BARROW. C&W committed to Jamaica's development

Telecom provider Cable & Wireless Jamaica has secured more than US$92 million (J$5.5 billion) in funding that will be used to invest in its fixed line and mobile networks.

The bulk of the funding will be used to acquire new, state-of-the-art equipment from Nortel Networks and related suppliers, but a sizeable portion will also be direct investment into local suppliers, such as construction works for new mobile cell sites.

The loans are repayable over seven years in 14 approximately equal semi-annual installments. The commitments comprise US$72 million from the Export-Import Bank of the United States (US Ex-Im) and a further US$20 million from the Export Development Canada. The loans have been arranged through the London, New York and Jamaican branches of Citigroup and the company was advised on the transaction by PriceWaterhouseCoopers.

"The majority of the funding will support almost J$10 billion of investment by C&W in expanding its mobile network coverage, its GPRS capability, other value-added services, and in enhancing customer services," said C&W in a release issued Tuesday.

But C&W is trying to secure even more financing by March 31, 2004, and it says that the "US$92 million represents around three-quarters of the funding currently being finalised by Cable & Wireless".

"This represents just the latest stage in more than J$50 billion of infrastructure investment that the company has made over the past decade and underscores our continued commitment to Jamaica's development," said Gary Barrow, president of Cable & Wireless Jamaica.

The latest investments follow the company's successful launch of its GSM network in July 2003 and will ensure that the company continues its roll-out of digital wireless services. Additional investments are also being made in the fixed line business with the company expanding its coverage and accelerating investment in ADSL and other broadband technologies.

"Cable & Wireless' substantial investments will have tremendous benefits for Jamaican consumers while simultaneously supporting US exporters," explained US Ex-Im vice-president, Barbara O'Boyle. "We are delighted to be able to support this initiative and have been impressed by the conviction with which the management and staff of Cable & Wireless are pursuing their goals."

According to the C&W release, "the US Ex-Im was so impressed that they afforded Cable & Wireless a zero credit rating, meaning that the company is able to borrow on the same terms as the Government of Jamaica."

Andrew Cherry, C&W's chief financial officer, added that "with the company's borrowings at historical lows following successive years of loan repayments, this new funding can be comfortably accommodated within the company's balance sheet."

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