Totaling $240 million, the project will involve the laying of 7,000 kilometers of submarine fiber optic cable between Lagos, Ghana and Siexal, a suburb of Lisbon in Portugal, the This Day newspaper of Nigeria reported.

The report said the project will include branching units to Senegal, Ivory Coast, Morocco and the Canary Islands. Nigerian based firm MST, it was learnt, has expressed interest in the project and is in the process of securing long-term contracts with some of the largest operators in the country and in neigbhouring Ghana.

The project is in line with the Bank's Country Strategic Papers, (CSP) for Nigeria and Ghana which promotes private sector involvement in the development of critical infrastructure.

AFDB said the project will ease telecommunications difficulties in the West African region as well as lower the cost of international communications when completed.
"This investment comes at an opportune time to unlock the constrained West African telecommunications market and catalyze the economic potential of the region," said the bank.

"A compelling opportunity exists to lower the restrictive cost of international telecommunications and significantly expand internet access via submarine cable which will lead to greater efficiency and more competitive business," the bank added.

The 1.92 Tbps of available bandwidth is expected to be leased wholesale to telecom operators and internet service providers on an open access basis, an approach AFDB said would encourage competitive pricing and a larger customer base.

The available bandwidth from the Main One cable is expected to provide telecom operators the opportunity to expand networks and mobilize a broader range of services, it was learnt.

It is expected to contribute to a 50 per cent drop in the price of bandwidth in Nigeria and Ghana with price reduction expected in the long run. Apart from Main One, the bank's previous investments in ICT in Africa include the East African "EaSSy" submarine cable, two Satellite Rascom and New Dawn.

Main One is seen as a realization of the bank's infrastructure and private sector development strategy. It also ties into the medium to long-term strategic framework of the New Partnership for Africa's Development (NEPAD).