Local authorities to share €50m for infrastructure

Local authorities have until tomorrow to apply for millions of euro in Government funding for major transport, water and sewage schemes to facilitate housing development on private lands .

Minister for Public Expenditure Paschal Donohoe, in his budget speech, announced the first €50 million of the €200 million Local Infrastructure Housing Activation Fund would be allocated in 2017. The fund was part of the Rebuilding Ireland action plan published last July.

Most of the money is expected to be spent in Dublin where the greatest demand and potential for large-scale housing lies.

Minister for Housing Simon Coveney said the money would be used to provide infrastructure to serve sites that could accommodate at least 300, but up to 3,000 homes. He said he expected the first €50 million would result in the construction of 15,000-20,000 homes by private developers.

The funding is aimed at installing off-site infrastructure such as access roads, as well as utilities diversion including bringing gas, electricity and sewage service, to sites.

Large-scale development

Dublin City Council

has identified more than €80 million in infrastructure needed to make key privately-owned sites ready for large-scale housing development,

Six areas in the city have been identified as having the potential to provide a combined total of almost 10,000 homes.

The areas require funding ranging from €4 million to €25 million per site to make the construction of housing an option for private developers, many of whom are National Asset Management Agency (Nama) debtors.

Two areas need €25 million each to make their lands housing-ready – the Poolbeg peninsula at Dublin city’s southeast end and, slightly closer to the city, the docklands area. The Government earlier this year approved plans for 3,000 homes on the former Irish Glass Bottle site and surrounding lands on the peninsula, using fast-track planning.

Docklands bridge

Mr Coveney has indicated that a new €25 million-€30 million bridge, to link the docklands with Poolbeg, is likely to come within the first tranche of the fund. Other sites include Clongriffin at the north fringe of the city where €10 million is needed for roads to service land which would accommodate 1,000 homes in mostly Nama-funded developments.

At Cherry Orchard, to the west of Ballyfermot, the council estimates that spending €9 million on water infrastructure would allow 2,000 homes to be built.

The former Player Wills cigarette factory site on the South Circular Road in Dublin 8 came under the control of Nama this year. It could, the council said, accommodate 500 homes if a range of utility services costing about €8 million were installed.

At the Pelletstown site, between Ashtown and Cabra, €4 million for a new rail station would allow for the development of almost 700 homes.