A total of €35 million has been allocated to replace rented prefabs in schools for this year.
The funding will be used to replace prefabs that are used to provide resource rooms and classroom accommodation for an estimated 6,000 pupils.
Almost 200 schools will be offered grants to build permanent accommodation this year - over a third of all schools who currently rent prefabs.
The Minister for Education Ruairi Quinn said the present Government was endeavouring to reverse the policy of the previous Government which had issued 715 rental contracts for schools in 2007 alone.
He said: "The result of this policy is that we have a legacy of rented prefabs in schools around the country. The Government is determined to tackle this issue.”
The new initiative will result in savings of approx €5m per annum on the rental of prefabs in these schools in the coming years and will result in the creation of an estimated 700 direct and 140 indirect jobs.
It forms part of the Government's €430 million education infrastructure plan for 2012.
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