Kazakhtelecom

cancelled

Translated version of this PSD: Russian The EBRD is considering providing a long term loan of up to USD 200 million to Kazakhtelecom (KTC or the Company), the incumbent telecoms operator in Kazakhstan in order to support the company’s investment in (1) expanding its fixed line broadband network coverage, capacity and quality in regional centres of Kazakhstan and (2) financing its planned LTE (4G) mobile broadband network roll-out. Transition impact will come from: (i) market expansion, through increasing broadband penetration in the regions of Kazakhstan; (ii) improvements in the regulatory framework, through technical co-operation in order to review and implement regulatory changes; and (iii) setting standards of corporate governance and business conduct. KTC, is the incumbent operator in Kazakhstan. Its main services are fixed telephony (including local, long distance and international services) as well as broadband and internet services. EBRD is providing up to USD 200 million debt financing to KTC by way of a term loan. USD 800 million. The project was categorised “B” by European Bank for Reconstruction and Development (EBRD), which means that an environmental and social analysis was required by the Bank, in accordance with the 2008 Environmental and Social Policy and Performance Requirements (PRs). The project is unlikely to be associated with significant environmental and social impacts. Due diligence to date showed that the company is in line with relevant PRs. The company has Environmental, Health, Safety and Human Resources Management procedures in place. For the coming operation, the company is required to ensure that the project is in compliance with relevant PRs. EBRD will assist the Government of Kazakhstan and KTC with reviewing and implementing regulatory changes in the telecommunications sector.