Presentation on theme: "THE COMTEL PROJECT COMESA SECRETARIAT 2 COMESA Membership Member States of COMESA are: Angola Burundi Comoros Congo, DR Djibouti Egypt Eritrea Ethiopia."— Presentation transcript:
THE COMTEL PROJECT COMESA SECRETARIAT
2 COMESA Membership Member States of COMESA are: Angola Burundi Comoros Congo, DR Djibouti Egypt Eritrea Ethiopia Kenya Madagascar Malawi Mauritius Namibia Rwanda Seychelles Sudan Swaziland Uganda Zambia Zimbabwe
3 Map of COMESA
4 THE PROJECT COMESA Member States have undertaken to: Improve telecommunication networks to meet the standards required for inter-state communication. Establish a privately-owned terrestrial network linking National Telecommunication Operators in COMESA. Network will facilitate the transmission of voice, data & video and enhance trade relations within the region.
5 WHY THE COMTEL PROJECT? COMTEL project objectives include: Ensure inter-State telecommunication connectivity Improve telecommunication grade & quality of service Improve regional integration Increase inter-regional trade Enhance co-operation
6 WHY THE COMTEL PROJECT? Tariff harmonisation & reduction Reduction of foreign currency out payments due to external routing of intra- COMESA traffic (currently US$90million/annum) Introduction of new technologies & services Development of rural telecommunications
7 GOVERNMENTS COMMITMENT Transport and Communications Ministers Meeting - June 1998 COMESA Council of Ministers Meeting - June 1998 COMESA AUTHORITY, HEADS OF STATES SUMMIT - June 1998
8 REGIONAL CO-OPERATION The COMTEL project is prioritised under New Partnerships for Africas Development (NEPADs) short term plan on infrastructure deployment & roll-out projects. Co-operation with other regional blocks under the Africa Union umbrella e.g. The Economic Community for West African States (ECOWAS) – expressed interest in adopting the COMTEL interconnectivity model for 16 countries.
9 COMTEL COMPANIES COMTEL COMMUNICATIONS COMPANY: Registered in Mauritius as an offshore company in May 2000 for the purposes of implementing, operating and managing the regional network. COMTEL INVESTMENT COMPANY: Registered in Mauritius as an offshore company in May A vehicle for National Telecommunication Operators (NTOs) to invest in COMTEL Communications Company. SHAREHOLDING STRUCTURE: 25% - National Telecommunications Operators (NTOs), 30% - Strategic Equity Partner (SEP), 45% - Private Sector Investors (PSIs)
10 COMTEL INTERIM BOARD The Interim Board of Directors consists of: D R of Congo Egypt Kenya Malawi Mauritius Sudan Zambia
12 COMTEL NETWORK ELEMENTS Project costs are estimated at US$240 million and comprise of: ATM Routers Optical Fiber Microwave links Telecom Management Network Billing System Relevant test equipment
13 COMTEL PROJECT COSTS Project costs are estimated at US$240 million and comprise of: Fibre & civil works - US$174 million. Transmission/installation & other equipment – US$30 million. Service costs (training, documentation etc) – US$12 million. Administration costs (to be financed by NTOs) – US$24 million.
14 PROJECT VIABILITY Technically feasible Institutionally sound IRR = % NPV = 739,363 Pay Back period = 3.1 Years ERR = 48.6 %
17 SHAREHOLDING STRUCTURE Administration budget = US$24 million (NTOs) Project costs = US$216 million NTO subscription = US$1.8 million/NTO Equity + debt = US$144+US$96 = US$240 million SHAREHOLDER% HOLDINGCONTRIBUTION(US$ ) NTOs25 %36 million SEP30 %43.2 million PSIs45 %64.8 million
18 NTOs BENEFITS Save transit charges. Construction of neighboring links. Estimulation of traffic to the region (social and economic benefits). Use of advance technology ATM Compatibility with existing infrastructure. Unification of TAR within the region.
19 NTOs BENEFITS More traffic from land-lock countries to justify a landing point for a future submarine cables networks. Many alternatives to connect with submarine cables networks. Competitive tariff. More income Wide connectivity within the region.