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| Borrower/Equity Investment Name | TELECOM DEVELOPMENT COMPANY AFGHANISTAN LIMITED | |||||||||
| Country | Afghani., Is Rep. of | |||||||||
| Location | Afghanistan | |||||||||
| Project Number | 38920-01 | |||||||||
| Approval Number | 7202 | |||||||||
| Type of ADB Assistance |
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| Sector/Subsector | Transport /ICT | |||||||||
| Thematic Classification | Economic growth Private Sector Development Economic growth |
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| Responsible ADB Department | Private Sector Operations Department | |||||||||
| Responsible ADB Division | Infrastructure Finance Division 1 | |||||||||
| Responsible ADB Officer | Thomas M. Minnich | |||||||||
| Project Sponsor(s) |
ALCATEL N.V.
MONACO TELECOM INTERNATIONAL AGA KHAN FUND FOR ECONOMIC TELECOM DEVELOPMENT COMPANY |
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| Description | The Project comprises the nationwide expansion and upgrade of the leading GSM communications network, which consists of a nationwide cellular telephone system, public call office (PCO) services, international gateway, and ISP operations. | |||||||||
| Objectives and Scope | The Project will help to (i) expand the communications infrastructure in Afghanistan in the context of a country where, after 23 years of conflict, there is no functioning fixed line telecommunications service, a barely functioning postal service, poor roads, and where literacy rates are amongst the lowest in the world and where families are large and often separated; (ii) expand the role of small and medium-sized enterprise service providers, who are subcontractors of Roshan; (iii) facilitate expansion of low-margin PCOs to benefit more remote and less affluent sections of society; (iv) contribute to the better functioning of most sectors of the economy and government all of which are currently handicapped by barely operational, very expensive (for example satellite phones) or non-existent modes of communication. In particular, agriculture, merchandising, manufacturing, and financial services as well as health care, education, and security will all benefit from the Project; (v) assist in the process of service expansion and regulatory reform through sound competition; and (vi) foster confidence amongst potential lenders and investors in private infrastructure and industry financing in Afghanistan. | |||||||||
| Implementation Progress | Roshan's commercial expansion has significantly exceeded most targets. Compared to the original business plan provided to ADB, Roshan has managed to accelerate its expansion to such a degree that its 2007 targets were met by end-2005. A second loan to Roshan was approved on 29 June 2006 (see separate PID). | |||||||||
| Linkage to Country/Regional Strategy | The overall objective of ADB's operational strategy for Afghanistan is to reduce poverty by promoting faster economic growth, creating better development opportunities for the poor, improving human development, and protecting the environment. To promote faster private sector-led growth, ADB will help the Government speed up policy reform and create conditions conducive to private sector development. ADB's emphasis will be to help relieve infrastructure and financial bottlenecks for the private sector. The Project complies with ADB's strategy for private sector operations in Afghanistan and is specifically earmarked for 2004 in the current Country Strategy and Program Update (CSPU). The CSPU specifically refers to "the inadequate telecommunications and transport infrastructure" and states that "in March 2004, it was agreed that loan assistance would support governance and the financial sector, and that ADB's private sector interventions would also focus on banking and telecommunications." | |||||||||
Safeguard Categories
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| Environment | C | |||||||||
| Resettlement | C | |||||||||
| Indigenous People | C | |||||||||
| Summary of Environmental and Social Issues | None | |||||||||
| Timetable for assistance design, processing and implementation | ||||||||||
| Concept Clearance | 25 Jun 2004 | |||||||||
| Due Diligence Mission | 30 Apr 2004 to 29 Jun 2004 | |||||||||
| Private Sector Credit Committee Meeting | 20 Aug 2004 | |||||||||
| Board Approval | 04 Nov 2004 | |||||||||
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