Celtel DROC II

completed

Celtel Democratic Republic of Congo (Celtel DRC), a wholly-owned subsidiary of Mobile Systems International Cellular Investments Holdings, B.V. (MSICIH), operates a GSM (Global System for Mobiles) general mobile telephone network in the Democratic Republic of Congo covering the major cities of Kinshasa and Lubumbashi, as well as surrounding areas and other regions including, Mbuji-Mayi, Kananga, and Kolwesi. The company was granted its nation-wide mobile cellular license in December 1999 and launched its prepaid operations in Kinshasa in December 2000. Since then, the company has remained the dominant operator out of five, with a current subscriber base totaling 264,000 and representing 46% of the market. IFC funded the expansion of the network in 2002 with the provision of a $7 million loan. Celtel DRC now plans to expand its operations in its existing areas of operations, as well as increase coverage to new urban areas including, Kisangani and Bukavu. Project Cost is estimated to be $50.7 million through the end of 2003. At that time, the network capacity is expected to be about 620,000 subscribers, and the company expects to have an actual subscriber base of 450,750. The project will be financed through a proposed IFC loan of $20 million plus internal cash generation.