LAST UPDATE | 22 Jul

THE GOVERNMENT HAS announced funding proposals for the latest National Development Plan (NDP) this afternoon. 

The announcement was made at Government Buildings by Taoiseach Micheál Martin, Tánaiste Simon Harris and independent TD Seán Canney.

The NDP is the government’s long-term plan for what large-scale infrastructure projects will be needed in Ireland over the next five to ten years. This iteration covers the period up to 2035 and sets out a total investment of €275.4 billion. 

Every few years, the development plans are re-worked and reviewed by governments to ensure there are plans in place to meet things like housing needs to account for Ireland’s growing population. The plans also cover demands on public transport and roads and whether people have adequate health services now and into the future. 

The plans are often ambitious and sometimes described as ‘wish lists’ by ministers.

However, under the current government, ministers were instructed to submit projects that could be delivered in the short- to medium-term, rather than ideas that might never see the light of day (as has been the case in the past).

There are also concerns that Ireland is playing catch-up with the rest of Europe when it comes to infrastructure, which is why a key focus in this NDP is housing, along with water infrastructure and Ireland’s energy sector.

So, what’s in it? 

Housing 

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• The government plans to invest €35.955 billion in housing from 2026 to 2030.
• €28.275 billion of this has been assigned to housing itself and €7.680 billion to water infrastructure.
• Describing housing as the “most critical priority” for the Government, the Taoiseach outlined a target of 300,000 new homes. 
• The 300,000 includes privately developed homes and the figure reaffirms the target contained in the Programme for Government. 
• Of those new homes the Government has set a target of delivering an average of 12,000 new build social housing units every year.

Water 

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• Including funding from outside today’s NDP allocation, a total of €12 billion has been released and earmarked specifically for critical water infrastructure investment.
• Martin said that increased investment in water facilities is “critical” to meeting demand for more infrastructure.
• “This is critical to meet the heightened pace of demand for infrastructure due to increased economic growth and will support new house building industrial development and regional growth,” Martin said.
• The government’s ability to meet its housing targets has been called into doubt by economists who have raised concerns about the state’s ability to provide the infrastructure needed to serve housing developments, most notably water.

Transport (roads, public transport) 

The proposed Metrolink project. Metrolink.ie Metrolink.ie

• The government plans to invest €24.33 billion in transport between 2026 and 2030.
• This includes €2 billion from the Infrastructure, Climate and Nature Fund (ICNF) that is being allocated to “low-carbon transportation” projects – in particular, the MetroLink underground line for Dublin.
• The MetroLink would see an underground rail line running between the north and south of Co Dublin, with stops in the suburbs, the city centre and at Dublin Airport. An underground rail line for Dublin was first proposed in a government plan in 2005 but was shelved for several years during the recession. It’s now expected that construction may not begin until at least 2028. 
• Taoiseach Micheál Martin said the total investment will go to “extending public transport, improving road networks and road safety, promoting electrification and supporting active travel and greenways”.

Health

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• The health service is to receive €9.25 bn in infrastructure investment under the new National Development plan from 2026 through to 2030.
• In 2021 just €5.7 bn was committed to spending on healthcare infrastructure for 2021-2025.
• The Government said that this “substantially enhanced” provision will support the delivery of “equitable” health services around the country.
• Minister for Health Jennifer Carroll MacNeill has sought funding for further work on the introduction of an electronic health record and other digitalisation projects, which was also a key focus for the last NDP.

Related Reads

Roads, houses and water: Ireland's biggest ever infrastructure plan to be announced today

Climate and energy 

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• Exchequer funding of €5.6 billion has been earmarked for infrastructure spending by the Department of Environment, Climate and Communications.
• The government is increasing its equity shareholdings in ESB and EirGrid to the value of €2 billion and €1.5 billion with a view to enabling the companies to “significantly increase capital investment to expand electricity transmission and  distribution network infrastructure”.
• “Even though there are many countries internationally who are pushing to move in the opposite direction, we believe that the climate crisis is acute and addressing it must remain a priority,” the Taoiseach said.
• Martin said expanded investment in energy infrastructure and diversifying sources of energy are “critical to our national security and to realising the enormous potential AI to future economic development”.
• Increased investment in energy infrastructure is also an important part of the government’s plans to address the housing crisis, Martin said.

Defence

• Increased defence spending continues with €1.7 billion for Defence Capital Expenditure over the next 5 years. This works out at €340m  per year which is an increase of €125m per year on 2025 figures.
• A huge procurement strategy is underway at present with sources in the defence sector stating that the most pressing need is in the primary radar and armoured vehicles purchasing project.
• There is no mention of the previous NDP project of a Multi-role Vessel into today’s document.
• The allocation works out over the period 2026-2030 at €1,700 million, an increase of €600 million (55%) on the previous baseline of €1,100 million.

Traditionally, the NDP comes with a long list of projects that the government plans to roll out, but this year, the Taoiseach said he didn’t want to take that approach.

He said ministers will now draw up a list of projects within their departments to prioritise and announcements will be made “closer to the budget”. 

Reporting by Christina Finn, Daragh Brophy, Lauren Boland, Eoghan Dalton, David MacRedmond, Eimer McAuley and Niall O’Connor.