The price of the computer being produced by the One Laptop Per Child foundation has risen to $188, the non-profit group behind the project has revealed.

The foundation had initially hoped to create a PC that cost $100, but spokesman George Snell confirmed that the figure had now reached $188.

The latest increase comes on the back of a statement in May revealing that the manufacturing cost had risen to $176.

Snell said that production of the rugged XO laptops would begin next month, following testing to iron out any software or hardware problems.

The low-cost computers are designed to help children in the poorest countries breach the digital divide. One Laptop Per Child said that it currently has orders for at least three million units.

Libya, Thailand, Brazil and Uruguay are thought to be in line for the first shipments, although the foundation has not named the countries which have committed to buying stock.

Snell confirmed that there would be no announcement on where the orders would be shipped until the final computer had been produced, but admitted that the foundation is "in talks with dozens of countries".

Nicholas Negroponte, head of MIT Media Lab and chairman of the One Laptop Per Child foundation, had claimed that the project will boost the market share of Linux on the desktop to about 12 per cent.

Intel launched a $400 laptop in May 2006 aimed at students in developing countries.