Transworld Associates Ltd (TWA), a joint venture between Orascom Telecom of Egypt and Saif Group of Companies, is in the process of setting up, at a cost of $36 million, a state-of-the-art undersea fibre optic cable.
According to sources close to financial market, the company would set up a 1286 km undersea optic fibre cable from Karachi to Fujairah in United Arab Emirates (UAE). This would be the first private sector, and only the second, fibre optic cable system after SEA-Me-WE3 owned by Pakistan Telecommunication, which would connect Pakistan to the rest of the world.
Pak Oman Investment Co and United Bank are advisor and arranger, respectively, and have successfully raised limited recourse project financing for TWA to the extent of Rs 1.4 billion from a consortium of commercial banks and DFIs.
This is a complex project financing transaction, and participation by a number of commercial banks and DFIs shows their growing appetite for the telecom sector. TWA is expected to commence commercial operations in March 2006. It will come as a welcome relief to all concerned, particularly in the light of the current crisis due to the problems faced in SEA-ME-WE3.
The Saif group and Orascom Telecom are also joint venture partners in Mobilink. Saif Group is one of the largest business houses in Pakistan, with multiple business interests in textile, energy, housing/real estate and telecom. Orascom Telecom is increasing its investments in Pakistan and has interests in telecom, cement and real estate sectors of the country.
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