Where the impacts of the investment may be experienced.
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
- Inter-American Investment Corporation (IIC)
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2017-09-26
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Altan Redes S.A.P.I. de C.V.
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD): $ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
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Altan Redes S.A.P.I. de C.V.
FROM THE IIC:
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.
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).
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 “Target Coverage”). 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% (the “Minimum Coverage”).
The Project 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.
- Inter-American Investment Corporation (IIC)
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.
Stephan A. Paul
Altán Redes | Finance Manager
Dakota 95, 4th and 5th Floors
Col. Nápoles, Del. Benito Juárez
C.P. 03810, Ciudad de México, México
Direct: +52 (55) 5061 7048
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