Michael Creed (Cork North West, Fine Gael)
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59. To ask the Minister for Enterprise, Trade and Employment the way that his Department is dealing with projects that were grant-aided by his Department in cases in which the projected costs have increased substantially arising from construction inflation and so on, since the time that the grants were allocated; and if he will make a statement on the matter. [18769/22]

Leo Varadkar (Dublin West, Fine Gael)
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The Deputy will be aware that Enterprise Ireland has to-date approved funding to 68 projects under the three calls of the Regional Enterprise Development Fund 2017 – 2020 (REDF) and a further 11 projects under the Border Enterprise Development Fund 2020 (BEDF) on behalf of my Department.

I am very conscious that over the past 2 years there has been a significant increase in costs experienced by supported projects under the REDF and BEDF which are engaged in capital infrastructure development. These cost increases arise due to a multitude of individual increases in product and installation costs, primarily due to the impacts of Brexit and Covid 19 on the construction sector.

To assist those projects which have been delayed and incurred increased costs in the delivery of their originally approved projects, funding of up to €12m in grant support, or €15m in expenditure at 80%, whichever is the lesser, is being provided for eligible projects approved under the REDF and BEDF Schemes to cover eligible additional construction costs to enable those projects to be completed as originally planned. €6m has been set aside for 2022 and an additional €6m for following years.

Under this fund Enterprise Ireland will also provide advance payment of 50% of additional grant support, on approval by the EI Investment Committee, to eligible projects.

I have been advised that Enterprise Ireland has begun the process of contacting eligible projects regarding this fund.