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    Reference: 20210065
    Release date: 16 December 2021

    Promoter – Financial Intermediary

    BANDWIDTH AND CLOUD SERVICES GROUP HOLDINGS

    Location

    Description

    The project concerns the second phase of the construction of a fibre optic backbone in the Democratic Republic of the Congo (DRC), focusing on underserved areas of the eastern part of the country. The fibre links included in the project will enable high speed broadband in nine towns and will be deployed along the railways (1 280 km long) and on poles along the road (139 km).

    Additionality and Impact

    The operation consists in a quasi-equity financing to support the construction of fibre-optic backbone in Democratic Republic of Congo, focusing on underserved areas of the eastern part of the country.


    The project is aligned with the Cotonou Partnership agreement and addresses the market failures of under-investment in broadband network infrastructures in lower profitability areas; of imperfect competition and market power; and of limited geographical reach of broadband infrastructure.


    The project supports the objectives of the EU's Digital4Development strategy and the Digital4Development hub, mainly its African component, operating as a strategic tool to advance dialogue, joint partnerships and investments in the African digital economy.


    The project is not expected to have significant negative environmental and social impacts. Instead, the roll-out of the infrastructure will support the country's transition to a digital economy, resulting in significant positive social impacts through increased mobile coverage. Mobile communication technologies enable positive environmental impacts related to climate change mitigation and adaptation in other sectors of the economy. 

     

    EIB provides substantial support in strengthening the project's sustainability and bankability, crowding in other investors to support the Borrower's growth plans. EIB financing aligns with terms and conditions usually available to the Borrower, while providing a diversification of funding sources.

    Objectives

    The project will lead to the deployment of around 1 400 km of new fibre optics networks in underserved regions in the Democratic Republic of the Congo, extending the access to mobile broadband and leading to an acceleration of the country's digital transformation.

    Sector(s)

    • Telecom - Information and communication

    Proposed EIB finance (Approximate amount)

    USD 10 million (EUR 9 million)

    Total cost (Approximate amount)

    USD 21 million (EUR 19 million)

    Environmental aspects

    If it were located within the EU, the project would not fall under Annex I or II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU. However, environmental assessments could be required for this kind of project according to DRC national law. In any case, the rollout of telecommunication networks have limited environmental and social negative effects, apart from short duration disturbances during network deployment, whenever civil works are required, which can be mitigated by appropriate measures. Full environmental and social details will be assessed during appraisal.

    Procurement

    The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

    Status

    Signed - 21/10/2022

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Congo (Democratic Republic) Telecom