CABLE AND Wireless Jamaica (C&WJ) has secured commitments for more than US$92 million of funding towards investments in its fixed line and mobile networks, the company announced yesterday.
The commitments comprise US$72 million from the Export-Import Bank of the United States (U.S. Ex-Im) and a further US$20 million from Export Development Canada.
The loans have been arranged through the London, New York and Jamaican branches of Citigroup. Its advisers in setting up the deals was PricewaterhouseCoopers, the telecoms company said.
The US$92 million (about $5.5 billion) represents around three-quarters of the funding currently being finalised by Cable & Wireless, with the remainder expected to be agreed on before March 31, the end of the company's financial year.
The majority of the funding will support a near $10 billion programme to expand its mobile network coverage, General Packet Radio System (GPRS) capability, and other services.
FUNDS FOR NEW EQUIPMENT
The majority of the investment will finance new, state-of-the-art equipment from Nortel Networks and related suppliers and local investments, such as construction works for new mobile cell sites.
"This represents just the latest stage in more than $50 billion of infrastructure investment that the company has made over the past decade," said the release, quoting president Gary Barrow. Barrow says the investment underscores his company's commitment to Jamaica.
The planned capital injection follows the company's launch of its Global System for Mobiles (GSM) network last July and will ensure that the company continues its roll-out of digital wireless services. Additionally, it will accelerate investment in Asymmetric Digital Subscriber Line (ADSL) and other broadband technologies, the company said.
US Ex-Im has agreed to the loan on the grounds that C&WJ's plans will offer earning opportunities for American businesses. C&WJ said the financing agency has afforded it a zero credit rating, 'meaning that the company is able to borrow on the same terms as the Government of Jamaica'.
