On the 8th October 2013, the Government approved the appointment of Capita Business Support Services Ireland Limited as the company which will develop, roll-out and operate the National Postcode System following the conclusion of the public procurement process. This company will operate Eircode, the National Postcode System, under licence for an initial ten year period extendable at the discretion of the Minister for Communications by a further five years. The contract for these services was signed in December 2013. The postcodes contract is expected to cost around €16m (excluding VAT) as the postcode system is developed and rolled out over the first 2 years and there will be a cost of about €1.2m per year over the remainder of the licence period. Capita have been paid a total of €12.224m (excl VAT) to date.