Philippines Approves $288 Million Digital Infrastructure Project

Philippine President Ferdinand Marcos Jr. has approved the proposed Philippine Digital Infrastructure Project, which aims to promote broadband connectivity nationwide, especially in remote areas of the country.

The project is funded by a World Bank loan of 16.1 billion Philippine pesos (288 million US dollars) and has been approved at the 18th Board Meeting of the National Economic Development Agency (NEDA). Ferdinand Marcos Jr. is the Chairman of the NEDA Board of Directors.

According to NEDA, PDIP will bring high-speed Internet connectivity to underserved regions and strengthen the country’s digital infrastructure to bridge the digital divide. NEDA added that the project will stimulate private sector investment, strengthen the Philippines’ cybersecurity and capacity to protect critical information infrastructure.

The 10-year PDIP falls under the jurisdiction of the Department of Information and Communication Technology (DICT), which is responsible for overseeing flagship projects.

DICT stated that this digital infrastructure project is the largest in the Philippines and the first of its kind.

DICT Deputy Minister Jeffrey Ian Dy said at last week’s press conference, “It will seek to complete the national fiber backbone – the first phase, from Baylor to Lauag, and then to the Manila Metropolitan Area, which was launched in April last year.”

This year, DICT plans to complete the second and third phases of the national fiber optic network, which will connect the Manila metropolitan area with Southern Luzon Island. The entire span of the national fiber optic network is expected to be completed by 2028.

Meanwhile, with a World Bank loan of $288 million, Dy stated that DICT should be able to expand domestic submarine optical cables in the Visayas Islands and connect them to Mindanao.

As part of PDIP, DICT plans to build 722 free Wi Fi sites, with a focus on the 11th and 13th regions of Mindanao, with the goal of serving public schools and rural health centers.

Dy quoted research data that the Internet penetration rate in the Philippines is 73.6%, and about 86 million people access the Internet through mobile data or fixed broadband.

“The (digital) gap is even greater in Mindanao. In some areas, the Internet penetration rate is less than 17%. Therefore, this is the real goal of this development fund.” He added that telecom operators Globe, PLDT and Smart will not bring their services to remote areas because people cannot support commercial Internet payments.

He reiterated the importance of the National Fiber Backbone Network and the National Broadband Plan for the growth of the Philippine economy, both of which belong to the PDIP project.

He explained: “According to our research, every 10% increase in Internet penetration will increase the GDP of the Philippines by about 1.38%, which is the very important reason for this project.”