The proposed project will finance the construction, laying, commissioning and operation of a high capacity sub-sea cable to connect Georgia with Bulgaria, together with on-shore network extensions connecting the city of Poti to Tbilisi and Azerbaijan-Georgia border. This will enable Caucasus Online to route its own and transit traffic from other countries in Caucasus and, in the future, Central Asia, cost effectively to Europe and to sell spare capacity to operators in Europe to route their traffic from Europe to Georgia, rest of Caucasus, Central Asia and beyond.
The project will support the development of a modern and competitive and effective telecommunications and internet services market in Georgia. This includes the promotion of network expansion thereby increasing access to telephony and internet services and improving the quality of services. Furthermore, the project encourages the development of innovative and advanced communication services and extends the development of the sector beyond basic telephone services. Greater competition should enhance the speed, range and quality of these services as well as bring cost benefits such as cheaper international access.
Caucasus Online, the leading Internet Service Provider (ISP) and Long Distance communication provider in the Republic of Georgia. Caucasus Online has been operating since 1997 as one of the pioneers in the Georgian Internet Service market. In 2000 Mr. Mamia Sanadiradze acquired the Company and became its CEO. He holds 75% of the shares and the balance of the shares are held by GML International Limited 10% and TBC Bank 15%.
EBRD finance: USD 35 million financing package composed of a senior secured debt and an equity investment in 5% share capital of Caucasus Online.
Total project cost: USD 71.5 million. |
