<?xml version="1.0" encoding="UTF-8" standalone="yes"?>
<dokAAPp xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="../../../../../../prj/bin/GuidICS/dokAAPp.xsd">
    <author>
        <individual>
            <ind ini="pb" msr="Mr" firstName="Paweł" surName="Banaś" role="draft" org="NIK"/>
        </individual>
        <organization>
            <org nm="Najwyższa Izba Kontroli" nmEN="Supreme Audit Office" kraj="Poland" www="nik.gov.pl" skr="NIK"/>
        </organization>
    </author>
    <about file="broadbandAccessFERC" folder="C:\pb\Algorytm\SAI_robo\PL\2025\broadbandAccessFERC" issueYear="2025" caseNumber="5" id="PL2025broadbandAccessFERC" waga="5">
        <tyt>
            <tx l="en" nm="Ensuring universal access to broadband internet under the Digital Poland Development Funds programme (FERC)" typDok="machine_translation"/>
            <tx l="pl" nm="Zapewnienie powszechnego dostępu do internetu szerokopasmowego w ramach programu Fundusze Europejskie na Rozwój Cyfrowy (FERC)" typDok="original_document"/>
        </tyt>
        <portfolio>
            <pfl zn="keyInvestment"/>
            <pfl zn="measurementOfProjectSuccess"/>
            <pfl zn="governmentITorg"/>
        </portfolio>
        <ver stage="final" put="202609052350"/>
        <ver stage="draft" put="202609052335"/>
    </about>
    <part id="lead">
        <tyt>
            <tx l="en" nm="Broadband rollout stalls as operators walk away"/>
        </tyt>
        <narrative>
            <narr l="en">
                <ak nr="1">Nearly half of the telecom operators awarded FERC funding to build broadband networks in underserved "white-spot" areas have not started construction, forcing a 59% cut to the programme's EU allocation; among audited projects, most are still far from actually offering service to residents. NIK also found that a data-quality problem it had already flagged in a 2023 audit of the predecessor broadband programme was still unresolved, showing the issue is systemic rather than a one-off.</ak>
            </narr>
        </narrative>
    </part>
    <part id="background" v="01">
        <tyt>
            <tx l="en" nm="Background"/>
        </tyt>
        <narrative>
            <narr l="en">
                <ak nr="2">The FERC programme (Fundusze Europejskie na Rozwój Cyfrowy, 2021-2027) funds telecom operators to build fixed broadband networks reaching "white-spot" addresses with no access to high-speed internet. Centrum Projektów Polska Cyfrowa (CPPC) runs the competition, contracts, and monitors the projects; address-point eligibility data comes from two external systems, PIT and SIDUSIS, maintained by the President of UKE and the Ministry of Digital Affairs.</ak>
            </narr>
        </narrative>
        <part id="scale">
            <tyt>
                <tx l="en" nm="Scale"/>
            </tyt>
            <narrative>
                <narr l="en">
                    <ak tp="li">61/118 operators (51.7%) still active by end-2025.</ak>
                    <ak tp="li">EU allocation cut 59%: PLN 4.5bn to PLN 1.8bn (Jul 2025).</ak>
                    <ak tp="li">29 agreements terminated (32.2%), &gt;PLN 1.02bn.</ak>
                    <ak tp="li">~24% withdrew before signing at all.</ak>
                    <ak tp="li">Contracting: max 42 days, vs. 137 days under POPC.</ak>
                </narr>
            </narrative>
        </part>
        <part id="compliance">
            <tyt>
                <tx l="en" nm="Compliance"/>
            </tyt>
            <narrative>
                <narr l="en">
                    <ak tp="li">EU state-aid rules.</ak>
                    <ak tp="li">Funding agreement terms (schedules, coverage targets).</ak>
                    <ak tp="li">Telecoms infrastructure reporting obligations.</ak>
                    <ak tp="li">EU cohesion-fund financial management rules.</ak>
                </narr>
            </narrative>
        </part>
        <part id="perfromance">
            <tyt>
                <tx l="en" nm="Performance"/>
            </tyt>
            <part id="economy">
                <tyt>
                    <tx l="en" nm="Economy"/>
                </tyt>
                <narrative>
                    <narr l="en">
                        <ak tp="li">Flat unit-cost rates, not actual project costs.</ak>
                        <ak tp="li">Cost model priced new-build only, never modernization.</ak>
                    </narr>
                </narrative>
            </part>
            <part id="efficiency">
                <tyt>
                    <tx l="en" nm="Efficiency"/>
                </tyt>
                <narrative>
                    <narr l="en">
                        <ak tp="li">5.9% of funds disbursed at ~60% of timeline elapsed.</ak>
                        <ak tp="li">9.7% of planned network km built.</ak>
                    </narr>
                </narrative>
            </part>
            <part id="effectiveness">
                <tyt>
                    <tx l="en" nm="Effectiveness"/>
                </tyt>
                <narrative>
                    <narr l="en">
                        <ak tp="li">25.6% of address points reached.</ak>
                        <ak tp="li">76.5% of audited projects: no service launched yet.</ak>
                    </narr>
                </narrative>
            </part>
        </part>
    </part>
    <part id="cases" v="01">
        <tyt>
            <tx l="en" nm="Cases"/>
        </tyt>
        <ctsy>
            <gr gn="are">
                <cts id="communications"/>
                <cts id="european-funds"/>
                <cts id="digitalisation"/>
            </gr>
            <gr gn="ins">
                <cts id="programme implementing body"/>
                <cts id="sector regulator"/>
                <cts id="ministry"/>
                <cts id="managing authority"/>
            </gr>
            <gr gn="control">
                <cts id="data"/>
                <cts id="analysis"/>
                <cts id="monitoring"/>
                <cts id="change"/>
                <cts id="responsibility"/>
                <cts id="guidance"/>
                <cts id="procedures"/>
                <cts id="benefit"/>
            </gr>
            <gr gn="fun">
                <cts id="finance"/>
                <cts id="dataProcessing"/>
                <cts id="monitoring"/>
                <cts id="coordination"/>
                <cts id="analysis"/>
                <cts id="regulations"/>
                <cts id="projectMethodology"/>
                <cts id="governance"/>
            </gr>
            <gr gn="quality">
                <cts id="reliableInformationBase"/>
                <cts id="soundRiskManagement"/>
                <cts id="functioningOversight"/>
                <cts id="costControlValueForMoney"/>
                <cts id="adequateResourcesCompetences"/>
            </gr>
        </ctsy>
        <part id="operatorWithdrawals">
            <tyt>
                <tx l="en" nm="Operator withdrawals cut planned coverage nearly in half"/>
            </tyt>
            <narrative>
                <narr l="en">
                    <ak tp="xm" zn="PL2025broadbandAccessFERC" ref="draft draft" nr="3">"Despite a positive evaluation of their applications for FERC funding, telecom operators frequently withdrew from project implementation after further technical, economic and legal analyses pointed to limited investment profitability [...] By the end of 2025, only 61 of the 118 operators (51.7%) whose applications had received a positive evaluation were still implementing their projects." (NIK, p. 10)</ak>
                </narr>
            </narrative>
            <ctsy>
                <gr gn="are"><cts id="communications"/><cts id="european-funds"/></gr>
                <gr gn="top"><cts id="keyInvestment"/></gr>
                <gr gn="control"><cts id="change"/><cts id="benefit"/></gr>
                <gr gn="fun"><cts id="finance"/><cts id="projectMethodology"/></gr>
                <gr gn="quality">
                    <cts id="costControlValueForMoney" expl="efficientOffice"/>
                    <cts id="adequateResourcesCompetences" expl="effectiveState"/>
                </gr>
            </ctsy>
        </part>
        <part id="addressPointData">
            <tyt>
                <tx l="en" nm="Faulty address-point data forced repeated project rescoping"/>
            </tyt>
            <narrative>
                <narr l="en">
                    <ak tp="xm" zn="PL2025broadbandAccessFERC" ref="draft draft" nr="4">"Incorrect and incomplete address-point data weakened the effectiveness of FERC support [...] CPPC did not own this data, but should have identified the impact of its insufficient quality on project implementation and reported such risks to the relevant institutions." (NIK, p. 11)</ak>
                </narr>
            </narrative>
            <ctsy>
                <gr gn="are"><cts id="communications"/><cts id="digitalisation"/></gr>
                <gr gn="top"><cts id="governmentITorg"/></gr>
                <gr gn="control"><cts id="data"/><cts id="responsibility"/></gr>
                <gr gn="fun"><cts id="dataProcessing"/><cts id="coordination"/></gr>
                <gr gn="quality">
                    <cts id="reliableInformationBase" expl="effectiveState - close match"/>
                </gr>
            </ctsy>
        </part>
        <part id="disbursementLag">
            <tyt>
                <tx l="en" nm="Low disbursement and construction lag behind contracted schedules"/>
            </tyt>
            <narrative>
                <narr l="en">
                    <ak tp="xm" zn="PL2025broadbandAccessFERC" ref="draft draft" nr="5">"By 30 September 2025, CPPC had settled expenditure of PLN 110.6 million, i.e. 5.9% of the value of funding granted under the agreements [...] NIK's audit found that 1,530 km of the planned 15,819 km of network had been built (approx. 9.7%), and coverage had reached 20,684 of 80,706 address points (25.6%)." (NIK, p. 12)</ak>
                </narr>
            </narrative>
            <ctsy>
                <gr gn="are"><cts id="communications"/><cts id="european-funds"/></gr>
                <gr gn="top"><cts id="measurementOfProjectSuccess"/></gr>
                <gr gn="control"><cts id="monitoring"/><cts id="procedures"/></gr>
                <gr gn="fun"><cts id="monitoring"/><cts id="regulations"/></gr>
                <gr gn="quality">
                    <cts id="functioningOversight" expl="effectiveState"/>
                </gr>
            </ctsy>
        </part>
        <part id="unresolvedRecommendation">
            <tyt>
                <tx l="en" nm="A 2023 recommendation on unified infrastructure data still hasn't been acted on"/>
            </tyt>
            <narrative>
                <narr l="en">
                    <ak tp="xm" zn="PL2025broadbandAccessFERC" ref="draft draft" nr="6">"NIK notes that the findings of this audit confirm that incomplete and outdated broadband-infrastructure data [...] the recommendation addressed to the Minister of Digital Affairs following NIK's audit P/23/005 on the National Broadband Plan [...] remains valid and still unimplemented." (NIK, p. 24)</ak>
                </narr>
            </narrative>
            <ctsy>
                <gr gn="are"><cts id="communications"/><cts id="european-funds"/></gr>
                <gr gn="top"><cts id="governmentITorg"/></gr>
                <gr gn="control"><cts id="responsibility"/><cts id="guidance"/><cts id="change"/></gr>
                <gr gn="fun"><cts id="coordination"/><cts id="governance"/></gr>
                <gr gn="quality">
                    <cts id="functioningOversight" expl="effectiveState"/>
                    <cts id="reliableInformationBase" expl="effectiveState"/>
                </gr>
            </ctsy>
        </part>
        <part id="noUpgradeCheck">
            <tyt>
                <tx l="en" nm="No documented check of whether existing infrastructure could be upgraded instead of newly built"/>
            </tyt>
            <narrative>
                <narr l="en">
                    <ak tp="xm" zn="PL2025broadbandAccessFERC" ref="draft draft" nr="7">"It was established that CPPC did not have a documented analysis of the impact of this change in regulations on the intervention areas [...] and the regulatory risk associated with the amendment was not included in the risk-management system." (NIK, p. 37)</ak>
                </narr>
            </narrative>
            <ctsy>
                <gr gn="are"><cts id="communications"/><cts id="european-funds"/></gr>
                <gr gn="top"><cts id="keyInvestment"/><cts id="publicProcurement"/></gr>
                <gr gn="control"><cts id="analysis"/><cts id="guidance"/></gr>
                <gr gn="fun"><cts id="analysis"/><cts id="regulations"/></gr>
                <gr gn="quality">
                    <cts id="soundRiskManagement" expl="effectiveState - close match"/>
                </gr>
            </ctsy>
        </part>
    </part>
</dokAAPp>
