Mr. Peter Hendrick:

I will. I thank the Chair and the committee for the invitation to discuss the national broadband plan today. I am the CEO of National Broadband Ireland. I am joined by Mr. T.J. Malone, who is CEO of NBI Deployment and who leads the team that is building the NBI network. In addition, we have senior management teams: Ms Tara Collins, who is responsible for marketing communications; Mr. Barry Kelly from finance; and Ms Jenny Fisher on governance and who is the interface with the Department of the Environment, Climate and Communications. The team and I know from our work with other Oireachtas committees that it can be challenging to convey the size, scale, and complexity of the NBP from a boardroom setting. Therefore, we have instigated a programme of field trips to show first-hand how the NBI network is being deployed. The sessions have been widely recognised as informative and helpful. For this reason, there remains an open invitation to all committee members to experience the work of our teams out in the field.

As CEO of NBI, I remain incredibly proud of the work our team is delivering, particularly against the backdrop of turbulent conditions caused by Covid-19. NBI has been operating for 25 months, 23 of which have been under the shadow of the pandemic. I believe that, despite the extreme and turbulent conditions faced throughout the project to date, the work of our team provides a platform that gives us confidence to deliver the project on time and on budget. Our team has now scaled, with construction active across all 26 counties and more than 1,200 people hired, onboarded and working on the project. That includes our specialist subcontractors, the likes of Integro, Indigo, KN Group, Secto, Actavo and TLI. We are also working with infrastructure operators such as Open Eir and Enet. I acknowledge all of the hard work that has been done by everybody involved to date, as well as the collective commitment to bring high-speed broadband to those who need it most.

Across the project, we have already made major achievements. More than 298,000 premises have been surveyed, of which in excess of 252,000 have been designed or are in detail design. These activities are vital precursors to the main build and they are continuing at pace. More than 54,500 premises are currently able to place their order via their preferred retail service provider. There are in excess of 154,000 premises that have been constructed or are under construction. For context, the original plan would have seen us at approximately 180,000 premises under construction at this stage in the programme. We have now awarded contracts to our build partners for more than 195,000 premises, which includes network build due for completion in first half of 2023. A total of 475 broadband connection points, including schools, have been installed by NBI. We have also increased our minimum speed from 150 Mbps to in excess of 500 Mbps, as well as offering 1 Gb and now 2 Gb products. We recently announced that we are delivering high-speed broadband infrastructure to six islands off the coast of Donegal and Mayo, two of which were completed in January. More than 50 retail service providers have already signed up to sell services on the NBI network, ensuring an increased range of products, all being offered at competitive prices for consumers.

As I have just mentioned, in excess of 154,000 premises either have been constructed or are under construction. We believe this metric is the leading indicator for delivering the programme. For context, the equivalent figure this time last year was approximately 19,000. Therefore, it can be seen how this is ramping up and how it will directly feed into premises passed and connection numbers in time. Additionally, we are implementing a series of initiatives that lend confidence to the delivery of the 2022 programme and beyond, including, but not limited to, the fact we have contracted with Eir to increase the volume of pole replacement and duct insulation, which commenced on 1 October 2021.

Turning to other matters, I can appreciate some recent media attention on the shareholder structure of NBI may have concerned members of the committee. We endeavoured to clarify these matters in a transparent and open way at an Oireachtas joint committee two weeks ago. We welcome the opportunity to attend today to provide further clarifications. Consequently, I would like to clarify the following points. The ownership structure remains as it was at the signing of the contract. The shareholders of NBI Infrastructure DAC and NBI Deployment DAC are Metallah Limited and the Minister, who holds a special share with certain consent rights in respect of NBI Infrastructure DAC and NBI Deployment DAC. The shareholder of Metallah Limited is Granahan McCourt Dublin Limited. Above Granahan McCourt Dublin Limited, there are holding companies and investment vehicles into which the various investors have invested at different levels. This structure would not be unusual in the context of a major infrastructure project with a series of international investors. David McCourt, via voting rights in each tier of the company's structure, retains control of NBI.

On the potential for bringing in new investors to the project, I would clarify the following. As the risk profile of the project evolves, it is likely that some of our early stage investors, who helped to turn NBI from an idea into reality at a point when there was still much unquantifiable risk in the project, will be replaced with investors who specialise in long-term investments. This has always been the plan and is the reason that mechanisms for change of ownership are allowed in the contract, subject to approval from the Department, as is standard practice in such long-term contracts.

The corporate structure as it is today or into the future will not change NBI’s contractual commitments or collective goal, delivering the infrastructure that will radically transform the country’s broadband landscape. Any new investors will be required to step into the proportional share of the shareholders' funding commitments. The shift to new investors, who will bring this long-term capital, will not cost the people of Ireland or the State any additional money and will not impact on the day-to-day operations of the business.