National Development Finance Agency
Providing Financial Advice
The NTMA is designated as the National Development Finance Agency (NDFA) when providing financial advice to State authorities undertaking major public investment projects with a capital value of more than €20m and when procuring and delivering Public Private Partnership (PPP) projects in sectors other than transport and the local authorities.
Delivery of PPP Projects
The procurement and delivery of approved PPP projects, was the main focus of NDFA activity in 2016. The NDFA is responsible for delivering education, health, justice and housing PPP projects with an estimated total capital value of €1bn. Transport Infrastructure Ireland is responsible for procuring the various road PPP projects. The NDFA acts as financial advisor across the entire PPP programme.
Significant progress was made in 2016, including reaching financial close on the Primary Care Centres PPP, Ireland’s first healthcare PPP, providing 14 new primary care centres across the country, and Schools Bundle 5, providing 4,870 student places across four sites. Construction has commenced and is underway at all locations in respect of both these projects. Financial close was also reached on the N25 New Ross bypass, now under construction and the N17/N18 Gort to Tuam PPP scheme was successfully refinanced, realising €23m in savings to the State.
Construction of Schools Bundle 4 providing 2,950 pupil places was completed as scheduled in 2016, with all schools now fully operational. Construction is ongoing on the Courts Bundle project involving the development of new courthouses and refurbishment and extension of existing courthouses in seven locations. All courthouses are scheduled to be completed and operational in 2017.
Progress on the DIT Campus at Grangegorman project was delayed during 2016 due to legal proceedings by an unsuccessful tenderer against the Minister for Education and Skills, and the NTMA. The judgment in the case was delivered in October 2016 and found in favour of the Minister and the NTMA.
The NDFA regularly engages with project sponsors, contractors, advisors and financiers about projects and transaction opportunities. The resurgence of the Irish infrastructure lending market in recent years continued throughout 2016, with significant interest from domestic and international funders in lending to Irish PPP projects. There has been a substantial improvement in the funding costs available to Irish PPP projects with all-in senior debt rates falling from 6.5% in early 2014 to just over 2% in 2016, the lowest on record for Irish PPPs.
Progress on NDFA PPP Projects at End-2016
Projects being Procured by the NDFA
Schools PPP Bundle 4
Four schools providing 2,950 places in Tipperary, Clare, Cork and Louth.
Construction completed in H1 2016. All schools occupied and operational.
Schools PPP Bundle 5
Five schools and one Institute of Further Education providing 4,870 places in Carlow, Meath, Wicklow and Wexford.
Financial close reached in July 2016. Construction underway on all four sites with the schools scheduled to be completed in 2018.
DIT Campus at Grangegorman PPP
The development of two quad buildings at the new DIT Campus in Grangegorman, providing 10,000 student places in applied arts, sciences and engineering.
Preferred Tenderer appointed in February 2015. In March 2015 legal proceedings were initiated against the Minister for Education and Skills, and the NTMA in respect of the public procurement competition for this project. The judgment received in October 2016 found in favour of the Minister and NTMA.
Courts Bundle PPP
The development of new courthouse buildings in Drogheda, Letterkenny, Limerick and Wexford and also the refurbishment and extension works to existing courthouses in Cork, Mullingar and Waterford.
Construction underway with all courthouses scheduled to be operational in 2017.
Primary Care Centres PPP
The development of 14 new primary care centres throughout the country, designed to provide health and social care services in local communities.
Financial close reached in May 2016. Construction underway on all 14 sites with facilities scheduled to be completed in 2017 and 2018.
Social Housing PPP
Development of 1,500 social housing units.
Project in pre-procurement/planning stage.
Projects where the NDFA is Financial Advisor
Design, construction, operation and maintenance of a new 57km stretch of motorway in Galway.
Construction underway, scheduled for completion in 2017. Project refinanced in May 2016.
M11 PPP (Gorey to Enniscorthy)
Design, construction, operation and maintenance of a new 38km stretch of motorway in Wexford.
Construction underway, scheduled for completion in 2019.
Design, construction, operation and maintenance of the New Ross bypass.
Financial close reached in January 2016. Construction underway, scheduled for completion in 2019.
Charlemont Street Housing Regeneration PPP
Land Swap PPP involving the delivery of 79 social housing units and community facilities in Dublin.
Construction underway, scheduled for completion in 2018.
Motorway Service Areas
Design, construction, operation and maintenance of two service areas located on the M6 motorway east of Athlone and on the M9 motorway south of Kilcullen together with the fit-out, operation and maintenance of a third service area on the M11 motorway north of Gorey.
Preferred tenderer appointed in May 2015. The project was delayed following an application for judicial review of the contract award by the National Roads Authority. It is expected to reach financial close in 2017.
Convention Centre, Dublin
The NDFA is the financial adviser to the OPW and advised on the sale of shares in the PPP Co.
The Convention Centre has been operating effectively and the change of ownership has been completed.
Dublin Waste to Energy PPP
Design, construction, operation and maintenance of a 600,000 tonne waste to energy plant.
Construction underway, scheduled for completion in 2017.
Provision of Financial Advice
Under its statutory mandate, the NDFA provides financial advice to State authorities undertaking major public investment projects. Projects where the NDFA provided advice in 2016 include the National Broadband Plan, the National Forensic Mental Health Services Hospital, social housing leases, the Cork Radiation Oncology Unit and the Maynooth Education Campus project. The NFDA provided advice to the Department of Transport, Tourism and Sport in relation to its grant assistance to the Páirc Uí Chaoimh redevelopment. The NDFA is also providing project support services to the Housing Delivery Office in the Department of Housing, Planning, Community and Local Government.
Devolved Schools Programme
Following the successful delivery in 2015 of 15 “design and build” school projects (non-PPP) on behalf of the Department of Education and Skills providing 8,600 school places, the NDFA is in the pre-procurement phase for a new project, Presentation College Athenry, Co. Galway which is expected to deliver 1,000 school places. The planning application for this project was submitted in November 2016.
Contract Management Services
At the request of the Department of Education and Skills, the NDFA has taken over the contract management of all operational PPP schools. At the end of 2016 the NDFA was managing the contracts for five schools projects covering 27 schools. Working under a Service Level Agreement, the support provided involves monitoring the relevant PPP companies in the performance of their obligations under the PPP contract, ensuring that the long-term value in these contracts is captured.
In 2016, at the request of the OPW, the NDFA began providing contract management services for the Dublin Convention Centre.