How Is The Project Being Funded?

The bulk of the capital funding (£1M+) to build the network and connect premises to the service is being provided by Community Broadband Scotland. Local communities are required to provide capital “match funding” of 11% - about £120k in our case – so the total capital investment will be of the order of £1.2M.

We expect the local share to be met from telecom supplier contributions, connection fees and subscriptions.  The arrangements will be negotiated and agreed with telecom suppliers during the procurement process. The local project group must also raise funds to cover the cost of managing and developing the project. This will cover the costs of participation in the tendering process and the system build phase, including setting up a Company that will eventually own and operate the system. We estimate this will cost another £100k, or thereabouts, most of which is for a Project Manager, professional support and advice, and detailed communications with communities.

Otherwise, as much work as possible will be done by volunteers. We are currently exploring all the possible funding sources for our share of the costs (£120k + £125K) and expect this can be achieved through a combination of connection fees, loans and grants. Once the system is running, all costs will be met from subscriber fees, and any other system income.