BANDWIDTH AND CLOUD SOLUTIONS

The project concerns the second phase of the construction of a fibre optic backbone in the Democratic Republic of the Congo (DRC), focusing on underserved areas of the eastern part of the country. The fibre links included in the project will enable high speed broadband in nine towns and will be deployed along the railways (1 280 km long) and on poles along the road (139 km).

The project will lead to the deployment of around 1 400 km of new fibre optics networks in underserved regions in the Democratic Republic of the Congo, extending the access to mobile broadband and leading to an acceleration of the country's digital transformation.

The operation consists in a quasi-equity financing to support the construction of fibre-optic backbone in Democratic Republic of Congo, focusing on underserved areas of the eastern part of the country.

The project is aligned with the Cotonou Partnership agreement and addresses the market failures of under-investment in broadband network infrastructures in lower profitability areas; of imperfect competition and market power; and of limited geographical reach of broadband infrastructure.

The project supports the objectives of the EU's Digital4Development strategy and the Digital4Development hub, mainly its African component, operating as a strategic tool to advance dialogue, joint partnerships and investments in the African digital economy.

The project is not expected to have significant negative environmental and social impacts. Instead, the roll-out of the infrastructure will support the country's transition to a digital economy, resulting in significant positive social impacts through increased mobile coverage. Mobile communication technologies enable positive environmental impacts related to climate change mitigation and adaptation in other sectors of the economy. 

EIB provides substantial support in strengthening the project's sustainability and bankability, crowding in other investors to support the Borrower's growth plans. EIB financing aligns with terms and conditions usually available to the Borrower, while providing a diversification of funding sources.

If it were located within the EU, the project would not fall under Annex I or II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU. However, environmental assessments could be required for this kind of project according to DRC national law. In any case, the rollout of telecommunication networks have limited environmental and social negative effects, apart from short duration disturbances during network deployment, whenever civil works are required, which can be mitigated by appropriate measures. Full environmental and social details will be assessed during appraisal.

The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.