IFC grants $70 million financing for CREI’s telco tower buildup

MANILA, Philippines — The private sector arm of the World Bank Group has arranged a $70 million financing package for tower company Communication and Renewable Energy Infrastructure (CREI) Phils Inc. to support the construction of over 600 towers to enable access to affordable and improved mobile connectivity services in the country.

In a statement yesterday, the International Finance Corp. (IFC) said the financing package for CREI Phils, which consists of a $25.5 million loan from IFC and a parallel facility of $44.5 million, aims to bridge the digital divide through the use of shared mobile infrastructure by telco providers.

IFC’s investment will be used to support the construction of more than 600 new towers by next year.

In addition to the use of towers under an open access basis, IFC said the loan would enable operators to expand 4G and 5G networks across the country and offer better and more affordable services to consumers.

According to the 2020 Global Digital Overview, mobile internet users in the country have more than tripled to 73 million in 2020 from 23 million in 2010.

Due to pervasive network congestion, the quality of mobile connectivity in the country remains inadequate.

Based on market estimates, the country needs a significant number of new towers in the next seven to eight years to support the government’s network capacity requirements.

“Digital connectivity is more important than ever for businesses and people to thrive,” IFC country manager for the Philippines Jean-Marc Arbogast said.

“By supporting the entry of a new company, IFC’s investment will contribute to a strong independent tower market in the Philippines, increase competition, create jobs, spur economic growth and help cut emissions,” he said.