Dublin's MetroLink set to cost billions more than estimated due to construction inflation

A digital version of Tara Street Station looking north from Townsend Street under the proposed Dublin MetroLink project. Picture: Julien Behal Photography

The cost of delivering Dublin's MetroLink is likely to have risen by billions of euros compared to previous estimates in 2022 as inflation bites into construction costs.

Public expenditure minister Jack Chambers said costs were being finalised and would go to Government for pre-tendering approval in the autumn, as he acknowledged inflation had increased the MetroLink bill.

“It is likely to be a higher cost than what was published in around 2021 and 2022 when you take inflation alone, but Government will have to take an informed position on that in the autumn,” Mr Chambers said.

“We'll get a finalised business case in the early autumn, likely in September, and it's at that point that we'll be able to set out the potential cost implications for it.”

The largest capital investment in Irish history will see an underground service running from Charlemont to Swords via Dublin Airport, but the 18.8km project has been beset by delays, complaints, and judicial reviews.

While Mr Chambers did not speculate on the level of increase, indications from Government are that the project will likely be billions of euros in excess of what had previously been forecast.

However, one Government source said no formal updated costs had been provided from the Major Projects Advisory Group.

They added there would likely be multiple cost scenarios outlined to Government, rather than a single price tag for the major transport infrastructure project.

Transport minister Darragh O’Brien said in 2025 the estimated costs of delivering MetroLink could be “anything in the region from €14bn to €21bn”, and he wanted to see the project start construction before the end of the Government’s term.

Mr Chambers said on Monday MetroLink funding had been set out on a multi-annual basis as part of the medium-term fiscal and structural plan, pushing back on suggestions the high cost of the metro could stymie other transport projects.

“The plan by Government was not to disrupt wider transport infrastructure by any decision made around MetroLink,” Mr Chambers said.

Possible budget measures

Mr Chambers also outlined possible budget measures, saying the tax package would be “very modest”.

Asked about the prospect of raising levies like the sugar tax or betting duty, as suggested by the Tax Strategy Papers, Mr Chambers said the Government would “always consider other options around revenue-raising measures”.

However, he acknowledged the money raised would be “marginal” compared to possible income tax cuts, which have been well flagged by ministers.

Mr Chambers added the Government wanted to look at measures to “improve the enterprise proposition” for Ireland, citing both foreign direct investment and SMEs as possible beneficiaries.

He also highlighted inheritance tax reform, saying it had “fallen out of kilter with the significant rise in property prices”.

Mr Chambers was speaking as he officially opened the Magazine Fort in the Phoenix Park to the public, following major restoration efforts by the Office of Public Works over the last two years.

The site, which was previously derelict and not open to the public, is steeped in history, having been subject to a raid ahead of the 1916 Rising. A second raid, carried out by the Irish Republican Army, took place in 1939, with weapons and a million rounds of ammunition being stolen.