Paula Fee

Clarification questions - 5G Funding Competition

Page updated: 18 September 2024

The 5G Funding Competition is now closed.

1. Can councils apply to the 5G Funding Competition?

Yes, councils in the Belfast Region City Deal area can apply to the competition.

This includes Antrim and Newtownabbey, Ards and North Down, Belfast, Lisburn and Castlereagh, Mid and East Antrim, and Newry, Mourne and Down councils.

2. Will there be further funding available next year?

£280,000 has been allocated to the 5G funding competition and must be spent by 31 March 2025. No additional funding is currently available.

As part of our sustainability plan for the 5G ecosystem in Northern Ireland, we are exploring other opportunities to attract funding and investment to the region.

3. Does the capital funding just cover 5G technology e.g. If a project includes a wireless camera system, will you fund the camera and wireless hardware or just the wireless hardware?

The capital funding can be used to pay for technology, equipment and infrastructure if it is required for the delivery of the 5G/advanced wireless use case. In this example, yes, the capital funding can be used for both the camera and wireless hardware.

4. Could a project be developed with the intention of supporting a much larger project even if the larger project wasn’t ready around the same timeline?

Projects funded by the competition must be self-sufficient but could contribute to a longer-term project. Applicants should note that question three in the application form requires an explanation of why grant funding is required for your project.

5. For the use cases or implementation of our system (project), do we have to identify the end user site (or partner), or can the city council help with this, at least from an introductory point of view?

Yes, the applicant must identify the end user.

If you are interested in connecting with potential partners and are happy for your contact details to be published on the competition web page, please email innovationfunding@belfastcity.gov.uk.

6. Can you give some more clarification on deliverables at completion of the project, be it technology or use case transfer to the partner, working demo or dissemination of results?

The awarded funding must be spent by 31 March 2025. 

The objective of the competition is that projects should deliver operational use cases in a real-world environment, continuing after the funding period ends as part of the applicant’s ongoing operations. 

Benefits, impact and lessons learned must be monitored and reported on as part of the use case.  

Successful applicants will be required to complete a case study of their use case(s), outlining the challenge, solution, benefits and impact, insights and lessons learned, and sustainability plan. A case study template will be provided by Belfast City Council.  

There will also be opportunities for projects to engage in dissemination events and communication activities with wider industry – successful applicants will be expected to participate.

7. Are there plans to help potential participants connect and collaborate on 5G projects? For example, will you publish a list of interested parties? 

If you are interested in connecting with potential partners and are happy for your contact details to be published on the competition web page, please email innovationfunding@belfastcity.gov.uk.  

8. Can a consortium apply?

Belfast City Council will sign the grant funding agreement with a single business or organisation only. The lead applicant can have multiple partners and/or suppliers as part of their project.

9. Is the funding decision made on the application only or is there a pitch after application?

The funding decision is based on the application only. No pitch will take place.

10. Are the slides available from the online briefing session on 28 August 2024?

Yes, the slide deck is available on the competition web page at https://smartbelfast.city/wp-content/uploads/2024/08/5G-funding-competition-briefing-session-28-August-2024.pdf

11. It states that “BCC will make available capital grant funding up to the Total available Funding of £280,000 to help businesses…”  “Individual grant awards will be in the range of £50,000 - £100,000”.  Is the total amount of funding within the programme £280,000?  If three businesses apply for £100K each, will this not have used up the total fund available?  What is the total amount of funding within the programme?

The total funding available is £280,000. Funding will be awarded based on the highest scoring applications until all funding has been allocated. For example, if the top three highest scoring applications use up the whole fund, then only those three projects will be funded.  

If, for example, the top three scoring applications each apply for the maximum £100,000, and therefore exceed the £280,00 total available funding, a discussion will take place with the third highest scoring applicant to see if their project can be amended to come within the budget. If no suitable amendment is possible, the next highest scoring application will be considered, and this process will continue until all funds are allocated.  

12. Can a business apply more than once, if they have several projects that can demonstrate that each is over the £100,000 project cost?

Yes, there is no limit to how many applications an organisation can submit. Each application will be assessed on its own merits, and each must include its own match funding. Each application must demonstrate a use case. Applications must be viable as standalone projects; they cannot be dependent on the success of other applications. 

13. Can an organisation apply for £100K for the construction of a facility and also apply for £100K for the equipment, hardware and software for installation within this facility?

Each application will be assessed on its own merits and must demonstrate a use case.  Applications must be viable as standalone projects; they cannot be dependent on the success of other applications.

The example described is unlikely to score well unless each application demonstrates a use case independently of the other. Construction and fit-out of a facility would not in themselves constitute a use case, though it is possible that what they deliver might do. 

14. Are the funds capped by de-minimis regulations? 
 
No. The funding is not given as a subsidy and therefore funding recipients are not limited by previous cumulative subsidies that they may have received. 

15. Are heat detection and rumination collars and boluses for livestock eligible as a capital item?

The capital funding can be used to pay for technology, equipment and infrastructure if it is required for the delivery of the 5G/advanced wireless use case. Assuming they are purchased and not leased, heat detection and rumination collars and boluses for livestock would be considered capital items. 

16. My business is based in London. Are we eligible to apply? If not, do we need to find a suitable partner based in the Belfast Region? 

Only applicants with a business address and operations in the Belfast Region are eligible to apply. The lead applicant can have multiple partners and/or suppliers, located outside of the Belfast Region, as part of their project. If you are interested in connecting with potential partners and are happy for your contact details to be published on the competition web page, please email innovationfunding@belfastcity.gov.uk 

17. The guidance document describes that “Belfast City Council will fund a maximum of 70% of total project costs. Funding recipients are required to cover the remaining 30% of total project costs.” Could you please define what constitutes a “project cost”?

Project costs are the costs of implementing the solution, but not the costs of operating the solution or the business process that it supports.

For example, project costs could include, but are not limited to:

• Equipment: The purchase of new hardware or tools essential for the project 

• Installation: Costs associated with setting up the equipment or infrastructure required for the solution, including resource costs 

• Adaptations to Existing Infrastructure: Modifications or upgrades to current systems to enable the deployment of the new solution 

• Staff Training: Costs for educating and training team members to operate or manage the new technology or processes 

Project costs do not include expenses related to the ongoing operation of the use case after deployment. Operational costs, such as maintenance, utility costs, recurring software subscriptions, and the staff effort of operating the business process are not considered project costs.

18. If, to fulfil the project, we need to purchase software (i.e. not perpetual software cost), is it possible to submit that cost for the project or is there a method to divide the cost for the project period? 

Perpetual software licences that are categorised as Capital expenditure can be funded by the competition’s capital funding.  

Non-perpetual software licences are not usually categorised as Capital expenditure, and therefore not eligible for capital funding by the competition. 

Ongoing software costs are operational costs that do not form part of the total project costs and would therefore not be counted as part of match funding.  

19. Can the funding be used to cover data costs on 5G networks? 

Data costs, much like utility bills, are not typically considered Capital expenditure and are therefore not eligible for capital funding by the competition. 

Ongoing data costs that relate to the operation of the solution and not its implementation would not form part of the total project costs and would therefore not be counted as part of match funding.

20. By the Financial Workbook, do you mean the financial excel sheet? 

Yes. The Finance Spreadsheet is available at https://smartbelfast.city/wp-content/uploads/2024/08/5G-Funding-Competition-Finance-workbook.xlsx

21. Is there any specific template for the project plan? 

No, applicants can use their own project plan template. Project delivery should be managed according to good practice; for example, in accordance with Prince2 or a similar methodology. A project manager with appropriate executive support should manage the project using recognised management tools including a detailed project plan and risk management process. 

The project plan must be provided as a PDF, maximum size of 5MB and no more than three sides of A4, in a font size that is readable at 100% zoom. The file name should follow the following convention: [Organisation Name] - 5G Funding Competition Additional Info - Project Plan.

 22. Is there a template for the risk register? 

No, applicants can use their own risk register template. Project delivery should be managed according to good practice; for example, in accordance with Prince2 or a similar methodology.  The risk log must describe the risks and their impacts, a measure of the probability and impact, and mitigation steps that will be taken. It must address the risks related to delivery dependencies on other parties and to elements of the project such as legal agreements etc. that have not yet been put in place. 

The risk register must be provided as a PDF, maximum size of 5MB and no more than three sides of A4, in a font size that is readable at 100% zoom. The file name should follow the following convention: [Organisation Name] - 5G Funding Competition Additional Info – Risk Register.

23. Pages 6 and 7 of the Application Guidance document refer to "labour" and "capitalised staff costs" as eligible expenditure. But "operational staff costs" are not.

For the avoidance of doubt, could you please confirm that staff costs directly associated with delivering the project outcomes within the permitted spending window are permissible capital expenditure costs within the 70% funding?  A clarification of the distinction between delivery staff costs and operational staff costs would be helpful.

Delivery staff costs are those project costs related to the implementation of the solution. See the response to clarification question 17 above for examples of these costs. Operational staff costs are the ongoing costs of operating the solution and the staff costs of the business process that the project supports.

The competition will not fund operational staff costs in any period and will only fund delivery staff costs within the funding period up to 31 March 2025. 

24. I am aware that in-kind contributions are acceptable as part of the funding recipient's project cost contribution. This can be from labour costs on the recipient’s side. What is the position on voluntary labour for in-kind contributions? 

Match funding has to be costed and shown in the Finance spreadsheet. Match funding has to account for at least 30% of the total project cost. Therefore, voluntary contributions with no associated cost to the project will not be considered as match funding.  

25. The competition guidance states that "testbeds or trials" will not be funded. Could you please define "testbeds or trials"? Is the concern here the commercial sustainability of the project? 

‘Testbeds and trials’ refers to the research and development stage of the technical solution. The competition funding is for the implementation of live solutions in a real-world setting, not for developing new technical solutions. The competition is for the implementation of technical solutions that are ready for live service.    

However, ‘Trials’ in this sense does not refer to the concept of a live pilot that deploys a solution to support live operations on one of a number of production lines, or at one of a number of sites. Such a pilot is acceptable.

Commercial sustainability beyond March 2025 is a key consideration for all applications.

26. We propose creating a NewCo with a partner to enter this funding competition. Can you confirm that this would be acceptable under the criteria? 

A NewCo can apply for the funding competition. A guarantor, being at least one of the organisations that is creating the NewCo organisation, will be required for delivery of the project and responsibility for the spend, including match funding. This will be reflected in any legal agreement for funding between Belfast City Council and a successful applicant. In addition, the accounts for at least one organisation creating the NewCo will be required to be assessed as part of the application, and this should satisfy the financial viability criteria set out in the guidance. 

Note that applicant organisations must have operations in the Belfast Region City Deal area, not just plans for operations in the area. 

by Paula Fee