Highway Africa News Agency

The NEPAD e-Africa Commission and 5-P Holdings LLC, have signed an MOU to begin the construction of the NEPAD ICT Broadband Infrastructure Network (IBIN), known as the UHURUNET on 24 October 2007 in Pretoria, South Africa. With a capacity of 3.84 Terabits/sec, the undersea submarine cable is intended to link the entire continent of Africa, with the outside world including Europe, Brazil, India and the Middle East.

Mr Mool Singhi signed on behalf of 5-P Holdings while Dr Henry Chasia, Executive Deputy Chairperson of NEPAD e-Africa Commission signed on behalf of the Commission.

Others present included Mr Robert Henderson from Phelp Stokes Fund and Mr Bright Amisi from the NEPAD e-Africa Commission.

The memorandum provides a framework for collaboration between NEPAD and the company in financing, design and the speedy implementation of the submarine fiber optic network.

It also provides the raising of investment for the network so that it will have a shareholding structure whose majority shares will be owned by Africans.

According to a statement issued by the NEPAD manager for public communications Samuel Mikenga, the pact provides for the parties to cooperate in order to contribute to the development and promotion of the economic, social, cultural development and integration of the African continent consistent with the NEPAD objectives and principles.

The cable would also facilitate the provision of ICT broadband infrastructure that supports high-quality, high-speed, reliable electronic communications in Africa and with the rest of the world at competitive market-based prices for wholesale capacity, which will be sold on an open access, non-discriminatory basis in order to make ICT available to end users at affordable prices.

The signing follows a meeting of government ministers responsible for Information and Communication Technologies (ICTs) from eastern and southern African countries in Johannesburg on 15 October 2007 that endorsed a $2bn submarine cable project to connect Africa. The Ministers have called for its speedy implementation.

The cable will provide for immediate or eventual landing points to every coastal and Island country in Africa. The completion of the 50,000 km cable is expected to greatly contribute to the reduction of telecommunications costs that have been a hindrance to doing business in Africa.

The ministers named the submarine segment of the NEPAD network UHURUNET, and its terrestrial segment, UMOJANET; and recommended that the Holding Company of the Submarine cable be named, BAHARICOM.

These words are in the Swahili language, an indigenous African language of the African Union.

UHURU means freedom or independence, which in this case signifies economic independence, an appropriate celebration statement of the 50th anniversary of Ghana's independence from colonial rule which was celebrated in Accra by Heads of States in July 2007.

UMOJA means unity. UMOJANET which links all the African countries with ICT broadband signifies the importance of unity of African countries. BAHARI means ocean. This indicates the location of the network and BAHARICO is the company that brings together the investment of Africans across the oceans.

Under the arrangement, the NEPAD SPV, established under the Kigali protocol will own 30 percent (the single largest investor in the company), the African investors and African ICT Companies 45 percent and the international philanthropic and other investors, including 5-P Holdings, 25 percent.

The various activities and undertakings will be completed in time for the cable to be available to provide communications for the 2010 FIFA World Cup that will take place in South Africa.

The NEPAD e-Africa Commission is NEPAD?s task team for the development and implementation of the NEPAD Information and Communication Technology (ICT) programme. 5-P Holdings, LLC is a Delaware, US, registered company formed in 2006 to develop, finance, construct and operate submarine fiber optic networks.