The Metro North project is still manageable within today's public finance constraints because the private sector initially funds the majority of the construction costs.
That's according to Rob Leech, Metro North Project Manager, RPA, who was speaking at an Engineers Ireland seminar on tunnelling.
Stating that a high quality integrated public transport is a key feature of the most successful cities worldwide, Mr Leech said the granting of a Railway Order in October for Metro North means we can start building tomorrow's transport system today.
"There have been some extraordinary claims that it would cost €5 billion to build Metro North. Even at the height of the boom it would have cost far less than that.
"Now, at a time when construction costs have been falling, we expect to get unprecedented value for a piece of transport infrastructure that will simply transform the capital city, and have an impact throughout the country.
"The building of Metro North is still manageable within today's public finance constraints because it is being developed under a public private partnership arrangement. This means the private sector initially funds the majority of the construction costs.
"The State contributes in two ways – a part contribution to the construction cost and later annual payments, spread over a long period of time, payable only when the metro is up and running.
"This proven arrangement is particularly suited to current economic conditions in Ireland as it reduces the requirement for government borrowing to fund infrastructure development and makes Metro North affordable now," he said.
Commenting, Engineers Ireland Director General John Power said: "Any investment in infrastructure will always have a positive return to the Irish economy and with the Government's cutbacks on its capital programme continuing to hit the construction sector hard and with civil engineering massively impacted as a result, the fact that Metro North has the potential to create 4,000 direct construction jobs and a further 2,000 indirect jobs must be recognised."
Mr Leech also said Metro North does not depend on high rates of growth and has a positive benefit to cost ratio based on the existing population and employment levels before taking any account of the growth that will occur in the future.
"The benefits include journey time savings, reduced environmental emissions, improved safety and reduced road accidents as well as the huge economic benefits arising from having excellent transport links between the city and its northern fringe.
"Even in a scenario where only moderate economic growth occurs over the next 30 years the benefits will be enormous and will exceed the costs by a ratio of 1.5 to 1.
"The most recent cost-benefit analysis, which has been audited by the National Transport Authority’s independent economic advisers, shows that Metro North will deliver a net benefit to the Irish economy of well over €1 billion," concluded the Metro North Project Manager.
(CD/BMcC)
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