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Oman: Oman Broadband Company – Tranche 2

SUMMARY

STATUS
Approved
MEMBER
Oman
SECTOR
ICT
E&S CATEGORY
Category B
PROJECT NUMBER
000476

FINANCING

APPROVED FUNDING
USD46 million
FINANCING TYPE
Nonsovereign

TIMELINE

APPRAISAL REVIEW/FINAL REVIEW
October 27, 2021
FINANCING APPROVAL
December 22, 2021

OBJECTIVE

To continue the nationwide rolling out of Oman Broadband Company existing high-speed broadband network.

DESCRIPTION

The Project is an extension facility provided in connection to an existing AIIB project (Oman Broadband Infrastructure, 2017), where AIIB has previously provided financing to OBC for the initial high-speed broadband network rollout focusing mainly on urban areas in Muscat (Phase 1). For Phase 1 deployments, AIIB mobilized a total of USD239.2 million.

Following the completion of Phase 1, AIIB is financing the next phase of the network roll out (Phase 2), which is expected to complete by 2025 with the expected total funding of approximately USD151 million (the Project). The amount of a senior debt available for Phase 2 is sized at approximately USD46 million. The financing structure would blend the existing with additional debt.

Phase 2 has the same business proposition to Phase 1 through Basic End-User Service (BEUC) and mobile backhaul services. It will cover part of the remaining part of Muscat and urban areas outside Muscat which were not included in Phase 1, using a mix of fibre-to-the-home (FTTH) and the new 5G fixed-wireless-access (FWA) technologies.

The total home passed target under Phase 2 deployment until 2025 amounts to 226,000 where 77% of the home passed is outside Muscat area and the majority (83%) of the home passed roll-out targeting the high dense population across urban areas. For the backhaul, the total coverage target of tower/mobile is 1,550km up to 2030.

ENVIRONMENTAL AND SOCIAL INFORMATION

This Project has been prepared in accordance with the Environmental and Social Policy (ESP) of the Bank. Under the Bank’s ESP, the Project has been classified as Category B.

As required for a Category B project, as part of Phase 1, an Environmental and Social Management Plan (ESMP) had been developed. As part of this Phase 2, an Addendum to the ESMP has been developed covering various aspects that are new. The scope of the Addendum had been determined with respect to OBC’s activities and their context to cover impacts and define required management and monitoring measures in line with AIIB’s Environmental and Social Framework and Omani laws.

Both the ESMP and Addendum have been disclosed in English and Arabic on OBC’s website and were presented to key stakeholders at a public consultation meeting in Muscat in August 2021. Following this consultation, Oman Broadband had requested feedback on the documents for a 30 days’ period prior to its finalization and further disclosure.

The Project will utilize the current infrastructure, such as existing telecom line conduits or pipe chases, to the fullest extent possible for installing the new services. Construction, if required, involves the installation of radio equipment on tower or roof-top locations in the relevant areas, and no land acquisition or displacement of population is envisaged under the Project. Environmental and social impacts during the time of construction are temporary and reversible in nature.

A project-level Grievance Redress Mechanism (GRM) has been developed, which includes multiple channels for stakeholders to raise grievances.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Edwin Hin Lung Yuen

Senior Private Sector Operations Specialist

edwin.yuen@aiib.org

BORROWER

Oman Broadband Company (OBC)

Mohammed Bamkhalef

Lead Financing & Investment

mohammed.bamkhalef@withaq.om

IMPLEMENTING ENTITY

Oman ICT Group (OICT)

Dominique Reverdy

Group Executive Advisor – Corporate Finance

dominique.reverdy@ictg.om

PROJECT DOCUMENTS

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