The proposed project consists of the construction and operation of the second national GSM network in Croatia under the terms of the licence granted by the Ministry of Maritime Affairs, Transport and Communications. The project will contribute to the development of an essential, efficient, reliable and user-oriented telecommunications infrastructure in Croatia. The proceeds will be used for the construction and operation of the network.
The project will assist the reform and liberalisation process of the Croatian telecommunications sector by strengthening effective competition in the mobile communications market. It will have a strong demonstration effect for foreign and local investors by attracting additional foreign capital into Croatian telecommunications.
VIP-Net GSM d.o.o. is a Croatian limited liability company incorporated in October 1998. Following an international tender, the company was awarded the second national GSM licence in Croatia on 30 October 1998. Its shareholders are Western and Croatian companies. The key sponsors are Mobilkom Austria AG (66 per cent) and Western Wireless Corporation (19 per cent).
The EBRD would increase its existing €22.4 million loan to VIP-Net by up to €10 million as part of an additional €50 million loan facility. Nordic Investment Bank and a syndicate of commercial banks will provide the remainder of this financing. The financing is arranged by Bank Austria Creditanstalt AG.
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