Ireland accused of being slow to tap €315bn EU infrastructure fund

Governments all over the EU have sought funding from the European Investment Bank for infrastructure and job creation projects — but Ireland has been accused of being slow to tap the pot of money.

While the country was one of the first to apply for and be approved for three projects — health centres, Irish Water, and renewable energy — other countries have been more active in seeking a share of the €315bn fund, said Ireland South MEP Deirdre Clune (FG).

“The bigger member states such as Spain, Germany, France, and Poland will be well-prepared for this and will already have forward-looking plans in place to maximise their gains from the plan,” she said.

“I would like to see a stronger commitment from Government that it will set out detailed plans which target ambitious results.”

When the fund, backed by a guarantee from the European Commission, was first outlined, Ireland submitted a wishlist in 2014 of more than 70 projects worth over €23bn that could avail of the fund. About half of them could be under way within two years, the Government said at the time.

The first project to get approval for €70m from the European Investment Bank was the Department of Health’s bid to build 14 primary care centres across the country on a public-private partnership basis.

Two other projects — €200m for investment in Irish Water, and approval for a private Irish infrastructure fund targeting renewable energy projects — have also been approved by the bank.

A bank spokesperson said all three are expected to be supported by the commission’s guarantee on the European Fund for Strategic Investments once financing is finalised and contracts signed.

The fund aims to help kickstart projects finding it difficult to raise the money after the economic crisis when investment in the EU fell by €430bn. So far 20% of the fund has been paid out to help 145 projects in 22 of the EU’s 28 countries.

Ms Clune said she believes Ireland could put forward a lot more projects for funding, especially in areas that are identified as needing greater investment, including for small businesses.

The European Investment Bank is today expected to approve a €30m loan for the Port of Cork to extend the deepwater port in Ringaskiddy. The €88m development will allow the relocation of operations from the upper harbour to Ringaskiddy.

Last year the European Investment Bank, which was set up by the EU states, loaned €755m, bringing the total to €3.35bn in the last five years, half of which has gone to energy, transport, and telecoms, and 27% for loans to SMEs.