Project number:


Business sector:

Information and Communication Technologies

Notice type:


Environmental category:


Approval date:

16 Dec 1997



PSD disclosed:

14 Nov 1997

Project Description

Financing part of RomTelecom's capital expenditure programme for 1998 and 1999.

The project aims to:

  • facilitate the privatisation of RomTelecom; and
  • maximise the benefits for RomTelecom's future development through financing part of its capital expenditure programme for 1998 and 1999.

Loan proceeds will be used for partial financing of:

  • a second international exchange;
  • transmission equipment;
  • ISDN and signalling system 7;
  • call collection system;
  • network management;
  • customer local access equipment; and
  • local switching.

Transition Impact

The project will support the privatisation and liberalisation of the telecommunications sector and will facilitate foreign capital inflow to Romania. An independent regulator will be established to ensure a transparent, equitable regime for all operators. A predictable tariff regulation will be implemented and the tariff-rebalancing will be accelerated. Business and residential subscribers will benefit from increased teledensity and the improved network quality and efficiency.

The Client

The borrower is RomTelecom S.A., the public telecommunications operator in Romania with a telephone network of 3.5 million lines. The company has been corporatised into a joint-stock corporation initially 100 per cent state-owned. This is to be privatised through the sale of at least a 30 per cent share to a strategic investor.

EBRD Finance

Unsecured loan of US$ 100 million (ECU 87.7 million).

Project Cost

US$ 706 million (ECU 620 million).

Environmental Impact

There are unlikely to be any significant environmental issues, but due to the potential environmental impact in connection with the location decisions and construction activities, an Environmental Analysis will be carried out by the project sponsor. Public participation issues will also be addressed and the project sponsor will need to provide written assurance that persons or companies affected by the construction of new buildings, antennae or the routing of new cables have been notified of the project and that the borrower has taken their comments into consideration during routing selection and prior to construction.

Technical Cooperation


Company Contact


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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