Capital Expenditure Programme

Tuesday, 13 January 2026

Questions (646)

Roderic O'Gorman

Question:

646. Deputy Roderic O'Gorman asked the Minister for Transport the current rate of construction inflation that his Department uses to model capital costs; if his Department has forecasts for construction inflation in the years 2026 to 2030; and if he will make a statement on the matter. [1056/26]

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Written answers

Minister for Transport

Transport projects are appraised in line with my Department’s Transport Appraisal Framework (TAF). The TAF sets out the appraisal requirements expected of Approving Authorities and Sponsoring Agencies for all projects submitted to the Department for approval. The TAF notes that all inflation calculations should be based on official sources. It also states that the methodology and assumptions underpinning any calculations should be noted.

Across the three main programme areas – active travel, public transport and roads – the approach toward construction inflation is as follows –

Active Travel / Public Transport

All projects are required to use the National Transport Authority’s Inflation Bulletin (please see latest edition here: 2025 NTA Inflation Bulletin - National Transport). The Bulletin is the outcome of a forward-looking exercise undertaken by the NTA to provide Sponsoring Agencies with insights to inform inflation assumptions as part of cost estimation for projects and programmes where the NTA is the Approving Authority. The bulletin is updated annually or more frequently if warranted by changes in macroeconomic conditions.

Roads

All projects are required to use Transport Infrastructure Ireland’s ‘Cost Price Inflation’ methodology . There are three different categories used for projects - Highways (Rural), Highways (Urban) & Civil Engineering – with predicted inflation rates provided on the basis of upper, lower and base rates.