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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 | 10200 |
| Project name | Medi Telecom |
| Country | Morocco |
| Sector | Information |
| Department | Global Inform. & Comm. Tech. |
| Company name | Medi Telecom S.A. |
| Environmental category | B |
| Date SPI disclosed | June 12, 2000 |
| Projected board date | July 20, 2000 |
| Status | Completed |
| Previous Events | Invested: November 13, 2000
Signed: October 12, 2000
Approved: July 27, 2000 |
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| Project sponsor and major shareholders of project company |
The project sponsors are:
TICSA 30.5 %
PTI 30.5 %
Local partners 39.0 %
TICSA is 100% owned by Telefonica S.A., the largest telecommunications operator in Spain and the fifth largest in Europe by sales, which controls Telefonica Moviles, the leading mobile operator in Spain with over eight million subscribers. TICSA was created to undertake the group’s international expansion outside Latin America, and is focusing particularly on developing business opportunities in Europe and the Mediterranean region.
PTI is 100%-owned by Portugal Telecom S.A., the largest telecommunications operator in Portugal. Portugal Telecom controls TMN, the leading mobile operator in Portugal with over two million subscribers. PTI was created to undertake the group’s international expansion and is the controlling shareholder in the leading Brazilian operator.
The group of local partners includes:
- Group BMCE, one of Morocco's leading privately held financial institutions, holds 20%,
- Holdco S.A., Leader in fuel distribution in Morocco, holds 11%,
- Caisse de Dépot et de Gestion (CDG), Moroccan institution responsible for managing private and state-regulated funds including social security and retirement funds, holds 8%.
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $1.6 billion, of which $1.1 billion for the GSM license (inclusive of 20% VAT). IFC has been requested to provide $400 million in financing, consisting of: $75 million in an A loan and $25 million in a C loan, both for IFC's account; and $300 million in B loan for the account of participants. |
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| Location of project and description of site |
| The project is based in Morocco's economic capital, Casablanca. The company has a nation-wide presence due to the coverage requirements stipulated by the GSM license. |
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| Description of company and purpose of project |
In August 1999, Medi Telecom S.A. was awarded a license, through a competitive tender, to build and operate the second nationwide GSM 900 network in Morocco. The only other GSM license in Morocco is held by the incumbent, Maroc Telecom (formerly Itissalat-al-Maghrib, or IAM). The initial stage of the project was implemented in only eight months and the company launched its commercial operations on March 29, 2000. Under the license agreement, Meditel is required to achieve a population coverage with its network of at least 95% within five years.
The project's developmental impacts include introducing competition to Morocco's telecom sector, and extending telecoms access to a wide area of the country and segment of the population currently undeserved by the incumbent's network. The introduction of competition has already reduced tariffs in Morocco and the rate of cellular penetration has increased substantially as a result. IFC's presence is crucial because of the large size of the potential exposure, IFC's ability to attract international banks under the B loan program and IFC's experience in structuring complex financings in emerging markets. |
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| Environmental and social issues - Category B |
This is a category B project according to IFC's environmental and social review procedure. Environmental and social issues include corporate environmental and social management system to ensure compliance of project facilities with local requirements and World Bank policies and guidelines; tower site development, including site selection criteria, land acquisition procedures, access road construction, control of hazardous materials including liquid fuels, and development of previously undisturbed land; use of PCBs and CFCs; solid and liquid waste treatment and disposal; fire prevention and emergency response; and workplace health and safety and training programs
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
Medi Telecom
Twin Center, Tour Ouest, étage 17
Angle Zerktouni et Al Massira - Casablanca
Morocco |
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| To contact the project company, please write to: |
Mr. Daniel Arias
Secretaire Général, MediTelecom
Twin Center, Tour Ouest, étage 17
Angle Zerktouni et Al Massira - Casablanca
Morocco |
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