Summary of Proposed Investment
Project Number
4842
Company Name
Algar Telecom S/A
Date SPI Disclosed
May 29, 1996
Country
Brazil
Industry
Telecommunications and Technology
Status
Completed
Sector
Fixed Telephony
Department
TMT, Venture Capital & Funds
Environmental Category
B - Limited
Previous Events
Approved : Jun 14, 1996
Signed : Jul 18, 1996
Invested : Jul 24, 1996
Project Description
REVISED Summary Of Project Information (SPI)
| Project Name | Brazil-Lightel Servicos de Tecnologia da Informacao (Lightel). |
| A holding company established by ALGAR Group to manage the Group’s telecommunications activities in Brazil. Lightel’s largest subsidiary, Companhia de Telefones do Brasil Central (“CTBC”), is an operator of basic and cellular services in Uberlandia, Minas Gerais. |
| Region | Latin America |
Sector
Project No004842
Projected Board DateJune 11, 1996
Company NameLightel Servicos de Tecnologia da Informacao S.A.
Technical Partner and/or Major Shareholders
ALGAR Group of Brazil (100%) which has operations in four principal activities: telecommunications, agribusiness, auto dealerships and services.
Project Cost Including proposed IFC investment
Project Cost: US$298.5 million IFC equity investment in Lightel: up to US$10.0 million IFC loan for CTBC: up to US$25 million
Location of project and Description of site
CTBC’s Concession Area covers approximately 2.3 million people in the states of Minas Gerais, Sao Paulo, Goias and Mato Grosso do Sul. Lightel’s other subsidiaries operate countrywide.
Description of Company and Purpose of Project
CTBC, Lightel’s main subsidiary, is currently the only private operator of basic and cellular services in Brazil. The Project is to expand and modernize CTBC’s networks and diversify Lightel into newly liberalized telecommunications areas as Brazil’s telecommunications sector is opened for greater private sector participation. IFC has assisted with structuring the holding company and is helping the Company in its preparation for competition and search for strategic partners. Our presence would give comfort to other potential lenders and portfolio investors.
Environmental Category and Issues
This is an Environmental Review Category B Project. Key issues associated with this project include right of way alignment, microwave transmission, radio towers, site selection, solid waste disposal, fire safety and employee training and safety. The Company has submitted an Environmental Management Plan which is currently under review.
The is available from the Public Information Center.
| Date SPI sent to PIC: Revised: | November 29, 1995 May 24, 1996 |
telephone: (202) 473-7711
facsimile: (202) 676-0365
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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