A consortium including PGGM and Royal BAM Group has invested in an infrastructure project in Ireland.

The Dutch pension fund manager and construction company, along with Spain’s Iridium, have closed their investment in the N25 New Ross Bypass PPP scheme.

The BAM PPP PGGM Infrastructure Coöperatie and Iridium Concesiones de Infraestructuras is committing €17m to the project.

PGGM’s joint venture with BAM PPP, a subsidiary that focuses on infrastructure projects, has been investing in public-private partnership (PPP) projects since its creation in 2011.

Funding for the Irish deal includes long-term debt in the form of Frankfurt-listed bonds, as well as equity, with €146m of senior, fixed-rate debt supported by €22m from the European Investment Bank’s project bond credit enhancement mechanism.

The project is the first to be supported by the mechanism.

Long-term bonds are being sold to institutional investors managed by Allianz Global Investors.

The €230m project involves the design, construction, financing, operation and maintenance of around 13.6km of new dual carriageway, as well as 1.2km of upgraded single carriageway.

The 887m River Barrow crossing, a three tower bridge, is also part of the scheme.

Construction, undertaken by BAM Civil and Dragados Ireland, will begin in March.

Operations will commence in January 2019, followed by a 25-year concession period.