Name and Location
Vodafone Ghana telecoms network expansion project, Ghana.

Project Description
The project entails a nationwide upgrade and expansion of Vodafone Ghana’s telecoms network across the country. The project is expected to increase the availability of reliable and affordable telecoms services for customers and businesses in the country.

Ghana’s teledensity, which currently stands at 54%, has indicated that there is potential for further growth in the market.

The lack of teledensity is pronounced in semiurban and rural areas, where it is less than 10%. This project will enable Vodafone Ghana to upgrade technology, increase capacity and improve coverage.

Value
The total project cost is estimated at $500-million.

Duration
Not stated.

Client
Vodafone Ghana, a division of the Vodafone group.

On August 15, 2008, the Vodafone group acquired a 70% share in Ghana Telecommunications Company (Ghana Telecom) for $900-million, with the government of Ghana retaining the remaining 30% ownership.

By successfully acquiring Ghana Telecom, Vodafone became the country’s only integrated communications service provider with mobile, fixed and data capabilities.

Key Contracts and Suppliers
International Finance Corporation (IFC), Export-Import Bank of China, China Development Bank, Deutsche Investitions-und Entwicklungsgesellschaft (DEG), Barclays, Ecobank, Rand Merchant Bank and Standard Bank (debt financing package).

Latest Developments
The IFC has mobilised a $115-million financing package for Vodafone Ghana from Chinese, German and African institutions to help the company enhance its telecoms network and spread the benefits of mobile phone and broadband services in Ghana, particularly in rural areas.

The package includes financing from several commercial banks and development finance institutions.It includes $82-million in syndicated parallel loans from the Export-Import Bank of China, the China Development Bank and Germany’s DEG. The remaining $33-million in B loans is from Barclays, Ecobank, Rand Merchant Bank and Standard Bank.

The IFC acted as the lead arranger and will serve as the administrative agent for the project.

In 2010, the IFC provided Vodafone Ghana with a $100-million loan from its own account, comprising a $75-million senior loan and $25-million subordinated loan.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ghana Telecom CFO Randell Hato, tel +233 20 200 7141 or fax 233 21 238 478.
IFC (Washington), Josef Skoldeberg, tel +1 202 473 6978 or email jskoldeberg@ifc.org; or IFC (Nairobi), Neha Sud, tel +254 72 034 8499 or email nsud@ifc.org.