A consortium led by national children’s hospital contractor BAM is to deliver a €380 million university campus project, the Cabinet was told on Tuesday.
The project, which will see the construction of five new buildings across multiple university campuses, is being delivered via a public-private partnership (PPP).
The Dutch-owned builder has been involved in a long and bitter dispute with the State over cost and time overruns at the children’s hospital project, which is now estimated to cost more than €1.5 billion above what was originally envisaged.
The contract has been signed by the Invesis consortium, which consists of an investment company and a Dutch pension fund, alongside Bam Building Limited and BAM Facilities Management Ireland.
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The Irish Times previously reported that the contract was awarded to the group despite the bid not meeting value-for-money tests.
A previous financial cost/benefit analysis conducted by the State found that economic benefits outweigh the costs of the project, but ministers were told last year that the tender price also exceeded the upper end of a benchmark used in a value-for-money comparison test.
These tests are designed to ensure a PPP costs less than using traditional procurement. The Government must give direct approval to contracts which exceed the public sector benchmark. Last December, Government figures argued that the projects would help economic growth regionally, generating €1.60 back for the State for every €1 it spends on the project.
A spokeswoman for Minister for Higher and Further Education James Lawless said BAM have a track record in delivering projects as part of public-private partnerships.
“The PPP is very robust contract and as part of a PPP contract there is a significant risk transfer to the contractor,” the spokeswoman said. The risk transfer element means that the company only receive payment if the building is delivered, she said.
BAM is building the project but the funding is being provided by a consortium of lenders, who will be the one’s to lose out of the project is not delivered. “Our contract is with the PPP company not the builder,” the spokeswoman said.
The project consists of the second phase of a higher education PPP programme and will see new buildings constructed in the Waterford and Carlow campuses of the South East Technical University, and the Letterkenny and Galway campuses of the Atlantic Technological University.
*This was updated on July 2nd, 2025 as previous reference to the Invesis consortium said it consisted of an investment company owned by BAM - BAM no longer owns this company.
