IFC, Jordan partner to expand high-speed Internet through public-private partnership

AMMAN — The International Finance Corporation (IFC), a member of the World Bank Group, and Jordan’s Ministry of Digital Economy and Entrepreneurship signed an agreement on Wednesday to attract private sector participation to expand and operate high-speed Internet networks to help boost connectivity, improve digital services and create jobs. 

According to an IFC statement shared with The Jordan Times, the corporation and the ministry will work together to launch a “competitive and transparent” tender for a public-private partnership (PPP) to operate, commercialise, finance and expand Jordan’s national broadband network (NBN), a fiber-optic open access data network currently under development.

As the lead transaction adviser, the IFC will help structure the PPP to attract potential international and regional private investment in this key project.

The project marks the first PPP in Jordan’s growing information and communication technology (ICT) sector, according to the statement. 

Once completed, the NBN is expected to boost broadband penetration and affordability for households and businesses, provide sufficient infrastructure for 5G operators and provide high-speed Internet connectivity for about 5,000 public sites, including schools, healthcare centres and government offices.

“The NBN already includes more than 5,500km of fibre-optic networks across the country and should reach 7,000km by 2021,” said Minister of Digital Economy and Entrepreneurship Mothanna Gharaibeh in the statement.

“With the PPP, its large reach and spare capacity will help make high-speed Internet more accessible and affordable, which is key to supporting Jordan’s digital transformation,” he added.

Widespread and affordable high-speed Internet is “critical” for Jordan, which has emerged as a digital hub for the Middle East. Now that people are spending more time at home due to the COVID-19 pandemic, high-speed connectivity will be even more important to help manage the increased demand for distance learning and e-services, the statement said.

“Today’s agreement will support the government’s plans to improve Jordan’s ICT infrastructure, mobilise foreign direct investment and enhance competition in the ICT sector,” said Mazen Alsad, IFC hub leader for PPP transaction advisory services in Levant region. 

“We also hope that better and more affordable broadband Internet services will have a positive impact on productivity, job creation and social inclusion,” he added. 

This project is the IFC’s first engagement following the signing in April of the Project Pipeline Development Facility, a strategic partnership between IFC and the government to support the work of the Central PPP Unit to attract more private sector participation in Jordan.

The IFC and the Government of Jordan have worked together on several key PPP projects including the Tafileh Wind Farm and Seven Sisters Solar PV projects. Jordan has raised about $10 billion in private capital through PPPs in the electricity, transport and water sectors since the 1990s. Over the past 15 years, the IFC has advised governments on more than 135 PPP projects globally, mobilising $29 billion in private investments, according to the statement.