Thursday, 4 July 2019

Questions (45)

Timmy Dooley


45. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment his views on whether the gap funding model for the national broadband plan led to an increase in costs; and if he will make a statement on the matter. [28530/19]

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Written answers (Question to Communications)

In July 2016 the Government selected the gap funded model as the optimum ownership model for the NBP State intervention. The Government considered two ownership models, having narrowed the options from five models. While this decision was informed by a high level cost modelling on both options, the NBP procurement was always structured so that the final cost would be determined through the dialogue process with bidders. At the point of the Government decision on the ownership model a number of factors were considered. Among these was the estimation that the gap funded model was likely to lead to a lower cost than the full concession model because of the strategic value bidders would place on the network and the incentive to continue investment and upgrade over the full 25 years of the contract and beyond.

Question No. 46 answered with Question No. 43.
Question No. 47 answered with Question No. 30.