OPIC to Support World’s Longest Subsea Telecommunications Cable
November 5, 2019
(OPIC)
Infrastructure will improve digital
connectivity and embrace high-quality standards
across Southeast Asia and the Pacific
BANGKOK — The Overseas Private Investment
Corporation (OPIC), the U.S. Government’s
development finance institution, announced that
it plans to work with Trans Pacific Networks
(TPN) to support the world’s longest subsea
telecommunications cable, which will span the
Indo-Pacific region. The announcement was made
at the 2019 Indo-Pacific Business Forum.
“The internet provides unmatched social and
economic benefits, from facilitating trade, to
improving education, and advancing financial
inclusion,” said OPIC’s David Bohigian.
“Yet in many regions of the world where it is
needed most, persistent challenges including
high costs and outdated technology restrict
widespread adoption of digital connectivity. In
order to fully realize the positive power of
the internet, efficient, affordable, and
well-run physical infrastructure is
essential.”
The TPN subsea cable will be a critical element
of the Indo-Pacific’s digital infrastructure,
ultimately strengthening networks and
increasing capacity while reducing internet
costs in the region.
On completion, the TPN cable will be the first
subsea route to directly connect Singapore,
Indonesia, and the U.S., and will have the
capability to serve several markets in
Southeast Asia and the Pacific. The project
will be developed on terms that prioritize
quality, high social and environmental
standards, and financial sustainability.
By improving the availability, quality, and
cost effectiveness of internet and
communications technology, the cable will serve
as a powerful driver of economic development
and quality of life improvement in the
Indo-Pacific. It will advance U.S. efforts to
expand digital connectivity through responsible
and transparent infrastructure development in
the region. At the 2018 Indo-Pacific Business
Forum, Secretary of State Mike Pompeo announced
the Digital Connectivity and Cybersecurity
Partnership—a whole-of-government
initiative to promote an open, reliable, and
secure internet.
The project also advances cooperative efforts
between OPIC, Australia’s Department of
Foreign Affairs and Trade (DFAT) and Export
Finance Australia (EFA), and the Japan Bank for
International Cooperation (JBIC) to promote
principles-based infrastructure development
through their Trilateral Infrastructure
Partnership and newly announced Blue Dot Network
initiative.
The announcement comes as OPIC prepares to
transform into a new, modernized agency called
the U.S. International Development Finance
Corporation (DFC). Equipped with a more than
doubled investment cap of $60 billion and new
financial tools, DFC will have more resources
to invest in priority regions such as the
Indo-Pacific and expanded flexibility to
collaborate with key partners on shared goals
including quality infrastructure development.
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