Nepal - Fifth Telecommunications Project

Document of The World Bank FOR OFFICIAL USE ONLY MICROFICEjE COPY Report No. 10062-NEP Type: (SAR) Report No. 10062-NEP CRUZAT, A./ X82675 / F9 041/ ASTI' STAFF APPRAISAL REPORT NEPAL NEPAL TELECOMMUNICATIONS CORPORATION (NTC) FIFTH TELECOMMUNICATIONS PROJECT APRIL 8, 1992 South Asia Country Department I Asia Technical Department This documeut has a restricted distribution and may be used by recipients only In the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Banik authoiizatlon.  CURRENCY EOUIVALENS (As of September 1991) Currency Unit - Nepalese Rupee (Nrs) US$1.00 - Nrs 42.3 Nrs 1,000 - US$ 23.6 Nrs 1 - 100 paisa FISCAL YEAR July 16 - July 15 ABBREVIATIONS AND ACRONYMS DANIDA - Danish International Development Agency EIRR - Economic Internal Rate of Return FINNIDA - Finnish International Development Agency FIRR - Financial Internal Rate of Return IBRD - International Bank for Reconstruction and DeNelopment ICB - International Competitive Bidding ITU - International Telecommunications Union ISD - International Subscriber Dialing HF - High Frequency (3 - 30 Mhz) JICA G Japan International Cooperation Agency LCB - Local Competitive Bidding MARTS Multiple Access Radio Transmission Systems MOC Ministry of Communications NTC Nepal Telecommunications Corporation O&M - Operations and Maintenance PABX Private Automatic Branch Exchange PCO - Public Call Office STD - Subscriber Trunk Dialing UNDP - United Nations Development Program VHF - Very High Frequency (30 -300 Mhz)  FOR OFFICIAL USE ONLY NEP FIFTH TELECOMMUNICATIONS PROJECT Credit and Rr2iegt-Summary His Majesty's Government of Nepal (HMG) Beneiieaay Nepal Telecommunications Corporation (NTC) Amunt: SDR40.1 million (US$55.0 million equivalent) Lendine Terms: Repayable over 40 years, including 10 years of grace on repayment of principal. Relending HMG would onlend the funds to NTC in US$ at a variable Terms: interest rate based upon the six month LIBOR plus a spread of 3.5X for a period of 15 years, including 5 years of grace in repayment of principal. Proiect The proposed project aims to expand telecommunications ,blectivesa facilities ane provide new services, improve the quality of existing services, strenghten NTC and address major sector organization issues. It would provide about 60,850 net additional telephone lines, expand national and international long distance facilities, and engage consultants to strehgnthen NTC and address sector organization issues. It would benefit all sectors of the economy through improved access to telecommunications facilities and improved service quality. About 50,000 new subscribers would gain access to the network, which would provide a partial substitute for, and contribute to the overall efficiency of physical transportation. The project faces no special risks. EstiMated Costs: US$ Million -- Local Foreign Total Equipment & Services 5.6 80.0 85.5 Civil Works 9.0 6.0 14.0 Consultanoy 0.0 3.0 3.0 Total page Coat 14.5 89.0 102.5 Physical Contingenoy 1.6 4.6 6.0 Price Contingency 3.0 5.0 8.0 Total Prolect Cost La 19.0 97.6 116.5 Int. During Construction 6.5 1.0 7.5 (lD%Z') total Flnanolnu Required 25.6 98.5 124.0 La the prolect cost Inoludes an estimated IJ9t.3 mililon equivalent In duties. 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.  it Fiancming Plan: US$ million Source of Financing Local Foreign Total DANIDA, Denmark 0.0 18.0 18.0 FINNIDA, Finland 0.0 11.0 11.0 Japan 0.0 8.6 8.6 Nepal (NTC) 25.5 6.0 31.5 IDA 0.0 55.0 55.0 Total Financing 25.5 98.5 124.0 Eatimated IDPA DisburseMent:t MIA I7isca yen