DICT seeks $500-M WB loan for middle-mile fiber

THE Department of Information and Communications Technology (DICT) said it is seeking a $500-million loan from the World Bank (WB) to finance the middle-mile fiber component of the national broadband project.

“This is just a study for this year. If ever, we plan to use this for next year. The Department of Finance (DoF) gave the go signal to explore and negotiate this loan,” Information and Communications Technology Secretary Henry Rhoel R. Aguda told reporters on the sidelines of a recent event. 

The DICT said the loan proceeds will be deployed next year pending the completion of phases 4 and 5, the final stages of the national fiber backbone.

The DICT expects to complete the phases 4 and 5 this year. The Philippines obtained a $287.24-million loan from the World Bank to accelerate those phases.

The project is expected to bring high-speed internet connectivity to Mindanao by delivering 1,000 kilometers of high-speed, government-owned fiber to Butuan, Cagayan de Oro, Zamboanga, and Davao.

The National Broadband Plan has five components, with the first part of the fiber backbone connecting Luzon, the Visayas, and Mindanao.

Component 2 of the national broadband plan includes the cable landing stations that make up the Luzon Bypass Infrastructure, which serve as the gateway to international connectivity.

Component 3 covers the middle-mile and last-mile segments of the network, as well as the tower buildup in geographically isolated areas. The middle-mile segment connects the backbone to the last mile, allowing the services to be delivered to end-users.

The fourth and final component of the national broadband plan include the expansion of the fiber optic system to interconnect government agencies; satellite overlay and enabling immediate broadband services to isolated areas. — Ashley Erika O. Jose