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
None.
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
Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
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
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.
