Announcement of IDA Assists Telecommunications Project in Tanzania on July 23, 1981

. . . . ·. ·. FOR IMMEDiA TE RELEA~ , cl • • • : • •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477 ~1234 IDA NEWS RELEASE NO. 82/2 July '23, 1981 IDA ASSISTS TELECOMMUNICATIONS PROJECT IN TANZANIA Telecommunication services in Tanzania will be improved with the assistance of a credit of SDR 22.1 million ($27 million) from the International Development Association (IDA), an affiliate of the World Bank. The demand for telephone services in Tanzania is now heavier than the system was designed to handle. All systems are heavtly congested during the daytime, and transmission lines are frequently out of order. More than three quarters of the rural population have almost no access to any telecommunication services. The telecommunications project, with a total cost of $47 ~illion, wil: cover part of the current five-year investment program of the Tanzania Posts and Tefe- communications Corporation (TPTC). The project will connect 90 district centers and other rural towns to the telecommunications network, and improve the principal • long distance networks. It also aims at improving TPTC as an institution, to help it generate more local revenue and to increase its capacity for training. Installation under the project wi11 include overhead line routes, VHF/UHF and microwave links, cable networks, and equipment such as teleprinters and special vehicles. Training facilities will be completed. As a test, a digital telephone exchange will be installed in Zanzibar city. The project will also finance a study of the impact of improved telecommunications on economic and social development. The telecommunications services in Tanzania were taken over by TPTC in 1977, after the breakup of the East African Community. Prior to 1977, the World Bank made three loans totaling $55.9 million for the improvement of the Community's tele- communications services. The Tanzanian part of the project supported by the third loan. is expected to be completed !n 1981. The IDA credit to the Tanzanian government will be for a term of 50 years, including 10 years of grace. It wi 11 be interest-free but wi 11 carry a service charge of 3/4 of 1% per annum to cover IDA's administrative costs. The credit will be committed when funds are available. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amo:1;1t of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit . • FOAM NO. 1121 (5-76) T E C HN I CA L DAT A PROJECT: Telecommunications ~ COUNTRY: Tanzania TOTAL COST: ·$47 mi 11 ion I DA FI NANC I NG : SOR 22~1 million ($27 million}, s~andard IDA terms OTHER FINANCING: Tanzania Posts and Telecommunications Corporation (TPTC}, $20 mi 11 ion IMPLEMENTING ORGANIZATION: Tanzania Posts and Telecommunications Corporation PoO. Box 9070 Dar es Salaam, Tanzania CABLE: TANPOSTEL DAR ES SALAAM TELEX: 41054 PROJECT DESCRIPTION: It includes: a) construction of about 550 kilometers of over- head line routes, of about 12 VHF or UHF radio links and of 4 microwave links; installation of about 850 channels of rural carrier equipment and power supply equipment, of about 600 additional channels of multiplex :quipment in br?adband' transmission systems, and of a digital telephone e~change in Zanzibar; b) expansion of local cable network at about 90 urban and rural centers, and provision of dropwire and o about 700 teleprinters; c) provision of cement and other construction materials; d) pro- vision of an air-conditioning plD,t, vehicles, training equipment, and spare parts; and e) provision for studies, overseas training, and fellowships. PROCU.REMENT: All equipment to be financed under the project will be bulkad as far as possible and procured on the basis ~f international competitive bidding in accordance with Bank guidelines. Contfacts for ve~icles, construc- tion materia1s, sundry maintenance equipment and other spare parts costing less than $150,000 each, but not exceeding an aggregate of $b ~ 75· mi 11 ion. wi 1°l be awarded· fo 11 owing TPTC's prcicurement procedures. Except for construction materials, none of the material and equipment to be financed under the project are manuf 9 ctured in Tan~ani?, and are expected to be imported. CONSULTANTS: Consultants w111 be hired to study the impact of improved tele- communications services on the economic and social development of Tanzania. tCONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 24% 1985 - 0 - • 11 52 r