NDFA welcomes Schools Bundle 4 project reaching financial close and start of construction

The National Development Finance Agency (NDFA) announces the award of Schools Bundle 4 PPP contract to the BAM PPP/PGGM Joint venture and the start of construction on four new post-primary schools providing accommodation for 2,950 pupils in counties Louth, Tipperary, Clare and Cork. This continues the development of the Department of Education’s current schools PPP programme and adds to the 18 schools already delivered successfully by the NDFA using the PPP model.

Schools Bundle 4 is the first project being delivered by the NDFA from the Government’s €1.4 billion Public Private Partnership (PPP) stimulus package to reach financial close and contract award. It marks the completion of all the project and financing agreements and commencement of construction. The schools will be built and maintained over the 25-year contract service period by BAM PPP/PGGM Joint Venture and is funded by AIB Corporate Banking and German Bank KfW IPEX-Bank.

The NDFA was responsible for the provision of financial advice on the project and was the procuring authority on behalf of the Minister for Education & Skills. The NDFA is responsible for monitoring the construction stage of the schools until completion and hand back of the project to the Department of Education.

NDFA Chief Executive Brian Murphy said: “This is the first in a series of accommodation PPPs which are scheduled to reach financial close and move into construction phase in the next 12 months. The others in the pipeline are the DIT Campus at Grangegorman – East and Central Quads, the Primary Care Centres, the Courts Bundle, and School Bundle 5.

It is especially encouraging to have seen such strong interest from international investors and funders in Ireland’s Schools PPP Programme.

I wish to congratulate my team in the hard work that has been done to bring this contract to a successful financial close and to thank the Department and all the other stakeholders in the project for their support and cooperation.

Notes to editors

The new school buildings are:

• St Mary’s College Dundalk, Co. Louth.
• St Joseph’s Secondary School, Tulla, Co Clare.
• Comeragh College, Carrick-on-Suir, Co. Tipperary.
• Skibbereen (Replacement) School, Co Cork.

Construction begins immediately and is scheduled for completion in mid 2016. An estimated 720 jobs will be generated during the construction phase of the schools which will range in size from 6,500 to 10,000 square metres.

The NDFA, which performs its functions through the National Treasury Management Agency, is providing financial advice on the PPP component of the stimulus package and is also responsible for procuring all the accommodation PPP projects in the package, including Schools Bundle 4. In its procurement role, the NDFA is responsible for all aspects of the procurement and delivery of projects and hands them over to the sponsoring body once construction is complete and the asset is operational.