Announcement of Ghana Receives Twenty-Three Million US Dollars Loan for Telecommunications on June 10, 1975

• 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank News Release No. 75/57 June 10, 1975 GHANA RECEIVES $23 MILLION LOAN FOR TELECOMMUNICATIONS The World Bank has approved a loan of $23 million to the Ghana Posts and TelecommunicatioraCorporation (GPT) to help finance a telecom- munications project. This will be the firs_t World Bank Group-assisted project in Ghana to be financed on conventional terms since 1969, when the Bank made a second loari to the Volta River Authority. The project will be the first phase of GPT's program of improve- ment and expansion of domestic telecommunications services. The project consists of the installation of 18,300 lines of automatic telephone exchange equipment, improvement and extension of long distance facilities, and the expansion of the telex system. The project also includes provision of engineering and financial consultancy services and the training of staff. • The 18,300 new lines will replace 9,000 lines of existing unser- viceable equipment and provide for 9,300 additional lines of exchange capac- ity. Cable and subscriber distribution networks with subscriber apparatus for a total of about 16,000 additional telephone connections will also be provided. The improvement and expansion of long distance facilities will include a new microwave link between K111nasi and Takoradi, replacement of the existing Accra-Terna link, and installation of addition~l multiplex and switching equipment on new and existing trunk routes. The expansion of the telex system will consist of the installation of 250 additional lines in the existing exchange in Accra, with conversion to semi-automatic operation in the international service, and the establishment of a new telex exchange of 50 lines in Kumasi. The project will provide a number of towns connected with mining and timber production with access to good communicatiorsfacilities; improve communications between Takoradi and Terna, the principal ports of the country, and production centers in the interior; and assist the Government in better- ing its service to agriculture by providing good and timely information on crop protection, collection and marketing. The loan is for a term of 25 years, including five years of grace, with interest at 8-1/2% per annum • • Note: Money figures a.re expressed in US dollar equivalents.  T E CHNI CA L DAT A PROJECT: COUNTRY: Telecommunications Ghana • TOTAL COST: $29. 5 million BANK FINANCING: $23 million for 25 years, including 5 years of grace, with interest at 8~1/2% per annum OTHER FINANCING: Ghana Posts and Telecommunications Corporation (GPT) IMPLEMENTING ORGANIZATION: Ghana Posts and Telecommunications Corporation Headquarters Accra North, Ghana PROJECT DESCRIPTION: Installation of 18,300 lines of automatic telephone switching equipment; construction of new microwave link between Kumasi and Takoradi and replacement of the Accra-Terna link; expansion of the telex service by addition of 300 lines; and provision of consultancy services and train- • ing of personnel. PROCUREMENT: Equipment financed from the Bank loan will be procured through international competitive bidding in accordance with Bank guidelines, except some local switching and transmission equipment (about $2 million) for existing installations which will be procured from original suppliers for reasons of compatibili.ty. A local preference of 15% or the applicable import duties, whichever is the lower, will be applied in evaluating bids from local manu- facturers who may be interested in supplying subscriber apparatus. CONSULTANTS: Engineering consultants will be engaged to carry out detailed engineering, help in preparation of specifica- tions, bidding documents and evaluation of bids, and assist in the supervision of equipment installation; 140 man-months of consultancy services will be required. Financial consultants will be engaged for the implementation of improvements in accounting, internal audit and on-the-job training 9f staff; 12 to 14 man-months will be required. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: The internal rate of return is estimated at 18%. June 30, 1979 -0- •