TII to outline 'significant and systemic' threats to major road projects

Transport Infrastructure Ireland will say two road projects are already set to be significantly delayed. File photo: Gerry Faughnan

The delivery of projects intended to significantly upgrade Ireland’s roads face “significant and systemic threats”, TDs and Senators will be told on Wednesday.

Transport Infrastructure Ireland will say two road projects are already set to be significantly delayed and, without action and reform, the aims of the National Development Plan could fall short.

Its chief executive Peter Walsh will tell the Oireachtas Joint Committee on Transport that there are clear signs that the current Public Works contract, particularly in the wake of recent inflation and the Russian invasion of Ukraine, is “having a detrimental impact on the market’s appetite and ability to delivery [sic]”.

The N5 Ballaghaderreen to Scramoge in Roscommon had been contracted out to a company that went into receivership on March 11 and construction has now stopped.

TII and Roscommon County Council are “considering the commercial and legal options available to secure delivery” of the road project, according to Mr Walsh. It will face delays nonetheless.

In the case of the landmark Galway Ring Road project, there is currently a stay on progressing the project pending the outcome of three judicial review proceedings.

“In TII’s experience, judicial reviews cause very lengthy delays to project delivery,” Mr Walsh will say. “Accordingly, it seems likely, at this stage, that delivery of the Ring Road will be significantly delayed.” 

In a briefing note, TII also provides details on the status of all major and minor road projects in the country. On the Dunkettle Interchange, it says that construction works are approximately 35-40% complete.

On the N28 Cork/Ringaskiddy road, planning has been approved and the project should be in a position to start construction in 2024 or earlier.

The TII will tell the Oireachtas Committee that the delays to the Roscommon and Galway road projects point to the need for dedicated action to support the delivery of the National Development Plan.

Among TII's suggestions are more resources for the planning and regulatory processes, along with a reform of the lump sum, fixed-price Public Works contracts.

“Due to price escalation of fuel, materials and labour experienced in 2021 and since the beginning of the war in Ukraine there are significant financial pressures being placed on contractors in relation to projects being funded by TII,” Mr Walsh will say.

He will add that there is a huge amount of volatility in building material prices currently and that some form of indexation would allow for changes in raw material prices with an equitable outcome for the State and the contractor.