A public-private partnership, with help from the World Bank, is aimed at improving internet access in Tuvalu.
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Currently Tuvalu is considered one of the least connected countries in the world, with an expensive and limited internet service.
The Tuvalu Telecommunications and ICT Development Project will reform the Tuvalu Telecoms Corporation and redevelop the government-run entity as a public private partnership in cooperation with an international company.
The project will also support investments in a submarine cable.
Tuvalu's deputy prime minister, Maatia Toafa, said "delivering better telecommunications services is essential to the development of Tuvalu".