Announcement of IDA Approves Seven Million Fifty Thousand US Dollars Credit for Telecommunications Project in Rwanda on July 31, 1980

' . FOR IMMEDfATE RELEASE eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/2 July 31, 1980 IDA APPROVES $7.5 MILLION CREDIT FOR TELECOMMUNICATIONS PROJECT IN RWANDA The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a $7.5 million credit to Rwanda to help improve its telecommunications facilities. The $17.5 million Telecommunications Project is a major part of the country's 1980-84 investment program in the utility. Telephone usage has been conservatively estimated to grow at 20% 2nnually during this period and the project aims to introduce or improve service in several areas in the country. • The project will lead to the expansion of urban cable networks in several towns and the number of subscribers installations in some centers . Exchanges will be replaced or installed in Rwamagana. Call-charging equip- ment will be set up in Kigali and exchanges will also be adapted for inter- face with a new automatic inter-urban exchange. In addition, microwave equipment will be installed and some 1 ink equipment will be replaced with more re li ab 1e ones that wi 11 have increased capacity. As it is expected that the telex services will be saturated during the 1980-84 period, the telex exchange at Kigali will be expanded and tele- printers will be provided for 100 adrlitional telex subscribers. Voice frequency telegraph equipment will also be installed at 12 centers. The IDA credit is for 50 years, includ·~g 10 years of grace. It will be interest free except for a service charge of 3/4 of 1% per year to cover IDA's administrativ~ expenses. The Governments of France and Canada will contribute $3.9 million and $4 million, respectively, to the project costs and the Government of Rwanda, $2. 1 mill ion. NOTE: Money figures are exp~essed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECH N I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Telecommunications Rwanda $17.5 • IDA FINANCING: $7.5 million, standard IDA terms OTHER FINANCING: Fonds d'Aide et de Cooperation and Caisse Centrale de Coopiration Economique of France, $3.9 million; Canadian International Development Agency, $4 million; and Govern- ment of Rwanda, $2. 1 million IMPLEMENTING ORGANIZATION: Direction Generale de T~lecommunication Ministere des Pastes et des Communications Boite Postale 720 Kigali, Rwanda CABLE: MINI POSCO KIGALI TELEX: 04 TUBKGLRW PROJECT DESCRIPTION: The project includes: a) expansion of urban cable networks in several towns and the number of subscribers installations in some centers; b) installation and replacement of exchanges as well as setting up of call-charging equipment and adaption of exchanges for interface with a new inter-urban exchange; c) installation of an automatic inter-urban exchange and microwave equipment. as well as replacement of some link equipment with more reliable ones that will also h· increased capacity; d) expansion of the telex exchange at Kigali and provision of tele- printers for 100 additional telex subscribers and installation of voice frequency telegraph equipment at 12 centers; e) purchase of miscellaneous items such as vehicles and tools; f) construction of a warehouse and other project-related buildings; and g) technical assistance and training. PROCUREMENT: All equipment financed by the IDA credit, except for about $0.5 million worth, will be procured through inter- national competitive bidding. CONSULTANTS: To help design and implement new systems 90 st~ff-months of telecommunications experts and 10 staff-months of financial experts will be needed. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 18% 1985 - 0 - •