| Project Detail |
AIIB is considering providing a loan to (Cambodia) Fiber Optic Communication Network Co., Ltd (“CFOCN”), the largest
independent and carrier-neutral provider of national fiber network in Cambodia, to support the growth capital expenditure in
Cambodia. CFOCN will invest the proceeds into building new regional backbone and metro networks:
- Approximately 1,000 kilometers of regional backbone in the less dense areas to improve backbone coverage outside
of major cities; and
- Approximately 1,000 kilometers of the metro network to provide coverage within the major cities.
Fiber optic technology is a key ICT connectivity solution, enabling higher speeds, higher volumes, and more security that
can benefit all subscribing households, companies and governments. It is crucial to support the growth of the modern
economy where services and goods are increasingly provided and traded with the facilitation of the digital economy.
Investment into fixed broadband infrastructure is correlated with economic growth. A World Bank study concludes that a 10-
percentage point increase in fixed broadband penetration would increase GDP growth by 1.21% in developed and 1.38% in
developing economies.
Under the International Telecommunication Union’s (ITU) ICT Development Index, Cambodia ranks 128th out of the 176
countries measured and ranks as the tenth least developed country in the Asia Pacific Region. At present Cambodia has a
higher rate of mobile subscriptions than most countries. That said, services that require high broadband, such as mobile
money services, are used at rates well below the average for lower-middle-income countries and for the world. As Cambodia
continues to grow, its digital infrastructure may predetermine the limits of its medium-term connectivity and development. As
such, the Cambodian government’s decision to transition from its current ICT infrastructure choices (satellite and poles/wire technologies) provides an opportunity to invest in ICT infrastructure that will meet the longer-term development needs of the
country.
Objective The objective of the Project is to support the development of both fiber backbone network and metro network in Cambodia.
The project’s major expected development impact is the improvement of the telecommunications infrastructure sector and
the promotion of economic growth in Cambodia. The project is in line with the Cambodian ICT Masterplan 2020, which
promotes fiber optic cable network development and foreign direct investment in the telecom sector. The construction of the
fiber optic cable as part of the national network is expected to:
- Increase access to telecom services in urban and rural areas;
- Provide additional tax revenues for the government; and
- Boost economic activity and employment opportunities, directly and indirectly, during the construction and operational
phases. |
