Ireland is embarking on its most ambitious infrastructure programme with the €200bn National Development Plan (NDP), unveiled in July 2025.

The funding identifi ed provides the opportunity to address Ireland’s infrastructure deficit and improve lives through funding for housing, water, energy, and health projects.

KPMG’s Paul O’Neill and Matthew King analyse this ambitious plan and caution that without swift and decisive action, this plan may falter due to potential delays and delivery challenges.

BALANCING AMBITION WITH EXECUTION

“Ireland is at a crossroads,” said Paul O’Neill, Head of Strategic & Commercial Infrastructure Advisory at KPMG.

“The ambition of the plan is welcome — but ambition must now be matched by execution. Without faster progress, we risk missing critical opportunities for housing, transport, energy, and digital development.”

Matthew King, Head of Asset Management & Major Projects Advisory at KPMG, added: “The planning system remains a major bottleneck and the capacity of the construction sector is also under pressure.

“It is important that all efforts are made to prioritise delivery so that the sector doesn’t lose faith in the plan.”

STRATEGIC PRIORITIES: HOUSING, WATER, ENERGY, AND TRANSPORT

Housing delivery is a central objective of the NDP review, with the delivery of 300,000 new homes targeted by 2030 and it is supported by investment in water, energy and transport infrastructure.

€28.3bn has been allocated specifically to housing, with a further €7.7bn for water services. Uisce Éireann will receive €2bn in equity funding in 2025 to enable the delivery of 300,000 additional homes to 2030 and a further €2.5bn for large scale projects over the same period.

Energy and transport infrastructure are also key pillars of the NDP — €3.5bn in equity funding will be provided to ESB and EirGrid to expand electricity grid capacity, targeting support for both housing and for economic growth.

The MetroLink project, connecting Swords and Dublin Airport to Dublin city centre, has been allocated €2bn through the Infrastructure, Climate and Nature Fund.

While the project remains subject to planning, it now has a defi ned funding pathway and is positioned as a national priority.

STRATEGIC REBALANCING IN DEPARTMENTAL ALLOCATIONS

The NDP review sets out €102.4bn in Exchequer capital allocations for the period 2026–2030, a 30 per cent increase on the previous allocation for the same period.

This uplift reflects the scale of Ireland’s infrastructure needs, and the Government’s commitment to delivery.

The Department of Housing, Local Government and Heritage receives the largest exchequer capital allocation at €35.96bn, of which €28.3bn allocated to housing delivery and €7.68bn to water infrastructure.

This is followed by significant allocations to transport, health and education, reinforcing the focus on enabling infrastructure that supports population growth and economic resilience. 

NAVIGATING RISKS AND REALITIES

Critical risks that must be carefully navigated to ensure we deliver infrastructure effectively and efficiently include:

■ Planning and regulatory bottlenecks: While e‑ orts to streamline planning are ongoing, delays for strategic infrastructure, including in housing, energy and transport, still pose a major risk to timely delivery and the achievement of policy.

■ Labour and skills shortages: The construction sector continues to face capacity pressures, exacerbated by international competition for skilled labour and specialist expertise. The NDP Review highlights the need for targeted workforce development and greater use of innovative construction methods such as modern methods of construction.

■ Climate and sustainability: While climate alignment is a core objective of the NDP, the Review highlights the need for stronger cross-sectoral integration of climate goals, particularly in transport, housing, and energy. 

WHAT THIS MEANS FOR THE ECONOMY

The revised NDP represents a strategic response to global uncertainty, with the Government positioning infrastructure as a bu‑ er against external economic shocks.

The Government also intends to realise the transformative potential the revised NDP holds for the built environment.

This in turn signals a decade of opportunity and value creation for the private sector, whether local or international — from engineering and construction to advisory, financing, and operation/management.

HOW KPMG CAN HELP KPMG

Ireland works with public and private sector clients across the infrastructure lifecycle — from strategy and funding to procurement, governance, and delivery. To learn more visit kpmg.ie/infrastructure

Photo: Paul O’Neill, Head of Strategic & Commercial Infrastructure Advisory at KPMG.