The Haitian government and the country’s central bank, the Banque de la Republique d’Haiti (BRH), have signed an agreement with Vietnamese operator Viettel, to sell a 60% stake in the newly established Haitian telco.
The International Financial…
The Haitian government and the country’s central bank, the Banque de la Republique d’Haiti (BRH), have signed an agreement with Vietnamese operator Viettel, to sell a 60% stake in the newly established Haitian telco.
The International Financial Corporation (IFC), a World Bank member, announced that the agreement has been signed, giving Vietnamese mobile, fixed line and broadband operator Viettel control of the new Haitian telco, which will provide nationwide services.
Viettel has pledged a US$99m investment package in return for the stake, which will also see it investing in network infrastructure.
The establishment of the new telco follows the IFC setting up a public-private partnership for the Haitian operator Telecommunications d’Haiti, operating as Teleco, which before the earthquake hit the country in January of this year, was due to be either partly or fully privatised.
The government was then already in advanced talks with Viettel regarding a stake in Teleco, but the earthquake brought a halt to the process. The country’s telecoms network was also severely damaged, altering the worth of the operator.
The IFC’s PPP scheme sees Teleco being drafted into this newly set up telco, which has been granted frequencies and licences for mobile, fixed line, wireline, broadband, WiMAX and submarine cable services.
Viettel will invest an initial amount of US$59 in the new operator and has pledged a further investment of US$40m over the coming four years, in order to continue to upgrade infrastructure. The remaining 40% stake in the telco will be held by the Haitian government.
The IFC states that it served as advisor to the Haitian government in structuring the international bidding process for the partnership since June 2007.
IFC executive VP and CEO Lars Thunell said: “The agreement reflects the extraordinary commitment of the Government of Haiti and Viettel to ensuring a safer and more sustainable future for the Haitian people. Economic growth is easier to achieve when people have the basic tools they need to communicate and connect with the world.”
Charles Castel, the governor of BRH, added: “Enhancing telecommunications infrastructure at this time is an essential component of Haiti’s reconstruction efforts. We welcome Viettel’s commitment which shows confidence in Haiti and sends a signal to other potential private investors who want to support the country’s recovery and development.”
The IFC goes on to state that Viettel’s investment comes at a critical time, as even prior to the devastating earthquake on January 12 2010, Haiti’s fixed-line penetration was only 1.8%-the lowest in Latin America and the Caribbean. Mobile density was at around 35% whilst internet penetration remained below the 1% mark. The earthquake then caused significant damage to existing telecom operators’ networks, including those of TELECO and other local providers.
There are also reports that the Vietnamese operator will take over Teleco’s outstanding debt, which are believed to stand at about US$30m.
Viettel is owned by the Vietnamese Ministry of Defence.
