Michael Moynihan (Cork North West, Fianna Fail)
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744. To ask the Minister for Communications, Energy and Natural Resources the estimated target spend under the national broadband plan; the breakdown in Exchequer funding and other sources; and if he will make a statement on the matter. [34422/15]

Michael Moynihan (Cork North West, Fianna Fail)
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745. To ask the Minister for Communications, Energy and Natural Resources his views on the initial outlay planned in the infrastructure and capital investment 2016 to 2021 for the national broadband plan; if the original spending target for this plan will be reached; the additional spend that will be allocated, and the timescale for same; and if he will make a statement on the matter. [34423/15]

Alex White (Dublin South, Labour)
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I propose to take Questions Nos. 744 and 745 together.

The proposed State intervention under the National Broadband Plan (NBP) represents a very significant capital investment project for the State.

Section 7.5 of the draft intervention strategy which I published for public consultation in July last deals in some detail with issues related to project costs.

As I have previously stated, regardless of which ownership option is chosen, the exact amount of funding required will ultimately be determined by a competitive procurement process. It would not therefore be appropriate in advance to speculate on the potential cost. Bidders will be expected to meet the standards set out in the finalised strategy, at least cost to the Exchequer.

The State contribution towards the cost of delivery may be achieved through a combination of Exchequer and other sources, including the European Investment Bank. €75m is also committed under the European Regional Development Fund.

In advance of any such competitive tendering process, it is not the intention to indicate the overall estimated Exchequer funding parameters at this stage.

The €275 million allocated to the NBP in last week’s Capital Review is not the full cost of the programme. The contract will require the delivery of the full network by 2020, plus its operation for a much longer period – potentially up to 20 years. It is our intention to spread the payments for the project over the longer period to maximise service quality over the long term.

Therefore, State spending on the programme will go well beyond the period of the capital investment plan published last week.

The allocation of €275m provides the necessary critical initial stimulus that is required to ensure that the combination of private and state investment delivers high speed broadband to 85% of premises in Ireland by 2018 and 100% by 2020.