Kazakhtelecom

Location:

Kazakhstan

Project number:

43396

Business sector:

Information and Communication Technologies

Notice type:

Public

Environmental category:

B

Status:

Cancelled

PSD disclosed:

27 Mar 2012

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a long term loan of up to USD 200 million to Kazakhtelecom (KTC or the Company), the incumbent telecoms operator in Kazakhstan in order to support the company’s investment in (1) expanding its fixed line broadband network coverage, capacity and quality in regional centres of Kazakhstan and (2) financing its planned LTE (4G) mobile broadband network roll-out.

Transition Impact

Transition impact will come from:

(i) market expansion, through increasing broadband penetration in the regions of Kazakhstan;

(ii) improvements in the regulatory framework, through technical co-operation in order to review and implement regulatory changes; and

(iii) setting standards of corporate governance and business conduct.

The Client

KTC, is the incumbent operator in Kazakhstan. Its main services are fixed telephony (including local, long distance and international services) as well as broadband and internet services.

EBRD Finance

EBRD is providing up to USD 200 million debt financing to KTC by way of a term loan.

Project Cost

USD 800 million.

Environmental Impact

The project was categorised “B” by European Bank for Reconstruction and Development (EBRD), which means that an environmental and social analysis was required by the Bank, in accordance with the 2008 Environmental and Social Policy and Performance Requirements (PRs).

The project is unlikely to be associated with significant environmental and social impacts. Due diligence to date showed that the company is in line with relevant PRs. The company has Environmental, Health, Safety and Human Resources Management procedures in place. For the coming operation, the company is required to ensure that the project is in compliance with relevant PRs.

Technical Cooperation

EBRD will assist the Government of Kazakhstan and KTC with reviewing and implementing regulatory changes in the telecommunications sector.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.