Summary of Proposed Investment
Project Number
7108
Company Name
P.T. Pramindo Ikat Nusantara
Date SPI Disclosed
Feb 1, 1996
Country
Indonesia
Industry
Telecommunications and Technology
Status
Completed
Sector
Fixed Telephony
Department
WBG Digital and AI
Environmental Category
B - Limited
Previous Events
Approved : Mar 28, 1996
Signed : Jul 29, 1996
Invested : Apr 14, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | Indonesia-Pramindo Ikat |
| Region | Asia |
| Sector |
Projected Board DateMarch 19, 1996
Company NameP.T. Pramindo Ikat Nusantara
Technical Partner and/or Major Shareholders
The Company ownership structure is expected to be as follows: Astratel (47.50%), FCR (35%), PT Intertel Pratamamedia, an Indonesian telecommunications company (3.5%), Primkopparspostel, a cooperative of the Department of Tourism, Posts and Telecommunications (2.0%), Marubeni (8.0%) and Nichimen (1.0%), both Japanese trading companies, and IFC (3.0%).
P.T. Astratel Nusantara, a wholly-owned infrastructure subsidiary of the Astra group, which started operations in 1957. Astra is a listed company with widely held ownership, including IFC which owns 4.8% of its shares. It employs 105,000 staff and, with annual sales of US$4 billion, is the third largest group in Indonesia. Astratel invested in the business that installed 125,000 telephone lines in Jakarta in 1992. France Cables et Radio S.A.(FCR), a subsidiary within the France Telecom (FT) group. FT is the world’s fourth largest telecommunications operator and has extensive experience as a foreign partner involving basic, long-distance and cellular networks. FT’s operating revenues in 1994 were US$26 billion.
Project Cost Including proposed IFC investment
Project Cost: US$624 million. IFC investment: An equity investment of up to US$8.175 million; an A loan of up to US$25 million; a B loan of up to US$300 million; and a C loan of up to US$25 million.
Location of project and Description of site
Sumatra Region, Indonesia
Description of Company and Purpose of Project
The project comprises the take-over of the existing telephone network of 655,000 lines in the Sumatra region, installation of 520,000 new lines, and operation and maintenance of the combined network for a period of 15 years under a revenue sharing scheme with P.T. Telkom, the state-owned telecommunications company. The project is being implemented under the Kerjasama Operasi (KSO or joint operating scheme) initiated by the Government of Indonesia under which five private consortia were awarded 15 year concessions in June 1995 to install 2 million new telephone lines in five geographical areas. IFC carried out an independent evaluation of the project, assisted with financial structuring, and will syndicate the B loan jointly with four commercial banks: BNP, Chase, Fuji, and Societe Generale.
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. Sponsors have committed to take all necessary measures to mitigate against these risks.
The is February 15, 1996 from the Public Information Center.
| Date SPI sent to PIC | February 1, 1996 |
For Additional Information contact: Corporate Relations Unit -
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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