Peru Promotes Digital Inclusion in Rural Areas with IDB Support

WASHINGTON - The Inter-American Development Bank (IDB) has approved a $106 million loan to expand broadband internet access in rural areas of Peru, promoting economic development and social inclusion.

The project will benefit approximately 900 population centers in Apurímac, Ayacucho, and Junín through the installation of fixed broadband telecommunications infrastructure, technological equipment, Public Digital Access Spaces (EPAD, its Spanish acronym), and the creation of Digital Access Centers (CAD in its Spanish acronym). EPADs will offer free WiFi access, while CADs will provide free internet, digital services, and IT training, bringing new opportunities to local communities.

Backed by an investment loan from the IDB, the program prioritizes vulnerable populations, including women and Indigenous communities. It will train 908 community digital leaders and 908 digital assistants, strengthening their skills to efficiently manage and operate the CADs.

Additionally, the initiative will connect 977 educational institutions and 115 healthcare facilities, and train 520 teachers and 115 healthcare workers, facilitating access to public services such as education, health, and administrative procedures.

The project is expected to help 27,390 people acquire digital skills through training and free computer access at the CADs. It is also expected to reduce service costs by attracting new internet service providers into these regions.

This initiative aligns with the goals of the PRONATEL program from the Ministry of Transport and Communications (MTC), which seeks to expand digital connectivity in hard-to-reach areas.

The implementation period is expected to be 6.5 years, and the IDB loan has a repayment term of 19 years, with a 6.5-year grace period and an interest rate based on SOFR. The MTC will contribute $26.5 million in counterpart funding to complete the project's financing.