Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

28 Jan 1997



PSD disclosed:

09 Jun 1997


Project Description

The project consists of the deployment and operation of a national GSM network in Romania under the terms of the licence granted by the Romanian Ministry of Communications. The existing loan facilities were expanded on 20 January 1999 by four parallel debt facilities totalling US$ 105 The increase consists of a US$ 20 million A/B loan from the Bank (US$ 10 million is for the Bank's own account), a US$ 65 million EKN-backed facility syndicated by ABN AMRO and two US$ 10 million parallel loans by NIB and EDC.

Project objectives: To design, construct and operate a country-wide GSM 900 cellular network in Romania. The project will considerably improve the access and the quality of telecommunications services offered to business and residential subscribers.

Transition Impact

The project will enhance the liberalisation, competition and privatisation of the telecommunications sector in Romania, as well as providing much needed quality communications services to the private sector of the economy.

The Client

MobiFon S.A. was incorporated under Romanian company law in 1996 to provide GSM-based cellular telephone services in Romania. The company was awarded one of two national GSM cellular licences on 29 November 1996. MobiFon's shareholders are Telesystems International Wireless Corporation N.V., Airtouch Europe B.V. and a number of Romanian shareholders. The company trades under the brand name CONNEX GSM.

EBRD Finance

Debt financing of up to US$ 180 million (ECU 159 million) to be provided in a combination of an EBRD A/B loan and parallel loans from Export Development Corporation (EDC) and Nordic Investment Bank (NIB). Under the A/B loan structure, the EBRD finances a portion of the loan (the A portion) from its own funds and syndicates the remainder (the B portion) to a commercial lender. The EBRD has also made available subordinated debt or quasi equity. The EBRD's total commitment is up to ECU 84 million.

Additional financing was signed on 20 January 1999 through a combination of and increase in EBRD debt and additional facilities (please see above).

Project Cost

Total project costs being financed by the existing facilities and any additional financing contemplated include the licence fee, network capital expenditure, operating losses during roll-out, working capital and financing costs.

The project have increased as a result of strong demand for cellular services in the first year of operation.

Environmental Impact

The project was screened B/0, requiring an environmental analysis of the proposed development. The analysis examined the environmental issues associated with construction and operations, public participation, nature protection, use and disposal of hazardous materials and obsolete equipment.

MobiFon has applied for all necessary permits required for the start-up of the construction and operation of the project. All other permits will be obtained as the operations progress. MobiFon has confirmed that construction plans, including siting and disposal of potentially hazardous materials, and worker health and safety issues, will be complied with in accordance with relevant EU, national and local legal requirements.

On the basis of the environmental analyses the following positive environmental features will form part of the project:

  • All the construction work associated with the MobiFon GSM projects meets a high level of environmental, health and safety legal requirements as well as complying with national and local requirements.
  • During the selection and planning of buildings and construction activities, MobiFon has taken account of all relevant environmental and worker health and safety standards. Noise and exhaust emissions from emergency power generators will meet international standards. No chemicals, gases, or other hazardous substances will be utilised. All electrical components meet EU legal requirements.
  • The project does not involve any special acquisition or lease of land or property. Installation of base stations and radio systems will be carried out only with the agreement of the local City Hall ("Primaries").
  • The company is committed to complying with the requirements for the permitting procedure for all developments that still need to be submitted for approval. All towers and antennae construction is regulated by law and in addition, public affected by the construction have been informed of the design of the structures.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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