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The SUN also rises in Moldova
EBRD provides private communications company with $8 million package
The EBRD is strengthening competition on the Moldovan communications market
with a combined equity and loan finance package to private cable TV and
internet operator SUN Communications SRL.
The funds will support SUN to continue its ongoing acquisition and
modernisation programme in the capital city Chisinau and its expansion in
other main cities in the country. Modernization will include upgrading the
cable TV networks and extending the transmission infrastructure. SUN also
plans to expand its coverage through acquisition and modernisation of smaller
cable providers.
The Moldovan communications market is growing rapidly and is largely dominated
by state-owned Moldtelecom. SUN, set up in 1994, has established itself as the
biggest privately owned fixed line competitor with more than 72,000 cable TV
subscribers. The company is especially strong in the capital Chisinau, but
plans to extend its services to the country’s ten largest municipalities.
Michelle Senecal De Fonseca, EBRD Director of Telecommunications, said the
Bank’s investment provided an excellent opportunity to support a successful
private enterprise. It is expected to have significant impact through
increased competition which will offer Moldovan customers greater choice at
fair prices.
John Maxemchuk, General Director of SUN Communications, added that this
partnership reflects the company’s long term commitment to developing its
presence in the Moldovan market. Providing modern telecommunication services
requires continued investment in network infrastructure and technology with a
broader population coverage than SUN can offer today. This investment will
allow SUN to grow and compete on a national level with a package of services
suitable for the 21st century.
To-date the EBRD has signed around 30 projects in Moldova, investing more than
$200 million and mobilising another $125 million from its partners. Enhancing
competition and supporting economic diversification with a special focus on
regional development are among the Bank’s priorities in its strategy for the
country.
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