Waterford TD John Deasy says there’s still significant scope for the Southeast to share in the €7.9bn Ireland Strategic Investment Fund — the bulk of which has still to be allocated.
Last week the Fund reported that it’s in advanced discussions with over 50 different investment opportunities valued at a combined €2.4bn.
It expects to put over €750m into leveraging additional projects this year and is open to all commercial ideas (see www.isif.ie). Matching private sector capital could double its total worth.
The Fund’s operators, the National Treasury Management Agency, are targeting a minimum average return of 4% from its entire investment portfolio. Commercial viability is a key prerequisite when it comes to sizing up applications.
With “economic impact” also part of its ‘double bottom line’ mandate, Deputy Deasy successfully lobbied at legislation stage to make sure the Fund accounts for where projects are delivered.
“I was concerned Dublin would dominate and so far that’s been borne out, with 47% of approved projects being based in the capital and the remainder spread around the country — two-thirds in the rest of Leinster and 18% in Munster.
“However, there’s still nearly €5.5bn of public capital to work with between now and 2020 so hopefully investors can come in with proposals that target those regions most in need of a lift.”
So far the state stimulus measure — using what was the National Pension Reserve Fund — has invested in capital development projects, finance schemes for SMEs, and recently, in conjunction with Glanbia, an offer of €100m in ‘MilkFlex’ loan supports to the dairy sector.
Deasy says: “I have already flagged with the Department of Transport the potential use some of this money to help generate new business in our regional airports and main sea ports, while still complying with EU State Aid rules.”
He added that regional requirements in the areas of broadband, seafood processing and advance infrastructure for industry would also make good use of some of this catalyst funding.