Mattie McGrath (Tipperary South, Independent)
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912. To ask the Tánaiste and Minister for Justice and Equality the full costs of modular housing for Ukrainians at Heywood Road, Clonmel, County Tipperary; the reason for the excessive costs; if the full costs of the project are not yet available, if he will provide the costs to date of the project given the project is almost finalised; and if he will make a statement on the matter. [24468/25]

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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In April 2022, the Government asked the Office of Public Works to evaluate the feasibility of developing a rapid build, volumetric modular unit option to accommodate Beneficiaries of Temporary Protection who were fleeing the war in Ukraine. The Department of Housing Local Government and Heritage were tasked with identifying suitable State-owned sites in this regard.

The Government subsequently decided in June 2022 to approve the provision of 500 units to accommodate up to 2,000 people using an accelerated tender process. The Department of Children, Equality, Disability, Integration and Youth was designated as the Approving Authority for the Programme (this role has recently transferred to my Department), and the OPW was designated as the Sponsoring Agency.

The target output was subsequently revised to 700 units following a Government decision in July 2023, but revised back to 654 units at 11 sites in May 2024, due to the lack of availability of suitable sites.

To date, 10 Rapid Build sites have been delivered. The final site, in Heywood, Clonmel, will be completed in July 2025. This will bring the final output of the programme to 654 units, with a capacity to accommodate 2,640 people.

The urgent need and dynamic nature of the programme meant that as sites became available and suitability assessments carried out, revision to the number of units and cost estimates were necessary. The costs of the Programme have developed in real time with the increases reflecting challenges that have presented through the nature of the project itself, plus the wider economic and supply chain environment. In addition, many of the sites required significant remedial work to make them ready for housing development, or were smaller than initially envisaged and therefore didn’t deliver anticipated economies of scale.

It is estimated that the final project cost will be in the region of €285.3m; definitive costs cannot be provided at this time as works are ongoing.

This equates to an average projected cost of the development and delivery of each unit across all sites is €436K. This includes the cost of the physical units, inclusive of supply, delivery and provision of loose electrical and household items. It should be noted that this figure also includes average site development and utility connection costs which amount to approximately €271K per unit. The units are 45m² (484sqft).

While the cost of the Programme has been significant, the cost comparison of rapid build homes to house 2,640 people when compared with providing commercial accommodation for the same number are favourable, and it is estimated that it will take just five years to deliver significant savings to the State. In addition, as the units have a 60-year lifespan, their future use is central to the Programme. Each of the developed sites has been future proofed and can be used for further housing needs. A multi-stakeholder process has commenced to determine the long-term strategy for the sites, post the Temporary Protection Directive.