Company name
Nucleo S.A.
Project number
11985-01
Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.
E&S category
B
Country
Paraguay
Sector
Digital Economy
Status
Inactive
Disclosed date
09/20/2017
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
10/31/2017
Approval date
10/31/2017
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 60,000,000
Currency
PYG
Project scope and objective
IIC will support Nucleo S.A.’s (the “Company”) three-year investment plan (2017-2019), which consists of: (a) license acquisition of the 700Mhz 4G LTE spectrum public auction sponsored by Comisión Nacional de Telecomunicaciones de Paraguay (“CONATEL” or the “Regulator”); (b) expansion and deployment of 3G/4G network and related infrastructure, and; c) maintenance of the existing network (the “Project”).
The total Project cost is estimated at US$180 million equiv. in Guaranies. The Company will finance this investment plan with a combination of cash from operations and the IIC A-Loan of up to US$60 million equiv. in local currency that potentially could be complemented with additional US$10 million equiv. in Guaranies loan from local commercial banks (“Parallel Financing”). The proposed financing will be structured as a senior unsecured loan and have the tenor of up to 6 years with 2 year grace period.
In March 2017, the IIC successfully registered in the Comisión Nacional de Valores (“CNV”) a global local bond program of up to US$180 million equiv. in Guaranies to support IDB Group’s development mandate in Paraguay. Nucleo’s financing from IIC will be the first under such global local bond program, whereas a public offering of up to US$60 million to fund this deal is expected in December 2017. This public bond offering by IIC will be the first of its kind in the Paraguayan local capital market.
The Project will contribute to: (i) improving mobile broadband connectivity and capacity for both retail and business subscribers; and (ii) expanding mobile broadband coverage and capacity both in the urban and rural / remote areas. It is well known that access to broadband connectivity promotes the so-called Digital Economy while increasing productivity and ultimately enhancing the country’s competitiveness. The proposed Project not only is in line with the Paraguayan National Telecommunication Plan 2016-2020[1] which intends to expand the mobile telecommunication coverage in Paraguay and improve affordable broadband internet coverage in urban and rural areas but also is aligned with IIC’s Business Priority Areas in terms of promoting infrastructure for development and innovation-technological development.
[1] Plan Nacional de Telecomunicaciones Paraguay 2016-2020” Comisión Nacional de Telecomunicaciones - CONATEL
https://www.conatel.gov.py/images/iprincipal/PNT%202016_2020/RD.244.2016%20-%20PNT%202016_2020.pdf
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Client files
This section provides the key environmental and social assessment documents produced by the client for this project.
ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP) - NUCLEO
45.1 Kb
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
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Request informationLearn more about how we provide private-sector solutions in the region .
Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY
48.7 Kb