Written answers

Tuesday, 14 December 2021

Department of Communications, Climate Action and Environment

National Broadband Plan

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
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81. To ask the Minister for Communications, Climate Action and Environment the role of advisers (details supplied) in the ownership structure of National Broadband Ireland and its role in the National Broadband Plan; and if he will make a statement on the matter. [61548/21]

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein)
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82. To ask the Minister for Communications, Climate Action and Environment the ownership structure of National Broadband Ireland and a company (details supplied) respectively with regard to the National Broadband Plan; and if he will make a statement on the matter. [61538/21]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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123. To ask the Minister for Communications, Climate Action and Environment the safeguards that are in place in respect of the National Broadband Plan to protect the State from liability and or risk posed by the make-up and investor entities in National Broadband Ireland. [61370/21]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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125. To ask the Minister for Communications, Climate Action and Environment the steps National Broadband Ireland must take in advance of the inclusion of new investors or excluding investor entities in its corporate structure; and if he can veto changes to the corporate structure. [61372/21]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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144. To ask the Minister for Communications, Climate Action and Environment if his attention and or that of his officials was drawn to the involvement of a company (details supplied) in the context of it being an entity owned by another company; and if he will clarify the role of the company in the National Broadband Plan; the date on which the matter was notified to him; and the steps he took on receiving notice. [61578/21]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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145. To ask the Minister for Communications, Climate Action and Environment if he is satisfied that no change in ownership or amendments to same have been made in respect of the ownership structure of National Broadband Ireland since its formation. [61579/21]

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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173. To ask the Minister for Communications, Climate Action and Environment if clarity will be provided on the National Broadband Plan including investors; and if he will make a statement on the matter. [61977/21]

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party)
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I propose to take Questions Nos. 81, 82, 123, 125, 144, 145 and 173 together.

The contract for the National Broadband Plan (NBP) State led intervention, which was signed with National Broadband Ireland (NBI) in November 2019, is a comprehensive and detailed document. To protect the State investment and ensure that the NBP milestones and deliverables are met, the contract has been designed to include extensive protections, quality checks, reporting and monitoring obligations.

On the matter of ownership, Metallah Limited is the 100% owner of the shares in the capital of NBI - save for the special share of the Minister which does not provide ownership rights. Granahan McCourt Dublin Limited is the 100% owner of the shares in the capital of Metallah Limited and is owned 50.9% by Granahan McCourt Fund Limited (a David McCourt controlled company) and 49.1% by Tel-IE Broadband Sari, an entity managed and controlled by Oak Hill Advisors. The ownership structure remains as it was at contract signing and contract effective date.

The NBP Contract provides specific protections in relation to a change in ownership, sale, or change in control of shareholders of NBI. Under the Contract, and up until 12 months after the network build is complete, the prior approval of the Minister is required for any of these events. In the event of a sale of NBI, any new owners will continue to have the same obligations as the original owners.

The Contract also requires the written consent of the Minister prior to the transfer of any interest, direct or indirect, in NBI held by Mr David McCourt . Again, this requirement is in place until 12 months after the network build is complete. It should be noted, however, that approval under these provisions cannot be unreasonably withheld.

In the event that the investors sell the majority of their shareholding in NBI in the first ten years of the Contract, the State will be entitled to clawback a proportion of any profit on sale based on the value of the business at the time of sale.

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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83. To ask the Minister for Communications, Climate Action and Environment the funding and equity committed to National Broadband Ireland and the National Broadband Plan by its investors; the corresponding funding and equity committed to the National Broadband Plan by the State to date; and if he will make a statement on the matter. [61504/21]

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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91. To ask the Minister for Communications, Climate Action and Environment the funds withdrawn or recouped from National Broadband Ireland – National Broadband Plan; and the resulting impact this may have on roll-out targets. [61474/21]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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134. To ask the Minister for Communications, Climate Action and Environment the breakdown of the €2.7 billion investment contained within the National Development Plan to deliver on the National Broadband Plan through National Broadband Ireland including the financial years that this investment corresponds. [61531/21]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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141. To ask the Minister for Communications, Climate Action and Environment the steps he and or his predecessor have taken to ensure that equity has been lodged and accounted for from the contract winner in the context of the National Broadband Plan; if he will provide a schedule of the equity received; the amount the State has provided to date; and the amount provided by the contract holder in working capital [61575/21]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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143. To ask the Minister for Communications, Climate Action and Environment the identity of the majority shareholder in the National Broadband Ireland; the amount the consortium of investors has contributed to date; and the amount recouped. [61577/21]

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party)
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I propose to take Questions Nos. 83, 91, 134, 141 and 143 together.

The contract for the National Broadband Plan (NBP) State led intervention, which was signed with National Broadband Ireland (NBI) in November 2019, is a comprehensive and detailed document. To protect the State investment and ensure that the NBP milestones and deliverables are met, the contract has been designed to include extensive protections, quality checks, reporting and monitoring obligations.

Of the €2.7 billion capped maximum exchequer subsidy committed to the National Broadband Plan, €2.1 billion relates to base subsidy, €0.48 billion is for contingencies and over €0.1 billion refers to VAT. This subsidy has been committed over a 25 year period. Total funds of €223m, including working capital, have been committed by the consortium to the NBP in accordance with the requirements of the contract.

The investors are providing funding through the purchase of shares in NBI and the provision of shareholder loans. I am advised that utilising both instruments is a standard form of investment in infrastructure companies and reference to both as being “equity investments” is common practice.

The initial drawdown of committed shareholder funds by NBI was €100 million in January 2020. This was drawn down before the release of any subsidy by the State. I am advised that no shareholder distributions have been made to date. I am also advised that a further drawdown of investor funds of €20m will be made in the coming weeks and that the full amount of committed equity of €175m is covered by guarantees.

As of November 2021, €167.8m of subsidy had been claimed by NBI which equates to approximately 6% of the maximum State Subsidy. At that same point, 45% of investor funds had been drawn down.

I am advised that the level of funding committed and the manner in which it has been committed is in accordance with the contract.

On the matter of ownership, Metallah Limited is the 100% owner of the shares in the capital of NBI - save for the special share of the Minister which does not provide ownership rights. Granahan McCourt Dublin Limited is the 100% owner of the shares in the capital of Metallah Limited and is owned 50.9% by Granahan McCourt Fund Limited (a David McCourt controlled company) and 49.1% by Tel-IE Broadband Sari, an entity managed and controlled by Oak Hill Advisors. The ownership structure remains as it was at contract signing and contract effective date.

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