Valley of Erro | Roncesvalles
Navarra
How is it financed?
What financing need does REFOVER have?
Bringing fiber optic to a farm or house in the Valley of Erro requires a significant investment. From trunk connections that come from the connection head that links us to the world, through branches that reach the council house via channels or poles through forests, to the deployments carried out in each village or council and, finally, the connections for each house or farm. The costs of these vary greatly according to the topography, the distance to the trunk lines, the number of connections in each village or council, as well as other variables.
The average cost of these types of connections in areas with similar characteristics amounts to about €1,500 on average per connection. In the case of the Valley of Erro, the Town Hall has made a contribution to cover the deployment of branches from different villages, thus assuming part of this final cost. With this, the average cost for the user in the Valley of Erro will be around €1,100 per connection.
This means that to meet the objective of connecting all citizens who want a connection in the Valley of Erro, it will be necessary to complement the Town Hall's contribution with donations from the users themselves, with tax and cost advantages on the bill, as well as with external financing.
How to resolve the investment need so that it is viable and sustainable?
To solve the financing need described in the previous point sustainably, a methodology is applied that has recently received recognition from the European Commission as the best practice in the field of innovation in financing and developing new business models.
Therefore, it is necessary to achieve the total investment by combining incentives and, on the other hand, ensuring that reinvestment is gradually generated from the activity generated.
What incentives are there for investors?
First of all, for those residents who wish to self-finance the infrastructure, they will be able to enjoy the tax advantages that the donation represents, eliminating from their bill the concept and cost of "line fee", thus enjoying much more affordable rates.
Tax deductions
Since the network infrastructure belongs to all the people who somehow participate in the project and is formally guaranteed through the Foundation, which is a non-profit entity of general interest, the contributions made will have the character of a donation and, duly accredited, may benefit from the tax deductions provided for by Law 49/2002 on the tax regime of non-profit entities and incentives for patronage.
Is it mandatory to invest in the Network of El Valle de Erro | Roncesvalles?
It is not mandatory. As users are registered, they will be the ones to choose whether or not to finance the cost of their own connection. Operators will be aware of this fact for the purpose of applying the parts of the rate that include amortization of the investment or not, as the case may be. Any user may opt at any time for the possibility of donation with the tax advantages and cost reduction it represents.