The project involves a guarantee to Linx Telecommunications B.V. (Linx) of the Netherlands covering its parent loan guarantee of up to €4 million in support of its subsidiary, Warsaw DC Sp Zo.o. The proposed coverage is for up to six years against the risks of transfer restriction, expropriation, and war and civil disturbance. MIGA’s gross exposure under this project will be up to €3.8 million. 

This project consists of establishment and operation of a data center in Warsaw that will provide state-of-the art data center and connectivity services to primarily international customers.

Environmental Categorization

The project is a Category B under MIGA’s environmental review procedures.  The establishment of the data center consists of the refurbishment of existing buildings, data storage areas, offices, and parking spaces.  Physical works-related impacts will be addressed within contractor management agreements.  Occupational, health and safety procedures are being developed for data center operations.  Local building and environmental permits will be obtained. 

Development Impact

The project hopes to leverage shared infrastructure and data management in order to reach economies of scale—thereby stimulating growth of technology-intensive and knowledge-based industries in Poland. Specifically, the project expects the following development results: improvement of information and communication technology (ICT) infrastructure and access to information; a lower cost of entry into the ICT market; increased competition in ICT market; rapidly expanding data/telecom networks; and local employment opportunities.

The World Bank Group’s Country Partnership Strategy for Poland for 2009-2013 notes a need for continued progress in developing the country’s knowledge economy. In fact, Poland’s European Union accession has driven the liberalization of the ICT sector, of which this project is a part.

The proposed project would be underwritten through MIGA’s Small Investment Program.