DLF - Sun Communications (debt)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 37261

Status Complete

Location

Moldova

Business Sector

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 37261

Status Complete

Location

Moldova

Business Sector

Notice Type

Private

Environmental Category

Disclosure date

20 Dec 2006

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The proposed project will assist in consolidating the competition in the Moldovan communications market by supporting the leading cable TV operator, SUN Communications, in its ongoing acquisition and modernisation programme in Chisinau and in the main cities of the country. Modernisation will include upgrading the cable TV networks for two-way operation at up to 860MHz, building of optical fibre transmission links, etc.

Transition Impact

The project supports a privately owned company operating in a sector dominated by the state-owned incumbent. The project is likely to contribute to an increased role of private enterprises in provision of communications services in Moldova.

The project will also help enhance competition in a sector dominated by a single strong player by assisting a private operator gain foothold by increasing its market share. This will lead to increased penetration rates in cable TV and Internet services and a better quality of service.

The development of alternative telecoms operators, such as SUN, offering packages that include TV programmes, the Internet and voice telephony will have a major demonstration effect and will likely generate further consolidation and restructuring.

The Client

SUN Communications is the largest cable TV operator in Moldova and a residential and corporate Internet service provider with a client base in excess of 65,000 subscribers. SUN operates a modern 860MHz hybrid fibre –coaxial network which covers 83% of Chisinau and a MMDS wireless network which practically secures full coverage of the city. SUN also operates a cable TV network in Balti.

EBRD Finance

The Bank will invest USD 4 million in equity and USD 4 Million in long term debt along the founder and shareholder of the Company

Project Cost

USD 15.5 Million

Environmental Impact

Screened C/0. The operation is unlikely to involve any significant environmental issues. The Company are currently completing the Bank’s corporate environmental due diligence questionnaire for Telecom and Media projects. The Project will be required to comply with national and EU environmental, health, safety and labour standards and requirements and reporting to the Bank on environmental, health, safety and labour protection issues.

Technical Cooperation

None.

Company Contact

Mr John Maxemchuk, CEO

jmaxemchuk@suntv.com

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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