Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

When only one bidder remained, we recognised that there had to be much more robust due diligence than if there were a number of bidders. We investigated the volume of fibre, the price of fibre, the terrain, the way this would be done, the expected labour cost, the expected material cost, and the pace at which ducts and poles would be made available. All of that was investigated in significant detail to make sure that this was robust, so that when we evaluated the cost and made a judgment that this represented value for money from the State's point of view, it was based on benchmarks of all the critical features of the bid.

With regard to the capacity of this tenderer, the group involved has rolled out €40 billion worth of telecommunication investment, so it is a seasoned investor. Those who will head it up have had senior positions in both Irish and non-Irish international telecommunications companies. To roll out the fibre, it will use the same contractors used by Eir, SIRO or any of the other players. It passed the evaluation tests that were done independently, not by me, because it could show that it had the capacity to do it.

The contingency fund will only be released in specific, audited events. If certain events occur, there will be a release. For example, if the price of fibre is significantly more than the projected scale, the State could be exposed for some part of that risk but it is entirely capped. Many other risks are carried entirely by the company, for example with regard to revenue. We have used a contingency fund to identify certain risks which we are willing to share but we will put in place a vigorous governance system to make sure that is not called upon except where those events have occurred.