Dáil Éireann Debate, Tuesday - 31 May 2022
101. Deputy Catherine Connolly asked the Minister for the Environment, Climate and Communications the estimated cost of missing Ireland’s target for the roll-out of high-speed rural broadband in 2022; and if he will make a statement on the matter. [27936/22]
View answer102. Deputy Catherine Connolly asked the Minister for the Environment, Climate and Communications the estimated cost of rolling-out high-speed broadband across Ireland in 2023; and if he will make a statement on the matter. [27937/22]
View answerI propose to take Question Nos. 101 and 102 together.
The National Broadband Plan (NBP) contract with National Broadband Ireland (NBI) contains a number of targets and milestones to be completed by NBI in order to deliver the rollout of high-speed broadband services to all premises in the Intervention Area by 2026. NBI is only entitled to claim the payment of relevant subsidy when the targets and milestones have been met. Subsidy payments are therefore not paid until NBI meets the milestones set out in the NBP contract.
NBI has informed me that the network rollout is progressing well this year and NBI is confident of achieving its targets for 2022. Under the Updated Interim Remedial Plan (UIRP) for 2022, that NBI recently concluded with my Department, a revised target was agreed of 102,000 premises passed by the end of Contract Year 3. If NBI does not achieve this target under the UIRP, this will have a financial impact for the company as they will not be able to draw down subsidy. While there will be less subsidy paid to NBI in 2022 if NBI does not meet its target; it will not impact the overall level of subsidy required for the NBP intervention. The maximum cost to the taxpayer for the completion of the NBP broadband network is capped at €2.7 billion over 25 years. This figure includes €480 million for contingency costs, which are only allowed under specific circumstances.
Payment of subsidy to NBI in 2023 will be linked to the achievement by NBI of milestones under the NBP contract. The 2023 allocation for the NBP will be determined as part of the 2023 Estimates process which has just commenced.
