World Bank Finances Cellular Improvements in Paraguay

The International Finance Corporation, the private sector arm of the World Bank Group, is to provide US$15 million to Telefonica Celular del Paraguay (Telecel), a subsidiary of Millicom International Cellular, to help upgrade and expand the company's cellular telecommunications network in Paraguay. IFC's financing will encourage further development of the country's communications sector while supporting private participation in infrastructure projects.

"IFC is pleased to have another opportunity to develop its relationship with Millicom, one of the first telecommunications operators focusing exclusively on emerging markets. This investment demonstrates that telecommunications services can be provided effectively by the private sector, and it should serve to encourage other foreign lenders and investors to reenter the market in Paraguay," said Mohsen Khalil, Director of IFC's Global Information and Communication Technologies Department.

Telecel is the leading telecommunications operator in Paraguay, offering nationwide mobile telephony services and Internet access, as well as public telephony services in rural areas. "Telecel is in the process of building a nationwide overlay to our existing network, in order to provide customers with improved access and services. Our company will finance these investments from our operating cash flow and this $15 million loan from IFC," said Ricardo Maiztegui, General Manager of Telecel.

Telecel was awarded its license to provide mobile services in 1991, and it began commercial operations the following year. The company has since been awarded additional licenses to provide dial-up and broadband Internet access, as well as public telephony services. The company is owned 96% by Millicom International Cellular and 4% by La Estrella Solitaria, a holding company incorporated in Paraguay with interests in construction, real estate, and telecommunications."

Posted to the site on 15th July 2005