WorldLink_Nepal

active

Prospective

Worldlink Communications Limited, Nepal (“Worldlink” or “WCL” or the “Company”) is the leading Internet Service Provider (“ISP”) in Nepal since last 30 years (https://worldlink.com.np/). It operates one of the largest fiber backbone and access network across Nepal, serving 73 out of 77 districts providing services like high-speed internet up to 100Mbps along with High Definition (HD) Internet Protocol television (IPTV) and public Wi-Fi services. The Company is the market leader in fixed broadband segment in Nepal and has built the largest Fiber-to-the- Home (“FTTH”) network in the country. It has approximately one-third of the total subscriber base with 940,000+ retail broadband households and 10,000+ enterprise customers. Additionally, the Company plans to establish 8 Data Centers (“DCs”) across Nepal which will include 1 core DC and remaining edge DCs strategically located in various provinces of Nepal. Part of the proposed DCs capacity will be used for its own operations while the remaining capacity will be shared with third party. The DC projects are proposed to be housed separately in a wholly owned subsidiary of WCL, Data World Limited (“DWL”). IFC financing will be directed to WCL (for FTTH expansion) and DWL (for DC projects).The proposed IFC investment of US$20 million will be exclusively used to: (i) establish 1 core DC in Matatirtha, Kathmandu and 7 edge DCs in different parts of Nepal; and (ii) support WCL’s network expansion plan of adding ~377,000 Fiber-to-the- Home (“FTTH”) ports/passes to connect 351,000 underserved customers in Nepal in the next 3-4 years (“Project”).  The Company has investment from British International Investment (“BII”) and Dolma Impact Fund (“Dolma”, IFC investee fund-#44584 https://disclosures.ifc.org/project-detail/SII/44854/dolma-ii-project, with 3% shareholding) as institutional shareholders.ISP linked FTTH operations, include branch offices, regional offices, warehouse, point-of-presence (POP) stations. ISP FTTH operations are handled by 7 regional offices and around 170 branches across Nepal. Each branch has multiple un-manned POP where two or more networks or communication devices build a connection from one place to the rest of the internet. WCL operations include 6 warehouses; 1 is located near to dry port while 5 are regional warehouses). The construction for the Matatirtha DC (core DC) was started in 2022 and is expected to be completed by May 2025. The other DCs (Edge DCs) will be developed at Duhabi, Bharatpur, Leknath (Pokhara), Damak, Dhalkebar, Attariya, and Kohalpur. DWL component overall will have a three-phase development. The company is committed to LEED/EDGE green data center certification and has incorporated the requirements in project design. For all the container based DCs/ Edge DCs, the power will be facilitated by the nearest Nepal Electricity Authority (NEA) available pole or substation (less than 500m-1km) alongside on-site DG set. Matatirtha site is around 400m from nearest NEA Grid division Substation. The project locations are within modified habitats and none of these project locations fall within or near to any protected areas (PAs) or Key Biodiversity Areas (KBAs), and therefore do not trigger PS6.  The company has put in place land procurement Standard Operating Procedure (SOP). The land requirement for the core DCs is around 2000-3000 sqmts for building DCs, while relatively less for Edge/container DCs, and is procured through Willing Buyer/ Willing Seller. Office space for FTTH is usually taken on rent/ lease. For FTTH, the company uses existing electric poles of NEA or users provided land for putting the pole. For remote village connectivity- the company will mostly rely on NEA electric poles; however, where NEA poles do not exist, there may be need to access small parcel of land (for monopole), which will be accessed either through agreement with local authorities or verbal/ formal agreement for setting tower- mostly without any payment requirements.

International Finance Corporation (IFC)

Project

Data Center, Seaport, Waste Processing and Treatment, Commercial, Power Generation (CCGT), Telecommunications, Government, Warehouse, Residential, Broadband