Azercell Telecom MMM

MIGA issued guarantees totaling $8.8 million in coverage to Bank Kreiss AG of Germany, $16.8 million to Pamukbank T.A.S. of Turkey, and $30 million to Azertel A.S. for their investments in Azercell Telecom MMM (Azercell) to expand its digital cellular telecommunications capabilities in Azerbaijan. The MIGA guarantees will cover the investment against the risks of transfer restriction, expropriation, and war and civil disturbance.

The investment project involves the expansion of service capacity and the upgrading of equipment to Azercell's digital communications network that is based on the Global System for Mobile telecommunications (GSM) standard. Azercell is a joint venture company, owned by Azertel A.S. and the Ministry of Communication. The project provides an opportunity for MIGA to support the growth and modernization of Azerbaijan's telecommunication sector that in 1998 only attained a fixed line teledensity of 9.7 percent.

The project enterprise will benefit from substantial transfer of state-of-the-art digital telecommunication technology and expertise in operating the plant. Moreover, extensive training in modern management, marketing, distribution, and technical know-how will be offered in Azerbaijan and Turkey. The plant will create approximately 455 new jobs and local businesses will benefit from the project by providing security services, cables, communication equipment, and other telecommunications services.