Oireachtas Joint and Select Committees

Thursday, 27 January 2022

Joint Oireachtas Committee on Transport, Tourism and Sport

National Broadband Plan Update: National Broadband Ireland

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

Taking this to the logical conclusion, the State is providing funding of 92% of the cost of the roll-out. That goes to NBI to roll out a network that would not have been rolled out to rural areas without State support. Mr. Hendrick mentioned the next matter in his briefing note. Under project costs, it states:

6.3 Granahan McCourt incurred significant costs during the bid stage, in relation to technical, financial, legal and tax due diligence, project development and related matters. Granahan McCourt was fully on risk for those costs during the bid period. The project agreement envisaged that such costs would be reimbursed by NBI.

That came to approximately €32.73 million, according to what I read in the media. The note continues:

This reimbursement was not funded from subsidy paid by the State. It is ordinary course for successful bidders in procurement processes to recoup bid costs as part of the implementation of the successful bid.

Will Mr. Kelly address that. The media reports are basically indicating these were paid for out of subsidies received from the State. What is the total number of subsidies received by NBI to date?

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