Highland Council says R100 North contract can not deliver its £20 million broadband and digital plan
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Part of the City Region Deal, the digital project aims to make the Highlands the most digitally connected rural region in Europe.
Highland Council hopes the £20 million investment will complement and expand the rollout of superfast broadband in the area, delivering mobile connectivity and digital enhancements across the region.
The local authority hoped to deliver this investment through the Scottish Government’s R100 North contract.
However, a report to the latest economy committee admits 'this route is now not an option' leaving the project at 'severe risk'.
But now, council officials say the R100 North contract is not a suitable vehicle for delivering the project due to procurement legislation.
Highland councillors will receive a detailed update on the council’s £315 million City-Region Deal at the economy committee meeting later today at Inverness headquarters.
The report provides a status report on all the investment areas in the City-Region Deal, and reveals dire problems with the digital project:
“It was anticipated that the R100 North Contract would be the vehicle through which the City-Region Deal funds would be used to increase broadband coverage within Highland,” the report states. “However, this route is now not an option.”
An accompanying RAG (Red Amber Green) assessment rates the digital project as red across the board, citing severe risks with project delivery.
Last December, then-council leader Margaret Davidson raised concern about project delays with the City Region Deal, saying her 'worst fear' is that 'they take the money away'.
While the council report underscores severe risks with the digital project, council officials say all is not lost.
Highlands and Islands Enterprise (HIE), which leads the project, is working with the council and both the UK and Scottish Governments to find a solution.
One potential option is the UK Government’s Project Gigabit funding, which could help expand broadband coverage across the Highlands.
To that end, a digital working group is exploring how to support residents and businesses in the Highlands.
The group is considering a number of options to extend broadband coverage, and now needs to test industry demand.
The working group will consider proposals this month and hopes to put a plan to councillors by the autumn.
A spokesman for Highland Council said: “The R100 project will not directly fund the City Region Deal digital project. However, the council, HIE, Scottish and UK Government are working closely together to ensure that the CRD funding will complement the R100 and the UK Government’s Project Gigabit to maximise the connectivity of the Highlands.
“The City-Region Deal already has £20m funding streams and options are being scoped at present.”
