Applications for $340 million broadband fund
Hon David Cunliffe
Minister for Communications and
Information Technology
26 August 2008 Media Statement
Applications for $340 million
broadband fund open
Applications are now open for the government’s $340 million fund to accelerate broadband.
The Broadband Investment Fund (BIF) contains $325 million operating and $15 million capital funding available over a maximum of five years. It is a key part of the Government’s Digital Strategy 2.0 package of over $500 million.
“The Fund is part of the government’s continued commitment to New Zealand’s digital future. Getting the best value from fast broadband requires confident, skilled users and the content and applications to drive uptake and productivity,” says Minister for Communications and Information Technology David Cunliffe.
“Our long term vision for rolling out fast broadband to all New Zealanders will see us spend more than $500 million in the next five years. This includes targeting high speed open access urban fibre networks, improved rural connectivity and improved international links.”
The BIF will be used to accelerate broadband investment in three critical areas:
• facilitating high speed broadband to businesses and entities such as municipalities, universities, schools and hospitals in urban centres;
• extending the reach of broadband into underserved regions, particularly in the rural sector; and
• improving the resilience of New Zealand’s international connections.
“Over forty submissions were received from interested parties on the draft criteria and process for BIF applications. The submissions provided valuable input into the contestable process for distributing funds.
“Our broadband package promotes the best fit between the best available technology and the needs of users in the region concerned. The Broadband Fund will maximise competition, assist investor certainty and give the best possible leverage for the taxpayer's dollar,” said Mr Cunliffe.
Applications for the Broadband Investment Fund close on 30 September.
More details and application
packages can be found at:
www.digitalstrategy.govt.nz
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Questions and Answers
1. Application process
When do applications close?
5pm on
30 September
Why are there two application
processes?
Through the submission process, some
applicants said they would be ready to apply as soon as the
Fund was announced. Other submitters indicated they needed
more time to complete their applications. We have catered
for both with the one-stage and two-stage
processes.
Why do parties only have until 30 September
to register their interest?
The application process
has been designed in a way that will balance the needs of
those who need time to build a case and those who believe
they are ready to go now.
Isn’t there an unfair
advantage for people already involved in the Broadband
Challenge?
No. There are already parties who
have said they are ready to go but we have streamlined the
EOI application process to make application easier and
quicker.
How can I get more help with my
application?
The website www.digitalstrategy.govt.nz
contains information for applicants, including a how-to
guide and examples, to help people with their submissions.
There is also a freephone number (0508 276232 - 0508
BROADBAND) and an email address
(broadband.investment@med.govt.nz) for those who require
further clarification on the process or criteria.
Why
can’t I be assigned a case manager or see someone in
person now?
To ensure there are no conflicts of
interest and that the integrity of the process is
maintained, MED must take a hands-off approach to initial
application stages. Case managers will be assigned after
applications close.
How will I know if there’s more
than one application from my area?
BIF applications
rely on support from local government which should be able
to coordinate, prioritise and manage concurrent applications
from their area. You are encouraged to contact your local
authority to find out this information.
How do I know
there will be consistent decision-making and my application
will be treated the same as anyone else’s?
There
was extensive consultation to make sure the process was
robust enough to ensure all applications will be treated in
a non-discriminatory and fair manner. These submissions will
be posted on the website. Independent evaluators will also
be used.
Is there a right of appeal if my EOI isn’t
approved?
No, but the BIF will have future rounds for
funding (the Fund is over five years) so you will be able to
apply in future years.
When will money from the Fund be
made available?
It is anticipated that the earliest
funds can be released to successful projects will be in
early 2009, following notification to applicants and
contract negotiations.
Applicants who have chosen to
enter the EOI application stage and applied for Applicant
Development Assistance Funding (ADA) and who have been
successful with both applications will be advised once the
decision is made by the Minister. Note that any ADA funding
allocation will apply as per the guideline documentation
terms and conditions.
How do I draw down ADA
funding?
The applicant guidelines outline the
process, but you will need to invoice the MED for the
approved amount of ADA funding. Before this you will have
received a letter from the BIF Programme Manager advising of
the amount allocated.
2. Application
criteria
What projects are
eligible for funding?
Projects that meet the
eligibility and assessment criteria (for both rural and
urban and in EOI and Full Application stages), and that are
approved by Cabinet, will be eligible for funding.
What
are the criteria?
The criteria and application
process are both explained on the website www.digitalstrategy.govt.nz.
How
did you come up with the criteria?
43 submissions
were received on the draft criteria. These submissions were
analysed and another version was produced. This next
version was consulted on with key stakeholders and a final
version created. This version was approved by Cabinet in
August 2008.
Why have the criteria changed from that
first circulated?
We have taken into account the
results of the consultation carried out. A summary of
submissions received is posted on the website www.digitalstrategy.govt.nz.
Who
will receive the funding?
Any legal entity (including
network operators, local authorities and community-based
organisations) will be able to apply. It is anticipated that
successful projects will be strong and collaborative
partnerships between local and central government, the
private sector and communities.
What if I’m not a
legal entity now?
You don’t need to be a legal
entity when you submit an application. The application
process allows time for you to start the process of becoming
one.
Isn’t the BIF just for cities?
No.
There is a strong desire to improve broadband service in
rural areas so there is a portion of the BIF allocated
specifically for rural-based projects ($75m over five
years).
Will this mean fibre to the home?
The
BIF is a stepping stone to a vastly improved broadband
service that is likely to result in more New Zealanders
having fibre in their home.
For more information on the
BIF please see the FAQs at:
http://www.beehive.govt.nz/release/digital+pathway+fast+broadband+future
ENDS