Dublin: Ireland has been taken aback by the unexpectedly high costs of modular homes built to accommodate Ukrainian refugees, with final expenses far exceeding initial estimates provided by the Office of Public Works (OPW). The cost per home nearly doubled, rising to €436,000, compared to the original estimate of €200,000. This revelation comes on the heels of reports of private hotels and resorts charging exorbitant rates for refugee accommodations, and now irregularities in the government’s own housing plan have surfaced.
Initially, the modular housing project, launched under the “Proof of Concept” programme, aimed to build 500 homes at an estimated cost of €200,000 per unit. However, the actual cost increased by 120%, resulting in a total expenditure of €285 million. The Comptroller and Auditor General’s report has questioned these inflated prices, which were intended to address the urgent refugee housing crisis.
The project was seen as a wartime solution to house 2,640 Ukrainian refugees in modular units, but the high costs come at a time when thousands of people in Ireland remain homeless.
Delays and Compliance Violations
The audit report also highlighted significant delays in construction and non-compliance with public spending rules. Dozens of modular units were left in storage due to site availability issues, costing an additional €620,000. Delays were further compounded by the abandonment of two sites and the discovery of a large collection of artefacts during construction at another. Although the project was initially scheduled for completion within eight months, most houses are still unfinished. To date, 572 homes have been completed, with 82 units still pending.
Contract Awarded Without Tender
In an effort to expedite the project, the OPW awarded the construction contracts through negotiation, bypassing the traditional tendering process. The modular homes, designed in collaboration with the Construction Industry Federation, are expected to have a lifespan of 60 years.
Public Spending Code Ignored
In November 2022, €100 million was allocated for the modular units, with strict conditions to comply fully with the Public Spending Code. An additional annual contribution of €1.25 million was earmarked for their maintenance starting in 2023. However, the project lacked the necessary Department of Integration Strategic Assessment Report and business case report, which are required for projects exceeding €100 million. Moreover, no independent external assessment was conducted.
The Department of Integration has defended its actions, asserting that the Public Spending Code was followed and that various challenges had to be addressed to meet the tight deadlines. They also attributed delays to uncertainty over site availability and disruptions caused by public protests at the Heywood, Clonmel site.
The modular homes were constructed on sites owned by the OPW, county councils, the Department of Agriculture, and the HSE, with locations in Cork, Cavan, Sligo, and Tipperary. Despite the setbacks, construction is now projected to be completed by April 2025.
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