The good news is that the World Bank (WB) has already approved a loan worth 268.22 million euros (about $287.24 million or P16 billion) to fund broadband internet connectivity under the “Philippine Digital Infrastructure” project of the national government.
The project funding from the Washington-based multilateral lending institution will be spent to develop the government’s national fiber optic backbone, middle-mile and last-mile connectivity infrastructure. Part of the funding will help ensure that these facilities are made secure against cybersecurity threats and climate risks.
The new financing will carry a concessional rate and better terms for the government compared with those coming from commercial loans.
“Improved internet access will help all Filipinos, especially those in remote areas of Mindanao, gain better education, health care, social protection and government services,” according to the World Bank country director for the Philippines.
This project, no doubt, “fosters a brighter future for lagging regions by connecting everyone and ensuring that the poorest and most vulnerable Filipinos can benefit from the power of technology,” it added.
The national fiber optic backbone refers to a network of high-capacity cables that link different regions of the country. Carrying large amounts of data at high speeds, this network serves as the principal data highway for communications within the country.
This project will complete the remaining parts of the backbone, connecting the two main international landing stations in Baler (Luzon) and Davao City (Mindanao).
Investments in the middle-mile infrastructure will extend connectivity from the main backbone to more localized underserved areas in the regions of Western Visayas, Central Visayas, Easter Visayas, Zamboanga Peninsula, Northern Mindanao, Davao Region, Soccsksargen and Caraga.
The project funding will help establish more infrastructure that can connect public institutions, schools and hospitals in Eastern Mindanao, and facilitate free Wi-Fi access points in these facilities.
The project is expected to benefit at least 20 million Filipinos in various areas of the country. Once completed, this will definitely contribute to the goal of facilitating the ease of doing business in the country, among other benefits.
With better connectivity, we will be able to attract more foreign and local investments, boost overall economic growth, and even reduce income inequality in the years ahead.
