Airtel Ghana (formerly Westel)

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In December 2007, the Government of Ghana divested the fixed and mobile operator Westel by selling 75% of its stake to Zain's subsidiary Celtel at a price of US$120 million. The award followed a competitive bidding process. In March 2007, four companies were short-listed: Celtel, Kinz Telecom, Vodacom, and African Soft. Kinz Telecom initially won the tender with the highest financial offer of US$95 million. However, further negotiations for additional spectrum for 3G license and WiMAX frequencies increased the sum to US$250 million. A memorandum of understanding was signed, but Kinz Telecom failed to pay the US$250 million. As a result, the government turned to the second-placed bidder Celtel and lowered the offer to US$115 million by removing the attribution of additional licenses for 3G and WiMAX frequencies. Initially, Westel was launched in 1998 as a BOO project (project 1561) with 66% private shareholders. In January 2006, the state bought out the stakes held by private investors resulting in a 100% state ownership. Westel was the second national operator in Ghana to provide fixed and mobile telecommunications services. In 2009, Zain Ghana commited to invest US$363 million to expand the network in the rural and semi-urban areas of Ghana. Financing comprises $160m debt and $203m equity. The debt provided by IFC is split into a $70m 8-year A-loan, $70m 7-year B-Loan and a $20m 8-year C-loan. Zain was taken over by Bharti of India in 2010. Capex 2011 based on Bharti Airtel annual report: parent capex * subscribers Airtel country subsidiary / subscribers of total Bharti Airtel (200.878m) Capex 2012: Ibid (241.1million) Capex 2013: Ibid (271.2 million users; 2.486bn global capex)