LAP Green supports Uganda funding

Published on 12.01.2012

Libya Africa Investment Portfolio Green Network (LAP Green Network) has agreed to provide capital to support the funding needs of Uganda Telecom Ltd (UTL), in which it owns 69%, according to local news sources in Uganda.
LAP Green Network’s new board chairman WafikShater said “We are currently looking at UTL’s critical funding need for the remainder of this year. After ascertaining the actual funds required, we will inject them into our operations here.”
UTL has suffered indirectly as a result of sanctions imposed on LAP Green Network by the UN during Libya’s civil war, worsening the telco’s already substantial debts. In March 2011 UTL’s network was disconnected fromMTN Uganda overUS$8.27m in disputed interconnection fees. The companies resolved the disagreement, however, and service was quickly resumed whilst the disagreement continued in court. In September Airtel Uganda threatened to follow suit, over a further US$4.13m in payments, thoughUTL and Airtel solved the matter without disruption to services.
The government of Uganda, which owns the remaining 31% of UTL and took control of the company during Libya’s civil war, is expected to continue its support for the telco and assist in the removal of remaining sanctions on LAP Green’s activities.