Most PPP projects are virtually guaranteed financially because they receive a contractually agreed stream of payments. They vary only if there are deductions for poor performance or the public authority decides not to impose deductions in the interest of maintaining good working relationships. EU Project Bonds and the new UK state guarantee provide additional security for investors in PPP projects.
Traffic-related guarantee payments are sometimes included in toll road contracts. Ireland's National Roads Authority (NRA) agreed such payments for the M3 Clonee/Kells and Limerick Tunnel PPPs. The NRA has to pay the PPP company additional money if average traffic levels in any half-year period do not exceed the level of guaranteed traffic in the contract. A recent audit revealed significant shortfalls in traffic volumes relative to the guaranteed thresholds in 2010 and 2011 and forecast an additional payment of €6.7m for 2012. Even if traffic continues to increase at an average 2.5% per annum, the government will be paying traffic guaranteed payments for the M3 Clonee/Kells PPP until 2025 and the Limerick Tunnel until 2041! (Comptroller and Auditor General, 2012). Additional payments could exceed €140m at current prices. The beneficiaries include Ferrovial (Spain) for the M3 and Strabag AG (Austria), Meridiam Infrastructure and Allied Irish Bank for the Limerick Tunnel.