Third HyalRoute Fiber Optic Cable Network (MIGA-14433)

Countries
  • Myanmar
Where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 11, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Bank of China (Hong Kong) Limited
The holder of the loan, grant, or other investment.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 116.28 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Oct 7, 2019

Disclosed by Bank Apr 16, 2019


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Project Description

According to the bank document, this summary covers debt financing by Bank of China (Hong Kong) Limited ("BOC(HK)") to Myanmar Fiber Optic Communication Network Co., Ltd. ("MFOCN") for the Third HyalRoute Fiber Optic Cable ("FOC") Network Project in Myanmar. BOC(HK) has applied for a MIGA guarantee to cover its non-shareholder loans and interest totaling US$116.28 million in gross exposure for a guarantee period of five years against the risks of Transfer Restriction, Expropriation, and War and Civil Disturbance.

This third FOC project involves the installation and maintenance of a 4,500 km of FOC network in Myanmar byMFOCN. jIn the first part of phase III of the program, it aims to lay down 4,300 km direct-buried backbone FOC in 7 states and 200 km of duct-buried routes in urban areas in Myanmar.

The project is expected to start construction in July 2019. The Project will benefit from the use of the IDA PSW MIGA Guarantee Facility.

 

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)

The total investment for this project is estimated at US$112.4 million, including US$12.4 million in equity from Hyalroute Communication Group Ltd. and US$100 million in debt financing from the BOC(HK). 

Contact Information

*There is no further information being disclosed at this stage of the project*

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/