This article is from page 23 of the 2012-05-29 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 23 JPG
THERE was unexpected good news for businesses in North Clare and South Galway yesterday with the news that the European Investment Bank (EIB) will provide a loan for the completion of the motorway connecting Gort and Galway.
The project, which has been stalled for more than two years, had looked unlikely to go ahead in the near future after a number of attempts to find a consortium willing to undertake a Public Private Partnership (PPP) on the site.
The Department of Transport confirmed yesterday that European Investment Bank had given approval, in principal, for a loan to be issued for the completion of the roads project.
According to the Department of Transport, the EIB will provide a loan of up to € 170 million for the Gort to Tuam route. This road is estimated to cost as much as € 530 million to complete in full.
It is as yet unclear whether this investment would allow the Government to further the roads using its own funds, in combination with the EIS money, or if the preferred method will be to continue on with the much used Public Private Partnership model.
A PPP would mean that a number of tolls would be put in place on the road to allow the private investors to recoup a profit from their investment.
Construction work on the road was due to begin more than two years ago but the British and Dutch partnership of BAM and Balfour Beatty pulled out of the project because of difficulties in finding investors because of concerns about Ireland’s sovereign debt.