MIGA issued guarantees totaling $14 million to US WEST International Holdings, Inc. and The Chase Manhattan Bank of the States (acting on behalf of a group of lenders) for their equity and loan investments, respectively, in the expansion and of a telephone network in Indonesia. MIGA guarantees provide protection against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project enterprise, P.T. ARIAWEST International, will operate in the western section of Java Island, where a telephone company employing 2,900 people and operating 420,000 lines has been acquired for expansion. An additional 500,000 lines will be added to the service area to provide dependable, state-of-the art telecommunications services to government, residential, and business customers in West Java. Local vendors will benefit from the opportunity to supply equipment and services to the project. Employees will receive training locally and in Japan and the United States. The project will generate $100 million in tax revenues over its lifetime.