Announcement of Papua New Guinea Upgrades Telephone Service on January 8, 1990

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/41 Contact: Marjorie Messiter (202) 477-3642 PAPUA NEW GUINEA UPGRADES TELEPHONE SERVICE WASHINGTON, January 8, 1990 -- Telecommunication services throughout Papua New Guinea will be improved and expanded through a project which is being supported by a $17.2 million World Bank loan. Customers, especially businesses and people living in rural areas, are expected to benefit from higher quality service, reduced costs and increased access to public telephones. There is currently only one telephone for every 100 people, and the cost of service is high by international standards. Investments made under the project will improve local service by upgrading 27,000 telephone lines and adding 10,000 new ones. Long distance and international service will be improved by installing two new cransit exchanges and replacing existing transmission facilities with digital microwave systems. The Post and Telecommunication Corporation (PTC)--which provides all public telecommunications services in the country--will implement a series of measures to improve efficiency including training staff, introducing a computerized management-information system to monitor key performance targets, and improving the management structure. The World Bank loan is for 20 years, including five years' grace, with a variable interest rate, currently 7.74 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. Note: Money figures are in U.S. dollar equivalents.