|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary was updated on August 4, 2011 to reflect the revised date for consideration by MIGA’s Board of Executive Directors.
This summary covers equity and shareholder loan investments by Global Broadband Solution, Inc. (GBS) of the United States in its subsidiary Global Broadband Solution SPRL (GBS-DRC) in the Democratic Republic of Congo (DRC). The investor has applied for MIGA guarantees of $11.1 million for a period of up to ten years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves the installation and operation of mobile broadband telecommunications services in two major cities in the DRC through the use of 2.5GHz WiMAX technology. This technology offers a viable approach to enhancing connectivity standards in a country which has traditionally suffered from inadequate fixed and mobile telecommunications service.
The project is a Category C under MIGA’s environmental review procedures.
As a result of political instability in the DRC since the mid-1990s, the national telecommunications infrastructure has been hampered by a lack of sustained investment. Currently, broadband access in the DRC is slow and expensive, and services offering true broadband speeds are not widely available. MIGA’s support to this project will help bring high-quality and reliable services to an under-served market.
This project is aligned with the World Bank Group’s country assistance strategy and the government’s poverty reduction strategy which prioritizes the rehabilitation and expansion of infrastructure and private sector development to foster economic diversification. This proposed project is also aligned with MIGA’s objective of encouraging investments into conflict-affected countries as well as countries eligible for assistance from the International Development Association.