Summary of Proposed Investment
Project Number
8210
Company Name
Telecomunicaciones Movilnet, C.A.
Date SPI Disclosed
May 1, 1997
Country
Venezuela, Republica Bolivariana de
Industry
Telecommunications and Technology
Status
Completed
Sector
Mobile Telephony
Department
TMT, Venture Capital & Funds
Environmental Category
B - Limited
Previous Events
Approved : Jun 30, 1997
Signed : Dec 16, 1997
Invested : Mar 6, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Venezuela-Telecomunicaciones Movilnet, C.A. |
| Region | Latin America & Caribbean |
| Sector |
Projected Board DateJune 19, 1997
Company NameTelecomunicaciones Movilnet, C.A. (“Movilnet”)
Technical Partner and/or Major Shareholders
Movilnet is a 100% subsidiary of Compania Anonima Nacional Telefonos de Venezuela (C.A.N.T.V.), Venezuela’s national and international telecommunications carrier. CANTV was partially privatized in 1991, when the Government sold 40% of the equity and management control to VenWorld, a consortium owned 51% by GTE Corporation, and transferred 11% of CANTV’s equity to employees. In November 1996, CANTV launched an international initial public offering that resulted in the Government reducing its shareholding from 49% to 14%, and CANTV’s shares being listed on the New York and Caracas Stock Exchanges.
Project Cost Including proposed IFC investment
US$178.4 million (over the 1997-1998 period). IFC would provide a Senior A Loan of US$25 million for its own account, and syndicate a Senior B Loan of US$50 million for the account of participant banks.
Location of project and Description of site
Venezuela - nationwide mobile cellular telecommunications network.
Description of Company and Purpose of Project
Movilnet is one of two companies awarded a 20-year license to operate a national mobile cellular network in Venezuela. In 1996, Movilnet had net revenues of US$127 million, and total assets of US$324 million. The project is to help finance Movilnet’s capital expenditure program for 1997 and 1998, which consists primarily of: (1) expanding its mobile cellular telephone network throughout the country; (2) providing new services to its subscribers; and (3) continuing its modernization program to install digital technology. The expansion is expected to increase Movilnet’s subscriber base from 214,000 at the end of 1996 to 370,000 at the end of 1998. IFC will continue its catalytic role of mobilizing long-term bank financing, which it began in 1996 with a US$260 million loan to CANTV for modernization and expansion of its network and financial restructuring.
Environmental Category and Issues
This is a category B project under IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with this project include: radio tower site selection, access road alignment and other land acquisition, development of previously undisturbed land, and employee exposure to noise, other physical agents. Movilnet will comply with applicable World Bank and Venezuelan environmental, health and safety guidelines, and IFC will check compliance by evaluating monitoring reports submitted annually by the Company, and by conducting periodic site reviews during project supervision. Regarding installations of cellular radio antenna, existing towers will be used where feasible, and selection of sites for new towers will be conducted in close coordination with the relevant local authorities. If any structures are planned in environmentally sensitive areas, Movilnet would provide IFC with an impact mitigation plan for clearance by IFC prior to implementation of the respective plan.
The is available from the Public Information Center.
| Date SPI sent to PIC | May 1, 1997 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
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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