The World Bank expects to provide about US$10.2m to help fund a submarine cable system between Tonga and Fiji, a World Bank source has told TelecomFinance. The funding includes regulatory technical assistance to the Tongan Ministry of Information and…
The World Bank expects to provide about US$10.2m to help fund a submarine cable system between Tonga and Fiji, a World Bank source has told TelecomFinance. The funding includes regulatory technical assistance to the Tongan Ministry of Information and Communication.
The cable system, aimed at improving regional connectivity between these Pacific islands, will be owned by a new entity, Tonga Cable (TCL). Ownership will be split between state-owned telco company Tonga Communications Corporation (TCC), which will have a majority stake, and private investors, said the source. Digicel Tonga, a mobile phone company, may participate in the project.
Overall, the total project cost is US$34m, including regulatory technical assistance and project management components, explained the source.
Besides the World Bank, TCL and the Asian Development Bank (ADB) are also expected to provide financing for the project with an additional technical assistance contribution through the Pacific Region Infrastructure Facility (PRIF).
The cable project, which will be presented to the World Bank and ADB boards in December 2010, is expected to close in December 2015. Construction is expected to start in mid-2011.
