Summary of Proposed Investment
Project Number
9318
Company Name
EuroTel Bratislava, a.s.
Date SPI Disclosed
Oct 21, 1998
Country
World Region
Industry
Telecommunications and Technology
Status
Completed
Sector
Mobile Telephony
Department
WBG Digital and AI
Environmental Category
B - Limited
Previous Events
Approved : Dec 23, 1998
Signed : Jan 29, 1999
Invested : Feb 10, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Slovak Republic: EuroTel Bratislava |
| Region | Europe |
| Sector |
Projected Board DateNovember 30, 1998
Company NameEuroTel Bratislava a.s.
Technical Partner and/or Major Shareholders
The primary sponsors are MediaOne (formerly part of US West) and Bell Atlantic, which jointly and equally own a 49% economic interest and a 40% voting interest in EuroTel. MediaOne consists of US West’s cable television and international wireless communications operations, is known to IFC through US West’s sponsorship of Westel 450 (Hungary, IFC/R92-39), Westel 900 (Hungary, IFC/M94-14), and RTDC (Russia, IFC/R94-159). Bell Atlantic is a regional Bell operating company, with more than 41 million wireline customers and 6.7 million wireless customers in 23 countries. The other shareholder (with a 51% economic interest and a 60% voting interest) is Slovak Telecom, the state-owned national fixed-line operator. It has about 1.5 million telephone lines in service.
Project Cost Including proposed IFC investment
Total project cost is estimated to be about US$250 million, and IFC''s proposed investment would be up to US$30 million, which would likely consist of: up to US$10 million in an IFC "A" Loan, and up to US$20 million in an income participating IFC "C" Loan. Other financing is expected to come primarily from a syndicate of commercial banks whose loans will be backed by ECAs and/or MIGA.
Location of project and Description of site
The project is to help finance EuroTel’s continued build-out of its nation-wide mobile cellular telecommunications networks and improve the Company’s capital structure. EuroTel owns and operates an analog NMT mobile network that covers approximately 94% of the population and 76% of the geography of the Slovak Republic, and a digital GSM network that covers approximately 93% of the population and 68% of the geography. Future build-out would likely focus on increasing network capacity, improving indoor coverage, and improving network quality.
Description of Company and Purpose of Project
EuroTel is one of two national mobile cellular operators in the Slovak Republic. In 1990, EuroTel was awarded a 20-year license to operate a national analog mobile cellular network. In 1996, it was also granted a 15-year national digital GSM license. In February 1997, the Company began offering GSM services along with its existing analog services, and as of August 1998, EuroTel had over 150,000 wireless subscribers, which accounts for a large share of the mobile cellular market.
The Slovak Republic is one of the Extending IFC’s Reach countries, and the project would demonstrate to the government and to potential foreign investors that IFC supports private sector participation in the infrastructure development of the country. In addition, IFC would not only provide scarce long-term financing, but would also act as a source of comfort to other lenders, which will be more likely to invest knowing IFC is present.
Environmental Category and Issues
This is a category B project according to IFC''s environmental and social review procedure. Environmental issues associated with this project include: right-of-way alignment, land acquisition, development of sensitive land, tower site selection, impacts and monitoring of ongoing operations, PCBs, solid and liquid waste. Occupational health and safety issues include: fire safety, emergency response, and general employee safety and training. To help mitigate these potential environmental and social impacts, EuroTel will comply with applicable IFC and Slovakian environmental and social laws, regulations and guidelines, and IFC will monitor compliance by evaluating reports submitted annually by the Company, and by conducting on-site reviews during project supervision as needed. The Company will locate new base stations on existing telecommunications sites wherever feasible, and EuroTel will select and construct new sites in accordance with applicable regulations. EuroTel provides training on environmental health and worker safety, including hazard identification, accident prevention, first aid, safe chemical handling, fire prevention and safety and proper control and maintenance of equipment and facilities.
The is October 23, 1998 from the InfoShop.
| Date SPI sent to InfoShop | October 21, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
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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