Ireland’s Infrastructure Outlook
Looking ahead in 2025, we examine how Ireland is delivering some key infrastructure projects in Project Ireland 2040, which sets out Ireland’s long-term strategy for public capital projects out to 2040. Dealing with Ireland’s infrastructure deficit is also a key part of the new Programme for Government 2025. The Programme provides that:
• A dedicated Infrastructure Division will be included in a renamed Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation
• A Cabinet Committee on Infrastructure, chaired by the Taoiseach (Ireland’s Prime Minister), will be created
• The National Development Finance Agency’s remit will be broadened, so that it can continue to provide expert advice to the public sector on major projects, and
• The National Development Plan is to be reviewed by July 2025. These developments are welcome because to improve the delivery of projects, the relevant State agencies and Government Departments must be resourced in an integrated way to deliver what are often complex projects of national importance.
Ireland is considered by large international infrastructure developers and contractors to have a good pipeline of projects into the future. This is essential as Ireland must demonstrate that it is a good place to do business in order to attract the key industry companies who can provide the capacity to build large scale projects. Infrastructure progress is also being supported by other measures introduced in recent years such as:
• Infrastructure, Climate and Nature Fund Budget 2024 saw the introduction of the Infrastructure, Climate and Nature Fund. An additional €2 billion has been added to the fund as part of Budget 2025. It will operate as a rainy-day fund which can be used for capital expenditure in the event of an economic downturn. Read more about the fund in our previous article
• Infrastructure Guidelines
The Guidelines, from December 2023, replace the Public Spending Code 2019. They aim to improve the speed of the approvals process for infrastructure projects and to ensure that they provide value for money. The Programme for Government aims to review these Guidelines and create a new Public Investment Act in order to put these processes on a statutory footing. Read more about the Infrastructure Guidelines in our previous article
Budget 2025
Budget 2025 has a total capital expenditure of €14.9 billion, which is a €1.63 billion increase from Budget 2024. Some key expenditure measures in it to progress Ireland’s infrastructure objectives include:
• Transport: €3.9 billion is allocated to the Department of Transport in Budget 2025 which comprises €2.9 billion of capital funding and €1 billion of current expenditure
• Housing: €6 billion capital investment in housing for 2025, with €1.25 billion of that sum allocated to the Land Development Agency and €1.65 billion to the Housing Finance Agency. The Programme for Government sets a target to build 300,000 new homes by the end of 2030 and to introduce a new all of Government national housing plan to replace the current plan, “Housing for All”
• Health: The total allocation to healthcare capital expenditure projects is €1.46 billion, with €24.3 billion on current expenditure. The Budget has increased funding regarding health services and hospital infrastructure in Dublin, Cork and Galway. The additional funding includes mental health services, delivery of new elective hospitals, creation of a new maternity hospital, increased hospital capacity, nursing homes, and disability services. The aim of this funding is to reduce waiting times and improve care
• Rural Ireland: €235 million to support the revitalisation of rural Ireland through infrastructure and schemes
• Sustainable infrastructure and greenways: €1 million per day investment in cycling and walking infrastructure as part of Project Ireland 2040’s aim to invest €4 billion in active travel
• Ports: €99 million financing agreement for the Port of Cork to develop infrastructure which can facilitate offshore renewable projects
The publication of the Prospects 2024/2025 report by the Department of Public Expenditure provides updates on 50 of the largest infrastructure projects across a range of sectors including transport, energy, health, housing, water, flood defences and education. These form part of the National Development Plan (2021 to 2030) which sets out the ten year investment package of €165 billion to 2030.
Some significant sectors and projects being progressed include:
The Social Housing Public Private Partnership programme now has seven Bundles. Bundles 1 and 2 provided 1,000 new homes in 2020 and 2021. Bundles 3 to 7 are expected to deliver a further 3,500 new homes. Bundle 3 is at procurement stage with delivery expected from 2026. Bundles 4 to 7 are being designed and progressed with delivery expected from 2027.
Budget 2025 allocated €1.25 billion to the Land Development Agency (LDA). This brings the total funding now available to the LDA to €6.25 billion to deliver thousands of affordable homes. Budget 2025 also allocates €7.8 billion to the Department of Housing for current and capital expenditure. This includes capital funding of €2.157 billion (an increase of €257 million on 2024) to deliver 10,000 new social homes (700 additional from 2024), together with funding for various other schemes.
Cork City Docklands is Ireland’s largest regeneration project across multiple sites with capital expenditure of €500 million to €1 billion. Construction will take place on multiple sites in stages between 2028 and 2037. Over 146 hectares of land will be developed. The land will accommodate a population of over 20,000 residents, with a student population of approximately 3,000 and create more than 25,000 jobs.
There are various public transport projects at different stages of procurement and development including DART+, Bus Connects, the Luas operations and maintenance contract renewal, Light Rail for Cork and Dublin, and Metrolink.
Transport has also been identified as one of four key pillars for the use of the €14 billion Apple fund. In addition, Budget 2025 also provides continued investment into transport.
MetroLink is a €12 billion 19 kilometres railway development for Dublin City with much of it running underground. The project will include three design & build contracts for construction of the tunnels and civil infrastructure. Following that, an availabilitybased Public Private Partnership will be established. This partnership will cover the delivery of station fit out, rolling stock, construction of a depot and operations control buildings, as well as 25-year operations and maintenance obligations. A Railway Order application was submitted in September 2022, and a decision is expected by mid-2025. The project’s construction timeline is planned to span from 2028 into the 2030s. A second public consultation period took place in H2 in 2024. Contractors have already been appointed to progress advance works and ground investigations.
DART+ aims to modernise existing railway services in the greater Dublin area by growing the network from its current 50 kilometres in length to over 150 kilometres. The project is expected to cost approximately €3 billion. The first new lines and extensions are planned to be operational from the early 2030s with construction starting from 2026.
BusConnects is a multi-billion euro project designed to improve existing bus routes nationwide by increasing sustainable transport corridors in Cork, Dublin, Limerick, Galway and Waterford. The roll out will start from 2025, with completion planned for all cities in the 2030s.
Housing
Public Transport
The N/M20 Cork to Limerick road project will deliver 80 kilometres of new and improved dual carriageway between Cork City and Limerick, with an estimated capital expenditure of €2 billion. The project is expected to reduce intercity travel times by 30 minutes. A planning application is intended to be made in 2025 with a view to construction taking place between 2028 and 2032.
The proposed M28 Project includes 10.9 kilometres of motorway from the N40 Bloomfield Interchange to Barnahely and a 1.5 kilometres single carriageway from Barnahely to the Port of Cork in Ringaskiddy. It aims to increase capacity and improve connectivity between Cork City, the surrounding areas and international markets. The estimated capital expenditure is €200 to €500 million. Subject to Cabinet approval, this project will commence in 2025 and will have a 36-month construction programme.
The N21/N69 Limerick road project has a capital expenditure of €200 to €500 million. The project includes a 7 kilometres Adare motorway bypass element which may proceed as a standalone project, to be completed in time for the Ryder Cup golf tournament in 2027. It will form part of a future 17.5 kilometres motorway to be constructed between Rathkeale and the N20 near Patrickswell. This scheme, from Rathkeale to Foynes, will also include a 16 kilometres dual carriageway and may be constructed in parallel with a view to being completed after 2027.
The procurement process for the main construction works of the 244-bed hospital began in September 2023. This hospital will replace the National Maternity Hospital at Holles Street, Dublin. It has an estimated capital expenditure of €500 million to €1 billion and will utilise an amended version of the PW-CF1 contract (for Building Works Designed by the Employer). Enabling works commenced in September 2023 and are planned to be finished in the first half of 2025, with the hospital aimed to be completed by 2029.
This project will provide specialised paediatric care. It comprises the main hospital at the St James’s campus and the already fully operational outpatient and urgent care centres at Tallaght and Connolly hospitals. Work on the St James’s site is 90% complete and is at snagging phase. A current focus is the internal fitout and completion of rooms, with the installation of medical equipment well advanced. Construction is intended to be completed in 2025 and the total approved capital and current budget for the project is over €2.2 billion.
The Family Courts project at Hammond Lane, Dublin will improve the existing facilities and will be procured by Public Private Partnership. It was granted planning permission in April 2024. Construction is expected to commence in 2026 and be completed in 2028. The next phase of the procurement process will involve short-listing a number of suitably qualified bidders to advance to the bidding stage.
National Maternity Hospital, Elm Park, Dublin
National Children’s Hospital
Hospitals
Family Courthouse, Hammond Lane, Dublin
Court Infrastructure
Cork and Dublin ports will receive multi-million euro grants for sustainable, safe and smart transport infrastructure through the Connecting Europe Facility (CEF). The CEF is the EU’s programme for strategic investment in infrastructure. Dublin Port Company’s MP2 Project was awarded €73.8 million by the CEF. The project includes the construction of two inter-dependent berths, totalling 572 metres for roll-on, roll-off cargo at the eastern end of the North Port. These berths are expected to be operational by the early 2030s. This will provide additional capacity for almost a third of the projected increase in traffic at Dublin Port up to 2040.
Port of Cork will receive €38.4 million from the CEF for phase 2 of the Ringaskiddy Port Redevelopment to build extensions to a container berth at Ringaskiddy West and a deepwater berth at Ringaskiddy East. This follows a €94 million container terminal that was opened in Ringaskiddy in September 2022.
As part of Project Ireland 2040, approximately €150 million is to be allocated to the Lower Lee (Cork City) flood relief scheme which will provide protection to 2,100 Cork City centre properties. Construction is to take place between 2026 and 2030. Approximately €1.3 billion nationally is to be allocated to flood relief up to 2030.
Ports
OUR INFRASTRUCTURE TEAM
DAVID GUNN
Partner, Construction, Infrastructure & Utilities dgunn@mhc.ie
FIONA KEARNSSTAFFORD
Associate, Construction, Infrastructure & Utilities fkearns@mhc.ie
HENRY MORLEYHALL
Associate, Construction, Infrastructure & Utilities hmorleyhall@mhc.ie
PAULA SALES
Associate, Construction, Infrastructure & Utilities psales@mhc.ie
EOIN CASSIDY
Partner, Construction, Infrastructure & Utilities ecassidy@mhc.ie
DEIRDRE HOSFORD
Senior Associate, Construction, Infrastructure & Utilities dhosford@mhc.ie
CONOR IRVINE
Associate, Construction, Infrastructure & Utilities cirvine@mhc.ie
RORY KIRRANE SC
Head of Construction, Infrastructure & Utilities rkirrane@mhc.ie
ROBERT ROONEY
Partner, Construction, Infrastructure & Utilities rrooney@mhc.ie
KAROL FOX Partner, Financial Services kfox@mhc.ie
VANESSA BYRNE Partner,
Co-Head Real Estate vbyrne@mhc.ie
DORIT MCCANN
Partner, Head of Public Procurement dmccann@mhc.ie
ALAN BURNS Partner, Financial Services aburns@mhc.ie
STEPHEN COWHEY Partner, Real Estate scowhey@mhc.ie
HANNAH DEVOY
Partner, Construction, Infrastructure & Utilities hdevoy@mhc.ie
CONOR LYNCH Partner, Financial Services clynch@mhc.ie
ÁINE QUIGLEY
Partner, Real Estate aquigley@mhc.ie
RUAIDHRI GROOM
Associate, Construction, Infrastructure & Utilities rgroom@mhc.ie
RUAIRI MCDERMOTT
Senior Associate, Public Procurement & Commercial rmcdermott@mhc.ie
DENIS FLYNN
Associate, Public Procurement & Commercial dflynn@mhc.ie