One of the biggest broadband projects in the Republic may face lengthy delays due to a shortage of funding despite assurances from the Government there would be no cutbacks in 19 approved schemes.
Just last month the Minister for Communications, Marine and Natural Resources, Mr Ahern, said the Government was committed to its plan to bring high-speed internet access to the regions. He said more than €32 million would be invested next year in introducing broadband throughout the State.
But The Irish Times has learned that the construction of 100 km of fibre optic network in Waterford and five nearby towns was scheduled to begin shortly, but was shelved this week by the South-East Regional Authority.
The authority, which is managing the €12 million project, cancelled a tender process to choose a firm to oversee the construction process and has told interested bidders that funding is not available.
The project, which is known as Serpant, would have rolled out high-speed internet technologies in the cities/towns of Waterford, Kilkenny, Carlow, Clonmel, Wexford and Dungarvan.
These technologies would enhance the attractiveness of the towns as potential locations for inward investment.
But an email from the authority to tenderers said the Department of Communications, Marine and Natural Resources had advised that: "Due to overall funding constraints, the Serpant Project incorporating six cities/towns in the south-east will not be among the projects that will be funded in 2003. The Department indicated that the project may be funded in 2004."
The email was signed by Mr Thomas Byrne, director of the South-East Regional Authority, who wrote that the authority was "extremely disappointed at this development" but had "no option but to cancel the tendering process for the supervision contract".
"In the event of funding for the Serpant Project being confirmed it will be re-commenced in the future," continued the email.
When contacted yesterday, Mr Byrne would only say discussions were continuing with the Government on the issue of funding.
The south-east project was one of 19 schemes that were approved by the Government as the first phase of a scheme to develop high-speed internet technologies throughout the State. The Government's broadband initiative was developed to react to several high- profile surveys which showed the Republic had one of the worst broadband networks throughout the top 30 OECD states.
At the publication of the Estimates last month, Mr Ahern reaffirmed the Government's commitment to the broadband projects.
"At a time of uncertainty I am pleased to be able to deliver on the Government promise to fund major expansion of broadband in the regions.
"This will be a key element in economic growth and balanced development," Mr Ahern said at a briefing in November.
A Government spokesman said last night there was no question of any delays in the Government's broadband project to deliver metropolitan area networks to 19 towns and cities.
He said funding had been allocated for next year, and would be made available in the following year. "We are fully committed to the project," he said.
