TELEFONICA ANDEAN REGION

The project concerns investments for the rollout and upgrade of GSM mobile communications networks in the three markets of Colombia, Ecuador and Peru in order to migrate from TDMA and CDMA based networks to GSM technology networks.

Contributing to i) the integration and development of the Andean region through the improvement and extension of the telecommunication networks, ii) reinforce the presence of a European Company on the local mobile market and (iii) allow the transfer of European technological and economic knowledge.

If the project were located within Europe, it would not be subject to EU Environmental Impact Assessment legislation, as defined under Annexes I and II of the European Council Directive 97/11/EC, and would therefore be subject only to national legislation. The environmental impacts of mobile communication systems are mainly visual nuisance and EMF radiation and noise from base stations and microwave radio towers. Concerning sites of nature conservation, the promoters’ networks cover mainly urban areas, where such sites are not likely to be affected. The promoters are currently in the process of requesting the ISO 14001 certification, and publish yearly environmental reports providing details on the performed and future planned environmental actions and programmes. Specific methods used by the promoters to ensure that the project complies with local and national environmental regulations will be checked during appraisal.

The promoters are private companies operating in a liberalised sector of telecommunication services and have indicated that their main network equipment and services suppliers are reputed international firms. The promoter has stated that for any new project inquiries among potential suppliers and publication on the mother-company electronic purchasing system is made, followed by negotiations. The mother-company’s purchasing department is involved in all purchases to benefit from their large-scale negotiation power. This procedure is in the best interest of the project and in line with the Bank’s procurement policy for private sector projects. The procedures relevant for the project will be checked during appraisal.