MEGALIS BRETAGNE TRES HAUT DEBIT

Promoter – Financial Intermediary

MEGALIS BRETAGNE

Location

• France

Description

The project relates to the design and rollout of a publicly owned fibre broadband network in the rural and less densely populated areas in the region of Bretagne.

Additionality and Impact

The EIB's long-term loan will secure the promoter's liquidity and thus ensure that the project need not be scaled back in the context of the current economic downturn. EIB financing thus enables the promoter to provide very high capacity network coverage to more than 400 000 additional households, which will benefit from access to ultra-fast broadband connections at a competitive price. The project will generate positive externalities by providing more users with improved access to information and digital services such as e-government, e-commerce, e-health; and better communication capabilities. The project furthermore generates positive externalities for other economic sectors supporting innovation and competitiveness. Broadband coverage in rural, so-called white areas has a significant impact on the inhabitants and on regional development, as broadband connections are required to reap the benefits of digitalisation of economic sectors, such as agriculture, tourism and commerce, especially in situations such as the ongoing Covid-19 pandemic outbreak. The increased coverage of very high capacity networks contributes to the goal of all European households having access to internet connectivity of at least 100 Mbps, upgradeable to Gigabit speeds by 2025.

Objectives

The objective of the project is to expand the Fibre to the Home (FTTH) network to cover, during the project implementation period (2020 to 2022), a further 400 000 households, in addition to the 240 000 households already covered. The access network will be deployed in areas where private operators are not providing very high speed broadband services due to lack of commercial interest and will therefore be commercialised on an open access basis to the private retail operators.

Sector(s)

• Telecom - Information and communication

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 442 million

Environmental aspects

Investments in fixed telecommunications projects (mainly civil works for fibre rollout) do not fall under the EIA Directive 2014/52/EU amending Directive 2011/92/EC. The related works have limited environmental effects, apart from disturbances during civil work constructions, which can be mitigated by appropriate measures. Full environmental details will be assessed during appraisal, including the possible impacts on protected flora and fauna.

Procurement

The Bank will require the Promoter to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

Status

Signed - 16/12/2020