Oireachtas Joint and Select Committees

Thursday, 10 February 2022

Public Accounts Committee

2020 Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Environment, Climate and Communications
National Broadband Plan Expenditure and Related Matters

9:30 am

Mr. Barry Kelly:

As Mr. Hendrick said, we have contracted out for the next two or three years in terms of pricing, so that is fixed. Thereafter, we can make assumptions. Obviously, the further out one goes, it is harder to make those assumptions. The financial model that we agreed with the Minister includes assumed inflation within it, as well as a contingency for inflation and other assumptions. The model is set up to include a number of different layers of contingency, whether it is €500 million contingent pot, assumptions around inflation and also some buffer equity that we have included, as Mr. Hendrick mentioned. Investors have guaranteed up to €223 million of equity, which is above and beyond what we foresee having to draw down, but it is available. We feel comfortable that there is lots of capacity to absorb any sort of bumps in the road, whether from Covid or inflation.