HyalRoute Fiber Optic Cable Network Project
On January 24, 2017, MIGA issued a guarantee of $105.74 million covering an investment by Bank of China (Hong Kong) Limited (the “Lender”) into the HyalRoute Fiber Optic Cable Network Project in Myanmar. The coverage is for a period of up to five years against the risks of currency inconvertibility and transfer restriction, expropriation, and war and civil disturbance.
The project involves the construction of a 4,500 km fiber optic cable network in Myanmar by Myanmar Fiber Optic Communication Network Co., Ltd. It constitutes the first part of the phase II project. The total investment for the project is estimated at US$118.6 million, including US$18.6 million in equity from HyalRoute Communication Group Limited and US$100 million in debt financing from the Lender. Construction for the project is expected to start in February 2017.
The project is a Category B Project under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
The project’s major expected development impact is the improvement of the telecommunications infrastructure sector and promotion of economic growth in Myanmar. The construction of the fiber optic cable as part of the national network is expected to: increase access to telecom services in urban and rural areas; provide additional tax revenues for the government; and boost economic activity and employment opportunities, directly and indirectly, during the construction and operational phases. The project is in line with the Government of Myanmar’s Telecom Master Plan (2016-2020), which promotes fiber optic cable network development and foreign direct investment in the telecom sector.
MIGA’s proposed support for the investment is aligned with the agency’s priorities of supporting investments into countries eligible for financing from the International Development Association (IDA) and countries affected by conflict (FCS).