Seán Power (Kildare South, Fianna Fail)

I thank Senator Keaveney for raising this matter. I am happy to reply and to provide as much information as possible.

Project Kelvin will provide direct international telecoms connectivity between the north west of Ireland and North America and Europe by bringing a transatlantic submarine telecoms cable ashore in County Derry. This is a joint EU funded cross-Border co-operation project between the Department of Communications, Energy and Natural Resources and the Department of Enterprise, Trade and Investment in Belfast. The Kelvin project will bring high speed international broadband connectivity at a very competitive cost to the north west of Ireland, including Derry and Letterkenny. It will greatly enhance the region's attractiveness for business and foreign direct investment. As Senator Keaveney outlined, as well as Derry and Letterkenny, the benefits of the Kelvin project will extend to Monaghan, Castleblayney and Drogheda, and a number of towns in Northern Ireland.

Total investment in the project will amount to approximately €70 million. The Department of Communications, Energy and Natural Resources and the Department of Enterprise, Trade and Investment will contribute €30 million, which is 75% co-funded by the EU. Following an open tendering process, the contract to implement the Kelvin project has been awarded to Hibernia Atlantic, an international telecoms company which has two transatlantic submarine telecoms cables connected to Ireland. The contract was awarded following a full open procurement process involving both departments.

The Kelvin project involves building a spur from the transatlantic submarine cable, which runs off the north coast of Ireland, and bringing it ashore in Portrush, County Derry. The tender documentation for the project specified that the submarine cable could land along the coast of either County Antrim or County Derry. Hibernia Atlantic has chosen Portrush, County Derry as the most suitable location for the landing of the submarine cable for geographical and environmental factors. For technical and engineering reasons, Hibernia Atlantic has chosen Coleraine, County Derry, as the location for the telehouse for the Kelvin project, as that is the nearest point to Portrush where the Kelvin cable can be connected to the land-based telecommunications infrastructure. The proposed telehouse will be a small highly secure building containing some telecoms equipment which will be operated by Hibernia Atlantic on a remote unmanned basis.

The proposal to locate the telehouse in Coleraine was submitted as part of Hibernia Atlantic's response to the tender for the Kelvin project. The legal tender documents for the Kelvin project specified the provision of a telehouse facility in Derry. At a meeting which was held for prospective bidders for the Kelvin project at the Everglades Hotel, Derry on 21 July 2008, at which the Department of Communications, Energy and Natural Resources was represented, it was specifically clarified that the Kelvin telehouse could be located at any location in County Derry. The successful tender specified Coleraine, County Derry, and the contract for the Kelvin project has been awarded on that basis. The location of the telehouse in Coleraine does not in any way put Derry at a disadvantage as regards the main benefits of the Kelvin project - the provision of high speed international connectivity to Derry at a competitive cost.

The breakout points that Hibernia Atlantic is providing in the towns along the Kelvin route, including Derry and Letterkenny, all have identical transmission, service offerings and benchmarked pricing. Each town, including Derry and Letterkenny, where these services will be offered has the same opportunity to compete for any ancillary business connected to the Kelvin international connectivity, as all the services delivered by this project will be available at these breakout points.

The Kelvin project is a flagship cross-Border project with €30 million of EU and Exchequer funds in public investment on both sides of the Border in addition to substantial investment by Hibernia Atlantic. The funds made available for this project reflect its strategic benefits for the north west and for international connectivity for Ireland as a whole. The project is about providing the infrastructure businesses need to compete internationally and the project will, therefore, benefit Derry city and Letterkenny in a significant way.