Written answers
Tuesday, 28 May 2019
Department of Communications, Climate Action and Environment
National Broadband Plan Expenditure
Timmy Dooley (Clare, Fianna Fail)
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373. To ask the Minister for Communications, Climate Action and Environment the additional costs developed for the national broadband plan in the period commencing in February 2018; and if he will make a statement on the matter. [22638/19]
Richard Bruton (Dublin Bay North, Fine Gael)
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Following the evaluation of the two draft bids received in September 2017, the cost estimates for the NBP were revised to encompass learnings from the competitive dialogue, a greater understanding of project risk from the draft bids received and the reduction in the intervention area.
Based on the Department’s more highly-developed knowledge of project risk, along with updated cost assumptions developed with our advisers at this time, a new cost modelling exercise was carried out leading to the development of an updated cost estimate of €1.8 billion (ex VAT and contingency) in March 2018.
Since then, the procurement process has determined that the maximum possible cost to the state will be €2.1 billion (ex VAT and contingency) or €3 billion (including VAT and contingency), to be incurred and spread over a 25 year period. There is also a requirement on National Broadband Ireland to continue to operate the network for a further 10 years to 2054 with no further cost to the State.
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