Gort-Tuam motorway still a doubt despite funding

The future of a project that would see Limerick linked by motorway to Galway and Tuam remains in doubt, despite the approval this week of a loan that would fund it in part.
The European Investment Bank (EIB) has confirmed that it will loan up to €170 million of the €530 million project, subject to due diligence. It has also approved a loan of up to €75 million for the N7 Newlands Cross/N11 Arklow-Rathnew project.
“Both these projects are being procured as PPPs by the National Roads Authority and the EIB loans will form part of the overall debt funding package of the PPP consortium, when agreed. In each case, other commercial debt funding is required to enable the schemes to be brought to financial close,” a spokesperson for the Department of Transport outlined.
Clare TD and chairman of the Oireachtas Committee on Foreign Affairs and Trade, Pat Breen TD, said the loan approval was positive, adding that the Minister for Transport was now actively seeking private investors to see the project completed.
“Work was due to begin in early 2010 on the €530 million Gort-Tuam route, but BAM Balfour Beatty, the private partner, withdrew from the project because of difficulties raising the necessary finance,” he said.
The completion of the motorway would be of incalculable benefit to Shannon Airport, he believes.
“This section of road is the final piece of the infrastructural network required in this region following the completion of the M18 Motorway from Shannon to Gort and the Shannon Tunnel, to allow for easier access to Shannon Airport. The news that funding for this project will be available is welcome, as it will open up parts of North Galway and will significantly reduce journey times for people travelling from the North West to the airport,” Deputy Breen outlined.
It could also result in further inward investment and jobs for the region, according to the Clare TD.
“Over the past 12 months, this Government has worked hard to repair Ireland’s international credibility and inward investment has started to flow back into the country. Foreign Direct Investments have a very important role in reviving our economy and creating much-needed jobs, having a first-class road and rail infrastructure in this region  by completing the Gort to Tuam phase of the Atlantic Corridor will allow us to secure a greater share of those FDI investments here in this region,” he said.
“Now that the EIB has provided loan approval for €170 million, the remainder of the funding will be sought from private investors and the Minister for Transport Leo Varadkar is currently investigating the possibilities of securing same,” he concluded.
The announcement of the loan was brought up at Monday’s meeting of Loughrea area councillors.
“It was raised at the meeting but no one knows if the money is there. They are mystified by it,” said Galway County Councillor Gerry Finnerty.
Councillor Bridie Willers was equally dumfounded. “We have not received any official notice as yet. Yes, the media has carried the story that the EIB will fund to a certain limit. This is very positive news. Since land has been acquired on the section from Gort to Rathmorrissey (an area north of Tuam) it would make sense that this is the section that will be done first. We now have to wait for official confirmation and see if the interested parties come forward with their tenders. It is certainly badly needed and would be both a great employment boost and economic boost for the local economy,” Councillor Willers said.
The future of the M18 however, remains in doubt because of economic uncertainty.
“The National Roads Authority is currently working to bring these schemes to financial close and the N7/N11 is at the most advanced stage. However, all negotiations are taking place in the midst of the difficult financial climate and can only proceed when commercial debt funding is secured,” the Department of Transport spokesperson stated.