NEC Corporation announced in January the signing of supply contract with the National Submarine Cable Utility Belau Submarine Cable Corporation (BSCC) of the Palau Republic (Palau) for the Palau Cable 2 (PC2) optical submarine cable project.
PC2, with a total length of approximately 110km, will connect Palau with a large-capacity submarine optical cable that connects Southeast Asia and the U.S. mainland, i.e., the Echo subsea cable system. The PC2 cable system adopts the latest optical wavelength multiplexing transmission system of 100Gbps. The project is scheduled to be completed at the end of 2022.
According to NEC, the PC2 cable project is being implemented under a buyer’s credit (export finance) loan agreement by the Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Corporation (SMBC) with BSCC. The loan portion from SMBC is insured by Nippon Export and Investment Insurance (NEXI). Additional financing is being provided by the United States Government and the Australian Infrastructure Financing Facility for the Pacific (AIFFP).
NEC delivered the first subsea cable connecting Palau in 2017, i.e., the Palau Cable 1 (PC1).
Palau Cable 2 will ensure the redundancy of Palau's network, realizes highly reliable communications, and responds to the increasing demand for communications, thereby contributing to further economic development in Palau.