Tuesday, 28 May 2019

Questions (373)

Timmy Dooley

Question:

373. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment the additional costs developed for the national broadband plan in the period commencing in February 2018; and if he will make a statement on the matter. [22638/19]

View answer

Written answers (Question to Communications)

Following the evaluation of the two draft bids received in September 2017, the cost estimates for the NBP were revised to encompass learnings from the competitive dialogue, a greater understanding of project risk from the draft bids received and the reduction in the intervention area.

Based on the Department’s more highly-developed knowledge of project risk, along with updated cost assumptions developed with our advisers at this time, a new cost modelling exercise was carried out leading to the development of an updated cost estimate of €1.8 billion (ex VAT and contingency) in March 2018. Since then, the procurement process has determined that the maximum possible cost to the state will be €2.1 billion (ex VAT and contingency) or €3 billion (including VAT and contingency), to be incurred and spread over a 25 year period. There is also a requirement on National Broadband Ireland to continue to operate the network for a further 10 years to 2054 with no further cost to the State.