World Bank partner pledges $269 million to develop Iraq telecom Zain

ERBIL (Kurdistan 24) – An international financial institution announced on Tuesday that it was providing a financial package of $269 million to a leading Iraqi mobile network operator to help reconstruct the country’s telecom operations and spur economic growth.

The International Finance Corporation (IFC), a Washington-based member of the World Bank, is the largest global development institution focused on the private sector in so-called "emerging markets."

"IFC arranged a $269 million debt package including $100 million from IFC’s own account, and $169 million in mobilization," plus loans from other institutions as well, according to a statement released on the website for the United Nation's in Iraq.

"The financing will help Zain Iraq enhance the capacity and quality of its 3G network and expand coverage to unserved areas, as well as helping the company modernize its networks and customer service in northern Iraq."

The other two major telecom competitors in Iraq are Korek Telecom and Asiacell.

By arranging and mobilizing a seven-year loan in a country where long-term financing options remain extremely limited, IFC is hoping its investment "will support the company’s growth plans, while sending a positive signal to domestic and international players at a critical point in the country’s recovery."

Iraq is one of the least-developed telecom markets in the Middle East, due in part to the fragile security situation. Mobile network operators have often struggled to maintain their networks and have refrained from investing heavily in infrastructure.