No slice of tolls for State until 2021
As part of Public Private Partnership (PPP) agreement, private contractors will be able to collect all the toll money raised on the Fermoy bypass until the number of vehicles using it each day reaches 21,000.
Cork county engineer Ned Flynn has said that currently around 15,000 vehicles a day pass through Fermoy. However, he said, when the bypass opens he expects initially that between 10,000 and 12,000 vehicles will use it daily.
“Generally the national figures for increase in traffic is 3% per annum. Some major roads around Cork have seen an increase of around 10% per annum, which is as a result of the Celtic Tiger,” he said.
He added that as the Celtic Tiger boom begins to settle the likely average increase in traffic per year on the Fermoy bypass will be around 5%.
If this forecast proves accurate such an increase would represent a further 600 vehicles per day per year. Starting from a base of 12,000 vehicles per day, it would take 15 years to achieve the 21,000 figure.
The private developers Direct Route - which consists of companies Kellogg Brown & Root Ltd, Austrian firm Strabag AG, John Sisk & Son (Holdings Ltd), Roadbridge Ltd and First Irish Infrastructure (a joint AIB/European Investment Bank fund) - expect to have the 17.5km dual carriageway open before Christmas, six months ahead of schedule.
The total cost of the new road, which includes the construction of Ireland’s largest road bridge, is around €320 million.
This excludes land purchase, planning and preparatory design costs.
The State has paid over €80m during construction and will hand over a further €40m during its operational period.
When the road handles more than 21,000 vehicles a day the State will get a percentage of the toll.
In addition, Cork County Council will be able to claim rates from the operators of the toll plazas. Direct Route will also be liable to Corporation Tax and VAT.
Local county councillor Kevin O’Keeffe said he believed the road represented real value for money for the taxpayer.
The Fianna Fáil councillor pointed out that in total the State would only pay €120m for the bypass, which is €200m less than its overall cost.
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