The project is sponsored by Mr. José Clase, a well known businessman from Santiago, Dominican Republic. Currently, WIND is 100% owned by Mr. Clase. Mr. Clase owns significant stakes in a diversified set of corporations in the Dominican Republic, including D’Clase (clothing and shoe manufacturing), UNO (contact center), HOMS (hospital), Cibao Airport, Dominican Garden and Dominican Pottery, and BHD Bank. His direct holdings employ over 5,000 people in the country.

The total project cost is estimated at approximately $117 million. To date, the operations have been financed by Mr. Clase’s equity contribution and a mezzanine loan from IFC and Inter-American Investment Corporation (IIC). Investments so far have been focused towards the acquisition of fixed assets, network installation, software implementation and initial launch of operations. IFC’s proposes a total investment of up to $44 million, as follows: A mezzanine loan of $16 million for IFC’s own account, a syndicated B loan of $12 million and an equity investment of up to $16 million.

16.22 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	0.22
Guarantee
Loan	16.0
Equity

* These investment figures are indicative

The Company is Headquartered in Santo Domingo and has currently launched commercial operations in both Santo Domingo and Santiago. The project will allow the company to expand, in phases, into other cities and selected semi-urban and rural areas of the country.

Improvement in Telephony and TV Access: The project promotes the convergence of different services under one package, thus improving connectivity and reducing gaps in access by: - Extending coverage of basic telecommunication services: WIND expects to eventually deploy a quasi-nationwide network. Its wireless technology contributes to more efficient, cheaper and wider coverage, which includes un-served and underserved areas of the Dominican Republic. - Reducing pricing: A new entrant like WIND would be promoting competition against the incumbent telcos and pay TV providers. The synergies provided by a triple play offering, and by the development of a mostly wireless network, should support a case for lower overall pricing. - Increasing service offerings: WIND provides an ample array of services, including connectivity (voice and data) and video for individual users as well as corporate data products such as co-hosting and co-location. - Distributing relevant content: Unlike with other wireless video platforms (i.e., DTH), WIND offers a new distribution channel for local programming. Formalizing provision of TV services: The entrance of new players like WIND, with digital networks, has allowed regulator Indotel to formalize the TV sector, where piracy was rampant. Reduce intra-country digital divide: Even though mobile voice and fixed data density has been on the rise nationally, rural and suburban areas are far behind. WIND has a scalable nationwide deployment strategy, thus taking digital services to poorer areas of the country. Lack of basic services at affordable rates is a critical problem for micro-business owners, impeding economic development. WIND’s state-of-the-art technology allows for technology transfer to and within the Dominican Republic. Broadband connectivity: Broadband services are critical for improving the operational efficiency of Government and large and small enterprises. At the retail level, fast internet access contributes to improving communications, exchange of information and entertainment. The Dominican Republic currently lags its peer countries in Broadband penetration rates, the Project will support an increase in this penetration levels by making the service more widely available and accessible. Employment: WIND currently employs over 170 people. By 2012 it expects over 300 direct employees, not counting indirect employment (independent distributors). Focus on educational corridors: WIND’s initial backhaul roll-out focused strongly in connecting the major universities in the Dominican Republic. Free educational channels: The company, together with the Government, launched a plan to provide free TV access to 8 international educational channels (from HBO and Discovery) for 300 public schools, with the idea of extending such program to 3,000 public schools in the next two years as the network footprint increases.

Access to finance: IFC’s strategy is to leverage off the Sponsor’s strong equity contribution to date by combining different instruments. Current financing conditions worldwide are volatile and unpredictable, especially for large infrastructure projects with technological risks. IFC support is critical for WIND at this stage of the project, as it will have a catalytic role in attracting other equity investors. Stamp of approval / Demonstration effect: WIMAX is a new technology with great developmental potential as it can bring broadband connectivity and triple play services, at affordable prices to the population – especially in countries with insufficient telecoms infrastructure. To date there are few commercial operations using this technology and the demonstration effect of a successful business case built around WIMAX will provide comfort to investors considering investing in this technology world wide. Strengthen WIND’s attractiveness: In view of its growth potential in telecoms, broadcasting and content distribution, the Dominican Republic is attracting interest from international players. Financial resources from IFC and outside parties is necessary at this stage for the company to gather traction. Improve Governance: IFC, by requiring implementation of an institution building plan, by setting appropriate minority shareholder safeguards and by closely following the development of the company, will be positioned to play a direct role in advising and strengthening the company’s corporate governance and institutional capacity.

The key environmental and social issue associated with the project are environmental, health, safety, and social management; labor and working conditions (including employee and contractor occupational health and safety); and pollution prevention and abatement. This has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

The principal Performance Standards (PSs) to be applied to this investment are PS1: Social and Environmental Assessment and Management Systems; PS2: Labor and Working Conditions; and PS3: Pollution Prevention and Abatement. A condition of IFC’s investment will be that Wind’s operations shall ensure that all relevant social and environmental risks and impacts are considered and managed as appropriate. Specific information about how potential environmental and social impacts will be
addressed by Wind is summarized in the Environmental and Social Review Summary (ESRS) for the project.