Tourism, Culture, Industry and Innovation
May 25, 2018

Government Announces Next Steps to Determine Maximum Value of Atlantic Cable Facility

The Department of Tourism, Culture, Industry and Innovation today is taking the next step to determine how to maximize the value of the Atlantic Cable Facility (ACF). By the end of the year, the Provincial Government will develop a Request for Expressions of Interest to determine the future use of the facility.

The ACF is a terrestrial and undersea trans-gulf fibre optic cable between St. John's and Halifax in a ring configuration. The project was announced in 2007 with a $15 million investment from Provincial Government. The initiative resulted in the construction a second fibre optic link between St. John’s and Halifax, required for redundancy amongst carriers.

An Expression of Interest process will help government to maximize its investment in the ACF. Increasing global demand for network capacity and data mobilization and storage presents an opportunity to tap into the potential of the asset. Benefits can be derived from the ACF with several options available, including selling or leasing unlit ACF fibres (dark fibres) to generate revenue.

Asset management is a focus of The Way Forward, and these actions highlight government’s responsible approach to managing government assets and reducing spending. These initiatives deliver on commitments in The Way Forward to operate a more efficient public sector. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca

Quote
“An Expression of Interest process will help government to maximize its investment in the Atlantic Cable Facility. Through this process government is ensuring the efficient and effective management of provincial assets, while exploring opportunities for revenue generation and cost savings. We will explore the potential for selling or leasing the ACF, the reduction of maintenance costs to government and/or leveraging other assets to attract investment in the province. This reflects our commitment to the responsible management of government assets and reducing government expenditures.”
Honourable Christopher Mitchelmore
Minister of Tourism, Culture, Industry and Innovation

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Learn More

The Way Forward – thewayforward.gov.nl.ca

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Media contact
Eric Humber
Tourism, Culture, Industry and Innovation
709-729-4819, 725-9655
erichumber@gov.nl.ca

2018 05 25                              2:30 p.m.