The main shareholder is Millicom International Cellular S.A. (Millicom), a B+ rated (S&P) global cellular telecom operator with 16 cellular operations and licenses in 15 emerging market countries (Africa, Asia and Latin America). As of September 2004, Millicom’s cellular subscriber base worldwide was 6.85 million. Millicom’s 2003 revenues totaled $641 million equivalent and EBITDA was $318.2 million equivalent. The company is listed on the NASDAQ and on the Luxembourg Stock Exchanges. Millicom has a total market capitalization of $2.1 billion.

The total project cost is expected to be $66.3 million. The proposed IFC investment is a $15 million A loan for IFC’s own account.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The company is headquartered in Asuncion, Paraguay.

Paraguay is one of the poorest countries in South America, with an estimated population of 6.19 million inhabitants and a GDP per capita of US$939 equivalent in 2003. This project would be IFC’s first direct investment in Paraguay in many years. Although cellular penetration in Paraguay is one of the highest in South America (despite its comparatively low GDP per capita), the project is expected to have the following important development impacts. - Consumers / Businesses: the project will enable Telecel to increase capacity, which will allow more consumers and businesses to have access to reliable and affordable telecommunications services - New Technology: Although Telecel will not be the first GSM operator in Paraguay, the company will be the first in the mobile sector to provide consumers with value added services incorporating multimedia technology such as GPRS and MMS. The company also plans to launch “push to talk” services in 2005. - Demonstration Effect: As a result of past economic and political uncertainties, the climate for private sector investment in Paraguay has been poor. The new government’s effort to improve macroeconomic management and public governance are encouraging. Telecel ranks among the few large privately-owned companies in Paraguay, and an IFC investment at this time would show support for the government’s efforts to encourage private sector investment and encourage other lenders to enter the market.

This is a category B project according to IFC’s environmental and social review procedure. Potential environmental and social issues include corporate environmental and social management systems to ensure compliance of Project facilities with local requirements and World Bank policies and guidelines; environmental management and performance of existing network; site selection, land acquisition procedures and construction impacts of proposed expansion of network (towers, switching center and base stations); development of previously undisturbed land; impacts on environmentally or culturally sensitive areas (national parks, forests and other cultural heritage features); fuels/hazardous materials use; waste management; employee health and safety; and training and emergency response.

IFC’s Social and Environment Unit have already reviewed the documents that have been provided, and there does not appear to be any significant issues in this regard
Location of environmental documents in locally affected community
The Environmental Review Summary will be published in newspapers in Paraguay and made available in the company’s website.