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NBP: Cost Benefit Analysis done?

  • 17-12-2015 11:36am
    #1
    clohamon
    Registered Users Posts: 1,761 ✭✭✭


    Minister White appeared to stumble on Newstalk Radio yesterday as to whether a mandatory Cost Benefit Analysis of the NBP had been carried out for the Department of Public Expenditure.

    DCENR published a report in July by PwC on benefits only, which contained no quantitative analysis. PwC explained why as follows..
    The CBA Report cannot be published in full as it contains commercially sensitive cost information. The CBA is also subject to ongoing review by the Department of Public Expenditure & Reform and as such the detailed approach to the quantification of benefits cannot be published at this time. The purpose of this report is to provide a qualitative description of the benefits of the NBP which has been extracted from PWC’s CBA Report.
    In undertaking the CBA, PwC relied on:
     the high speed broadband map published by DCENR in November 2014 which defines the Intervention Area (this map is being kept under review to ensure that relevant commercial plans are accurately reflected),
     cost information sourced from KPMG, DCENR’s financial advisors in collaboration with technical advisors Analysys Mason, including the timing of these costs.
    In order to quantify benefits, PwC generated a detailed socio-economic profile of the IA by combining DCENR’s mapping information with Census data. Based on PwC’s profiling of the IA, it was found that the IA accounts for almost 40% of our population, and covers 80,266 farms (94% of all farms in Ireland) and 63,440 businesses2.
    Whilst the NBP is expected to deliver a wide range of benefits, PwC were of the view that many of these benefits were not capable of credible quantification. In including and profiling NBP benefits, PwC adopted a deliberately conservative approach to ensure the benefits were not overstated.


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