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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 10795 |
| Project name | SEF Telecom Technology |
| Country | Tajikistan |
| Sector | Information |
| Department | Global Manufacturing & Services |
| Company name | Telecom Technology Ltd. |
| Environmental category | C |
| Date SPI disclosed | May 4, 2001 |
| Projected board date | June 22, 2001 |
| Status | Completed |
| Previous Events | Invested: February 7, 2003
Signed: June 28, 2002
Approved: January 17, 2002 |
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| Project sponsor and major shareholders of project company |
The Project will be owned and operated by Telecom Technology Ltd (the Company). The Company was established in 1994. At start-up, it specialized in development of banking software as well as designing and installation of customized networks for leading Tajik banks and providing networking facility to local businesses. In 1996, the Company became a member and VSAT-operator of INTELSAT, an international satellite communication company and represented Tajik Ministry of Communications in international forums on electronic communications. In 1998, Telecom Technology became the first ISP (Internet Service Provider) and VSAT operator in Tajikistan and today it is the market leader in providing Internet and Email services. In 2000, it opened the first Internet-Café in the country. The Company presently employs some 35 people and is headed by Mr. Shavkat Khalilov (one of its founders). The Company is established as a Tajik limited liability entity and its present shareholding structure is as follows:
- Private Company “Kon” 11%
- Mr. Shavkat Khalilov 65%
- Mr. Bakhtier Khudainazarov 24%
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| Total project cost and proposed IFC investment |
| Total project cost is estimated at US$710,000.00. The proposed IFC investment comprises an A-Loan of US$315,000 for its own account and represents about 44% of the project cost. This exposure for IFC is within SEF norms for a business expansion. Also, a participating element, which is 2% of Gross Sales, has been included. (This may lead to its re-categorization as Venture Loan, or C Loan, after further negotiation and appraisal). |
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| Location of project and description of site |
| The head office of the Company is and will be located in an office building (rented premises) in the City Center of Dushabe and a regional office (also rented space in an office building) will be established in the city of Khujand. |
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| Description of company and purpose of project |
Telecom Technology Limited (the Company) is an exisisting company involved in the business of providing internet services in the city of Dushanbe, Tajikistan. The Company, now wants to expand its activities to other cities of Tajikistan nemely Khujand, Kurgan Tube and Chakalovsk and the Project involves the installation of 4-satellite VSAT stations to establish a network connecting these four cities of Tajikistan. As a result of the Project, a wide range of reliable Internet, Email and private data communications services (currently unavailable or under-served in Tajikistan) will be made available in Dushanbe and three cities of Northern Tajikistan. The Project is a business expansion, sponsored by Telecom Technology Limited. The estimated US$0.7 million cost of the Project includes cost of purchase of new equipment, installation and training and working capital. The Project is expected to be implemented within a period of 6 months after disbursement by IFC.
The Project will have the following developmental impacts: (1) expansion of an information service increasingly vital to the development of competitive industry and services; (2) increased competition in a small market; (3) introduction of up-to-date technology in a sector where this is crucial; (4) supporting the emerging Tajik business community; and (5) creation of 30 jobs.
The Project is in line with the World Bank Group Country Assistance Strategy, which highlights IFC’s key focus in Tajikistan on promoting investment in small and medium size businesses to foster broad based industrial development and help alleviate poverty. More specifically, the Project complements IFC’s strategy to encourage and support commercially viable Projects in Tajikistan’s emerging SME’s in the private sector by: (a) helping develop new and efficient private sector companies; (b) assisting employment generation; and (c) promoting development of communications. The proposed Project builds directly on these strategies and supports the CAS in private sector development, particularly in the area of SMEs. |
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| Environmental and social issues - Category C |
This project is a category C project according to IFC’s environmental and social review procedures. There are minimal environmental or social impacts associated with this project. Therefore, no further environmental or social analysis is required.
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| N/A |
| To contact the project company, please write to: |
Mr. Shavkat Khalilov
35/1, Bohtar Street, Dushanbe, 734002, Tajikistan |
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