The National Development Finance Agency (NDFA), part of the National Treasury Management Agency (NTMA), has today set out its plans to procure and provide financial advice on major Irish infrastructure projects with a combined value of almost €1bn.
NDFA Director Brian Murphy said the NDFA, in conjunction with the sponsoring departments and agencies, will in the course of 2016 begin the pre-procurement and procurement processes for the following major projects:
|Project group||Capital value|
|1,500 social housing units (delivered in up to 3 bundles)||€300m|
|3rd level institutions||€200m|
|Community nursing units/healthcare||€150m|
Mr Murphy also said the NDFA would provide financial advice to the Grangegorman Development Agency and Department of Education and Skills on a c.€150m programme to provide accommodation for 2,300 students at the proposed Grangegorman campus for Dublin Institute of Technology (DIT).
Mr Murphy said:
“Ireland is now firmly back on the radar of major international investors and their huge appetite for Irish infrastructure projects augurs well for our pipeline.
This is good news for Irish taxpayers as it will make it easier to deliver projects that will bring real benefits to Ireland and to fund these projects on very attractive terms.
We are very excited about the projects in our pipeline and we look forward to delivering high-quality social housing units, educational buildings, healthcare and courthouses over the coming years.
These projects will help to address the serious infrastructure deficit which the country faces in these sectors.”
The NDFA will begin the formal procurement of social housing units on behalf of the Department of the Environment and Local Government in the course of 2016. The first of three bundles will include the following locations:
|Location||No of units|
|Dublin city: Ayrfield, Malahide Road||100|
|Dublin city: Scribblestown||100|
|South Dublin: Corkagh Grange||100|
|Wicklow: Convent Lands||60-70|
|Kildare: Craddockstown, Naas||75|
The NDFA has been actively promoting the Irish PPP market with a view to attracting interest from both domestic and international investors and contractors.
It has already procured or advised on projects with a combined value of €1.8 billion over the past 18 months.
These include 10 schools, 7 courthouses, 14 primary care health centres, Grangegorman DIT and 3 major road projects (M11 Gorey, M25 Cork and N17 Galway/Oranmore), some of which are already under construction.
Mr Murphy said the NDFA would focus on ensuring that the procurement process would get the maximum benefit for the taxpayer from the vibrant, competitive market conditions that currently exist.
“PPPs have delivered highest quality, value for money infrastructure for Irish taxpayer for more than a decade, with projects delivered consistently on time and on budget,” he said.
But he added that it will be necessary to monitor costs stringently as potential capacity constraints arise in the construction industry.
“These potential constraints are another positive sign of Ireland’s strong economic recovery but we are confident we can address them effectively,” he said.
Mr Murphy was speaking at a major infrastructure conference that took place at the Marker Hotel in Dublin’s Docklands today. The conference, entitled “Financing Irish Infrastructure”, was hosted by UK infrastructure publication Partnerships Bulletin.