NORTHERN GERMANY FIBRE ROLLOUT FONNOG

Promoter – Financial Intermediary

NORTHERN FIBER HOLDING GMBH

Location

• Germany

Description

The project relates to the design and rollout of a Very High Capacity (VHC) broadband network in Northern Germany (Lower Saxony, Northern-Rhine Westphalia and Schleswig-Holstein). The objective of the project is to cover around 250 000 additional Households (HH's) to the promoter's existing network of 90 000 HH's. As a retail operator, the promoter will offer advanced active services to the end customers in its coverage area.

Additionality and Impact

The project contributes to the Public Policy Goal Innovation, Digital and Human Capital (Digital Infrastructure) and horizontal objective Economic and Social Cohesion. The project will lead to the deployment of innovative and secure telecommunication technologies and thus generate positive network externalities by enabling more users to benefit from improved and safe access to advanced broadband services. The project also generates further externalities to other sectors of the economy by supporting innovation and competitiveness. This will lead to economic returns to society that exceed those to the private investor.

EIB loan will diversify the sources of financing of the borrower which is critical in the context of a large non-recourse financing and the relatively small current size of the Promoter. EIB loan will accelerate the Borrower Investment by securing upfront additional financing. In addition, EIB financial added-value will improve the financial sustainability of the borrower and the project.

Objectives

The project concerns the rollout of a Very High Capacity network in Germany, enabling ultra-fast broadband services. The project contributes to the objectives of the Digital Compass and a secure and sustainable digital infrastructure that provides gigabit connectivity for all households until 2030. The project is also in line with the European Electronic Communication Code (ECC) by supporting Very High Capacity networks and the requirements for data security. Therefore, the project is eligible under article 309, point c) Common Interest and point a) projects for developing less-developed regions where applicable.

Sector(s)

• Telecom - Information and communication

Proposed EIB finance (Approximate amount)

EUR 175 million

Total cost (Approximate amount)

EUR 428 million

Environmental aspects

Investments in fixed telecommunications projects (mainly civil works for fibre rollout) do not fall under the Annexes of 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.

Procurement

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.

Status

Signed - 11/12/2023