Government increases risk appetite to accelerate delivery of critical infrastructure projects

TII welcomes the Government's new Risk Appetite Statement which marks a significant shift in policy relating to risk-management for critical public investment projects. It establishes, for the first time, a clear framework setting out the level and type of risk the Government is prepared to accept in order to deliver critical infrastructure more quickly.

Minister Jack Chambers, speaking at an Infrastructure conference today, highlighted changes approved by government to increase risk appetite for critical infrastructure projects.  The Risk Appetite Statement confirms that the Government is prepared to take greater, well-managed risks to accelerate delivery timelines and improve outcomes for people in Ireland.

Key elements include:

  • Greater openness to financial and delivery risks;
  • Strong support for innovation; and
  • A pragmatic approach to litigation and environmental risks.

In specific terms, this means that Government is open to risks that will allow for the acceleration of delivery timelines, such as:

  • Higher upfront costs to facilitate design and site selection work to allow for the preparation of planning documentation, prior to approval-in-principal;
  • Investment in detailed procurement documentation in advance of planning or licencing consents;
  • Land purchase or preliminary works in advance of full approval certainty on the main construction works; and
  • Forward purchasing of critical materials in advance of full approval certainty.

Proceeding with decisions in the knowledge of some challenges that could arise through litigation or environmental grounds will be encouraged, and further reforms to legislation or regulations can be targeted to lessen these risks for delivery agencies and regulators.

Departments, agencies and regulators in the key sectors including transport have now been tasked with producing aligned sectoral risk appetite statements (RAS) and each designated project under the Critical Infrastructure Act 2026 is required to have a project-level RAS soon after designation.