The International Finance Corporation and Export Development Canada have signed an agreement with Digicel to help build a nationwide GSM network in Papua New Guinea. The IFC said in a statement that the project is expected to expand substantially the reach of telephone service, covering areas previously not reached by existing service providers, as well as improving service quality, stimulating competition in the sector, reducing costs to consumers, and generating significant employment and support to local small and medium-sized enterprises working with Digicel. The IFC, EDC and a local commercial bank have arranged a USD 92 million long-term loan on commercial terms, of which IFC will finance USD 40 million and EDC USD 25 million. The project in Papua New Guinea builds on Export Canada's relationship with Digicel in the Caribbean, which has helped open up several new markets for Canadian suppliers.
