Ecuador - Telecommunications Project

Document of The World Bank FOR OFFICIAL USE ONLY 4A' 3o0Z- Report No. P-4755-EC MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$45 MILLION TO THE INSTITUTO ECUATORIANO DE TELECOMUNICACIONES WITH THE GUARANTEE OF THE REPUBLIC OF ECUADOR FOR A FIRST TELECOMMUNICATIONS PROJECT MARCH 27, 1989 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY AND EQUIVALENT UNITS Currency Unit = Sucre US$ 1 S S.250 (at appraisal - Dec. 1987) - S.500 (on January 1988) FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES metric system ABBREVIATIONS AND ACRONYMS CDC - Commonwealth Development Corporation DEL - Direct exchange (telephone) line ETAPA - Empresa Publica Municipal de Telefonos, Agua Potable y Alcantarillado GDP - Gross Domestic Product ICB - International competitive bidding IDD - International direct dialing IETEL - Instituto Ecuatoriano de Telecomunicaciones ITU - International Telecounmnication Union MIS - Management information system OECF - Overseas Economic Cooperation Fund (Japan) O&M - Operations and maintenance PBX - Private branch exchange PCO - Public call office PSML - Public Sector Management Loan STD - Subscriber trunk dialing  FOR OFICUL USE ONLY FIRST TELECOIMUNICATIONS PROJECT Loan and Project Summary Borrower: Instituto Ecuatoriano de Telecomunicaciones Guarantor: The Republic of Ecuador Amount: US$45 million Terms: Seventeen years including a five-year grace period, at the Bank's standard variable interest rate Financine Plan: US$ miUion IBRD 45.0 CDC 27.0 Italy 5.7 France 47.2 Japan 45.0 Spain 6.7 Brazil 7.7 Mexico 8.1 Other sources 17.5 LA IRTEL 120.1 To,tal 330.0 Economic Rate of Return: 31% Staff Appraisal r Report: Report No. 7132-EC Man: IBRD 20053 L& Financing to be secured in conjunction with procurement (price and terms bidding). This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not oiioerwise be disclosed withovt World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE INSTITUTO ECUATORIANO DE-TELECOMUNICACIONES FOR A FIRST TELECOMMUNICATIONS PROJECT 1. The following memorandum and recommendation on a proposed loan for US$45 million to the Instituto Ecuatoriano de Telecomunicaciones (IETEL), with the guarantee of the Republic of Ecuador, is submitted for approval. The proposed loan would be for a 17-year term including 5 years grace at the Bank's standard variable interest rate and would help finance a telecommunica- tions project. Commonwealth Development Corporation (CDC) is expected to provide