Zamcell Ltd.

completed

Summary Of Project Information (SPI)Project NameZambia-Zamcell RegionSub-Saharan AfricaSectorProject No008680Projected Board DateJune 29, 1998Company NameZamcell LimitedTechnical Partner and/or Major Shareholders Mobile Systems International ("MSI")- 80%, a UK based consultancy firm specializing in cellular network design, enginering and operation. MSI is also an experienced operator with investments in cellular networks in Hong Kong, India and Uganda. Mitsui and Company, Limited ("Mitsui")- 10%, a Japanese conglomerate active in the area of telecommunications in Asia and other parts of the world.Project Cost Including proposed IFC investment US$16 million project cost (over the 1998-2000 period). IFC would provide for its own account a senior US$4.5 million A Loan and US$650,000 of equity. IFC would also mobilize senior debt of about US$4.5 million from other sources.Location of project and Description of site Zambia - countrywide cellular network.Description of Company and Purpose of ProjectProject involves the installation and operation of a nationwide GSM (Global System for Moble Communications) cellular telephone network. Zamcell, a joint venture between MSI and Mitsui, is negotiating a 15-year license to install and operate a digital cellular system in Zambia. Zamcell plans to commence services in Lusaka, the capital city, and the Copper Belt region by year-end 1998. This project would bring in modern technology and management systems as well as help upgrade the country''s telecommunications infrastructure. The project will help support the needs of the business community as well as fulfill demand for more and better quality communications.Environmental Category and Issues This is an environmental review category B project; principal issues involve right-of-way alignment, land acquisition, access road construction, development of previously undisturbed and, tower site selection, PCBs and Halons, solid and liquid waste treatment and disposal, fire prevention and emergency response, and worker safety. The sponsor has presented preliminary plans to address these issues and it is anticipated that the proposed project will comply with applicable Government and World Bank policies and guidelines: Zamcell will be required to provide IFC with a right-of-way impact mitigation plan, and if necessary, a land acquisition plan, for clearance by IFC, prior to establishment of any new right of way. Zamcell will implement OSHA 2206 health and safety codes for lighting protection. The generators used for back-up power supply will be installed with sound attenuation enclosures. Genset fuel storage tanks will be equipped with secondary containment, and will comply with U.K. standards and EPA regulations. No equipment containing PCBs will be installed, and any existing equipment containing PCBs will be phased out according to World Bank guidelines and EPA’s 40 CFR 761 code. Zamcell’s facilities will be equipped with fire protection devices, and medical care units. Employees will be trained in environmental health and safety matters including accident prevention, emergency response and preparedness. Zamcell has committed to providing IFC with a copy of their environmental policy. The company has also committed to designate a person to oversee environmental, health and safety matters.The is May 22, 1998 from the Public Information Center.Date SPI sent to PIC May 14, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For 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).