Funding Secured for Gsm Expansion in Papua New Guinea

IFC, a member of the World Bank Group, and Export Development Canada have signed an agreement with Digicel to help increase a nationwide GSM network in Papua New Guinea. The project is expected to expand substantially the reach of telephone service, covering areas previously not reached by existing service providers, as well as improving service quality, stimulating competition in the sector, reducing costs to consumers, and generating significant employment and support to local small and medium enterprises working with Digicel.

IFC, EDC, and a local commercial bank have arranged a US$92 million long-term package on commercial terms, of which IFC will finance US$40 million and EDC US$25 million.

Rajesh Sharma, Head of Structured Finance at EDC, added, “The project in Papua New Guinea builds on our strong relationship with Digicel in the Caribbean. This relationship has helped open up several new markets for Canadian suppliers and has introduced advanced Canadian technologies. We support Digicel in its strategy for Pacific operations, which will enable us to develop additional markets for Canadian suppliers.”

Richard Ranken, IFC Director for East Asia and Pacific, added, “This project is in line with our strategy to work with strong sponsors in frontier countries and regions. We are privileged to collaborate again with Digicel on a large private sector project in a challenging environment, reaching many poor people and improving their lives.”

Posted to the site on 7th April 2008