Minister of State at the Department of Public Expenditure and Reform Ossian Smyth has said he has asked his officials what they can do to “expedite” publishing the National Broadband contract.
Mr Smyth told the Dáil on Tuesday night that the ownership structure of National Broadband Ireland (NBI), the company set up to manage installing broadband access, “remains as it was at the signing of the contract”.
Mr Smyth was answering parliamentary questions on behalf of the Minister for the Environment, Climate and Communications Eamon Ryan, whom Mr Smyth said had a cold and could not attend.
Sinn Féin TD Ruairí Ó Murchú asked if the minister would address issues recently raised in the Sunday Business Post and The Currency in relation to the plan and NBI’s corporate structure, financial arrangements, long-term viability and ability to deliver.
Mr Smyth said on the matter of the ownership, Metallah Ltd is the 100 per cent 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 per cent owner of the shares in the capital of Metallah Ltd and is owned 50.9 per cent by Granahan McCourt Fund Limited, a David McCourt controlled company and 49.1 per cent by an entity managed and controlled by Oak Hill advisors, Mr Smyth said.
“The ownership structure remains as it was at the signing of the contract. The investors are providing funding through the purchase of shares in NBI and the provision of shareholder loans,” he said.
“I’m advised that using 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 for the release of any subsidy by the State. I’m advised that no shareholder distributions have been made to date.
“I’m also advised that a further drawdown of investor funds of €20 million will be made in the coming weeks and that the full amount of committed equity of €175 million is covered by guarantees.”
Mr Smyth said if the ownership did change, “it would have required the consent of the minister”.
End of year
NBI was awarded the State contract to roll out broadband to 540,000 homes and businesses in 2019 after Eir and ESB-Vodafone joint venture Siro withdrew from the competition.
It was forced to cut its target for the number of premises “passed” by the network this year from 115,000 to 60,000 as Covid-related delays hit the initial rollout.
Mr Smyth said it was recently confirmed to the department that the number of premises passed by the end of December will be in the order of 35,000, while between 50,000 and 60,000 premises will be able to “order or pre-order a service by the end of the year”. He said build is underway for more than 121,000 premises.
Mr Smyth also said he believed in transparency and had asked his officials “how much more of the [National Broadband] contract we can publish”.
“There’s been a huge publication of the contract, some parts are redacted. As I understand, that’s in line with the mandatory provisions of Section 36 of the FOI Act of 2014,” he said.
“But as far as possible, I have asked my officials to see what they can do to expedite that.”
