KDDI Summit Global Myanmar Co. Ltd.
On August 31, 2016, MIGA issued guarantees of $406.2 million covering equity and shareholder loan investments from Sumitomo Corporation of Japan to KDDI Summit Global Myanmar Co. Ltd (KSGM) in Myanmar. The coverage is for a period of up to 10 years against the risk of transfer restriction.
The project involves a joint operation between the Myanmar Post and Telecom (MPT) and KSGM to operate, upgrade, reactivate, and expand MPT’s fixed line and wireless telecom network and service offerings in Myanmar.
The project involves the development, operation, and decommissioning of telecommunications tower sites. The key issues associated with the project are environmental, health, safety, and social management; construction of towers; labor and working conditions (including employee and contractor occupational health and safety); and pollution prevention and abatement (including hazardous waste management). The environmental and social risks and impacts are limited, generally site-specific, and readily addressed through mitigation measures.
The project is expected to facilitate growth in Myanmar’s telecommunications sector, leading to an increase in the number of connections that are affordable.
MIGA’s proposed support for the investment is aligned with the World Bank Group’s Systematic Country Diagnostic and Country Partnership Framework for Myanmar, as well as the Agency’s strategy of supporting investments into countries eligible for concessional financing from the International Development Association.
Information on this project is being disclosed under the early disclosure procedures outlined in MIGA’s Access to Information Policy.