The Bank of Ireland, European Investment Bank, Macquarie Capital and Korea Development Bank signed the first PPP programme for the construction of social housing in Ireland which is the first in Europe.
The PPP model is an innovative way of delivering infrastructure a little bit more rapidly, and at least expense to the State as it offers recorded off balance sheet for government. It is the first time Ireland uses the PPP model for social housing, opening up an important new avenue for delivering the Irish State’s social housing requirements.
The project will be implemented through 3 different social housing boundless (total cost of €260 million) which will be leased to local authorities for up to 25 years.
The overall three-phase programme will enable 1,500 new homes to be built across the country. The EIB is going to finance the €120 million first phase which will enable the construction of 534 new homes will be built in Dublin, Louth, Wicklow and Kildare between 2019 and 2021. The contract is made with Comhar Housing Limited.
The new social housing units will be managed by Choice Housing, part of the Comhar consortium, under a 25 year financing agreement and construction managed by Sisk. Under the terms of the PPP finance agreement the Comhar consortium will build and maintain the housing for 25 years before it is returned "in prime condition" to the Irish State.
Oaklee Housing Trust, which is one of ICSH (Irish Council of Social Housing) members has got an involvement in the project and will undertake the tenancy management for the tenancies as part of this project however the private sector development an d financial bodies are the lead bodies.
This project represents another means of delivering on the overall targets for social housing as part of Rebuilding Ireland.