The Government of Ireland has signed a €282m public private partnership (PPP) contract with a consortium to remove a bottleneck at Newlands Cross in Dublin and upgrade the N11 Arklow-Rathnew stretch.

The latest contract marks the first transport PPP to be signed since 2007, and will generate around 1,200 new construction jobs.

The Minister for Transport, Tourism and Sport, Leo Varadkar, said that the new projects will remove two bottlenecks that were not addressed during the economic boom.

"The N11 will improve safety standards the minute it’s opened, while the Newlands Cross fly-over will remove the last traffic light between Cork, Limerick and Waterford and the border," Varadkar said.

The N7 Newlands Cross Junction Upgrade involves the construction of a flyover at the junction between N7 Naas Road and the R113 Fonthill / Belgard Roads at Newlands Cross.

An estimated 80,000 vehicles pass through Newlands Cross every day and the project is expected to provide relief to commuters, as well as those on longer journeys.

This flyover will minimise local traffic impact by taking N7 traffic up and over the R113 Fonthill / Belgard Road.

In addition, traffic signals will be installed at the two points where the ramps meet the local roads, along with dedicated turning lanes provided for the Belgard / Fonthill Road.

"The new projects will remove two bottlenecks that were not addressed during the economic boom."

The second project is N11 Arklow to Rathnew which includes a 16.5km of new dual carriageway, along with associated link roads and junctions.

It will connect the existing N11 Arklow Bypass with the existing N11 Rathnew / Ashford Bypass creating motorway / dual carriageway from Dublin to Gorey.

The project will also involve the construction of a service area on the N11-Northbound, at Gorey, with direct access from the N11-Southbound through an overpass.

Funding of more than €150m of these projects has been provided under a PPP including a major funding provision from the European Investment Bank and Bank of Ireland, as well as a stand-by credit facility from the National Pension Reserve Fund.

The entire project is expected to be completed over the period of two years with on-site works slated to commence in the coming weeks.

The contract has been signed with BAM PPP PGGM Infrastructure Cooperatie, BAM’s investment joint venture with Dutch pension fund service provider PGGM, along with BAM Contractors.