Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Myanmar
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Multilateral Investment Guarantee Agency (MIGA)
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: 2016-04-07
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: Sumitomo Corporation
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Communications
Investment Type(s): Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 406.20 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.

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Primary Source

Original disclosure @ MIGA website
Updated in EWS: 2017-07-27
Disclosure Date: 2016-03-01
KDDI Summit Global Myanmar Co. Ltd.
MIGA-12425

Project Description
The project consists of the operation and upgrade, reactivation and expansion of Myanmar Post and Telecommunication’s (MPT) network in Myanmar. MPT is the government run network operator and provider of telecommunication services in Myanmar, and operates both fixed line and wireless networks. KDDI Summit Global Myanmar Co. Ltd, (KSGM), a joint venture between Sumitomo Corporation (SC) and KDDI Corporation has entered into a ‘Joint Operation Agreement’ (JOA) with MPT to implement, upgrade and expand the national telecommunications service (including mobile, fixed, internet, etc.). Sumitomo Corporation (SC) has requested that MIGA provide a guarantee for its equity and shareholder loan investment into KSGM. Together, KSGM and MPT are referred to as the ‘Joint Operation’ (JO). The JO has approximately 2,000 operational telecommunications towers as of June 2015, some of which will be upgraded or decommissioned and replaced, and plans to construct a further approximately 5,000 towers to meet a target of providing coverage to 70% of the geographical area of Myanmar by the end of March 2016 As land will be acquired through negotiated lease agreements, PS 5 does not technically apply. However, as the roll-out moves into rural areas, tower sites may be officially owned by the government or another private land owner, but traditionally used by local people, and therefore PS has been applied to this project. The project ‘Site Acquisition Procedures,’ were reviewed and found to be consistent with the requirements of PS 5.
Investment Description
Contact Information
Shimane Naoki Naoki.shimane@sumitomocorp.co.jp ACCOUNTABILITY MECHANISM OF MIGA The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/
Bank Documents