*Photograph: Brian Arthur

OPERATING PROFITS at the consortium which operates the €800m Limerick tolled tunnel last year increased by ten percent to €11.96m after a hike in toll charges.

New accounts show that DirectRoute (Limerick) Ltd last year enjoyed the operating profit surge as revenues went up by ten percent from €27.19m to €29.84m.

The route forms part of the main transport route in the Midwest linking Limerick to Galway and traverses Clare bypassing the likes of Ennis and Newmarket-on-Fergus.

Toll charges for cars increased by twenty percent at the start of 2024 to €2.30 linked in inflation which led to the higher toll revenues for 2024.

The toll hike followed toll charges for cars increasing by 10c to €2.10 in inflation linked toll increases on July 1st 2023.

A breakdown of revenues show that toll income increased by thirteen percent from €21.2m to €23.9m.

The revenues for the Limerick tunnel firm also included traffic guarantee payments from Transport Infrastructure Ireland (TII) which declined from €5.2m to €5.02m last year.

The traffic guarantee payments are made when daily traffic volumes don’t exceed a particular threshold and they were put in place at the outset of the project in order to attract consortia to bid to build the scheme.

The directors state that “revenue risk is reduced by the Traffic Guarantee mechanism which guarantees revenue to a certain threshold”.

The firm also benefited from operating payments of €905,292.

The company recorded a pre-tax loss of €11.45m after paying out €23.54m in loan interest payments.

The directors state that “The largest expense remains to be interest repayments on the project funding mainly in the form of bank loans and bonds. The contract is currently in year 18 of its term and will expire in 2041”.

On the company’s ongoing concern status the directors state that in accordance with the Common Terms Agreement governing the funding for the project, and based on current performance, the company is not making repayments on the mezzanine and shareholder loans that were provided to fund the overall project.

The directors acknowledge that the current forecasts indicate that based on the waterfall of payments over the life of the project, that while all third-party funding is forecast to be repaid, there may not be sufficient resources to repay the shareholder loans in full at the end of the project and the directors are satisfied that the shareholders are aware of this possibility.

The loss also takes account of non-cash depreciation of €13.5m.

Total key management compensation last year increased from €98,185 to €101,306.

The Limerick tunnel route was first opened to traffic in July 2010.

At the end of the concession period in 2041, the firm will hand back the road to the TII. The firm had accumulated losses of €127.74m at the end of last year. The company’s cash funds declined from €30m to €5.5m.

Advertisement

Related News

hastings farmhouse 1-2
Plans to restore near 200-year old Hastings Farmhouse approved
Shani Williams_hr_Credit @roisinflaherty-2
Giob Geab returns for Galway Climate Festival
miltown malbay stabbing 1
Four men injured in Miltown Malbay stabbing
shannon airport departures 1-2
Golf tourism 'putt-ing' up passenger numbers at Shannon Airport
Latest News
aideen walsh 1
Aideen crowned Bridgestone Order of Merit champion
limerick toll tunnell
Operating profits at Limerick tunnel increase to €11.96m following hike in toll price
Shani Williams_hr_Credit @roisinflaherty-2
Giob Geab returns for Galway Climate Festival
kilrush shamrocks v michael cusacks 16-08-25 dean neary 1
Kilrush, Corofin & Clondegad joined by Gaels, Cooraclare, Naomh Eoin & Banner in Clare IFC quarter-finals
miltown malbay stabbing 1
Four men injured in Miltown Malbay stabbing
Premium
éire óg v doora barefield 02-08-25 shane daniels 2
'We don't look outside the camp' - Éire Óg not engaging with overwhelming favourites tag
kilmurry ibrickane v wolfe tones 17-08-25 daryn callinan aaron brennan 2
Flawless finish boosts Kilmurry Ibrickane’s Jack Daly hopes
doonbeg v kilmihil 17-08-25 tadhg lillis mikey keating 1
Doonbeg Shea-d an inch-tight derby with Kilmihil to remain in championship
ennistymon v lissycasey 17-08-25 darragh conneely daire culligan 1
Roller coaster tie between Ennistymon & Lissycasey ends level as both advance to quarter-finals
st breckans v st josephs miltown 30-09-23 darragh mcdonagh jamie stack 1
Breckans battle from five down to rescue draw & quarter-final spot at Miltown's expense

Advertisement

Subscribe for just €3 per month

If you’re here, you care about County Clare. So do we. Did you rely on us for Covid-19 updates, follow our election coverage, or visit The Clare Echo every week for breaking news and sport? The Clare Echo invests in local journalism and we want to safeguard its future in our county. By becoming a subscriber you are supporting what we do, will receive access to all our premium articles and a better experience, while helping us improve our offering to you. Subscribe to clareecho.ie and get the first six months for just €3 a month (less than 75c per week), and thereafter €8 per month. Cancel anytime, limited time offer. T&Cs Apply. www.clareecho.ie.