PPP Schools Bundle 1
Sod Turning Ceremony
Banagher, 12th March 2009
Speech by Nobby O’Reilly, CEO, Pierse Contracting
An Taoiseach, Minister Batt O’Keeffe, Councillors, ladies, gentlemen and students
The Pierse Group, together with our partners Macquarie, are delighted to have been selected as the successful bidder for Schools Bundle 1. It has been a long process, commencing with our pre qualification submission in October 2006, followed by numerous other submissions, negotiations and discussions in the intervening period.
In recent months our biggest challenge was to find a bank to fund these projects due to the extraordinary turbulence in the financial markets and, in particular, the funding of PPP projects. We had meetings with numerous international and national banks before we eventually secured funding with Bank of Ireland. I would like to especially thank Tom Hayes, Adrian Olsen and Donal Murphy from Bank of Ireland for the efforts that they put into successfully funding this project.
I would also like to thank Michael Kennedy from Allianz for providing the performance bond; the main stakeholders, being the National Development Finance Agency, in particular Brian Murphy, Stephen Burgess and Conor Gunn; the Department of Education and Science for working so effectively with us throughout the whole process; our colleagues Mark Bradshaw and his team in Macquarie and also the professional teams:
Banagher
Architects – A&D Wejchert (Paddy Fletcher)
Engineers – White Young Green (Denis Blake)
Ferbane
Architects – Henry J. Lyons (Sam Lyons)
Engineers – White Young Green (Denis Blake)
Portlaoise (two schools)
Architects – A&D Wejchert (Paddy Fletcher) and Henry J. Lyons (Sam Lyons)
Engineers – White Young Green (Denis Blake)
The challenge has now been handed down directly to the Pierse Group contracting team to deliver these projects over the next 18 months.
Our Project Management Team of Ronan Ryan, Liam Roche and Vance McGlinchey will continue on the projects and work with our site teams:
|
Project |
Contract Manager |
Duration |
Construction Value |
|
Banagher |
Kieran Gibbons |
18 months |
€15 million |
|
Ferbane |
Fiachra O Muineachain |
18 months |
€13 million |
|
Portlaoise |
Martin Stewart |
17 months |
€32 million |
|
|
|
|
€60 million |
I have absolute confidence that our Construction Team led by Michael O’Reilly, together with our consultants, will deliver these projects to the highest standards that the Department of Education would expect and I look forward to working with all of those involved in achieving our targets in a non adversarial manner.
It is anticipated that approx. 700 direct and indirect jobs will be generated over the next 18 months, which is a welcome boost to the local economy.
Our industry is in the midst of a challenging time due to economic pressures both here in Ireland and overseas and if I could take a few moments of your time to make some comments in advance of the proposed budget. As a member of the CIF Executive Council, I have participated in a number of recent internal reviews regarding the state of our industry within the CIF and I will comment as follows:
The proposed budget has to be a beginning not an end in terms of Government investment in infrastructure.
Whilst tax increases and spending cuts are inevitable, and necessary given the current budgetary arithmetic, any benefit from these will be quickly undone unless they are accompanied by measures to promote economic activity and employment.
In the short term, supporting a strong capital programme is the only way open to Government to safeguard jobs, generate increased government revenues and help to kick start economic recovery.
The emphasis has to be on labour intensity and the infrastructure that is most needed from a competitiveness point of view. Education is clearly one such area and the building of this school here is an example of that.
The timing has never been better. Government can take advantage of the convergence of an incredibly competitive tendering environment and the abundance of a highly skilled labour force.
For every €100m invested in infrastructure 1,000 direct jobs are created with an immediate return to the State of nearly €50m. through taxes and social welfare savings etc.
Job losses in construction happen away from the public glare. The focus that accompanies the closure of major factories is simply not there. In quantitative terms however, the scale of job losses in construction is the reason commentators are now predicting that over 500,000 people will be unemployed by the year’s end.
We clearly need the infrastructure, whether it be roads, public transportation, water infrastructure, education, health, prisons, Garda stations and court houses. We have a list of shovel ready projects, we should take advantage.
I would like to thank everybody, especially An Taoiseach, for attending.
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