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NW Strategic Growth Plan

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NORTH WEST

STRATEGIC

GROWTH PLAN

JUNE 2026


2


CONTENTS

PAGE

FOREWORD

4

EXECUTIVE SUMMARY

5

1. PLACE

7

1.1 THE AREA

8

1.2 HISTORICAL CONTEXT

9

1.3 STRENGTHS

10

1.4 CHALLENGES & OPPORTUNITIES

12

2. PARTNERSHIP

16

2.1 GOVERNANCE STRUCTURES

17

2.2 ACHIEVEMENTS TO DATE

19

2.3 DEVELOPING A STRONG & COHERENT REGIONAL VOICE 20

3. PURPOSE & PRIORITIES

21

3.1 VISION, MISSION & OBJECTIVES

22

3.2 PRIORITY AREAS

24

3.3 REGIONAL BALANCE

28

4. APPENDIX 1

32

3


FOREWORD

A FOREWORD FROM THE CO-CHAIRS

As Co-Chairs of the North West Strategic Growth Partnership we are

delighted to present this revised North West Strategic Growth Plan for the

North West City Region of Ireland - also known as the Derry-Letterkenny

City Region. This unique cross-border city region operates as a single

functional area shaped by a shared history, heritage and culture. Our

vision is a ‘Shared North West - a connected, thriving, competitive and

sustainable cross border region’. We have a clear ambition to contribute

positively to the strategic and economic priorities of both Ireland and

Northern Ireland’s Programmes for Government.

This North West Strategic Growth Plan sets out a commitment between

government, local government and partners in health, tertiary education

and industry to make the North West City Region a strategically

connected and enabled region, a thriving and competitive region and to

have a healthy and resilient population. This Partnership and plan are best

practice examples of interjurisdictional co-operation and place-based

leadership.

We want to harness the many opportunities and address the deep

challenges that face this region, some unique to our region and others

created by drivers beyond our direct control. Producing this revised plan

signals the beginning of a new phase of inter-governmental and sectoral

commitment to strategically grow the North West City Region. We will

constantly keep this plan under review and add in new collaborative

actions as they emerge.

Councillor Grace Uí Niallais

Mayor of Derry City and

Strabane District Council

Councillor Paul Canning

Cathaoirleach of Donegal

County Council

4


EXECUTIVE SUMMARY

PLACE

The North West City Region is a distinctive cross-border region

encompassing the two local authority areas of Donegal County

Council and Derry City and Strabane District Council which serve a

combined population of nearly 320,000 across over 6,000 km². The

region’s ‘metropolitan area’ includes the three core settlements of

Letterkenny, Derry/Londonderry and Strabane, with a population of

212,000 people, making it the fourth largest urban agglomeration

on the island of Ireland. It also has the largest concentration of the

island’s border population.

The region has strong industrial and maritime roots, a diverse

tourism and cultural offering as well as strong communities and

entrepreneurial spirit - it is a creative, innovative and resilient

region. However, it continues to face structural challenges linked

to peripherality, infrastructure deficits and long-standing regional

disparities.

Whilst significant investment is planned and underway, for example

through the City Deal and Donegal 2040, additional transformative

investment is required in critical and enabling infrastructure to address

barriers inhibiting growth and to enable the region to achieve its full

potential. The plan provides an evidence-led framework to realise

this potential, including its compelling proposition to help solve

national challenges and contribute meaningfully to Programme for

Government priorities in both jurisdictions.

PARTNERSHIPS

The region’s shared challenges and peripherality have led to a

strong history of collaboration with a well-established and evolving

ecosystem of cross-border partnerships. At its core, the North West

Strategic Growth Partnership provides a formal governance structure

bringing together local and central government to align policy,

investment and delivery. This is complemented by strong collaboration

across key regional anchors with Memorandums of Understanding in

place for:

• Tertiary Education – North West Tertiary Education Cluster - a

strategic alliance of Ulster University, ATU, North West Regional

College and Donegal ETB.

• Health – a partnership between the Western Health and Social

Care Trust and Donegal Integrated Healthcare Area, working to

support stronger cross border collaboration.

In addition, Londonderry Chamber of Commerce and Letterkenny

Chamber of Commerce are working in partnership to present a joint

North West City Region value proposition.

The North West Strategic Growth Partnership now brings together all

these partners, as a unified regional voice, with this plan as a vehicle

for coordinated, place-based delivery.

5


EXECUTIVE SUMMARY

PURPOSE & PRIORITIES

The renewed plan provides a framework to guide the next phase of

growth of the North West City Region – with the following vision,

ambition, priority areas and cross-cutting themes:

VISION

A Shared North West

Connected, thriving, competitive and sustainable cross-border region

MISSION / AMBITION

The Derry-Letterkenny Cross Border City Region contributes positively to

the strategic and economic priorities of both Ireland & Northern Ireland’s

Programmes for Government

Connected &

Enabled Region

INFRASTRUCTURE &

CONNECTIVITY

PRIORITY AREAS

Thriving & Competitive

Region

SKILLS & INNOVATION

CROSS-CUTTING THEMES

Healthy & Resilient

People

HEALTH & RESILIENCE

COLLABORATION SUSTAINABILITY VISIBILTY INCLUSION

Interventions and enablers are set out under the three interdependent

priority areas, each aligned to strategic outcomes:

• Infrastructure & Connectivity – prioritising investment

in transport, energy and water infrastructure to improve

accessibility and connectivity, unlock growth potential, enable

decarbonisation and accelerate housing supply.

• Skills & Innovation – strengthening the region’s competitiveness

and knowledge infrastructure through expansion of tertiary

education, investment in research and innovation, targeted

skills development aligned to high-growth sectors and strategic

initiatives.

• Health & Resilience – enhancing health and wellbeing,

community cohesion and resilience through cross-border

collaboration and innovative responses to shared challenges.

Central to delivery is the need for targeted and long-term

investment. Without this intervention, regional disparities will

continue to widen. Evidence shows infrastructure and connectivity

as foundational for balanced growth and the critical importance

of strengthening skills and innovation as key drivers of regional

competitiveness.

The plan provides a pathway to assist the governments in Ireland,

Northern Ireland and UK in meeting commitments to regional

development and balance. The importance of regional balance,

not just for lagging regions, but for the country as a whole is well

evidenced. A strong North West City Region, as the fourth largest

metropolitan area, is essential to the successful development of

the wider North West region as well as for the island of Ireland as a

whole.

6


1. PLACE

7


1. PLACE

1.1 THE AREA

The North West City Region of

Ireland – also known as the ‘Derry-

Letterkenny City Region’ - includes

the principal urban core at the heart

of the two local authority areas of

Donegal County Council and Derry

City and Strabane District Council

which serve a combined population

in excess of 320,000.

The region’s ‘metropolitan area’

is made up of the three core

settlements of Letterkenny, Derry/

Londonderry and Strabane as well as

the smaller settlements between. This

provides a critical mass of 212,000

people, making it the fourth largest

urban agglomeration on the island

of Ireland (see Figure 1).

The North West City Region

(NWCR) has a concentration of

employment, service provision,

education and healthcare

commensurate with a region of this

scale. It is a unique cross-border

region, shaped by a shared history,

heritage and culture. With strong

industrial and maritime roots, a

diverse tourism and cultural offering

as well as strong communities

and entrepreneurial spirit - it is a

creative, innovative and resilient

region.

NORTH WEST CITY REGION

AT A GLANCE

• Area of over 6,000km 2

• Metropolitan area of 3 core settlements:

Derry/Londonderry, Letterkenny &

Strabane

• Over 100 other settlements

• 4 Third Level Education Institutes - 36,000

students

• 2 University Hospitals

• 2 International Airports

• 3 Deep Water Ports

POPULATION:

• 212,000 population of Metroplitan Area

• 317,840 population of the 2 Local Authorities

• 350,000 population at 50km radius

• 400,000 population of 60km radius

FIGURE 1: Metropolitan Areas Relative to Population

Map shows population sizes of metropolitan areas on island of Ireland,

with NWCR as the 4th largest after Dublin, Belfast and Cork

8


1. PLACE

1.2 HISTORICAL CONTEXT

Historically, local authorities across the North West

have had a strong track record in cross-border

collaboration, reflecting the realities of life in a region

where it effectively operates as a single functional

area regardless of geographical and political

boundaries. Both local authorities are located at

the furthest periphery or most North West of their

jurisdictions. County Donegal shares 93% (140km) of

its entire land boundary with Northern Ireland and

has the largest land border between the UK and the

European Union.

Border regions in general experience higher levels of

deprivation, peripherality and health inequalities as a

result of their distance from the centres of decision

making. For the North West City Region in particular,

this has been disproportionately impacted by both

partition in the early 20th century and more recently

by the UK’s exit from the EU, which has heightened

the impact of historical under-investment. The

peripherality of the region in both jurisdictions has

been a key contributing factor as well as a barrier to

addressing in terms of the infrastructure deficits that

inhibit growth and competitiveness.

The shared challenges and peripherality of the region

has led to a strong history of collaboration by the

local authorities, whilst the North West has been

a key priority for North South Co-operation since

the 1998 Good Friday/Belfast Agreement and the

establishment of the North South Ministerial Council.

The reform of local government (2014 in Ireland and

2015 in Northern Ireland which offered new statutory

powers), provided the opportunity to further

formalise this collaboration and build on previous

partnerships with new structures established in 2016.

FIGURE 2: A history of local and central government commitments to the North West City Region

NORTH WEST CITY REGION:

Cross-border commitments & structures

Irish Government Donegal County

publishes National Development Board &

Spatial Strategy - Derry City Council Strategy

Letterkenny designated Board come together to

as a ‘Linked Gateway’ form NORTH WEST

with Derry PARTNERSHIP BOARD

New Structures &

Fund established:

NW STRATEGIC

GROWTH PARTNERSHIP

NW REGIONAL

DEVELOPMENT GROUP

North West

Development Fund

‘New Decade,

New Approach’

NI Executive - mentions

NWSGP & NWDF

2002 2011 2016 2020

2005 2015 2018

British-Irish

Intergovernmental

Conference announces

NORTH WEST GATEWAY

INITIATIVE

‘A FRESH START - The

Stormont Agreement’

NI Executive’s agreement

in principle to match Irish

Government’s €2.5m for

NW Development Fund

Irish Government publishes

NATIONAL PLANNING

FRAMEWORK - recognises

North West City Region

& role of of North West

Strategic Partnership

(NWSGP)

A brief history of cross-border structures and initiatives for the North West since

2002 is reflected in Figure 2 above and further details of the structures are included in

chapter 2.

9


1. PLACE

1.3 STRENGTHS

The North West City Region has considerable strengths, providing a strong baseline to build from in the journey ahead:

STRONG PARTNERSHIPS Significant track record in partnership and collaborative

working, across sectors and on cross-border basis, providing economies of scale and

strong leadership.

STRATEGIC LOCATION Unique cross-border position, offering dual market access to

Ireland/EU and the UK and a critical population mass as 4th largest metropolitan area

on the island of Ireland.

TERTIARY EDUCATION Strong tertiary education sector with pipeline of talent, industryled

curriculum and R&D, including two universities and two FE institutes.

FIGURE 3: North West City Region Attractive Destination and Quality Of Life

14 AWARD-WINNING

BLUE FLAG BEACHES

SKILLED WORKFORCE Highly skilled and well-educated cross-border workforce and

talent pool including a young population with 35% under 35 years.

INNOVATIVE REGION Region emerging as a hub for R&D, knowledge and innovation 1

with large number of innovation and research centres in areas such as precision

medicine, AI and cognitive analytics, robotics and machine learning.

INDUSTRY SECTORS Strong and emerging industry sectors/clusters including digital/

technology, blue economy, RegTech/FinTech, green tech, health and life sciences,

tourism, creative industries, advanced manufacturing & engineering - multi-nationals

and local companies.

COMPETITIVE LOCATION One of the most competitive operating costs in Europe - region

ranked in the ‘Top 10’ economies in the world for ease of doing business. Two airports

and their role as enablers of economic growth and regional development.

DIGITAL INFRASTRUCTURE Excellent broadband across region and direct connections to

the US, UK and Europe through high capacity, trans-Atlantic, secure fibre-optic cables.

QUALITY OF LIFE Cost of living, affordable housing, safe environment, high-quality

education, access to green spaces, cultural and arts amenities, strong community spirit.

HOME TO

INTERNATIONAL

EVENTS & FESTIVALS

NATIONAL GEOGRAPHIC TRAVELLER

‘THE COOL LIST’ 17 FOR 2017

BEST HALLOWEEN

DESTINATION

IN THE WORLD

USA TODAY

CITY WALLS LISTED

AS “ONE OF THE 1001

HISTORIC SITES YOU MUST

SEE BEFORE YOU DIE”

UNESCO

HOME TO THE

IRISH OPEN

WORLD CLASS

GOLF LINKS

COURSES

WORLD FAMOUS

SURFING SPOTS

ATTRACTIVE VISITOR DESTINATION Stunning landscapes and rich cultural, natural and built

heritage, with region hosting international festivals and events including major sporting

competitions. Over 1,200km of coastline and 14 award-winning beaches.

• Donegal named as one of the ‘Top Regions in the World’ to visit by Lonely Planet

2024 and is the second largest Gaeltacht region in Ireland.

• Walled City of Derry, the most complete circuit of city walls of any settlement in

Ireland, linking the Wild Atlantic Way with the Causeway Coastal Route.

1

The Northern & Western Region and Northern Ireland are both classified as ‘Strong Innovators’ in the

European Commission’s ‘Regional Innovation Scoreboard’ NWRA (July 2025)

10


1. PLACE

1.3 STRENGTHS

There is also significant investment planned or underway, led by the local authorities which include the following for example:

Derry~Londonderry & Strabane City Region City Deal, Strategic

Leisure & Community Investment Programme

The Council is delivering a capital programme of circa £530m in

investment. £300m City Deal funding has been secured from the

UK Government, the Northern Ireland Executive and its project

delivery partners - Ulster University, the North West Regional

College, the Western Health and Social Care Trust and C-TRIC. This

funding will enhance regional competitiveness and:

• Significantly expand three world-class centres of innovation,

health and life science excellence;

• Enhance and maximise digital connectivity;

• Deliver two major transformational city and town centre

regeneration schemes;

• Build a new Graduate Entry Level Medical School for Northern

Ireland at Ulster University.

A Strategic Leisure Programme of £140m is also underway to build

two leisure facilities in Derry and Strabane alongside a further

£10m investment programme in Community Facilities. This also

complements central government investment in the two strategic

regeneration sites in the City with a £70m investment in Fort

George and £38M in Ebrington.

‘TEXTILES TO TECH’ A traditional industry sector in the wider North West revolved around

textiles, employing thousands of people on both sides of the border until the 1990s,

when cost pressures on production saw these industries move to lower cost economies.

A positive outcome was an increased focus on upskilling, training and education, which

together with strong industry-academic workforce collaboration and government

support, saw the North West of Ireland move from ‘textiles to tech’ in less than 20 years.

The region now hosts some of the world’s top tech companies which have continued to

survive and thrive in the face of recessions and other global challenges.

In Donegal, a three-year capital programme has been approved

by Donegal County Council for 2025-2027 - including to progress

strategic projects in the National Development Plan and as part of

Donegal 2040. Capital investment of €417m in 2025 includes, for

example:

• €25.6m for national primary and secondary roads

• €105.9m for Social Housing Investment Programme

• €30.9m for regeneration projects (URDF & RRDF)

Donegal 2040 is a Designated Activity Company set up by DCC to

develop and manage a range of strategic interventions to promote

economic development and job creation in Donegal. This includes

investing in and managing key strategic enterprise infrastructure,

such as the development of a new ‘Business and Innovation

Quarter’ in the heart of Letterkenny comprising:

• North West Innovation Hub which will house the Beta Business

Centre to provide state of the art workspace facilities for a

range of knowledge-based business and Alpha Innovation to

build and enhance a strong innovative and entrepreneurial

ecosystem.

• Other key enterprise buildings such as Island House in

Killybegs; Enterprise building in Ailt na Chorrain; Ritz Enterprise

in Ballybofey; as well as others planned in Letterkenny and

Buncrana.

The above investment is significant and provides opportunities for

considerable leverage and to build on. However, there is the need

for additional transformative investment in critical and enabling

infrastructure and for long-term financial commitments, to make the

necessary and sustained impact.

11


1. PLACE

1.4 CHALLENGES & OPPORTUNITIES

The North West City Region has the largest concentration of

the overall border region population on the island of Ireland. As

highlighted in section 1.2 above, border regions in general experience

higher levels of deprivation, peripherality and health inequalities and

the North West City Region has been further and disproportionately

impacted by partition, conflict and the UK’s exit from the EU.

A report commissioned by the European Parliament 1 in 2023 on

the impact of Brexit on border regions highlights their vulnerability

particularly when already lagging behind the rest of Ireland, with a

concern that already deprived areas will see a further decline.

In the wider Northern & Western Region (EU NUTS 2 Region) evidence

of widening regional disparity is apparent in terms of its status or

ranking of the following:

• In February 2026 the European Commission reclassified the

Northern and Western Region as a “More Developed Region” for

the next EU Funding period of 2028-2034. This is largely a result

of the total GDP in Galway. This new status does not take into

consideration pockets of deprivation along the border regions.

GDP in border counties like Donegal remains roughly 30% below

the EU average. This reclassification will reduce the EU cofinancing

rates allocated to the area.

• The OECD Regional Attractiveness Compass also scores the

Region well below the average for both OECD and EU in terms of

economy, housing, education, health and digitisation (with lower

scores for the Border Region i.e. the NUTS 3 Region).

• The European Commission’s latest Regional Competitiveness

Index, found the region’s infrastructure ranked 218th out of the

234 EU Regions (i.e. 17th worst in EU27) akin to the less developed

regions of Romania, Hungary, Slovakia and Bulgaria.

A range of socio-economic statistics reflect a continuing and

widening regional disparity, with both local authority areas of the

North West City Region having among the lowest or worst rates in

their respective jurisdictions in terms of the following:

• Disposable income per capita

• Gross annual earnings

• Unemployment

• Population with no formal education

• Population with third level education

• Deprivation

• Rate of population growth

• Health inequalities and fuel poverty

Infrastructure deficits are a particular challenge for the North

West City Region given the compelling evidence of the role of

accessibility and connectivity to a region’s value proposition and

how infrastructure deficits undermine its competitiveness, ability to

grow the economy and ability to decarbonise to meet climate goals.

The impact on capacity for growth is significant, particularly in terms

of the region’s ability to accelerate housing supply to meet the

shortfall, including the impact of insufficient water and wastewater

capacity to both meet demand and enable growth. Challenges around

affordable housing are also inhibiting growth and housing supply as

well as the impacts of defective concrete blocks. Housing supply is

also a key issue for attracting investment.

1

European Parliament ‘Impact of Brexit on the Development of Irish Regions and their Cross-Border Cooperation’ (2023)

12


1. PLACE

1.4 CHALLENGES & OPPORTUNITIES

Commitments to the A5 and TEN-T Donegal projects are dependent

on long lead-in times with other transport infrastructure also

critically required. Further, it will be important to ensure that

the region does not lose out to the reduction of future overall

road infrastructure investment in both jurisdictions as part of

decarbonisation measures given it has not proportionately benefited

from previous investment.

There is no rail network in Donegal and limited provision in the

rest of the region. The All-Island Strategic Rail Review (AISRR) as

proposed would leave considerable gaps and inequalities including

no connectivity between Letterkenny to Sligo (and therefore no

link between the cities of Derry and Galway or along the Atlantic

Economic Corridor) and with the Dublin to Derry line not scheduled

for completion until nearly 2050.

Low electricity grid capacity is a significant barrier to the

development of renewable energy sources and to attracting

investment. In the context of off-shore renewable energy potential,

the region has one of the highest wind speeds in Europe and

with deep-water ports at Killybegs, Greencastle and Lough Foyle.

However, this is significantly curtailed by the absence of highcapacity

connectivity to the national electricity grid. The absence

of a gas pipeline network in Donegal also inhibits the future

development of renewable gases transported via the gas network.

The European Parliament’s commissioned report on the impact of Brexit on border regions

emphasises access to a viable and sustainable energy source as critical to regional

development, highlighting current regional disparities in connectivity in electricity grids

and gas on the island of Ireland – particularly for the North West. It also highlighted that

accessibility to the North West region - via road, rail or air - has not yet progressed to the

extent envisaged. Shared Island was acknowledged as a welcome boost to delivering on hard

infrastructure, but cannot be considered a long-term solution.

In terms of knowledge infrastructure, key to regional development in

terms of attracting talent and investment, the region is inhibited by

a number of significant barriers for tertiary education, resulting in

regional imbalances. The region already has lower tertiary education

and research centre provision compared to other areas on the

island – so that restrictions on Technological Universities appointing

professors, for example, impacts disproportionally and limits ability

to develop key knowledge infrastructure. ATU also has a lower

capital spend per undergraduates than the national average.

Government commitments to increasing capacity at Ulster

University Derry-Londonderry to 10,000 places will address the

city’s historically low number of students relative to its population

which has inhibited the growth capacity of the region. Addressing

the broader infrastructure deficits and housing shortfall, including

for student accommodation across the region, will be critical in

terms of delivering on this commitment and enabling the tertiary

education sector to fully impact on its critical role in regional

development.

NWCR INFRASTRUCTURE AT A GLANCE:

• No motorways

• Insufficient water/waste water capacity

• Lowest electricity grid connectivity/capacity

• No rail in Donegal and limited provision Derry~Londonderry to

Belfast

• No ports recognised under Ireland’s tier 1, tier 2 or of regional

significance

• Limited regional airport connectivity

• No gas network in Donegal

• Lowest student to population ratio of university urban areas on

island

See APPENDIX 1 for maps that illustrate infrastructure deficits of North West City Region

13


1. PLACE

1.4 CHALLENGES & OPPORTUNITIES

The UK’s exit from the EU has emphasised weaknesses and

vulnerabilities that already existed in the region, heightening the

impact of under-investment - with the full and lasting extent not

yet known. Ongoing challenges for the region include, for example,

cross-border taxation and legal implications for remote working and

recognition of qualifications. The cost of living crisis also exacerbates

existing inequalities in this cross-border region.

Other key challenges, not unique to this region, and as key issues

across governments, include, for example:

• Climate change: the need to decarbonise transport, housing, and

industry and to plan for climate adaptability/ resilience;

• Ageing population: the need to adapt/reshape services and plan

for impact on a dramatically reduced working-age population to

support economic growth;

• Skills/labour shortages: including for the construction sector

to address the housing shortfall and critical infrastructure

development;

• Geopolitical instability: the impact on trade, export, supply chains

and inward investment with the need to develop regional resilience

and grow indigenous enterprise;

• Technological disruption: the impact of rapidly developing Artificial

intelligence (AI), whilst also harnessing related opportunities.

KEY NATIONAL CHALLENGES:

The need to accelerate the supply of housing is a key issue and priority across both

governments - including addressing infrastructure barriers to its delivery. The Ireland

Programme for Government includes a commitment to prioritise a radical step change in

housing supply and to pursue every action possible - whilst also acknowledging that the

security of water supply is critical to delivering on both housing and economic national

priorities. The Northern Ireland Programme for Government highlights the need for

enabling infrastructure, recognising that additional funding for wastewater, for example,

will increase the ability to build houses and enhance the economy – with the need to

provide more affordable and sustainable housing.

Section 1.4 has highlighted significant challenges to address, including

the ongoing trend of consistent performance below the national

average across a range of socio-economic indicators. This is an impact

of historical under-investment and failure to deliver balanced regional

development – with evidence that the regional disparity gap continues

to widen.

The region however has the potential to perform above the national

average and to become a net contributor to the economy of the

island of Ireland. This will require decreasing dependency on direct

and indirect benefits from government - by upskilling to increase

capacity to secure high-quality jobs and therefore becoming positive

tax contributors, both direct and indirect. Key interventions are

therefore required in terms of skills and innovation, as well as enabling

infrastructure to unblock barriers to the growth of the economy –

particularly for high-growth sectors that create well-paid jobs. This in

turn will also impact on levels of deprivation and health inequalities.

Given the long-lead in times for infrastructure investments, an

expediated timeline is required as well as short and medium term

proactive measures to avoid further widening of regional disparity - and

to ensure an even playing field relative to other city-regions that have

previously benefited from investment.

Investment in the North West City Region will build on the considerable

strengths of and opportunities for the region (see Figure 4), and makes

for a compelling proposition as well as an opportunity to help solve

regional and national challenges – particularly around climate change

and housing supply.

14


1. PLACE

1.4 CHALLENGES & OPPORTUNITIES

FIGURE 4: Opportunities, Strengths, Enablers, Impacts and Policy Alignment

REGIONAL STRENGTHS TO HARNESS:

• Critical population mass (4th largest

metropolitan area on island of Ireland)

• Strong skills/talent base

• Strong industry sectors/clusters to build on

• 4 third level institutes (2 universities)

• Planned investments e.g. City Deal, Donegal

2040

• Competitive & strategic location - low operating

costs, access to EU & UK markets

• Attractive destination & quality of life

• 2 international airports & deep water ports

• Highest wind speed in Europe for ORE

• Strong partnerships & collaborations

OPPORTUNITIES: Development of high

growth sectors that create well paid

jobs e.g.

• GREEN ECONOMY / bioeconomy / circular

economy

• BLUE ECONOMY e.g renewable energy / ORE,

marine technology

• FINANCIAL, ICT & PROFESSIONAL SERVICES

(incl. FinTech, RegTech, InsureTech

• HEALTH & LIFE SCIENCES incl. MedTech)

ADVANCED MANUFACTURING &

ENGINEERING

IMPACTS & OUTCOMES:

• Improve regional balance

• Increase connectivity

• Increase productivity & competitiveness

• Accelerate housing supply

• Drive green & digital transformation

• Enable decarbonisation & energy security

• Retain & attract talent

• Increase inward investment

• Support growth of indigenous enterprises

• Reduce deprivation & health inequalities

• Position region as a hub for innovation

• Enable diversity & resilience of economy

• Increase academic - industry collaboration /

innovation diffusion

ENABLERS & ACCELERATORS:

• Investment in strategic enabling transport, water & energy infrastructure

• Investment in knowledge infrastructure, incl. R&D and innnovation

capacity, skills development and tertiary education expansion

• Dedicated cross-border economic partnership to drive strategic

interventions

NOTES ON TERMINOLOGY

GREEN ECONOMY: Low carbon, resource efficient and socially inclusive, reducing environmental risks and ecological

scarcities. Includes green sectors.

BIOECONOMY: Use of renewable biological resources from land and sea (e.g. crops, forests, fish, animals) to produce

food, health products textiles & energy.

CIRCULAR ECONOMY: Model of production and consumption that reuses, repairs, refurbishes or recycles existing

materials/products to extend life cycles.

BLUE ECONOMY: sustainable use fof ocean / ocean resources for economy, whgile preserving the health of marine

and coastal ecosystems.

ORE: Offshore Renewable Energy (primarily offshore wind).

POLICY ALLIGNMENT:

Government commitments to Regional Development and helping to deliver key

national government strategies, e.g.

IRELAND

Programme for Ireland 2025

• National Planning Framework & National Development Plan

• Climate Action Plan

• Housing For All

• National Smart Specialisation Strategy

• Bioeconomy Action Plan 2023-2025

• Our Rural Future

NORTHERN IRELAND

Programme for Government 2024 - 2027

• Dept. for Economy Business Plan / Sub-regional Economic Plan

• NI Climate Change Adaptation Programme 2025

• NI Housing Supply Strategy

NI Regional Development Strategy 2035

• National Smart Specialisation Strategy

EU

• Regions and cities shaping the European Green Deal 2.0

15


2. PARTNERSHIP

16


2. PARTNERSHIP

2.1 GOVERNANCE & STRUCTURES

The North West Strategic Growth

Partnership (NWSGP) is an interjurisdictional

partnership which

aims to address the unique

regional development needs of

a cross-border City Region with

two local and central government

institutions.

This innovative, place-based

governance concept was codesigned

in 2014 by senior

officials within Derry City and

Strabane District Council, Donegal

County Council, the Department

of Foreign Affairs and the

Department of An Taoiseach in

Dublin, The Executive Office in

Belfast and the Joint Secretaries

of the North South Ministerial

Council in Armagh.

The partnership arrangements

were formally approved at

North South Ministerial Council

Plenary in July 2016. The

securing of Ministerial support

provided a formal mandate for

the involvement of government

departments with local

government in this partnershipbased

process.

FIGURE 5: An organogram of the governance structures associated with the North West City Region

STRUCTURES

IRISH GOVERNMENT

NORTH SOUTH

MINISTERIAL COUNCIL

NORTHERN IRELAND

EXECUTIVE

REGIONAL

ECONOMIC

GROWTH

REGIONAL,

PHYSICAL &

ENVIRONMENTAL

DEVELOPMENT

NORTH WEST

STRATEGIC

GROWTH

PARTNERSHIP

REGIONAL,

SOCIAL &

COMMUNITY

COHESION

COUNCILS

Donegal County

Council

Derry City & Strabane

District Council

NORTH WEST

DEVELOPMENT FUND

€6m (both Governments) 2016 - 2024

Funded innovtive cross-border

projects, e.g. Spacial Scoping

Strategy, greenways, trade missions,

joint climate action plan and sport,

arts, tourism and cultural

programmes.

17


2. PARTNERSHIP

2.1 GOVERNANCE & STRUCTURES

The NWSGP held its inaugural meeting in Derry/ Londonderry in

December 2016. It is jointly chaired by the Mayor of Derry City &

Strabane District Council and the Cathaoirleach of Donegal County

Council and attended by senior civil servants nominated by

Permanent Secretaries (NI) and Secretaries-General (IE) of all

Government Departments across both administrations. It has hosted

14 plenaries up to 2024 in venues in Derry, Donegal and in Dublin

Castle.

The structure provides a single institutional focus for government

departments and agencies, allowing them to consult with regional

stakeholders and vice versa. It has been cited as a best practice

example of shared leadership in the Shared Island Shared Opportunity

NESC Comprehensive Report in April in 2022. It has facilitated a

closer alignment between regional initiatives and national strategies.

Commitments to the North West Strategic Growth Partnership

are also made in the ‘A Fresh Start- The Stormont Agreement and

Implementation Plan’ (2015) and The New Decade New Approach

political agreement (2020).

KEY NORTH WEST CITY REGION (NWCR) PLANS/ DOCUMENTS:

YEAR DOCUMENT TITLE

2016 STRATEGY THE NORTH WEST STRATEGIC GROWTH PLAN

2017 SCOPING STUDY CHALLENGES AND OPPORTUNITIES OF BREXIT FOR NWCR

2021 STATEMENT THE GREEN TRANSFORMATION OF THE NORTH WEST CITY REGION

2021 STATEMENT STATEMENT OF REGIONAL PRIORITIES

The North West Regional Development Group (NWRDG) comprises

12 elected members (6 Councillors from each Council) and senior

officials from both Councils. It is a joint committee which meets

quarterly to develop, agree, implement, monitor and reports on

work programmes across three key pillars of wellbeing:

• Regional economic growth and investment;

• Regional physical and environmental development; and

• Regional community and social wellbeing.

Under this partnership model the NWRDG has delegated

authority for the management and distribution of the North West

Development Fund. This joint committee has maintained crossborder,

cross-party political support during the UK’s Exit from the

EU, the Covid pandemic and during a time when The Northern

Ireland Executive and the North South Ministerial Council were not

meeting.

The Irish Government and Northern Ireland Executive have granted

a total of £6.63m North West Development Fund (NWDF) to the

North West City Region since 2016. It is forecasted to sustain

arrangements until April 2028. It enables the collaborative

resourcing and co-ordination of a range of joint projects for which

single jurisdictional approaches are not feasible.

The NWDF has enabled the North West Regional Development

Group to implement an innovative suite of cross border catalyst

projects aimed to progress social, economic and environmental

wellbeing of the region.

2022 SCOPING PAPER NORTH WEST METROPOLITAN SPATIAL STRATEGY - A SCOPING PAPER

18


2. PARTNERSHIP

2.2 ACHIEVEMENTS TO DATE

Since the current structures were established in 2016, the North West

City Region has witnessed significant achievements and progress

which have included:

• Strong partnership working on a cross-border/cross-party political

basis and development of strategic alliances across education,

health and business sectors in the region;

• Support or commitments to the North West City Region in key

government policy, frameworks and political agreements;

• Successful delivery of the North West Development Fund including

a range of economic, environmental and social projects (see

below) and leverage of other significant funding to the region;

• Preparation of over 12 joint plans, strategies or studies including

across key thematic areas such as climate, energy, planning, inward

investment, tourism and greenways;

• Co-ordination of joint submissions from the North West City Region

to government, for example, to Project Ireland 2040 National

Planning Framework and to the Northern Ireland Committee for

the Economy.

NWDF Evaluation

The Executive Office commissioned an independent evaluation

of the North West Development Fund in 2023 to evaluate its

effectiveness and additionality as well as inform future decisions

with regard to potential further funding. The evaluation highlighted

the considerable successes of the fund, stating that it:

“…carried out a robust evaluation of the North West

Development Fund and can conclude that the project was a

considerable success.”

“.. the success of the fund is being able to make meaningful,

lasting and sustainable strategic partnerships across the political

and geographical divide of the NW…. with far-reaching outputs

which have benefited the NW during a time of considerable

economic and social instability……the strategic alliances have

now matured into a robust cross border and cross community

partnership that can now move forward with real purpose, drive

and enthusiasm”.

Examples of projects funded by the North West Development Fund

PILLAR

ECONOMIC

ENVIRONMENTAL

SOCIAL

PROJECTS / OUTPUTS

• NW Inward Investment Plan, joint marketing campaigns, 8 international trade missions and related global export programmes

• NW Regional Tourism Strategy & NW Tourism Product Development Programme

• NW Greenway Network

• NW Metropolitan Spatial Strategy Scoping Paper and establishment of NW Planning Forum / joint training

• NW climate action framework

• NW Regional Energy Strategy and creation of North West Energy Agency

• NW Audience Development Plan (Arts & Culture) and related programme targeted families and older people

• Other joint projects/programmes

• E.g. NW Sports Development Programme, Every Youth Counts, Colmcille 1500, Irish Language Research Project

19


2. PARTNERSHIP

2.3 DEVELOPING A STRONG & COHERENT REGIONAL VOICE

The North West Strategic Growth Partnership has championed the

Hambleton’s (2020) model of civic, place-based leadership. The

model seeks to harness the skills and expertise of a range of regional

anchors and institutions – such as the third level education providers,

the health sector and the private sector in seeking to achieve more

sustainable economic and social development.

The two local authorities have provided leadership and direction,

through setting up and managing the partnership structures, and to

ensure these enable a strong and coherent voice for partners across

the North West City Region.

The NWSGP enabled the signing of a historic Memorandum of

Understanding (MoU) between the tertiary education providers in

the region in 2018 which has led to the North West Tertiary Education

Cluster (NWTEC) and the growth in innovation and third level

provision in the North West. This MoU was renewed and revised in

2023 and the cluster is now an established strategic alliance of all four

publicly funded tertiary education institutions in the North West City

Region.

North West Tertiary Education Cluster:

• Atlantic Technological University (ATU)

• Ulster University Derry-Londonderry Campus

• North West Regional College

• Donegal Education and Training Board (ETB)

In addition, the North West Strategic Growth Partnership has

encouraged further cross border collaboration between Londonderry

Chamber of Commerce and Letterkenny Chamber of Commerce

who have worked in partnership to present the North West value

proposition. Further engagement with the private sector will be

important as delivery partners for the strategy, particularly in terms of

skills and innovation.

cross border primary healthcare in specialisms such as oncology and

cardiovascular care.

The Western Health and Social Care Trust and the Donegal Integrated

Healthcare Area have signed a Memorandum of Understanding

through which the two organisations will work in partnership on

education, skills and capacity development, research and innovation,

supporting stronger cross border collaboration and longer term

improvements in health and social care across the North West City

Region.

Building on these strategic alliances, the Partnership aims to

further utilise the critical mass and political strengths of the

region. It will engage and partner with:

• Other Councils with similar and complementary regional

development needs and on a wider North West basis or

proposition such as Fermanagh and Omagh, Causeway

Coast and Glens, Sligo and Leitrim – as well as with regional

enterprise agencies, the Northern and Western Regional

Assembly and Western Development Commission.

• Other City Regions on the Western Atlantic Corridor such as

Galway, Limerick and Cork, including to counterbalance and

provide solutions to continuing overpopulation in the East.

The North West City Region will also build on its key connections

and collaborations across the UK, Europe and internationally,

including for example - the Derry/Londonderry - City of London

historicalconnections, UNESCO Learning City Network, EU

thematic partnerships and Irish government bilateral

agreements/partnerships with Scotland and Wales.

Similarly, the respective Departments of Health, the Western Health

and Social Care Trust, the Health Service Executive and Co-operation

and Working Together (CAWT) are continually collaborating to deliver

20


3. PURPOSE & PRIORITIES

21


3. PURPOSE & PRIORITIES

3.1 VISION

The North West City Region has made significant progress since

establishment of current structures in 2016 as outlined in chapter 2.

Building on this momentum, the purpose of the strategy is to review the

long-term vision and priorities for the region. This will ensure that we:

• Address key challenges that are inhibiting or blocking growth of the

region;

• Build on the strengths and comparative advantages of its unique

location and context;

• Harness opportunities in a rapidly changing global context;

• Clearly identify the compelling proposition for the city-region and

the enablers/investment required to realise this potential;

• Provide a pathway for delivery of the strategy whilst also

contributing to government priorities for regional balance and

solving regional/national challenges.

The vision, mission/ ambition, objectives and key priority areas are set

out below alongside a number of cross-cutting themes:

• Vision: A Shared North West - connected,

thriving, competitive and sustainable crossborder

city region.

• Mission/Ambition: The Derry-Letterkenny

cross border City Region positively

contributes to the strategic and economic

priorities of both Ireland and Northern

Ireland’s Programmes for Government.

OUTCOME STRATEGIC OBJECTIVE PRIORITY AREA

A CONNECTED & ENABLED REGION

A THRIVING & COMPETITIVE REGION

A HEALTHY & RESILIENT PEOPLE

To address infrastructure deficits that will improve connectivity, enable growth of the region, unlock its potential

and enable decarbonisation

To drive the sustainable economic growth of the region by developing skills and talent to address key skills gaps

and support high-paid jobs, supporting high-growth sectors /clusters and enhancing innovation and R&D capacity

To enhance health & well-being, community cohesion and resilience of the people by facilitating collaboration

and enabling cross-border solutions to shared challenges

CROSS-CUTTING THEMES

INFRASTRUCTURE &

CONNECTIVITY

SKILLS & INNOVATION

HEALTH & RESILIENCE

COLLABORATION

SUSTAINABILITY

VISIBILITY

INCLUSION

Collaboration is crucial to delivery of the strategy, both within the region and in connecting as strategic alliances externally – with other regions facing

similar challenges, other city-regions on the island of Ireland and within the UK, EU and internationally.

Sustainability is included as a cross-cutting theme in recognition of its significance and relevance across all priority areas, rather than as a separate priority.

Key areas of focus include, for example, decarbonisation, the circular economy and renewable energy as well as enhancing climate adaptability/resilience –

and growing the economy whilst also protecting the environment.

Visibility and recognition of the region, and its potential, is significant - given the status as the fourth largest urban agglomeration on the island of Ireland

and uniqueness as the only functional economic region of such scale on the island which experiences a national jurisdictional border. A communication

strategy will be developed to increase awareness and visibility.

Equality and inclusive growth are important, recognising that income inequality is damaging to economic growth and the need to grow the economy in a

way that reduces inequality and addresses high levels of deprivation.

22


3. PURPOSE & PRIORITIES

3.2 VISION

FIGURE 6: Summary of Plan Overarching Framework

VISION

A Shared North West

Connected, thriving, competitive and sustainable cross-border region

MISSION / AMBITION

The Derry-Letterkenny Cross Border City Region contributes positively to the strategic and economic

priorities of both Ireland & Northern Ireland’s Programmes for Government

PRIORITY AREAS

Connected & Enabled Region

INFRASTRUCTURE & CONNECTIVITY

Thriving & Competitive Region

SKILLS & INNOVATION

Healthy & Resilient People

HEALTH & RESILIENCE

CROSS-CUTTING THEMES

COLLABORATION SUSTAINABILITY VISIBILTY INCLUSION

23


3. PURPOSE & PRIORITIES

3.2 PRIORITY AREAS

Key interventions are set out below under the three priority areas - including what is required in terms of enablers or investment as well as

keypathways or vehicles that will assist in progressing and delivering in partnership with governments and other partners.

Infrastructure & Connectivity

KEY INTERVENTIONS KEY PATHWAYS / VEHICLES ENABLERS /INVESTMENT REQUIRED

Key enabling transport,

energy & water

infrastructure to enable

growth and unlock the

full potential of the

region.

INFRASTRUCTURE

CLUSTER – as a vehicle

or mechanism for coordination

across key

partners and to accelerate

delivery.

NW METROPOLITAN

AREA SPATIAL &

TRANSPORT STRATEGIES

– to provide key joint

planning frameworks

as a foundation for

enabling and managing

growth.

Identify other specialist

studies required for

specific infrastructure

investment areas.

ROAD CONNECTIVITY: Prioritise and progress as a strategic project in its entirety for the North West, covering all

constituent projects and to connect the 3 key routes – Dublin to Letterkenny-Derry; Belfast to Derry-Letterkenny;

and Derry to Galway. Prioritising as a strategic and coherent project would be consistent with Government’s previous

policy/ approach to developing motorways to link the cities in Ireland. Intra-connectivity within the region is also

important for regional development as well as the Letterkenny Southern Network Project to enable its role as Regional

Growth Centre.

ENERGY CAPACITY: Increase capacity/connectivity to establish energy security, future-proof need and enable the

development of renewable energy including offshore (ORE):

• Electricity: increase electricity capacity to 220Kv from Sligo to Letterkenny-Derry with potential linkages to

Killybegs to enable ORE;

• Gas: explore options for other energy sources including extension of gas network into Donegal to enable future

transportation of renewable gases such as green hydrogen.

WATER CAPACITY: Prioritise investment in water and waste water infrastructure for the region to enable key growth

needs and address the housing shortfall.

RAIL CONNECTIVITY: Re-integrate the NWCR into the all-island rail network, building on the AISRR and UK

Connectivity Review, to connect Dublin to Derry, Derry to Letterkenny, Derry to Belfast (phase 3) and Letterkenny to

Sligo-Galway.

PORT INFRASTRUCTURE: Develop strategic port/ harbour infrastructure at, and connectivity to, the deep water ports

at Killybegs, Greencastle and Foyle Port including designation of Killybegs as part of EU’s TEN-T Comprehensive Ports

and to enable development of the blue and green economies.

AIR CONNECTIVITY: Develop Donegal Airport and City of Derry Airport including continuing support of PSOs to

maintain and enhance services (particularly connections to Dublin and London) and prioritise investments in safety,

security, operational and capital infrastructure.

Figure 7 (page 27) maps how these infrastructure investments will be key enablers - to accelerate housing supply, enable growth, improve competitiveness and

connectivity as well as enable decarbonisation. A breakdown of road projects is also included.

24


3. PURPOSE & PRIORITIES

3.2 PRIORITY AREAS

Skills and Innovation

KEY INTERVENTIONS

Key enabling

knowledge

infrastructure

including:

• Skills

development

and pathways

into high-quality

jobs

• R&D and

innovation as

key drivers

of economic

growth

• High-growth

sector/ clusters

including

green and blue

economies

KEY PATHWAYS /

VEHICLES

Establish a Cross

Border Economic

Partnership – its

purpose would

include developing

key interventions to

proactively address

legacy issues and

build on strengths

and opportunities

for the region

- identifying

specialist studies

or input required

to develop specific

interventions.

It would bring

together key

partners across the

region, including

the NW Tertiary

Education Cluster

and Chambers/

private sector, as

well as relevant

government

agencies/

departments. It

would complement

the Local Economic

Partnerships in NI.

ENABLERS /INVESTMENT REQUIRED

DEVELOPMENT AND EXPANSION OF TERTIARY EDUCATION:

• Expansion of Ulster University’s Derry-Londonderry campus to 10,000 students.

• Atlantic Technological University’s Library, IT and Education Building (Letterkenny campus) and approval to appoint

professors and enhanced investment in the ATU’s research infrastructure, both in terms of facilities and equipment.

• Investment in student housing, and infrastructure to enable, as critical to facilitating the expansion of third level provision in the

region.

R&D AND INNOVATION:

• Develop the unique cross-border innovation ecosystem and infrastructure of the region through the Alpha-Beta Business &

Innovation Quarter in the heart of Letterkenny and the Digital Innovation Hub in Derry-Londonderry (City Deal).

• Maximise sectoral and regional strengths through clustering and scaling of existing research and innovation excellence and

facilities, including Artificial Intelligence (AI) as a key cross-cutting area across all sectors.

SKILLS DEVELOPMENT/PATHWAYS:

• Development of programme of skills development, targeting key gaps, aligned with opportunities for high-growth as well as

core skills required to enhance innovation capacity and building on strong industry-academic collaboration.

• Development of joint apprenticeship schemes that target core skills shortages/gaps, address cross-border legal/ taxation

challenges and build on Programme for Government commitments – for example:

• NI - Apprenticeship Challenge Fund to promote innovation and address inequalities

• Ireland - strengthen links between education providers and industry and as an important contribution in meeting key

targets - particularly for housing and climate action.

STRATEGIC INITIATIVES:

Development Zone/ Investment Zone:

• Explore the potential for the city-region to become a pilot development or investment zone. The Ireland Programme for

Government 2025 includes a proposal to include the development of economic Strategic Development Zones in the regions.

Whilst the Northern Ireland Programme for Government includes an objective to harness the UK Government Investment

Zone policy (focus on skills, local infrastructure, enterprise and business support).

With key potential elements to complement or as part of the above:

• Serviced Lands Initiatives – development of key ‘enterprise infrastructure’ to unlock opportunities in key locations and to

address the continuing market failure to meet demand. This would provide an opportunity for local authorities to utilise

statutory powers to develop under-utilised landbanks. Funding and support would enable investment in enabling utility

and access infrastructure required to provide developable ready sites and meet current gaps and unmet demand, including

from indigenous businesses unable to grow /scale-up. It would also provide an opportunity to provide innovative affordable

housing solutions to meet the current shortfall by unlocking current infrastructure blockages, including water and waste

water.

• Explore scope for the North West City Region to provide locations to meet Government de-centralisation commitments

including in ‘Our Rural Future’ (Department of Rural and Community Development and the Gaeltacht) to ‘prioritise the siting

of new State agencies, Departments and enterprises in towns and cities outside of Dublin to support the Government’s

regional development objectives’ – and as also reflected in the Ireland Programme for Government as part of commitments

to driving job creation to the regions.

25


3. PURPOSE & PRIORITIES

3. PRIORITY AREAS

Health and resilience

KEY INTERVENTIONS KEY PATHWAYS / VEHICLES ENABLERS /INVESTMENT REQUIRED

Key enabling cross-border

collaboration to enhance longterm

health, well-being and

resilience. To include innovative

solutions to shared challenges -

that address health inequalities

and enhance community

cohesion - to support the

resilience of the region to grow

and its communities to thrive.

Partnerships/

collaborations between

Departments of Health,

the Western Health

and Social Care Trust,

the Health Service

Executive, CAWT as

well as community/

voluntary sectors and

other key partners.

• Build on collaborations to date between Departments of Health,

the Western Health and Social Care Trust, the Health Service

Executive and Co-operation and Working Together (CAWT) to

deliver cross border primary healthcare – in particular to reduce

travelling times for patients requiring specialist health services.

• Explore further opportunities for collaboration across the North

West City Region utilising arts, sports, language, culture and

heritage as vehicles for interventions that address the wider

determinants of health and wellbeing, an ageing population as

well as enhance community cohesion to contribute to thriving

and resilient communities. Building on the North-West Audience

Development Programme which targeted families and older

people.

• Explore further opportunities to build on current cross-border

health collaboration and data-driven healthcare to provide

innovative solutions to healthcare inequalities (e.g. building on

current initiatives such as the Personalised Medicine Centre,

C-TRIC/ NI Centre for Stratified Medicine, Design Innovation for

Assisted Living (DIAL).

26


3. PURPOSE & PRIORITIES

3.2 PRIORITY AREAS

FIGURE 7: Infrastructure Investments as Enablers to:

IMPROVE

CONNECTIVITY

IMPROVE

COMPETITIVENESS

ENABLE POPULATION

GROWTH

ACCELERATE HOUSING

SUPPLY

ENABLE

DECARBONISATION

NW STRATEGIC ROAD CONNECTIVITY* 3 3 3 3 3

ENERGY CAPACITY 3 3 3 3 3

WATER / WASTE WATER CAPACITY 3 3 3 3

RAIL CONNECTIVITY TO NW 3 3 3 3

PORT INFRASTRUCTURE / CONNECTIVITY 3 3 3

AIR CONNECTIVITY TO NW 3 3 3

TERTIARY EDUCATION / SKILLS INVESTMENTS 3 3 3

DEVELOPMENT ZONE / SERVICES LAND INITIATIVES 3 3 3 3 3

* Key road projects include:

• A5/N2: Dublin to Derry (N14/N15 to A5 link and A5 Western Transport Corridor)

• A2/N13: Letterkenny to Derry (TEN-T N13 Bridgend to border/A2)

• Donegal TEN-T priority route improvement project - 3 sections (N14/A5 link, N56/N13 and N15/N13)

• A6: Derry to Belfast (Phase 2)

• N56: Inver to Killybegs (five points) • N56 Dungloe to Gweedore

• N13: Stranorlar to Letterkenny • Manorcunningham to Bridgend

• N15 Stranorlar to Lifford

• Letterkenny Southern Network Project • Northern Network Project • Transport Hub

27


3. PURPOSE & PRIORITIES

3.3 REGIONAL BALANCE

This strategy provides a pathway to assist the governments

in Ireland, Northern Ireland and UK in meeting priorities and

commitments to regional development and balance. The importance

of regional balance, not just for lagging regions, but for the country

as a whole is well evidenced. There is growing recognition and

significance among agencies, policies and strategies, that a strong

North West City Region, as the fourth largest metropolitan area, is

essential to the successful development of the wider North West

region as well as for the island of Ireland as a whole.

In Ireland, the National Planning Framework (NPF), when launched

in 2018, was described as a ‘regions’ focused strategy committed to

regional parity. It highlighted the risks of not securing an appropriate

and effective regional balance where ‘unbalanced growth, largely

focused in Dublin and the surrounding region creates a significant

risk, whereby not achieving the economy’s full potential will give rise

to a shortfall in Ireland’s economic performance with serious and

long-lasting consequences for future living standards and the quality

of life overall, across all regions of the country’.

The NPF highlighted public infrastructure investment as significant in

terms of its impact on the competitiveness of a region and included a

commitment to improving accessibility and connectivity to the North

West in particular.

The Programme for Government (PfG) (2025) ‘Securing Ireland’s

Future’ includes a section dedicated to ‘Driving Balanced Regional

Development’ which states that the needs and wants of the

population can be better fulfilled through ‘more dispersed growth

across Ireland’.

It highlights a commitment to the National Development Plan

review in 2025 as underpinning the delivery of balanced regional

development as a key objective.

In Northern Ireland, the Programme for Government 2024-2027

includes a specific section and commitment to ‘Regional Balance’

as a key element of creating an economy that works for everyone.

There is also a commitment to enhanced regional focus for Invest

NI and related investment targets and a new Department for the

Economy Regional Balance Unit. It also acknowledges under ‘Reform

And Transformation of Public Services’ that the pressures of regional

imbalance are likely to increase.

In the UK, the ‘Levelling Up’ agenda (2021-2024) aimed to

address regional inequalities, particularly for areas with historical

underinvestment. The 2022 White Paper recognised that regional

inequalities are both very wide and persistent, with the UK ranking as

one of the most unequal developed countries. This was also echoed

by the OECD Regional Outlook 2023 which identified both Ireland

and UK in the category of wealthy countries with rising regional

inequalities.

The OECD report (2023) ‘Towards Balanced Regional Attractiveness

in Ireland: Enhancing the Delivery of the NPF’ recommended

enhanced co-ordination and some risk-taking across government

to successfully drive investment and population to the regions –

recognising the role of accessibility and connectivity to a region’s

value proposition and competitiveness.

See Figure 8 (next page) for a summary of Government commitments

to regional development and the North West.

The PfG commits to continuing to advance a balanced approach to

regional development, cognisant that the European Commission has

identified the North West as requiring additional support.

28


3. PURPOSE & PRIORITIES

3.3 REGIONAL BALANCE

FIGURE 8: Summary of Government Commitments to Regional Development and the North West

Commits to

continuing

to advance

a balanced

approach

to regional

development,

cognisant that

the European

Commission has

identified the

North West as

requiring

additional

support

IRELAND

Programme For Government

2025

Commitment to driving

Balanced Regional Development

Improve connectivity to

North West

National Planning Framework

Regions-focused strategy

committed to regional parity

Northern & Western region

justifies particular focus in NPF

NORTHERN IRELAND

Programme For Government

2024-2027

Commitment to Regional Balance

Magee Campus 10k students

New rail connection to

North West

Sub-Regional Economic Plan

Deliver locally-led

regional balance

UNITED KINGDOM

Levelling Up 2021-2024

To address regional inequalities -

areas with historical

underinvestment

Recognition & support for

North West City Region

OECD

Regional Outlook 2023

Ireland and UK in category of wealthy countries

with rising regional inequalities

Ulster University Economic Policy Centre (2025)

‘Delivering Balanced Regional Growth in N.I.’

Significant inequalities persist. Need to invest in regional

infrastrucure and strengthen skills and innovation ecosystem

Governments also have regional development commitments in other key strategies, e.g.:

• Ireland - NDP, IDA & EI Strategies, National Smart Specialisation Strategy, White Paper on Enterprise, Our Rural Future

• Northern Ireland - Invest NI Strategy, NI Regional Development Strategy 2035

29


3. PURPOSE & PRIORITIES

3.3 REGIONAL BALANCE

The Ulster University Economic Policy Centre

(UUEPC) report (2025) ‘Delivering Balanced

Regional Growth in Northern Ireland’ determines

that while there has been some convergence in

economic growth among Northern Ireland’s subregions

overall, significant inequalities persist. Key

conclusions and recommendations include:

• Regional policies are generally not pursued

with sufficient ambition, vigour or intensity and

are often counteracted by the effects of other

policies favouring ‘successful areas’ of national

economies. They require long-term consistency.

• Need to invest in regional infrastructure and

connectivity - improving transport and utility

infrastructure as foundational for balanced

growth – and also improve internal connectivity.

“This is a long-term endeavour

and will require long-term financial

commitment.”

This strategy has set out its long-term investment

requirements that are essential to enabling regional

balance and for the North West City Region to:

• achieve its vision and mission; and

• realise its full potential for growth.

In addition to assisting in achieving government

commitments to regional balance, the North West

City Region also provides significant opportunities

to assist in achieving other key regional and

national priorities – particularly around climate

change and housing.

• Need to strengthen education, skills and

innovation ecosystem as key drivers of regional

competitiveness, with higher education

institutions as critical to regional balance

(talent & research).

• Importance of place-based policies and tailored

interventions to address disparities, building on

inherent strengths e.g. industry clusters, focus

on 2-3 key sectors, cross-border linkages.

• Empower local /regional leadership to drive

economic development, supported by coherent

central policies.

30


31


APPENDIX 1

NORTH WEST CITY REGION INFRASTRUCTURE DEFICITS

Motorway Network

Rail Network

32


APPENDIX 1

NORTH WEST CITY REGION INFRASTRUCTURE DEFICITS

National Power HV Transmission Network

& Deep Water Ports

Gas Pipeline Network

110Kkw

220kw

275kw (NI)

400kw

Deep Water Ports

Existing Gas Pipelines

Interconnector 1

Interconnector 2

Pipelines provided by others

33


APPENDIX 1

NORTHERN & WESTERN REGION - INFRASTRUCTURE RANKING

IN THE EU REGIONAL COMPETITIVENESS INDEX (2023)

Source: Northern and Western Regional Assembly using data from the European Commission’s “Regional Competitiveness Index”.

Source: Northern and Western Regional Assembly using interactive map from Eurostat. Colours of regions are

only for design purposes and do not indicate ranking of “infrastructure” index score. “Infrastructure” index

scores of these 20 NUTS 2 Regions available via Table 2 (above).

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