Paschal Donohoe (Dublin Central, Fine Gael)
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The Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published in 2021. As set out in the Summer Economic Statement (SES) 2023, an additional €2.25 billion of capital funding was made available to be allocated in the 2024 to 2026 period. This funding will facilitate the progression of important projects and enable more rapid development of key Programme for Government commitments, such as the delivery of actions to fulfil our climate action plan commitments, the provision of more housing and enhanced education facilities.

Following the conclusion of more than 30 bilateral meetings which took place from January to March with my Ministerial colleagues, the distribution of the additional €2.25 billion across Departments was agreed by Government in March 2024. This builds on the existing funding already available under the NDP out to 2026 and it will mean more schools, housing, transport and healthcare projects can be progressed and delivered for our people. In 2024, €13 billion will fund vital infrastructure. The total available capital funding for 2025 is now €14.35 billion and for 2026 it is €15.459 billion. As a percentage of national income, annual capital investment is now among the largest in the EU.

However, the Government and I acknowledge that the significant investment under the NDP does not come without delivery challenges. I am acutely aware of the challenges that the construction industry has faced in terms of material price inflation, labour supply constraints, and supply chain disruption. As a result, in order to safeguard the delivery of key NDP projects, in January 2022, my Department introduced measures to address inflation for new contracts and tenders. Furthermore, in May 2022, a new set of measures to apportion additional inflation costs between the parties to public works contracts were introduced. These interim arrangements were then made permanent in July 2023 which allow for more appropriate risk sharing in the delivery of public works contracts.

In 2023, I secured Government approval for a number of priority actions to improve delivery of NDP projects, including reducing the administrative burden on Departments charged with infrastructure delivery. I am confident that these actions will boost the delivery of the critical infrastructure we need to support a growing economy and higher living standards for those living here. In addition, my Department will continue to work closely with the construction sector in order to improve efficiency and enhanced delivery through the Construction Sector Group.

The Government is committed to detailing progress on the delivery of the NDP at regular intervals into the future to allow for full transparency of the implementation of Project Ireland 2040. This is achieved through regular updates of the Project Ireland 2040 capital investment tracker and MyProjectIreland interactive map viewer which list projects and programmes on a regional and county level. In addition, Annual and Regional Reports on the implementation of Project Ireland 2040 have been published for 2018, 2019, 2020, 2021 and 2022. The Project Ireland 2040 Annual and Regional Reports, capital investment tracker and myProjectIreland interactive map are all available on gov.ie/2040.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published in 2021. As set out in the Summer Economic Statement (SES) 2023, an additional €2.25 billion of capital funding was made available to be allocated in the 2024 to 2026 period. This funding will facilitate the progression of important projects and enable more rapid development of key Programme for Government commitments, such as the delivery of actions to fulfil our climate action plan commitments, the provision of more housing and enhanced education facilities.

Following the conclusion of more than 30 bilateral meetings which took place from January to March with my Ministerial colleagues, the distribution of the additional €2.25 billion across Departments was agreed by Government in March 2024. This builds on the existing funding already available under the NDP out to 2026 and it will mean more schools, housing, transport and healthcare projects can be progressed and delivered for our people. In 2024, €13 billion will fund vital infrastructure. The total available capital funding for 2025 is now €14.35 billion and for 2026 it is €15.459 billion. As a percentage of national income, annual capital investment is now among the largest in the EU. Accountability, collective responsibility and good value for money are essential to deliver on this investment.

My department is responsible for the Infrastructure Guidelines, which replaced the Public Spending Code and were published in December 2023, with an effective date of 1 January 2024. These set the value for money guidance for evaluating, planning and managing Exchequer-funded capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister.

The Department has refreshed the requirements for capital projects in the new Infrastructure Guidelines, reducing the number of approval stages and streamlining the requirements for major projects, while retaining the international best practice governance and oversight arrangements already in place. This will ensure that vital infrastructure projects will be delivered on time and delivered in a manner that ensures value for money.

Some of the key changes implemented through the updated Infrastructure Guidelines include:

• The number of approval stages prior to implementation for projects has been reduced from five to three, which includes Approval Gates by the Approving Authority at:
  1. Preliminary Business Case/Approval-in-Principle Stage
  2. Pre-Tender Stage
  3. Final Business Case Stage.
• The general threshold for major projects has increased from €100 million to €200 million.
• The External Review and Major Projects Advisory Group review remain a requirement for major projects (those greater than €200 million) at the Strategic Assessment and Preliminary Business Case Stage, prior to seeking Government consent following the approval of the Parent Department/Approving Authority.