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Business / Gigabit contract for Northern Isles worth £40m

A CONTRACT worth more than £40 million to install digital infrastructure in Orkney and Shetland to facilitate access to “gigabit capable” internet connections has gone out to tender.

The new Project Gigabit procurement is targeted at premises which fall outwith the Scottish Government’s R100 contract and commercial activity from Openreach.

More than 13,500 premises are thought to be eligible in Orkney and Shetland for the Gigabit scheme. Gigabit speeds are 1,000Mbps.

The funding for the Orkney and Shetland contract comes from the UK Government, but it is being tendered by the Scottish Government.

At a council meeting in late November Shetland Islands Council’s development director Neil Grant said Project Gigabit is “potentially really significant”.

A Scottish Government spokesperson said: “The Scottish Government is playing a leading role in delivering the UK Government’s Project Gigabit programme, overseeing local and regional contracts in Scotland.

“Procurement was launched on 11 December 2024 to use £40.7 million of UK Government funding to deliver future-proofed, gigabit-capable broadband in Orkney and Shetland, where more than 13,500 premises are eligible to be connected.

“Bids will be considered in early 2025 with a view to awarding the contract later in the year.”

The contract is the third Project Gigabit procurement launched by the Scottish Government this year.

The Scottish Government’s £600 million-plus Reaching 100% (R100) programme is also delivering gigabit-capable connectivity to premises in Orkney and Shetland.

However this new Project Gigabit procurement is targeted at premises which fall outwith current work.

Both the R100 scheme and the UK Government’s Project Gigabit are working together in Scotland to deliver gigabit-capable coverage.

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