28644 - Millicom Tchad S.A.

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Summary of Proposed Investment

Project Number

28644

Company Name

MOOV AFRICA TCHAD SA

Date SPI Disclosed

Sep 29, 2009

Country

Chad

Industry

Telecommunications and Technology

Projected Board Date

Nov 16, 2009

Status

Completed

Sector

Mobile Telephony

Department

TMT, Venture Capital & Funds

Environmental Category

B - Limited

Previous Events

Approved : Dec 10, 2009
Signed : Dec 30, 2009
Invested : Jun 8, 2010

Project Description

Millicom Tchad S.A., or the “Company”, part of Millicom International Cellular S.A, (or“ Millicom”), is planning an expansion project in Q4 2009, 2010 and 2011 to enhance its network capacity and geographical coverage as well as to equip sites with deep cycle batteries and test solar panel technology (the “Project”). The estimated capital expenditure is $80 million. The company is soliciting financing offers from financial institutions for up to $37 million equivalent and has invited IFC to consider an A Loan.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	21.20
Equity

Development Impact

Affordability & Accessibility: Millicom Tchad S.A. targets the mass market, critical for improving penetration in a country where the majority of the population is below the poverty line. Millicom Tchad S.A. introduced innovative promotions and market approaches to spread connectivity in a country with low mobile penetration (20%). IFC’s support will allow Millicom Tchad S.A. to continue with this commercial strategy.

Other Mobile Services: Chad’s market for other mobile services like data, mobile banking, etc, has been slow to develop because of limited access, limited coverage and excessive costs. Challenges to this growth include widespread poverty, a linguistically and ethnically divided population, and a low literacy rate. Millicom Tchad S.A. ’s investment in its network will provide for wider access, contributing to increasing the development of other services to be delivered via the mobile network platform.

Green technologies: Millicom Tchad S.A. is currently testing an alternative energy program by using deep cycle batteries as well as testing solar panel technology to partially replace fuel powered generators on Millicom Tchad S.A.’ s cell sites. This will support IFC’s on-going work in the green power initiatives.

By supporting the project, IFC will provide long term financing in a priority frontier market in which private financing from local or from international commercial banks without multilateral support is scarce. IFC’s investment in the project will also help an emerging competitive telecommunications market develop, improve the efficiency of the business sector and increase connectivity between Chad and the global community. Furthermore, support to Millicom Tchad S.A. is consistent with IFC’s close relationship with Millicom worldwide.

The key issues associated with the project are environmental, health, safety, and social management; construction of towers; 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. As a condition of IFC’s investment, Millicom Tchad S.A. will commit to an action plan for ensuring that all relevant social and environmental risks and impacts are managed as appropriate. Specific information about how risks, impacts and opportunities will be addressed by Millicom Tchad S.A. is summarized in the Environmental and Social Review Summary for the project.

Contacts

For Inquiries About the Project, Contact

Mr. Thomas Gutjahr
Millicom Tchad S.A. – a Millicom Company
6505 Avenue Charles De Gaullle
N’Djamena, Chad
Tel : 235- 9900160
E-mail : thomas.gutjahr@td.tigo.com

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Local Access of Project Documentation

Mr. Thomas Gutjahr
Millicom Tchad S.A. – a Millicom Company
6505 Avenue Charles De Gaullle
N’Djamena, Chad
Tel : 235- 9900160
E-mail : thomas.gutjahr@td.tigo.com

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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