Announcement of Twenty-Five Million US Dollars Loan to Ivory Coast for a Telecommunications Project on May 2, 1974

• 1818 H STREET, N.W .. WASHINGTON Bank . Press Release No. 74 /26 May 2, 1974 D. C. 20433 Subject: TELEPHONE: EXECUTIVE 3-6360 $25.0 million loan to Ivory Coast for a Telecommunications Project. The World Bank has approved a $25.0 million loan to the Republic of Ivory Coast to help finance the extension and improvement of the country's local and long-distance telecommunications services. In recent years the pace of domestic telecommunications development in the Ivory Coast has fallen far behind that of general economic development. Consequently, telecommunications facilities are now inadequate to meet the -country's current needs let ,lone those that will develop as a consequence of new economic development projects and programs now being initiated or in the planning phase. As of January 1, 1973, the Ivory Coast had about 20,000 direct exchangt: lines and 45,000 telephones. The Abidjan area has an effective terminal exchange capacity of about 17,400 automatic lines of which 15,000 are connected. The long-distance telecommunications network consists of about 110,000 channels/kilometer. Domestic telegraph service • is provided through the telex and telephone facilities. Telex service is provided by a 500-line exchange located in Abidjan • The responsibility for Ivorian domestic telecommunications rests with the Administration des Postes et Telecommunications (APT). As a branch of the Ministry of Post and Telecommunications, APT operates the usual postal services, a nationwide public checking account service and the national savings bank. International telephone, telegraph, telex and data transmission services are provided and operated by a company jointly owned by the Ivorian Government and the French company, France Cable et Radio (FCR). The 1974-1978 telecommunications development program which constitutes the present project provides for investments totaling $53.6 million. The Bank loan of $25.0 million will finance 47% of the total project cost. The remaining will be financed through grants and loans of $2.8 million from French Government Agencies and Ivory Coast Government and $2.9 million in suppliers' credits. APT will finance 43% of the project from internal cash generation. The purpose of the program is to provide Abidjan and numerous local communities with an adequate level of service to meet demand thru 1980; to improve the facilities in rural communities and provide necessary support for the Government's regional development efforts; to improve the quality of speech and speed of connection in both the local and long-distance services; and to establish the tele- • communications service on a technically and financially sound basis for future operations an.d development. The loan will have a term of twenty years including five years of grace with interest at 7-1/4% per annum. Note: Money figures are expressed in US dollars equivalents. TECHNICAL DATA PROJECT:. Telecommunications Project May 2, 1974 • COUNTRY: Ivory Coast TOTAL COST: $53.6 million equivalent BANIC FINANCING: $25.0 mL!..lion, term of twenty years including five years of grace with interest at 7-1/4% per annum. OTHER FINANCING: Bilateral assistance, Government grants, and suppliers' credits $5.7 million; APT internal cash generation $22.9 million IMPLEMENTING ORGANIZATION: Administration des Pastes et Teleconnnunications, Ministere des Pastes et Telecommunic·ations, Abidjan, IVORY COAST. PROJECT DESCRIPTION: Automatic switching equipment for about 39~000 exchange lines, the extension and rehabilitation of local distribution networks, ten high-capacity microwave and • two VHF links additional carrier equipment, telex facilities and related buildings, power plants, equipment, training consultant's eand expert services. PROCUREMENT: Procurement of all Bank financed equipment which represents about 63% of the project's foreign cost and 4 7% of its. total cost will be on the basis of the Bank's guidelines for inter- national competitive bidding. There are no domestic preferences. Part of the equipment for the project, financed from other sources has either already been ordered under suppliers' or. bilateral financing or, for reasons of standardization, will be ordered from known sources on a negotiated contract basis. Buildings and civil works and minor local cost items will be procured locally following the Government's normal procurement procedures. CONSULTANTS, TECHNICAL ASSISTANCE: Consultants will be employed for detailed engineering, supervision of equipment installation, improvement of accounting services, tariff and institutional studies, and technical training of telecoDD11unication staff. ESTIMATED COMPLETION DATE: Dec:em.ber 31, 1978 -0- •