TelEm Group today announced completion of an Euro 8 Million long-term loan agreement with the European Investment Bank (EIB) to provide an island-wide fibre to the home network for Country St. Maarten.
A ceremonial signing to unlock EIB support took place at the TelEm Group main building, Pond Island, Wednesday between TelEm Group Chief Financial Officer (CFO) Mrs. Helma Etnel and Vice President of the European Investment Bank (EIB) responsible for the Caribbean, Mr. Pim van Ballekom.
Also present at the signing ceremony were representatives of the company’s Supervisory Board of Directors, and Shareholder representatives Minister responsible for Telecommunication, Mr. Ernest Sams, and Minister of Finance, Mr. Martin Hassink.
The EIB loan agreement forms part of a $20 Million financing package to transform the company’s remaining copper network into an ultra-modern Fiber-to the-Home fiber optic infrastructure. The balance of the package will be made up through a special bond arrangement with another bank.
According to TelEm Group CFO Mrs. Etnel, Wednesday’s signing ceremony signals a major leap in fiber optic expansion on St. Maarten with wide-ranging possibilities for many communities and for the St. Maarten economy generally.
“Fiber-to-the-Home is important to St. Maarten because of its potential to stimulate economic development, provide employment and allow for the creation and development of new technologies.
“The project can also help to drive app development on St. Maarten, improve health services through Tele-medicine and increase e-learning opportunities. It can also play an important part in the enhancement of safety and security systems on the island,” continued Mrs. Etnel.
She said an immediate benefit will be lightning-speed internet connections to homes and businesses, creating the possibility of an e-commerce infrastructure with which St. Maarten can position itself as a regional telecommunication hub with its own data centers and telecom networks extending throughout the region and wider afield.
During Wednesday’s signing, Mrs. Etnel thanked the EIB for its trust and confidence in TelEm Group’s ambitious fiber optic plans for St. Maarten and the St. Maarten community generally.
“Due to present and future bandwidth demands related to rapid technological advances, telecommunication companies all over the world are gradually transferring their fixed networks to complete fiber networks. Thanks to the EIB loan agreement we are now able to further accelerate our own transformation and step up our plans to provide essential services to the population and the economy and maintain a competitive edge,” said Mrs. Etnel.
TelEm Group has been busy over the years providing Fiber to local businesses. In recent months the company has been developing three fiber to the home pilot projects, one of which will be launched within short. The pilot projects are being deployed to test equipment and processes and also build expertise as part of the preparation required for a larger island-wide roll out in the coming months.
EIB says it is pleased to be supporting an important “transitional project to improve communications between St. Maarten and the rest of the world.
“We are pleased that this new investment by TelEm will enable high-speed internet to be provided in schools, libraries and hospitals on the island. Once operational, the improved network will not only revolutionize internet connections, but also facilitate the use of smart meters to better manage scarce water and electricity resources in St. Maarten,” said the EIB Vice President, Mr. van Ballekom.
The European Investment Bank is the world’s largest international public bank – owned directly by the 28 member states of the European Union, including the government of the Netherlands.
The EIB is described as a long-term lending institution that makes long-term finance available for sound investment in order to contribute towards EU policy goals.