Announcement of Thirty-Seven Million US Dollars Loan for Telecommunications in Thailand on November 16, 1972

INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360. Bank Press Release No. 72/65 Subject: $37 .O million loan f·or tele- November 16, 1972 communications in Thailand A World Bank loan of $37.0 million is helping to finance expansion and iruprovement of teleconnnunications services in Thailand. Besides providing an essential service for the Thai economy, the project will further the development of the provinces by im- proving long-distance services to rural areas. With a national network of about 161,000 exchange lines in Bangkok and 37,000 in the provinces: there is an urgent need for a considerable expansion of services to meet present unsatisfied demand. A 1972-76 Development Plan being carried out by the Telephone Organization of Thailand (TOT), a State enterprise operating all national telephone services, will double the capa.ci ty of the telephone network. Mlst of the new connections will be for business and agricultural-related purposes. The project being assisted by the Bank covers the first phase of this Plan. Under the proje9t, service in the Bangkok metropolitan area will be improved by installing approximately 88,000 lines of automatic switching equipment, three new exchanges, and associated subscriber and junction line plant. In the provincial net- • works, small manual exchanges will be replaced with automatic ex~hanges of higher capacity, and approximately 43,000 lines of such exchange equj_pment and associated subscriber line plant will be installed. Some 23 new trunk routes to serve regional centers will also be set up~ and existing routes will be expanded. Progressive introduction of subscriber trunk dialing is expected to start in 1974. The project is scheduled for completion in 1976 and is to be ex~cuted by TOT at an estimated total cost of $102.8 million. Of this amount, $37 million will be financed by the :;Bank loan and the re:ma.inder by internally generated and Government funds, and by bilateral loans and suppliers' .credits obtained by TOT. The Goverruner.tt of Thailand has undertaken to cover any financing gap~ The Bank loan is being made to TOT, with the gua~ntee of the Kingdom or 'l'hatland, for a term of 20 years, including four years of grace, at 7~ interest per annum~ Twenty-six financial institutions in France, Japan and the United States ar@ participating in the Bank loan for a total amount of approximately $4.4 million equivalent. They are: The Mitsubishi Trust & Banking Corporathm, Tokyo; The Dai-Ichi Kangyo Bank, Limited, New York Agency; The Toyo Trust Jc Banking Co. , Ltd. , Tokyo; The Hokkaido Takushoku Bank, Limited, Sapporo; The Sumitomo Trust & Banking Co., Ltd., Tokyc,; The Mitsui Trust & Banking Co., Ltd., Tokyo; Security Pacific National Bank, Los Angeles:; Western Pennsylvania National Bank, Pittsburgh; Franklin National Banlc; New York; American National Bank & 1\---a.st of New Jersey, Mol;"ristown; Central National Bank ir1 • Chica.go; The Tokai Bank, Limited, Nagoya, The Detroit Bank & Trust Company; The Fidelit,y Bank, Philadelphia; The Sanwa Bank, Limited, New York Agency; The Kyowa Bank, Limited, Tokyo; The Bank of California N.A., San Francisco; The Bank of Tokyo, Limited, Tokyo; First l'iational Bank of Minneapolis; First Wisconsin National Bank of Milwaukee; The Saitama. Bank, Limited, Saita.ma Prefectu:re; Banque de l 1 Indochine, Paris; The First National Bank of Memphis; First Western Bank & Trust Company, Los Angeles; Bank of America, New York; and Beverly Ba.r-k, Chicago. - 0 -  • November 16, 1972 TECHNICAL DATA PROJECT: Telecommunications COUNTRY: Thailand TOTAL COST: $102. 8 million BANK FINANCING: $37.0 million loan, 20 years including four years of grace, with interest at 7'!t;lo per annum. OTHER FINANCING: Internally generated funds, and bilateral loans and suppliers' credits obtained by the Telephone Organization of Thailand (TOT) • IMPLEHENTING ORGANIZATION: PROJECT DESCRIPTION: TOTs Bangkok, Thailand .. The first phase of TOT's 1972-1977 De',;·elopment Plan, including the installation of approximately 88, OUl) lines of automatic • owitching equipment and associated plant in Bangkok; the installation of approximately 43,000 lines of automatic switching equipment and· essociated plant in provincial networks; expansion of trunk routes and the introduction of subscriber trunk dialing; studies of tariffs, organization and operations. PROCUREMENT: Telephone cables, exchange switching and transmission equipment, subscriber apparatus and motor vehicles financed by the loa.~ will be purchased through international competitive bidding, with the exception of extensions to certain exchanges where direct compat.ibility is essential for efficient use of existing equipment. These extensions will be purch~~~d from the original suppliers, at prices based on contracts awai:rkd previously after international competitive bidding. CONS'v"LTANTS: Consultants will be employed to assist in the preparation of specifications, supervision of the project and acceptance testing. ESTIMATED OOMPLETI~ DATE: 1976. - 0 - •