World Bank approves $287.24-M Phl digitalization loan

Washington-based multilateral lending institution, the World Bank (WB), has approved a $287.24-million (P16.46 billion) loan in support of the Philippine Digital Infrastructure Project (PDIP).

The World Bank announced on Friday that its governing board had approved the loan request of the Philippines in late June.

“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 Manuela Ferro, World Bank vice president for East Asia and Pacific.

The PDIP, an initiative of the Department of Information and Communications Technology (DICT), was approved by the National Economic and Development Authority (NEDA) chaired by President Ferdinand Marcos Jr. last June.

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

The PDIP has five major components: the backbone network, middle-mile network, access network (last-mile), network security and project management support.

Investments in the middle-mile infrastructure will extend connectivity from the main backbone to underserved areas in 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 will enhance the network’s resilience against climate and extreme weather disruptions.

Investments in last-mile infrastructure, which connects to end users, will extend services to currently uncovered areas. The project will build infrastructure to connect public institutions, schools and hospitals in Eastern Mindanao, and will establish free Wi-Fi access points in these facilities.

These investments will enable commercial operators to offer last-mile internet services to households, the WB said.

The World Bank estimates that more than 20 million Filipinos will benefit from improved internet connectivity through the PDIP.

Additionally, the PDIP will complete the national fiber backbone, linking the two main international landing stations in Baler, Luzon and Davao City, Mindanao.

The national fiber optic backbone is a network of high-capacity fiber optic cables that interconnect different regions of the country, serving as the principal data highway for communications and enabling high-speed data transfers.

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

The NEDA said the PDIP will bring high-speed internet connections to underserved areas, augment the country’s digital infrastructure, stimulate private sector investments, strengthen the Philippines’ cybersecurity capacity and protect critical information infrastructure.

The World Bank said that to ensure the resilience of these investments, the project will incorporate climate data, risks and resilience measures in the infrastructure design.

“These measures 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,” the statement said.

Several measures will be implemented to protect the country’s broadband network from cybersecurity threats.

The project will deploy advanced intrusion detection and prevention systems and next generation firewalls.

Additional measures include multi-factor authentication for broadband infrastructure access, comprehensive encryption protocols, regular updates to address Wi-Fi vulnerabilities and provisions against both natural disasters and cyber threats.