Telecoms showcase - reconstruction

Benchmark transactions - reconstruction

The Bank has played a vital part in helping some of its countries of operation reconstruct after periods of internal strife.

Benchmark transactions include Telecoms emergency reconstruction project in Bosnia and Herzegovina and Tajiktelecom in Tajikistan.

Tajiktelecom, Tajikistan

This operation comprises a US$ 13 million loan to Tajiktelecom, the national incumbent fixed-line operator. The loan is supported by a sovereign guarantee from the Republic of Tajikistan.

The loan will be used to make urgent investments in new digital infrastructure, equipment to enable the widespread application of per-minute call charging, new international connections and improvements in power supply arrangements in rural areas.

In addition to this financing, the Confederation of Switzerland is providing a grant of €2.25 million for additional network investments. Japan is also providing technical co-operation grants of €1.3 million to help the company implement the project and improve its efficiency, as well as support the government in making necessary sector reforms.

An essential part of the operation is the loan conditionality, which targets sector reform, including a new telecommunications law, sector policy, tariff reform, a new licensing regime and, eventually, an independent regulatory authority. This should facilitate development of the sector and encourage further private investment.

Telecoms emergency reconstruction project, Bosnia and Herzegovina

The EBRD is playing a key role in the reconstruction of the telecommunications sector in Bosnia and Herzegovina, as set out in the Dayton Agreement.

This project consists of a US$ 50 million emergency project, of which the EBRD is providing a US$20 million 15-year loan backed by a sovereign guarantee to the three local telecommunications operators: PTT BiH, HPT Mostar and Telekom Srpske. An additional US$ 21 million of financing is also being provided in the form of grants or complementary equipment from international donors.

The project involves the modernisation and expansion of the telecommunications network to permit the connection of approximately 88,000 subscribers and provide essential equipment and materials for restoration of local/long distance networks. The EBRD is also providing technical assistance for development of a legal and regulatory framework for telecommunications, technical advisory services for project implementation and developing finance, accounting and billing services.