A local infrastructure firm was able to secure a $40 million worth loan from the Asian Development Bank (ADB) to improve digital connectivity in Visayas and Mindanao.
ADB’s Private Sector Operations Department (PSOD) said the loan was granted to Tiger Infrastructure Philippines Inc., which intends to build 380 telecommunications towers in the Mindanao and Visayas regions of the Philippines.
The financing comprises $25 million from ADB’s ordinary capital resources and a $15 million loan from the “Leading Asia’s Private (Leap) Infrastructure Fund” administered by the ADB.
“Digital connectivity’s impact in helping to achieve Sustainable Development Goals cannot be understated, especially in areas like education, health care, financing, and payments,” ADB PSOD Director General Suzanne Gaboury said.
“This project will improve access to the digital economy in the underserved regions of Visayas and Mindanao and have a tangible impact on the quality of life for local communities,” she added.
Telecommunication towers support one or more wireless telecommunication antennas. The project will support common tower sharing allowing multiple mobile network operators to lease the same location.
Tiger Infrastructure, meanwhile, will be responsible for construction, land leasing, operation, and maintenance. All telecommunication equipment installed on the towers will belong to the tenants.
The Philippines has only 164 towers per 1 million people or about 27,000 telco towers as of 2021, one of the lowest coverage rates in the region. The Government of the Philippines estimates that an additional 60,000 towers are needed by 2031 in unserved and underserved areas.
“We are honored to receive this support and endorsement from ADB. Together, we share a vision of supporting Philippines’ development through mobile network connectivity and digital transformation,” Tiger Infrastructure Group Executive Chairman Simon Skouboe said in a statement.
“We are confident that by working with ADB, Tiger can strengthen our digital infrastructure portfolio as we continue to respond to demand for reliable mobile network connectivity in Asia,” he added.
Tiger Infrastructure is jointly owned by Cell Tower Services Pte. Ltd (CTSP) and Daily Life Renewable Energy Pte. Ltd (DLRE), both incorporated in Singapore.
CTSP is known for telecommunications towers business with projects around the world, while DLRE is involved in customized design, engineering, procurement, construction, installation, and commissioning services for renewable energy systems across Asia and the Pacific.
LEAP is an ADB-managed fund capitalized with a $1.5 billion commitment by the Japan International Cooperation Agency. Established in 2016, it is focused on the delivery of high-quality and sustainable private sector infrastructure projects.
These projects aim to reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing members.