Transforming Ireland’s Infrastructure - National Development Plan Review 2025

To The Point
(5 min read)

Few will have missed the flurry of media coverage, articles and LinkedIn posts last week in respect of the National Development Plan Review 2025 (NDP Review). The proposed €270+ billion investment to tackle Ireland’s infrastructure deficit is very welcome news, however elements of the NDP Review raise questions around the State’s ability to overcome significant barriers that may impede delivery. 

Having fully digested the NDP Review, our Construction & Infrastructure Team outline what we consider to be potential impediments that may require further consideration in order to deliver on the State’s ambition

 

Key Takeaways from the NDP Review 

Whilst well publicised at this stage, the following are the key takeaways from the NDP Review: 

1. Overall Investment: a transformative €275.4 billion investment programme spanning 2026–2035. With an initial €102 billion earmarked for capital investment by 2030, the NDP represents a significant commitment to addressing Ireland’s infrastructure deficit.

2. Sectoral Allocations: The €102 billion capital investment by 2030 is allocated across critical sectors, with housing and transport receiving the lion’s share:

a) Housing: €36 billion

b) Transport: €22 billion

c) Health: €9.25 billion

d) Education: €7.55 billion

e) Climate, Energy, and Environment: €5.64 billion

f) Rural and Community Development: €1.33 billion

*A full breakdown of how funds are being allocated is set out in the table at the bottom of this article.

3. Housing and Water Infrastructure: A central objective of the NDP is the delivery of 300,000 new homes by 2030, supported by a €35.96 billion allocation to the Department of Housing, Local Government and Heritage. Of this, €7.68 billion is targeted at upgrading water infrastructure, a critical enabler for housing development.  Addressing water infrastructure deficits is essential to ensure new homes have reliable connections, which is a current obstacle delaying delivery of housing.

4. Transport and Low-Carbon Projects: €22.33 billion is allocated to transport, including €2 billion specifically for low-carbon transportation projects such as MetroLink, funded through the Infrastructure, Climate and Nature Fund (ICNF). 

5. Investment in Utilities: €10 billion in equity funding is earmarked for critical projects, including €3.5 billion for energy grid upgrades (ESB and EirGrid) and €4.5 billion for Uisce Éireann to enhance water infrastructure.

6. Education: €7.55 billion has been allocated to the Department of Education to deliver schools that meet the demands of Ireland’s growing population. This investment is critical to ensuring the country’s education infrastructure keeps pace with demographic changes.

7. Infrastructure Reforms: A new Infrastructure Division has been established to examine means by which delivery of key infrastructure can be accelerated with a particular focus on electricity, water and transport projects to allow for the delivery of the 300,000 new homes. A taskforce called the ‘Accelerating Infrastructure Taskforce’ has also been set up. It will be tasked with producing a report on barriers to infrastructure delivery and the high impact reform measures that are required. There is no indication as of yet what these might be or how realistic having these measures implemented quickly and effectively will be.

Potential Impediments on delivery:

Having considered the contents of the NDP Review, we feel there are some areas where the State could have been clearer on its ambition and sought to address some of the obvious impediments to delivery. We discuss some of these areas below: 

Target Projects & Timelines
Market Perception
Stifled Investment
Labour
Planning Bottlenecks
EIA Exemptions
Procurement Challenges

Conclusion 

The NDP 2025 is an ambitious plan with the potential to transform Ireland’s infrastructure landscape. However, its success will depend on the Government’s ability to streamline planning, procurement, and delivery processes while addressing legal and administrative challenges.

At Addleshaw Goddard, we are closely monitoring developments in the NDP and the proposed reforms. Our team is ready to assist clients in navigating the opportunities and challenges presented by this unprecedented investment programme. 

Key Contacts

Partner, Construction & Engineering
Ireland

Partner, Head of Energy & Infrastructure (Ireland)
Dublin, Ireland

Partner, Global Infrastructure and Head of Transport
United Kingdom

Partner, Infrastructure, Projects & Energy
Manchester

Managing Associate, Energy & Infrastructure
Ireland

Managing Associate, Construction & Engineering
Ireland

To the Point 


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