Globecomm Systems has been awarded a $3.6 million contract to reconstruct communications infrastructure in Afghanistan from the Ministry of Communication of the Islamic Transitional State of Afghanistan (MoC).
This represents the third contract awarded to the Company from the MoC, bringing the combined contract value of communication reconstruction efforts by Globecomm in Afghanistan to $32.5 Million. The Company announced the first contract on June 1, 2004, valued at $14.7 million and the second contract on September 8, 2004, valued at $14.2 million.
This contract is funded through the World Bank and the project will begin upon receipt of the letter of credit guaranteeing payments. The Company has already received an initial down payment.
Under the terms of this contract, Globecomm will rebuild the MoC's major international satellite communications facility in Kabul. The new facility will represent a modern version of the previous facility and include the most state-of-the-art equipment available in the marketplace.
His Excellency Stanekzai, the Minister of Communications, commented, "The MoC has now awarded the first three national communication reconstruction contracts coming out of Afghanistan to Globecomm.
Proposals were solicited from companies throughout the world for each of these contracts and the bids were carefully and critically evaluated in an effort to obtain the best communication infrastructure available in the marketplace to modernize communications throughout the country. Globecomm once again demonstrated its ability to provide a complete solution that outperformed the competition."
David Hershberg, Chief Executive Officer and Chairman of Globecomm Systems said, "The successful management of complex large-scale telecommunication network projects requires extensive capability, expertise and experience in a broad range of diverse technologies.
Globecomm has invested large amounts of capital over the past several years in developing these capabilities, which has positioned us to bid and win large-scale complex modern telecommunication build-out awards.
"The three contracts awarded by the MoC to the Company are further confirmation of our vision as a leader in this rapidly growing market. We are particularly honored by the high confidence placed in the company by his Excellency Stanekzai and I am personally grateful for his kind words of praise. We are committed to working with the dedicated staff at the MoC to create a world class state-of-the-art telecommunications system for Afghanistan."
Mr. Hershberg continued, "Communication delivery systems continue to converge at a rapid pace allowing robust hybrid communications networks to be implemented at affordable prices. This will open markets throughout the world for a company like Globecomm, which has the ability to rapidly design and implement these modern networks. There are many nations in need of connecting to the global network in an effort to enter the modern world and Globecomm intends on continuing to vigorously pursue these opportunities."
