Valle de Erro | Roncesvalles
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How is it financed?
What financing need does REFOVER have?
Bringing fiber optic to a farm or a house in Valle de Erro requires a significant investment. From trunk connections leaving the connection header that links us to the world, passing through branches reaching each council through channels or poles through forests, to the deployments carried out in each village or council, and finally, the connections of each house or farm. The costs of each vary greatly according to the terrain, the distance to the trunk lines, the number of connections in each village or council, as well as other variables.
The average cost of this type of connections in areas with similar characteristics amounts to around 1,500€ per connection. In the case of Valle de Erro, the City Council has made a contribution to cover the deployment of the branches of the different villages, therefore, assuming part of this final cost. With this, the average cost for the user in Valle de Erro will be around 1,100€ per connection.
This means that in order to achieve the goal of connecting all citizens who want a connection in Valle de Erro, it will be necessary to complement the contribution of the City Council with donations from the users themselves, with tax advantages and cost reductions in the bill, as well as with external financing.
How to solve the investment need to make it viable and sustainable?
To solve the financing need described in the previous point in a sustainable way, a methodology is applied that has recently been recognized by 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.
What incentives are there for investors?
Firstly, for those residents who want 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 benefiting from much more affordable rates.
Tax deductions
Since the network infrastructure belongs to all the people who in some way participate in the project and is formally guaranteed through the Foundation, which is a non-profit and general interest entity, the contributions made will be considered as donations and duly accredited, and will be able to benefit from the tax deductions provided for in Law 49/2002 on the tax regime for non-profit entities and incentives for patronage.
Is it mandatory to invest in the El Valle de Erro | Roncesvalles Network?
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 for the purpose of applying the tariff parts that include amortization of the investment or not, as the case may be. Any user may at any time choose the option of donation with the tax advantages and cost reduction it represents.