JORDAN MOBILE TELEPHONE SERVICES (JMTS)

completed

SUMMARY OF PROJECT INFORMATIONProject Name JORDAN: Jordan Mobile Telephone Services Company Ltd. Project involves the development, installation and operation of a nationwide GSM (Global System for MobileCommunications) cellular telephone network.Region Middle EastSector TelecommunicationsProject No. 004906Company Name Jordan Mobile Telephone Services Company Ltd. (JMTS)Location of project andDescription of site Headquartered in Amman.Project will benationwide.Date SPI sent to PIC April 18, 1995Projected Board Date May 25, 1995Description of Company and Purpose of Project JMTS, a joint venture between Motorola and agroup of Jordanian private investors, has been awarded a license to installand operate a digital cellular telephone system in Jordan. The 15-yearlicense, which was awarded under a competitive bid, requires the Companyto build up, within a four year period, a nation-wide network providingcoverage to 95% of the populated areas of the country. Service isexpected to start no later than October 30, 1995. Cellular has become an integral part of a moderntelecommunications network, and the JMTS system would complement the basicwireline network by offering efficient mobile telephone services usingstate-of-the-art digital technology. It would also supplement, in the nearterm, the shortage of telephone service in Jordan, which today stands at adensity of only 7%. Technical Partner and/or Major Shareholders Motorola Inc. will provide the technology and isalso the largest beneficial shareholder at 28%. The balance of the sharesare held by private Jordanian corporate and institutional investors.Project Cost including proposed IFC investment Total project cost is US$84 million. IFC wouldprovide an equity investment of about US$3 million and arrange US$35million of debt financing: US$15 million for IFC''s own account and thebalance through syndication with participant banks (and/or co-financing).Environmental Category and Issues This is a Category B project under IFC''sEnvironmental Review Procedure. Potential environmental issues includeminimal impacts associated with microwave transmission, radio towers, solidwaste disposal, halon use, and worker safety. The sponsors have submitteda response to IFC''s Environmental Questionnaire and are preparing anenvironmental plan addressing the issues listed above. In addition, IFCis exploring alternatives to, and potential mitigative measuresassociated with, halon use. The Environmental Review Summary will be availablefrom the Public Information Center on or about May 10, 1995.For additional information contact: Corporate Relations Unit-telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).