Summary of Proposed Investment
Project Number
10061
Company Name
AIRTEL NETWORKS ZAMBIA PLC
Date SPI Disclosed
Jan 18, 2000
Country
Zambia
Industry
Telecommunications and Technology
Status
Completed
Sector
Mobile Telephony
Department
TMT, Venture Capital & Funds
Environmental Category
B - Limited
Previous Events
Approved : Apr 20, 2000
Signed : Apr 20, 2000
Invested : Jun 12, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Zambia - Zamcell II |
RegionSub-Saharan Africa
Sector
Project No010061
Projected Board DateFebruary 28, 2000
Company NameZamcell Zambia Ltd.
Technical Partner and/or Major Shareholders
The project’s technical partner and the major shareholder of Zamcell Zambia Ltd. (Zamcell) is Mobile Systems International Cellular Investments Holdings B.V. (MSICIH) (80%), a holding company located in the Netherlands with mobile cellular investments primarily in sub-Saharan Africa. MSICIH is an experienced operator, which owns stakes in mobile phone operations in Zambia, Malawi, Uganda, Egypt and Hong Kong.
The two other shareholders are Mitsui (10%), a Japanese trading house active in the area of telecommunications in Asia and other parts of the world, and the International Finance Corporation (10%).
Project Cost Including proposed IFC investment
The estimated project cost is US$11 million. IFC proposes to provide a US$3.3 million loan and to invest a further US$440,000 in Zamcell''s share capital.
Location of project and Description of site
Network coverage and capacity will be expanded in Lusaka, Zambia''s capital city, as well as in the northern industrial area known as the Copperbelt Region and the southern tourist area centered around Livingston.
Description of Company and Purpose of Project
The project comprises the expansion of Zamcell''s nationwide digital cellular network. The project would be a follow-on to a previous IFC investment in Zamcell, approved in 1998. Zamcell launched its cellular service in Lusaka, the capital city, and the Copperbelt region, in December 1998 under a 15-year license to operate a nationwide mobile phone network. Since the launch of the network, Zamcell is experiencing much higher demand for its services than originally anticipated. Zamcell is planning to meet this demand by expanding network coverage and increasing capacity.
The huge market demand confirms the urgent need of the Zambian business community for efficient and reliable telephone services. The project would help meet this demand and support the growth of an emerging private African telecom operator.
IFC''s role would include: (i) providing the company with long-term financing, which is scarce in Zambia; (ii) assisting in mobilizing parallel long-term financing; and (iii) demonstrating continued support for private sector participation in the infrastructure sector.
Environmental Category and Issues
The proposed transaction is classified a category C project according to IFC''s environmental and social review procedure. The original project was a category B project and environmental clearance was obtained in June 1998. Operation of the network commenced in December 1998. The company reported its environmental and social compliance in February/March 1999 in conjunction with the IFC’s initial equity disbursement, and was found to be in compliance with World Bank Group policies and guidelines at that time. Zamcell’s first annual environmental monitoring report to IFC is scheduled for early 2000.
Zamcell is also a subsidiary of MSICIH for whom an IFC investment was approved in September 1999 for equity of $10 million. Under the terms of this investment, MSICIH is required to produce an Environmental Management Plan, which should consolidate all elements of the group''s environmental policy and operational procedures in one central management plan.
| Date SPI sent to InfoShop | January 18, 2000 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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