a strong rebound in the number of international groups seeking to invest in Irish infrastructure projects on the back of improved sentiment and greater confidence about the attractiveness of the Irish economy.
Mr Murphy was speaking at a conference for investors in major Irish infrastructure projects, “Financing Irish Infrastructure,” which is taking place in Dublin today.
“There has been a major transformation in appetite for Irish assets and Ireland has a healthy pipeline of quality infrastructure projects to meet this appetite,” said Mr Murphy.
“Investors – both domestic and international – are now actively targeting Ireland for major financing, construction and supply chain opportunities.”
Mr Murphy said the NDFA is currently involved in 9 live projects in the education, courts, health and transport sectors. He said multiple experienced consortia submitted formal expressions of interest in completing each of these projects.
“The future is bright for Irish infrastructure development,” said Mr Murphy.
“Our growing population provides a solid underpinning of our need for social infrastructure, such as housing, health and education facilities. These are areas where Public Private Partnerships have a good track record and the Government has made it clear that private capital has a critical role to play in delivering our infrastructure needs.”
The National Development Finance Agency 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. The NDFA performs its functions through the National Treasury Management Agency (NTMA).
The Irish Government’s total stimulus package amounts to €2.25 billion, of which phase one, the proposed PPP pipeline, amounts to c. €1.5 billion. This is spread over four sectors: Education, Health, Justice and Transport.
The NDFA is responsible for procuring 3 Education PPPs, up to 2 Health PPPs and 3 Justice PPPs. Estimated capex for these is c. €650m. The National Roads Authority (NRA) is responsible for procuring the various Road PPPs, amounting to c. €750m, with NDFA as financial advisor.
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.