Project Description
Telecom Technology Limited (the Company) is an exisisting company involved in the business of providing internet services in the city of Dushanbe, Tajikistan. The Company, now wants to expand its activities to other cities of Tajikistan nemely Khujand, Kurgan Tube and Chakalovsk and the Project involves the installation of 4-satellite VSAT stations to establish a network connecting these four cities of Tajikistan. As a result of the Project, a wide range of reliable Internet, Email and private data communications services (currently unavailable or under-served in Tajikistan) will be made available in Dushanbe and three cities of Northern Tajikistan. The Project is a business expansion, sponsored by Telecom Technology Limited. The estimated US$0.7 million cost of the Project includes cost of purchase of new equipment, installation and training and working capital. The Project is expected to be implemented within a period of 6 months after disbursement by IFC.
The Project will have the following developmental impacts: (1) expansion of an information service increasingly vital to the development of competitive industry and services; (2) increased competition in a small market; (3) introduction of up-to-date technology in a sector where this is crucial; (4) supporting the emerging Tajik business community; and (5) creation of 30 jobs.
The Project is in line with the World Bank Group Country Assistance Strategy, which highlights IFC’s key focus in Tajikistan on promoting investment in small and medium size businesses to foster broad based industrial development and help alleviate poverty. More specifically, the Project complements IFC’s strategy to encourage and support commercially viable Projects in Tajikistan’s emerging SME’s in the private sector by: (a) helping develop new and efficient private sector companies; (b) assisting employment generation; and (c) promoting development of communications. The proposed Project builds directly on these strategies and supports the CAS in private sector development, particularly in the area of SMEs.