Dominican Republic To Improve Digital Connectivity With $115Mn IDB Loan

• 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 $115Mn 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. 
• The IDB is financing the project with a $115Mn 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%, boost productivity by 1.2 percent, and generate 33,000-plus jobs.

(Source: IDB)