Telecomunicaciones Movilnet C.A.

completed

Summary Of Project Information (SPI)Project NameVenezuela-Telecomunicaciones Movilnet, C.A.    RegionLatin America & CaribbeanSectorProject No008210Projected Board DateJune 19, 1997Company NameTelecomunicaciones Movilnet, C.A. (“Movilnet”)Technical Partner and/or Major Shareholders Movilnet is a 100% subsidiary of Compania Anonima Nacional Telefonos de Venezuela (C.A.N.T.V.), Venezuela’s national and international telecommunications carrier. CANTV was partially privatized in 1991, when the Government sold 40% of the equity and management control to VenWorld, a consortium owned 51% by GTE Corporation, and transferred 11% of CANTV’s equity to employees. In November 1996, CANTV launched an international initial public offering that resulted in the Government reducing its shareholding from 49% to 14%, and CANTV’s shares being listed on the New York and Caracas Stock Exchanges.Project Cost Including proposed IFC investment US$178.4 million (over the 1997-1998 period). IFC would provide a Senior A Loan of US$25 million for its own account, and syndicate a Senior B Loan of US$50 million for the account of participant banks.Location of project and Description of site Venezuela - nationwide mobile cellular telecommunications network.Description of Company and Purpose of Project Movilnet is one of two companies awarded a 20-year license to operate a national mobile cellular network in Venezuela. In 1996, Movilnet had net revenues of US$127 million, and total assets of US$324 million. The project is to help finance Movilnet’s capital expenditure program for 1997 and 1998, which consists primarily of: (1) expanding its mobile cellular telephone network throughout the country; (2) providing new services to its subscribers; and (3) continuing its modernization program to install digital technology. The expansion is expected to increase Movilnet’s subscriber base from 214,000 at the end of 1996 to 370,000 at the end of 1998. IFC will continue its catalytic role of mobilizing long-term bank financing, which it began in 1996 with a US$260 million loan to CANTV for modernization and expansion of its network and financial restructuring. Environmental Category and Issues This is a category B project under IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with this project include: radio tower site selection, access road alignment and other land acquisition, development of previously undisturbed land, and employee exposure to noise, other physical agents. Movilnet will comply with applicable World Bank and Venezuelan environmental, health and safety guidelines, and IFC will check compliance by evaluating monitoring reports submitted annually by the Company, and by conducting periodic site reviews during project supervision. Regarding installations of cellular radio antenna, existing towers will be used where feasible, and selection of sites for new towers will be conducted in close coordination with the relevant local authorities. If any structures are planned in environmentally sensitive areas, Movilnet would provide IFC with an impact mitigation plan for clearance by IFC prior to implementation of the respective plan.The is available from the Public Information Center.Date SPI sent to PIC      May 1, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental 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).