The European Investment Bank is to part fund the Government's school-building programme.
A €100m loan from the EIB should enable construction to start on more than 500 classrooms in October.
The scheme will benefit 12 secondary schools and 35 primary schools across the main population centres of the country.
The money will be lent to a public private partnership scheme at a lower rate of interest than the Troika charges the State.
The funding will not feature on the State's balance sheet, as it is viewed as a commercial investment.
The State hopes to use other sources to add to its capital spending plans, such as half of the money from selling State assets.
It is hoped that there will be further joint ventures with the EIB in roads and a network of primary healthcare centres.
