Project number:


Business sector:

Information and Communication Technologies

Notice type:


Environmental category:


Approval date:

29 Jul 2003



PSD disclosed:

10 Jun 2003

Project Description

The proposed project intends to support the consolidation of the fragmented cable TV industry and strengthen the competition in the Romanian telecoms market by financing a leading Cable TV operator, Astral Telecom, to expand and modernise its networks. The Bank will provide a US$ 7 million loan to finance a part of this program, together with other development banks. The expansion and modernisation program will enable Astral Telecom to streamline its operations due to the economy of scale, to enhance its broadband Internet offer, expand the voice telephony service and improve the quality of its services.

Transition Impact

Although recently liberalised, the telecoms market in Romania does not benefit from the full effect of competition due to the fragmented status of the potential competitors to the incumbent. The key transition impact comes from the demonstration effect of the appearance of alternative fixed line operators offering packages that include TV programmes, Internet and voice telephony. This is likely to generate further consolidations and modernisations and will have a very positive effect on pricing the access services, accelerating the tariff rebalancing process.

The Client

Astral Telecom S.A. is a cable TV, Internet and voice telephony service provider operating in more than 52 cities and 110 locations in Romania. Astral Telecom is owned by a group of private investors and investment funds including AIG-New Europe Fund.

EBRD Finance

US$ 7 million senior debt.

Project Cost

US$ 10 million.

Environmental Impact

The project was screened C/1 requiring a corporate environmental audit of Astral’s operations which is currently underway initially using the Bank’s Corporate Environmental Due Diligence Questionnaire For Cable Companies. The Operation is unlikely to involve significant environmental impacts.  Environmental issues are likely to be associated with construction and installation works, right-of-way and general health and safety issues.  The Operation will be required to meet national and EU environmental, health and safety standards.  The Bank’s environmental monitoring will be carried out through Annual Environmental Report.

Technical Cooperation


Company Contact

Ms Gilda Popescu
Astral Telecom, CFO
Tel: + 40 264 441 265

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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