A letter of intent has been issued to France's Alcatel with at least two subsidiaries for a contract valued at about $25 million to install the KAFOS telecommunications system in the western Black Sea (MEED 18:12:94). A contract is expected in early 1995, according to industry sources.

The French company has secured the letter of intent against another front- runner, the US' AT&T. The subsidiaries are the UK's STC and France's Submarcon. The project is the second of two major telecoms projects planned as part of moves for the Black Sea Economic zone. It calls for the laying of a fibre optic network about 500 kilometres in length between Mangalia in Romania, Varna in Bulgaria, and Istanbul. It will provide a total of about 16,000 lines. Financing will come from the countries involved in the project.

A group including Alcatel, AT&T and Italy's Maristel was awarded a contract valued at $125 million in July for the Italy-Turkey-Ukraine-Russia scheme (MEED 12:8:94).