Irish officials have welcomed new proposals for an expansion of infrastructure projects in Europe which, they say, could have significant funding benefits for Ireland in the areas of broadband and energy supply.
The proposals, presented by the European Commission this morning, could see €50 billion being spent over the next decade under the Connecting Europe Facility (CEF).
The Commission wants to fast-track spending on infrastructure and to attract more private investors through the use of so-called Project Bonds.
As well as funding for broadband, areas under consideration from an Irish point of view could include the Northern seas offshore grid as well as so-called smart grids which could facilitate the development of wind and wave energy off Ireland's coasts.
Funding could also become available for rail links between Belfast and Dublin, and ferry links between Dublin and Holyhead.
The CEF envisages a blend of funding from the European Commission, co-financed cohesion funding - whereby national governments contribute matching funds - and the use of Project Bonds.
The Project Bonds initiative is to help infrastructure projects to attract long-term private investment through the European Investment Bank.
At a news conference this morning, Commission president Jose Manuel Barroso said an initial €213m could be leveraged through the issue of Project Bonds to generate up to €4.6 billion that could be spent in the short-term on infrastructure projects.
Ireland must make up 80% of transport funding
A spokesman for the Department of Transport said the European Commission's proposals would be looked at carefully.
In the transport provisions of the CEF initiative, funding from Europe would require 80% matching funds from the Government, he said, adding that the plan should not be regarded as a new source of funding.
"The implications for Ireland's transport infrastructure will need to be examined carefully, particularly the specifications for the road and rail network and our capacity to deliver in the current economic climate," he said.
The spokesman added that Ireland would aim to maximise any available funding for transport projects in Ireland which meet the requirements of the CEF once it has been finalised and adopted, which is likely to take place in 2013.
