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| Project sponsor and major shareholders of project company |
Vodafone Albania Sh.A. (the company) is 81.7% indirectly held by Vodafone Group plc, a leading global telecommunications company and publicly traded on the London Stock Exchange. The company's direct owners are Vodafone International Holdings (wholly owned by Vodafone Group), which holds 51% of the company, while 49% is directly held by Vodafone Panafon International Holdings (100% owned by Vodafone Panafon of Greece, itself 63% held by the Vodafone Group).
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| Total project cost and proposed IFC investment |
The total project cost is estimated at €241.2 million and includes a 5 year investment program. This amount includes the license fee, capital expenditures, and start-up costs. IFC is proposing an A loan of up to €40 million for IFC's own account, and a B loan of up to €15 million.
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| Location of project and description of site |
The project consists of the nationwide expansion and upgrade of the second GSM network in Albania by Vodafone Albania. Vodafone Albania is expanding from a base in Albania's largest cities including Tirana and Dures, and expects to cover 95% of the population by 2005.
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| Description of company and purpose of project |
Vodafone Albania is the second national mobile telephone operator in Albania. The company was established in 2001 after winning a license as part of a fair and transparent bidding process. The company is rapidly expanding its subscriber base and coverage area. The greenfield project represents the full 5 year investment program (2001-2005) for the establishment and operation of the second nationwide mobile telephone network offering various services, including but not limited to GSM cellular services and leased fixed lines to enterprises.
IFC's role in the project includes:
supporting the liberalization and private sector development of the telecom sector.
encouraging healthy competition in the cellular market in Albania. This will result in: lower tariffs; improved quality of service and customer responsiveness; expanded access to telecommunication services, and introduction of new services.
Development Impact:
Given Albania's low telecom penetration rates (6.8% for fixed line), the venture would fulfill substantial unmet demand for reliable telecommunications services and thereby support economic growth. It would also support competition in a previously monopolized mobile market which would result in lower tariffs and the introduction of new value added services for consumers.
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
Vodafone Albania
Zayed Business Center
Rr. Sulejman Delvinan, Tirane, Shqiperi |
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| To contact the project company, please write to: |
Ms. Evis Karandrea
Zayed Business Center
Sulejman Delvina Street
Tirana, Albania
Phone: 355-4-283036
Fax: 355-4-283338
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