Altan Redes S.A.P.I. de C.V. (IIC-12088-01)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
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
Sep 26, 2017
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
Altan Redes S.A.P.I. de C.V.
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)
$ 150.00 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.
Project Cost (USD)
$ 150.00 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 @ IIC website

Updated in EWS Sep 20, 2018

Disclosed by Bank Jul 27, 2017

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

According to IIC website, the Project, located throughout Mexico, consists of setting up 14,000-16,000 radio sites over the next 10 years to provide a minimum population coverage of 92.2%. The PPP (Private Pubic Partnership) Agreement is a 20-year term concession, renewable for an additional 20 years. It was awarded to the Consortium based on the highest offered Target Coverage above the pre-established minimum population coverage of 85%. 

It will involve providing an open and accessible network to the majority of the Mexican population by 2021, with a focus on rural areas: cities with population of less than 10,000 inhabitants and the 111 “pueblos mágicos” (magical towns) as defined by the Government (Secretary of Tourism-Sectur). The concession establishes that for each 100 urban areas to be covered, 15 must be rural populations.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to the IIC’s Environmental and Social Sustainability Policy, the Project has been classified as a Category B operation since its potential environmental and social impacts and risks are, in general terms, limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

Since the majority of the towers (approximately 80%) need for the project would have already been constructed and therefore the impacts related to construction of new towers is deemed to be low, the key E&S issues associated with the Project are anticipated to be related to those typical of telecommunications infrastructure construction, and underground and above-ground cabling. These include potential terrestrial habitat alteration (primarily during construction), avian collisions, visual impacts, production of hazardous materials and waste and those related with labor and working conditions (including employees’ and contractor workers’ occupational health and safety).

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

The transaction consists of the IDB Group participation in the long term debt financing for the peak funding needs for the deployment of the Mexican Government-sponsored Red Compartida public private partnership for an aggregate amount of up to US$150 million. The roll-out of Red Compartida is expected to generate an investment in excess of US$7 billion over the 20-year life of the concession.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

IDB Invest lists the following private actor description on its website: "Altan Redes S.A.P.I. de C.V. (Altan) was awarded the international tender process for the design, deployment, operation and maintenance of Red Compartida by the Mexican Ministry of Communications and Transportation in November 2016. Red Compartida will be the first and only Mexican neutral wholesale 4G LTE mobile communications network that will provide mobile broadband coverage to at least 92.2% of the Mexican population. Structured as a public-private partnership, Red Compartida is expected to provide multiple benefits to the population, such as: increase high speed wireless broadband coverage, improve the quality of telecommunication services, contribute to lowering mobile telecommunication prices, allow for more competition in the telecommunication sector, promote productivity and competitiveness of the Mexican economy, foster innovation in digital services, and allow for better and more efficient use of the spectrum."

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Altán Redes de S.A.P.I. de C.V. Client -

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.

Project Contact: Stephan A. Paul
Altán Redes | Finance Manager
Office Address: Dakota 95, 4th and 5th Floors Col. Nápoles, Del. Benito Juárez
C.P. 03810, Ciudad de México, México
Telephone No.: +52 (55) 5061 7048
Email Address: stephan.paul@altanredes.com
Website: www.Altánredes.com

ACCOUNTABILITY MECHANISM OF IIC

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

How it works

How it works