Kieran O'Donnell (Limerick City, Fine Gael)

I thank Senator Boyhan for raising this very important matter, which I am taking on behalf of the Minister for Housing, Local Government and Heritage. I am glad to have the opportunity to discuss the future of social housing PPP bundle 3, the individual project at Ardrew in Athy, County Kildare, and the next steps following the recent decision regarding the procurement process.

The Government and the Department of Housing, Local Government and Heritage are committed to increasing the supply of new-build social and affordable homes. Increasing the overall housing supply is key to addressing the housing challenge. On 3 June, following a detailed evaluation, the Department made the considered decision not to proceed to contract award for social housing PPP bundle 3 through the existing PPP programme route. This decision was not taken lightly. It was driven by concerns about the overall cost of the project, which, upon review, was deemed to be too high to represent the most efficient use of public funds.

However, I stress that this is not a withdrawal from our commitment to delivering the homes that bundle 3 was designed to provide, including the site at Ardrew. The Department, in collaboration with the NDFA and the four local authorities involved, remains fully dedicated to ensuring these social housing units are built as soon as possible.

Work is already under way to proceed quickly to an alternative procurement and delivery approach. The Department is working with its programme leaders, the NDFA and the relevant local authorities, including Kildare County Council, to ensure there is no loss of momentum. Meetings are taking place with stakeholders and initial discussions have confirmed a shared urgency and determination to progress these construction projects.

Importantly, all four local authorities involved - Dublin City Council, Wicklow, Kildare and Sligo - have already secured full planning permission for the sites in question, representing a total of 486 homes, 73 of which will be delivered in Athy. This is a significant advantage, as it allows us to move straight into revising the delivery mechanism.The focus will be on immediately progressing a new procurement strategy likely to be designed and build public works contracts and the adoption of modern methods of construction, MMC. These approaches not only offer efficiencies in terms of time and cost but also align with our sustainability and quality goals.

While the original procurement route for PPP bundle 3 will not be pursued, our commitment to delivering these vital homes remains. With strong partnerships already in place and planning approval secured, I believe this alternative strategy will ultimately lead to a successful delivery and a more effective and efficient result for public investment.