Singapore Windsor Holdings has won a contract to build 500 telecommunication towers for Ooredoo Myanmar, according to a notice published late yesterday on the Singapore Exchange (SGX).
The build-and-lease contract is for a period of 18 months, according to the statement. This is a relatively modest rollout plan compared to other towers companies operating in Myanmar.
Pan-Asia Towers, for instance, signed in early 2014 to build 1250 towers for Ooredoo as part of its phase one program, which is already complete.
A report by the International Finance Corporation (IFC) and mobile operators industry body GSMA estimates that more than 17,000 telecommunication towers will need to be set up by 2017 to cover 70 percent of Myanmar’s population.
Currently, it is estimated that around 5000 telecommunication towers have been built in Myanmar, according to a media release issued by Singapore Windsor.
The agreement, which will become effective from July 2015, has an implied value, based on the cost of construction, of US$39 million over 18 months, according to the SGX notice.
Singapore Windsor will then manage and lease the towers and associated power solutions to Ooredoo for a 15-year term, which the operator may choose to extend for a further three terms of five years each.
Following the agreement, Singapore Windsor will be required to give a total funding commitment of up to $45m to Ooredoo, which will be financed through a combination of bank loans, vendor financing and the private placement of company shares, according to the notice.
Singapore Windsor Holdings is the parent company of Myanmar Infrastructure Group (MIG), which itself is owned by US telecommunication towers company Square1 Infrastructure, according to MIG’s website.
MIG began operations in Myanmar in 2014.
Ooredoo spokesperson Daw Thiri Kyar Nyo confirmed the deal, saying the telco aims to have 75pc of the population covered by the end of the year.
Source: Myanmar Times