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EBRD supports largest telecoms operator in Central Asia
The European Bank for Reconstruction and Development (EBRD) has provided a US$ 50 million loan to KazakhTelecom (KTC), injecting fresh momentum into the privatisation of Central Asia’s largest telecommunications company. The investment will facilitate the completion of KTC’s network in anticipation of privatisation in the near future.
"A modern and affordable telecommunications network attracts new business, improves efficiency in existing businesses and creates growth for the entire country," said Horst Köhler, President of the EBRD. "Telecommunications in Kazakhstan requires further substantial investment. To attract this, an adequate legal and regulatory framework is needed. This is key to fostering private-sector investment and confidence in the telecom sector."
"This is the largest loan to KazakhTelecom without a sovereign guarantee, and is therefore an expression of confidence by the EBRD in the company," said Nurlan Sakipov, President of KazakhTelecom. "The financing will allow KTC to improve the efficiency of existing lines and services, with the long-term view of expanding the network to reach new customers. It also marks the beginning of what I hope will be a long and productive partnership with the EBRD."
The EBRD will encourage and support essential market reforms in the Kazakh telecommunications sector through parallel technical assistance to the Kazakh Government. Of primary importance is the development of a transparent regulatory and legal framework.
KTC is the principal provider of most telecommunications services in Kazakhstan, including local, long-distance, international and mobile telephone services through joint ventures. The company was partially privatised in 1997 and 30 per cent of voting shares are under the trust management of Kazkommertsbank, the largest commercial bank in Kazakhstan.
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