WB approves $287-m loan for PH digital infrastructure

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The World Bank said Friday its board of executive directors approved a 268.22-million-euro ($287.24-million) funding for the Philippines Digital Infrastructure Project.

It said in a statement the project is expected to benefit 20 million Filipinos and improve climate-resilient, secure and inclusive broadband connectivity across the Philippines.

The project will invest in the government’s national fiber optic backbone, middle-mile, and last-mile connectivity infrastructure. It will also ensure that these facilities are secure against cybersecurity threats and climate risks.

The national fiber optic backbone is a network of high-capacity fiber optic cables that interconnect different regions of the country. It serves as the principal data highway for intra-country communications.

The World Bank said the Digital Infrastructure Project would complete the remaining parts of the national fiber backbone, connecting the two main international landing stations in Baler (Luzon) and Davao City (Mindanao).

“A robust broadband connectivity infrastructure is not just a technological necessity; it’s an essential cornerstone for the Philippines to boost growth and attain its goal of becoming an upper middle-income country in the next couple of years,” said World Bank Vice President for East Asia and Pacific Manuela Ferrero.

“Bringing greater internet access to the grassroots can bridge the digital divide, empower communities, and unlock the full potential of the digital economy,” Ferrero said.

The World Bank said the project would also be used for investments in the middle-mile infrastructure that will extend connectivity from the main backbone to more localized underserved areas in the regions of Western Visayas, Central Visayas, Eastern Visayas, Zamboanga Peninsula, Northern Mindanao, Davao Region, Soccsksargen, and Caraga.

This includes the installation of underground fiber optic cables, which promise to make the network more resilient against disruptions from climate and extreme weather events.  

The project will also create infrastructure foundations to connect public institutions, schools, and hospitals in Eastern Mindanao, along with free Wi-Fi access points in these facilities.

“Improved internet access will help all Filipinos, especially those in remote areas of Mindanao, gain better education, healthcare, social protection, and government services,” said World Bank Country Director for the Philippines, Malaysia, and Brunei Darussalam Zafer Mustafaoğlu.

“This project 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,” Mustafaoğlu said.

The project will incorporate climate data, risks, and resilience measures into the design of the infrastructure. These include using climate-resilient materials and conduit systems for underground cables, designing overground infrastructure to withstand strong winds and floods, and incorporating innovative engineering solutions to adapt to climate-related risks.

It will also deploy advanced intrusion detection and prevention systems, implement next-generation firewalls, multi-factor authentication for broadband infrastructure access, comprehensive encryption protocols, regular updates to address Wi-Fi vulnerabilities, and provisions against the dual vulnerabilities of natural disasters and cyberthreats.

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