Much of the funding is expected to come from the State’s sale of shares in AIB Bank. The major cash injection is aimed at addressing critical infrastructure needs, with a strong focus on affordable housing, as well as upgrades to water and energy services.
A large portion of the funding is likely to be allocated toward increasing the supply of affordable housing. With the housing crisis intensifying and more people struggling to find affordable homes, this investment is intended to fast-track housing development and alleviate some of the pressure on the market.
In addition to housing, Ireland’s water infrastructure has come under growing criticism, with calls for more funding to modernize both urban and rural systems. The current water supply network, strained by aging infrastructure and increased demand, is in urgent need of upgrades to ensure a safe and reliable supply across the country.
Energy infrastructure will also benefit from the €3 billion package, as Ireland faces the ongoing challenge of transitioning to renewable energy sources. Improving the energy grid and ensuring a stable power supply will be essential for meeting the country’s climate targets and responding to future energy needs.
The infrastructure spending is expected to have a broad impact, generating employment opportunities and driving investments across multiple sectors. Beyond short-term benefits, the package will help strengthen Ireland’s economic foundation, advance climate objectives, and enhance the quality of essential services for its citizens.