Dáil Éireann Debate, Tuesday - 23 April 2024
91. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the impact construction inflation has had on the cost of delivering flood protection projects; and if he will make a statement on the matter. [17728/24]
Amharc ar fhreagraThe Government has committed €1.3 billion to the delivery of flood relief schemes over the lifetime of the National Development Plan 2021 – 2030 to protect approximately 23,000 properties in communities that are under threat from river and coastal flood risk. Since 2018, as part of a phased approach to scheme delivery, this funding has allowed the OPW, in partnership with local authorities throughout the country, to treble the number of schemes at design, planning and construction to some 100 schemes at this time. Investment of some €350m has taken place since 2018 on flood relief scheme measures.
Nationally, 55 schemes have been completed to date which are providing protection to over 13,000 properties and an economic benefit to the State in damage and losses avoided estimated to be in the region of €2 billion. Consequently, work to protect 80% of all at-risk properties nationally is completed or underway.
It is anticipated that a strong pipeline of future schemes will increase the number of schemes reaching construction by the middle of the decade, thereby notably increasing the programme expenditure from 2025 to 2030. The wide range of uncertainties associated with progressing projects of this nature in the current environment, coupled with significant uncertainty around supply-chain and inflationary pressures in the market must be noted.
Six of the seven flood relief schemes currently under construction are being carried out by the OPW Direct Works labour force and some inflationary impact is being felt across energy, material and labour for these projects. In some cases, there is an impact on the supply chain, which can then impact on the programme and costs for flood relief schemes.
The only scheme that is currently at construction that is being delivered by a private contractor is the Glashaboy Flood Relief Scheme. Inflation directly impacted the appointment of the contractor for this project. Cork City Council, as lead authority for the project, was not in a position to appoint a Contractor for the scheme due to the inflationary market that arose following the original tender process in 2022. In April 2023, Cork City Council, following a second tender process, awarded the civil works contract to Sorensen Civil Engineering and works commenced on site in July 2023. The construction costs in 2023 were significantly higher than those anticipated in 2022 largely due to construction inflation.
Overall, the impact of construction inflation experienced on flood relief schemes is in line with the construction sector generally.
