The current position regarding the funding of the railways in Ireland is that the bulk of funding is provided to Iarnród Eireann for the maintenance and renewal of the heavy rail network. Analysis has shown that the Exchequer contribution for the heavy rail network per annum is considerably below the amount required to maintain the existing network.
In an environment where funding remains constrained, it is not envisaged that any rail link between Letterkenny, County Donegal and Derry City will be contemplated in the near future.