Financing for submarine cable project finalised
The loan agreement for the financing of the Seychelles East Africa System (SEAS) – the high-power submarine cable system that will significantly improve broadband internet connection – has been finalised.
The agreement was signed on June 30 between AfDB (African Development Bank) and SCS (Seychelles Cable Systems Ltd.).
The loan will partially fund the 1,930km submarine fibre optic cable from the main island of Mahé, from Beau Vallon beach, to the existing Eastern Africa Submarine Cable System in Dar Es Salaam, Tanzania. The cable will be installed by Alcatel Submarine Networks and is expected to be operational by the end of the second half of 2012.
The submarine cable project is aligned with the National ICT Policy established in 2007 and it is also consistent with AfDB’s 2008-2010 ICT and regional integration strategies, which recognise the crucial role played by infrastructure in supporting intra-regional and global trade as well as market integration.
The overall cost of the cable project will be €27 million and it is being financed through 40% equity and 60% debt.
The long-term debt is being co-financed by the European Investment Bank (EIB) and AfDB, and equity contributions split between three shareholders -- the Government of Seychelles, Cable and Wireless Seychelles and Airtel Seychelles.
In March this year, a loan agreement worth €8 million was signed between EIB and SCS. Now with the signature of the AfDB loan agreement, all the necessary finances have been secured.
As a result, the entering in force of the ALCATEL contract is imminent and the manufacturing of the cable by Alcatel is due to start shortly.
It is to be noted that the route survey undertaken earlier this year has also been completed and that the actual cable route has been determined and finalised.
In anticipation of the landing of the submarine cable in Seychelles, it is expected that local telecommunication operators will also be upgrading their networks to allow greater access to capacity by their customers.
Source: NATION 7-21-11