Cabo Telecom II (IFC-37968)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 3, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Cabo Servicos de Telecomunicacoes Ltda
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 12, 2018

Disclosed by Bank Apr 20, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project involves the expansion of Cabo Brasil (“Cabo” or the “company”), a “triple play” operator of a broadband network in the Northeast region of Brazil that provides cable television, telephony, and internet services. Cabo is a holding company that was formed around the acquisition of two companies in the northeast region of Brazil, Cabo Serviços de Telecomunicações Ltda., based in Natal, Rio Grande do Norte, and Videomar Rede Nordeste S.A., based in Fortaleza, Ceará. Cabo’s network includes approximately 267 kilometers of fiber and about 11,400 telephone poles that it owns. Cabo plans to expand its operation in the home cities of Fortaleza and Natal, as well as in the State of Sao Paulo in Brazil.

IFC’s proposed investment is for a loan of about $30 million for network expansion to increase Cabo’s number of subscribers from 154,000 in December 2015 to 250,000 in 2019, with 577,000 homes connected. This involves installing about 2,700 kilometers of above-ground fiber with 60,000 new telephone poles for which easements (rather than land acquisition) will be arranged. New data processing capacity and customer service by telephone will be provided in leased spaces in existing buildings. A new headquarters occupying 500 square meters of leased space in an existing building will be located in Poços de Caldas, and will include a warehouse for equipment such as set top boxes, supplying 13 new small Cabo stores in leased spaces in various cities, to provide space for sales and customer service.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IFC

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/

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