Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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674. To ask the Tánaiste and Minister for Justice and Equality the estimated cost per modular unit at the time of project initiation in June 2022; the revised estimates subsequently adopted; the current average cost; and to set out the principal factors accounting for the increase, with an estimate of the contribution of each factor to the final cost. [51320/25]

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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In June 2022, the Government authorised the roll-out of the Rapid Build Homes Programme to provide homes for those displaced by the Russian invasion of Ukraine. This programme was an emergency response to the accommodation needs of people fleeing the war in Ukraine. Sanction was initially obtained for 500 units to accommodate 2,000 BOTPs. This was subsequently revised to 700 units in 2023 with an estimated cost of €237.4m.

The urgent need and dynamic nature of the programme meant that as sites became available and suitability assessments carried out, the number of units was further revised to 654. Costs have developed in real time with the increases reflecting significant challenges through the nature of the project itself, and also the wider economic and supply chain environment. As ‘Housing for All’ sites were excluded from the Programme to the greatest extent possible, many of the sites provided proved to be challenging and sub-optimal for site development works. In addition, owing to the constraints of sites ultimately delivered, economies of scale proved challenging to realise. This resulted in significant additional costs to the overall programme.

The final average cost per home will comprise capital and other costs. The capital costs include significant work that was required to enable and prepare each of the 11 sites, to ensure the provision of necessary infrastructure and services and also the manufacture, delivery, installation and commissioning of the modular homes complete with fittings, furnishings and equipment. The other costs include all necessary technical advice required and various other non-capital costs over the course of the Programme. It is expected that the final account for the overall Programme will be concluded over the coming weeks. The estimated Rapid Build programme cost is currently €285.3m, an average cost per units (including groundworks) of €436k.

While the cost increases have been significant, the indications are that deploying rapid build homes to house 2,640 people will deliver significant savings for the State within five years compared to other forms of accommodation.

Each of the developed sites has been future proofed and accordingly can be used for further housing needs as the expected life span of the units is approximately 60 years. As Government policy continues to evolve in relation to the Ukraine response and International Protection, a multi-stakeholder process is underway to determine the long-term strategy for the sites, following the Temporary Protection Directive. Other options for long-term use will also be considered.