THE OPERATOR of the controversial M3 motorway generated operating profits of €19 million in its first seven months of operation.
The 50km motorway from Clonee to north of Kells, which cost almost €1 billion, opened to traffic on June 4th last year.
The infrastructure scheme was the largest delivered through a Public Private Partnership at the time and new figures show the route generated revenues of €25 million over the seven months to the end of December last.
The motorway – which was the subject of protests and court challenges, as it runs near the Hill of Tara – bypasses Dunshaughlin, Navan and Kells.
Accounts just filed by the toll operator, Eurolink Motorway Operation (M3) Ltd, show average traffic levels for 2010 were 21,004 vehicles per day. The company is jointly owned by Irish firm Siac Construction Ltd and a subsidiary of Spanish company Ferrovial.
The figures show operating profits were hit by net interest payments of €8.2 million on bank loans of €279 million during the year. The interest payments resulted in the company recording a pre-tax profit of €11.3 million.
The revenues include operational payments from the National Roads Authority to support the motorway. The accounts do not specify the amount received.
The roads authority has already confirmed it paid the motorway operator €547,000 between October and December last year.
The money was paid as the authority guaranteed a certain number of vehicles would use the privately funded road. This was put in place due to the high cost of the route and due to it being a challenging project to deliver. A similar agreement is in place for the Limerick Tunnel Public Private Partnership.
A note with the accounts said: “After considering the overall long-term business plan and the availability of committed financing facilities, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.”
There are two toll plazas on the route – one at Pace, between Dunshaughlin and Clonee, and one at Grange, between Navan and Kells.
The toll for cars is €1.30 at each plaza, with tolls for goods vehicles with four axles or more at €3.30.
The confirmation of profits secured by the M3 operator comes as Minister for Transport Leo Varadkar ruled out installing tolls on the M18 route at Ennis.
In response to a Dáil question from Fine Gael TD Joe Carey, Mr Varadkar said he had considered the matter, and would not impose tolls on the Ennis bypass.
Mr Carey said there was a compelling case for not introducing a toll there. “In my view, if a toll were to be introduced, it would have encouraged motorists to avoid it, which would have resulted in traffic clogging up in Ennis and Clarecastle again. “A situation such as this could not be justified given the huge State investment in the development of the Ennis Bypass. We also have an existing toll on the Limerick Tunnel, which is far too close to Ennis.”
