EASSy Easterm Africa Submarine Cable System

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EASSyEasterm Africa Submarine Cable System

• PROJECT
• SUMMARY

Simon Olawo EASSy PROJECT
SECRETARIAT
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Overview

• 1. Introduction
• 2. Background
• 3. Project Overview
• 3.1 Key Technical Features
• 3.2 Capital Requirements
• 3.3 Project Status
• 3.4 Key Milestones
• 3.5 Way Forward
• 4. Contacts

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Eastern Africa Submarine System
Toliary
Durban
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1. Introduction

• The Eastern Africa Submarine System (EASSy) cable
  project will establish a fiber optic undersea
  cable system connecting the region with the rest
  of the world.
• A commercially viable, robust and reliable
  undersea cable will provide the owners with
  significant opportunity to benefit directly from
  international traffic.
• International traffic is expected to grow
  substantially as a higher quality, more reliable,
  and lower cost undersea system offsets the
  limitations of traditional satellite
  communications.

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2. Background

• The project is driven by 15 telecommunications
  entities from 13 countries of Eastern Africa
  region.
• The telecommunications entities are from South
  Africa, Mozambique, Madagascar, Tanzania, Kenya,
  Uganda, Rwanda, Malawi, Botswana, Djibouti,
  Ethiopia and Somalia.
• Other countries in the region as well as key
  global carriers are expected to eventually
  participate in the project.

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Background cont.

• EASSy will link to the global submarine cable
  network through other regional undersea systems
  including SAT3, SAFE, SEA-ME-WE 3 and SEA-ME-WE
  4.
• EASSy will provide the last link to completely
  encircle Africa by high capacity optic fibre
  telecommunications networks.
• The project has broad based support from the
  telecommunications industry, business community,
  and regional governments.

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Background cont.

• NEPAD has identified EASSy as a priority project
  for the enhancement of ICT infrastructure in the
  region.
• The regional governments believe that a robust
  and reliable international telecommunications
  link will have significant benefits for the
  citizens of the region in the following ways-
• Stimulating investment and economic growth,
• Providing a more reliable international
  communications,

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Background cont.

• Will result in competitive prices for
  international connectivity
• The above objectives support the governments
  ultimate goal of reducing poverty and increasing
  economic opportunity for its citizens and in
  their efforts to facilitate the attainment of the
  UN millennium development goals.
• EASSy promises a new era of better quality
  services at reduced operational costs and user
  charges.

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3. Project Overview

• The Cable system will connect Mtunzini, located
  just north of Durban, in South Africa to Port
  Sudan, in Sudan a distance of about 9,900Km.
• Other eight landing stations are planned for
  Maputo - Mozambique, Toliary - Madagascar,
  Dar-Es-Salaam Tanzania, Zanzibar Tanzania,
  Mombasa Kenya, Mogadishu Somalia, Djibouti
  Djibouti, and Massawa Eritrea.

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Global Connectivity
EASSy
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Backhaul links to EASSy Cable
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Strategic Global Coverage
56 Countries
SEA-ME-WE-4 (35Countries)
ATLANTIS-2 (6 Countries)
EASSy (15 Countries)
SAFE (5 Countries)
SAT-3 / WASC (11 Countries)
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3.1 Key Technical Features

• System length about 9,900 km
• Based on Dense Wavelength Division Multiplexing
  Technology (DWDM)
• Direct Optical Amplification Technology
• Additional feeder network through repeater-less
  festoon systems, if required
• 2 fibre pair system configured as a collapsed
  ring
• Proposed ultimate capacity per fiber pair
• 16 or 32 wavelengths at 10 G bit/s
• Total capacity of 320 or 640 G bit/s
• Initial equipage 1 or 2 wavelengths per fiber
• System design life of 25 years.

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3.2 Capital Requirements

• Preliminary Feasibility Study (PFS) and initial
  indications from system suppliers estimate
  project cost at between US150 - 200 Million
• Based on the PFS and the refined initial traffic
  study, the consortium believes the project is
  financially viable.
• MOU parties have provided an indication that an
  amount of about 65 of estimated project costs
  may be available from the parties themselves for
  equity investment in EASSy.
• Initial traffic studies indicate that the returns
  are sufficient to attract the interest of
  potential debt and equity sponsors.

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Capital Requirements cont.

• The Consortium has engaged the services of a
  consultant to carry out the detailed technical,
  financial and commercial study to authenticate
  the above findings. Results of the study will be
  available Feb 05.
• The projects Financial Commercial Working Group
  on the basis of the minimum investment
  indications from MOU Parties (and in
  consultation with other stakeholders) is mandated
  to carry out the followings tasks-
• Establish the funding gap (tentative position by
  end of November 2004)
• Recommend investment incentives and capacity
  pricing to encourage investment by parties beyond
  their identified individual needs for EASSy

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Capital Requirements cont.

• Recommend most appropriate investment and
  ownership structure to ensure funding of the
  project with due regard to the interest of key
  stakeholders.
• Carry out marketing activities to potential and
  eligible investors within and outside the region
• Retain the services of a financial consultant to
  advise on the availability of financing,
  investment structure, investment incentives, etc
• Seek guidance from the detailed feasibility study
  (DFS) results.

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3.3 Project Status

• Preliminary feasibility study completed.
• MOU signed by eleven (15) parties.
• MOU Parties have formed Project Management
  Committee (PMC) to manage the project.
• PMC has constituted two main Working Groups,
  Interim Procurement Group (IPG) and the Financial
  and Commercial Group (F CWG) to carry out its
  mandate.

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3.3 Project Status cont.

• Project successfully launched at an international
  Sub Optic 2004 conference/exhibition in Monaco
  France early this year.
• Workshop with system suppliers successfully held
  in Kampala 23-29 June 2004.
• World Bank/IFC, French Development Agency and
  Development Bank of South Africa extended a grant
  for the detailed feasibility study.
• PMC is in the process of appointing a financial
  advisor/legal counsel.
• PMC is also seeking for project management
  services to better manage the consortium.

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3.4 Project Milestones

• Sign MOU Q4 2003
• Agree on Configuration Q4 2004
• Issue Invitation to Tender Q4 2004
• Financial Closing Q1 2005
• Sign Supply Contract CMA Q4 2005
• Cable RFCS Q2 2007

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3.5 Way Forward and Critical Elements to
meet milestones

• Appointment of Financial Adviser/ legal counsel
  for the parties
• To define and implement project structure
• To carry out road show to financiers through
  Information Memorandum
• To provide vital link to the finance and legal
  community of all players
• To advise process for implementation on the
  finance and legal elements
• To enhance the consortiums ability to succeed

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3.5 Way Forward and Critical Elements to
meet milestones cont.

• Appointment of independent Project Management
  team
• Provide independent and dedicated support
• To enhance overall credibility for financing
• To work in tandem with all parties allowing macro
  management and synchronization of all activities.

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4. Contacts

• Project Secretariat
  
• 
  
• Simon A. Olawo Telkom Kenya,
  Telposta Towers, 24th Floor, Kenyatta Av.
• P.O Box
  30301, GPO, Nairobi Kenya
• TEL
  254 20 316167,
• FAX
  254 20 310104,
• E-mail
  solawo_at_telkom.co.ke
• Project Coordinator
• John Sihra
  TEL [phone],
• 
  FAX [phone]
• 
  Mob 353 87 259 3966
• 
  E-mail jsihra_at_hentelint.com
• Website www.eassy.org

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• THANK YOU