METRO NORTH TENDERERS ANNOUNCED
RPA has announced details of the two Tenderers who have been selected to proceed to the final stage of the Metro North PPP procurement competition. The two tenderers are :
Celtic Metro Group (Barclays Private Equity, Obrascon Huarte Lain, Mitsui, Soares da Costa, Iridium Concesionesde Infraestructuras S.A., CAF and MTR)
Metro Express (Macquarie Capital, Global Via Infrastructuras, Allied Irish Bank, Bombardier and Transdev RATP)
This marks a significant milestone in the delivery of the project. RPA plan to formally commence the final stage of the procurement competition following a decision being made on the Metro North Railway Order Application.
RPA are pleased with the level of competition in the Metro North procurement process to date and believes that the final stage of the competition can deliver a value for money solution for the state whilst providing an important stimulus to the economy.
Under the Metro North Public Private Partnership (PPP) the private sector predominantly finances the construction of the project and this is then repaid by a service charge (availability charge) by the RPA over a 25 year period from the date that passenger services commence on Metro North. PPPs are particularly suited to the current economic environment in Ireland whereby the government may not want to or may not be in a position to increase its direct levels of borrowing to fund infrastructure development. PPPs make projects affordable. The ‘infrastructure gap’, and its negative impact on economic growth and job creation has been recognised for many years. Across Europe, the need to improve infrastructure particularly in the transport sector, is seen as a necessary condition to successful economic growth. However, governments have limited financial resources to devote to increased capital expenditure and improving public services and face restrictions on their ability to raise debt. In order to bridge the growing gap between the cost of the infrastructure needed and the resources available, and to ensure that the infrastructure is delivered as efficiently and cost-effectively as possible, the key question is how to deliver cost-efficient investment. In this context, Public Private Partnerships (PPPs) are a growing element of public sector procurement across Europe
In the short term, Metro North will provide an important stimulus to construction activity. The project is expected to create 4,000 direct construction jobs and thousands more indirect jobs. The consortium that will be selected to build Metro North is likely to include both Irish and international contractors and much of the work will involve local contractors, professional service firms and local workers. Other sectors of the regional economy are likely to benefit such as those in the construction material supplying industry. There will also be secondary spin off impacts due to the expenditure of wages in the local economy by the construction workforce. Sectors which will benefit include accommodation and lunch and evening meal providers.
Metro North will address a significant deficit in public transport infrastructure in north Dublin city and in Fingal, the fastest growing county in Ireland. It will facilitate development in the corridor which is forecast by Fingal County Council to generate 37,000 additional jobs and more than double the existing level of economic activity and employment in the area. It is crucial to the continued expansion of Dublin Airport and will underpin the significant investment already made in the economic regeneration of Ballymun.
Click here to view or download Metro North Tenderers Press Release (PDF)
Click here to view the present phase of Metro North