Spanish firms lead the way in race for Irish roads deals

Spanish firms have a stranglehold on two massive PPP roads deals in the Irish Republic of Ireland, totalling up to £442m.

The Spanish-led Icon group (FCC Construccion/Itinere Infraestructuras/PJ Hegarty) has undercut its rivals for the N6 Galway to Ballinasloe dualling , (worth up to £272m). Firms from Spain also make up the bulk of bidders on the M50 upgrade around Dublin, (valued at £170m).

The National Roads Authority (NRA) will now enter into negotiations with Icon, with a view to appointing the group as provisional preferred N6 bidder, potentially leading to a contract award early next year.

But if talks break down, the NRA could revert to a best-and-final-offer stage, including second-placed bidder, Hibernia Roads (Acciona/Mota Engil/plus Irish firms Coffey and Michael McNamara). The other bidders were Eurolink (Cintra/Siac) and the Celtic Roads Group (Dragados and BAM, which owns Nuttall).

The N6 scheme includes 56 km of dualling, 40 km of link and side roads, plus grade-separated junctions and a 36-year concession.

Icon and Hibernia Roads also feature in the five-strong bid list for the M50. The others are: BAM with Sisk and Strabag; Irish Mobility Group led by Dragados and the Eurolink M50 consortium of Ferrovial Agroman and Siac.

The initial tendering phase of the deal is due to be completed by the end of this year, with work on site expected to start some time in 2007.

The job includes upgrading 25km of the M50 from two to three lanes, plus maintenance with a concession period of 30 years.

[Contract Journal, 23 August 2006, p 4]