Lifting the Lid: the Private Financing of Motorway PPPs in Ireland

Abstract

This paper addresses the complete absence of detailed information on, and analysis of, the financial aspects of Ireland’s road public–private partnership (PPP) programme to date. We focus on the eight hard toll roads in operation by 2010 and provide a financial analysis of their performance. Although privately financed we find that projects also received considerable public money. Whereas four projects are profitable, the other four have accumulated significant losses. The risk premia paid to profitable projects and the potential renegotiations that may be necessary for loss-making projects raise questions as to whether value for money can be achieved. We conclude with a number of policy recommendations.