Dominican Republic to improve digital connectivity with $115 million IDB loan
THE PROJECT WILL BOOST THE LEVEL OF DIGITALIZATION OF THE POPULATION IN ORDER TO STEP UP ACCESS, ADOPTION AND CONTINUITY OF DIGITAL SERVICES WITH A GENDER PERSPECTIVE
The Dominican Republic will improve connectivity to boost access to digital services as well as people’s adoption and continuity of such services with help from a $115 million loan approved by the Inter-American Development Bank (IDB). The project will finance investments to expand broadband infrastructure, including the expansion of backbone, aggregation and access networks in order to improve connectivity for the country’s citizens.
The operation will include private sector participation and support the deployment of infrastructure in areas that would not be economically profitable on their own, thus ensuring resource optimization. With this approach, both the public and the private sectors will contribute to reduce the digital gap and foster the sustainability of this type of infrastructure in the country.
In addition, the IDB’s project will endorse moves to improve broadcasting services, paving the way for transitioning from analog to digital television and enhancing digital abilities and competencies. One key aspect of the project is its promotion of policies that support digital dividend spectrum auctions in order to boost universal access.
It will also finance courses to train people how to use equipment and technology with a gender perspective to help citizens develop their digital skills, stepping up access to digital services and fostering their adoption and continuity of use. These digital abilities will be crucial for the implementation and productive use of Information and Communication Technologies (ICTs), benefiting some four million low-income people, with a strong emphasis on women.
Enhanced connectivity will reach some 108 municipios that either lack or have only one wired internet service network, benefiting more than two million people. An additional 56 municipios that are home to 8.1 million people will get improved broadcast services, including the implementation of digital TV.
The IDB is financing the project with a $115 million loan for a 25-year term, a 6.1-year grace period, and interest rate based on LIBOR. The project is expected to help raise annual GDP by 1.46 percent, boost productivity by 1.2 percent, and generate 33,000-plus jobs.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.