Summary of Proposed Investment
Project Number
9692
Company Name
CELTEL MALAWAI LIMITED
Date SPI Disclosed
Aug 6, 1999
Country
Africa Region
Industry
Telecommunications and Technology
Status
Completed
Sector
Mobile Telephony
Department
TMT, Venture Capital & Funds
Environmental Category
B - Limited
Previous Events
Approved : Sep 16, 1999
Signed : Nov 19, 1999
Invested : Nov 24, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Africa Region - MSICIH |
RegionSub Saharan Africa
Sector
Project No009692
Projected Board DateSeptember 15, 1999
Company NameMobile Systems International Cellular Investments Holdings (MSICIH)
Technical Partner and/or Major Shareholders
Amsterdam-based MSICIH was originally a department of MSI, a UK consultancy firm specializing in cellular network design. MSI was founded in 1989 by Dr. Mohamed Ibrahim who worked many years with British Telecom prior to starting MSI. MSI has more than 500 employees, and has an international reputation in its field. In 1998 MSICIH was spun off into its own company with the same shareholders as MSI: Dr. Ibrahim Trust; General Atlantic Partners, a US venture capital firm, which has subsequently sold its holding to Dr. Ibrahim Trust; Bessemer Trust, a U.S. asset management firm; and other investors, management and staff of MSICIH. MSI (and now MSICIH) is well known to IFC as a primary sponsor in two cellular projects: CelTel in Uganda (IFC/R94-135) and Zamcell in Zambia (IFC/R98-167).
Project Cost Including proposed IFC investment
IFC Investment: US$10 million equity and US$10 million quasi-equity. Total project cost: US$103.5 million
Location of project and Description of site
Nationwide mobile cellular networks in various African countries, including but not limited to Chad, Congo Brazzaville, Gabon, Malawi and Sierra Leone
Description of Company and Purpose of Project
MSICIH is a holding company for cellular investments focused primarily on Africa and the Middle East. Currently, the company has operations in Egypt, Hong Kong, Uganda and Zambia, as well as licenses (but no operations yet) obtained through competitive tenders in Chad, Congo Brazzaville, Gabon, Malawi and Sierra Leone.
The Project consists of financing the construction and operation of a number of small African mobile cellular networks through an equity and quasi-equity investment in MSICIH. The project will provide an efficient means of financing MSICIH''s plans to build cellular networks in the smaller African countries. The project covers expenditures through the year 2000.
IFC is providing long-term financing to countries and companies which would not otherwise have access to such financing, at a critical time in a number of these countries: when a stable private sector is just beginning to emerge. The telecoms investments will reach a wide range of countries and will introduce or re-introduce IFC to several countries, thus proving demonstrations of the value of private sector involvement in basic infrastructure services.
Environmental Category and Issues
This is a Category B project according to IFC''s environmental review procedure. Issues include development of environmental and social management systems; environmental and social performance of existing portfolio; land acquisition; site selection and construction; right of way alignment; PCB''s and halons; solid and liquid waste treatment and disposal; fire prevention and emergency response; and worker safety.
MSICIH has undertaken to ensure that all majority-owned or managed companies within the group carry out business and operations in compliance with World Bank Group Environmental and Social Policies and Health and Safety Guidelines. The company has also committed to designate a person to oversee these issues. MSICIH is undergoing rapid growth and has also begun to develop centralized management systems and will include the consolidation of environmental, health and social (EHS) activities under one central management function with direct reporting from each subsidiary. MSICIH is developing a preliminary Environmental and Social Action Plan for IFC''s approval. MSICIH is also committed to undertake, and provide IFC with details of, future land acquisitions. In the event that activities will cause physical or economic displacement of people, MSICIH will consult with IFC and, as appropriate, submit a plan for relocation.
Solid and liquid waste generated as part of the network installation and operations are limited and will be disposed of in accordance with local regulations. Existing equipment containing PCB''s will be phased out according to World Bank Environment, Health and Safety Guidelines. Processes, equipment and central cooling systems involving the use or potential release to the environment of chlorofluorocarbons (CFC''s including halon), will not be installed, and their use in existing processes and systems will be phased out and disposed of in a manner consistent with the requirements of the host country and or best industry practice. Generators used for back-up power supply will be installed with sound attenuation enclosures. Fuel storage tanks will be equipped with secondary containment and will comply with UK standards and US Environmental Protection Agency (EPA) regulations. Site installations and headquarters will be equipped with first aid kits and safety equipment including safety climbing equipment. The company will also provide comprehensive employee training on EHS issues.
The is available from the InfoShop.
| Host country location of environmental documents | N/A |
Date SPI sent to InfoShop August 6, 1999
“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
Related ESRS/ERS
