The Limerick Tunnel (download PDF)
The Limerick Tunnel, one of the largest infrastructure projects in Ireland, is a 35 year concession for the design, financing, construction and operation of a 10 km toll road, part of the Limerick Southern Ring Road, which crosses the Shannon river estuary via a 675 metre immersed tube tunnel. The road links the South West of Limerick with the N18 and Shannon airport.
Limerick is a fast growing city (10% growth in overall population and 25% in employment in the last six years). The Irish economy is forecast to grow at 4.4% every year until 2012. Shannon airport is a fast-growing business airport.
DirectRoute, the company formed through the PPP, has a 35-year concession and the tolls will be set at a low, ‘socially acceptable’ level with growth capped at inflation. DirectRoute is Strabag, John Sisk, Lagan Holdings, Roadbrige as industrial sponsors.
Total project cost is €430 ($545). Financial close was reached on 24th August 2006 with innovative financing through a conduit structure.
Meridiam is a significant minority shareholder and provider of half of the mezzanine financing.
Limerick has been awarded the European PPP deal of year by Project Finance Magazine !
