Company name
Telefónica Celular del Paraguay S.A.
Project number
11611-01
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
Completed
Disclosed date
11/06/2016
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
08/30/2016
Approval date
12/06/2016
Signed date
07/04/2017
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 68,894,600
Currency
PYG
Project scope and objective
Tigo Paraguay’s has developed a coherent 5 years business plan that includes investing US$ 617 million from 2016 until 2020 mainly to support its offer of mobile access to broadband, fixed business lines and licenses and/or acquisitions. Out of the US$ 165 million (“Project Cost”) FY 2016 capex investment set in the 2016-2020 business plan, the IIC will support TIGO with up US$ 70,000,000 equiv. in local currency guaranies. The financing will have a tenure of up to 5 years including 2 years grace period of which Instituto de Prevision Social (IPS) will act as the Lender of record and IIC-IDB as Guarantor of IPS’s credit exposure. As Guarantor, the IDB Group (AAA) will cover 100% of IPS exposure to TIGO.
The use of funds of the project is to support (i) expansion of 3G network including the creation of fast mobile data network 4G-LTE in Asuncion, Ciudad del Este, San Lorenzo and surrounding areas, (ii) increase coverage for fixed internet and digital TV by connecting more homes to the network, and (iii) increase the network for Business-to-Business (B2B).
In terms of development impact and IIC’s Business Priority Areas, the Project is aligned for (a) social inclusion and inequality, productivity and innovation; (b) promotion of infrastructure for development; (iii) support innovation and technological development and (iv) enhance private provision of basic goods and services, income generating opportunities and social mobility for vulnerable populations.
In addition, the Project is in line with the Paraguayan government’s policy for Telecom implementation in the country, which is focused on accompanying the shift in telecom from voice to data, and on ensuring a universal and affordable availability of broadband. Furthermore, the investment proposal is aligned with the Global Connect Initiative of which the Paraguayan government is part of and whose main objective is to bring 1.5 billion persons to the online world by 2020 while at the same time reducing or closing the digital gap between those with Internet access and those without it.
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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
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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
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