You say that, but the Lynton and Barnstaple Railway are in the process of building five brand new steam locos and there are as well a number of new build main line certificated steam locos being undertaken in the UK today.
I understand that you have to be realistic about such projects and somethings like this wouldn't go ahead without so much of the funding being in place to start with.
It is no good expecting the average railway enthusiast to stump up the money for such a project, as it will never happen. What is more likely is if those behind the project are willing to look at sponsorship from a number of sources. Ireland being in the EU, would I think still be entitled to apply for cultural and tourist based grants. This process is not that easy or quick, but it is possible.
It would also be tying down all the possible reasons why the project should succeed, such as increase in tourism, the creation of jobs for the project and surrounding local businesses, in the UK a base figure of of every one job created by the project, it creates two more in the local tourist community (always a good one with politicians), interpretation of the local culture, sustainability of the project (would rebuilding the railway station to a standard that trains could run for there again benefit the local community?) what long term assistance could IR give to the project?
This is not an endless list of things to consider, but as they say, it always helps to think outside of the box (whatever that means).
Of course we also have to remember that not all grant applications are successful, but by thinking about all those issues and more, it will give you a better chance of success in the long term.