Announcement of World Bank Lends Thirty-Two Million Dollars for Two Development Projects in El Salvador on May 22, 1978

F9R IMMEDIATE R~LEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/92 May 22, 1978 WORLD BANK LENDS $32 MILLION FOR TWO DEVELOPMENT PROJECTS IN EL SALVADOR The World Bank approved two loans totaling $32 million to help finance a telecommunications project and an industrial and agricultural training project in El Salvador. The telecommunications development project is being supported by a $23 million loan. Over 600,000 low-income urban and rural dwellers will have access to telephone services for the first time in El Salvador as a result of the project, to be carried out by the national telecommunications agency. The industrial and agricultural training project will be assisted by a $9 million loan. The project will provide facilities to train each year some 15,000 to 18,000 farmers and rural and industrial workers, whose productivity · and incomes will improve as a result. • Both loans will have a term of 20 years, including 5 years of grace, with interest at 7a5% per annum. Telecommunications The cost of the third telecommunications project to be supported by the World Bank in El Salvador is estimated at $51.6 million. Under the project, the Bank will assist the Administracion Nacional .de Telecomunicaciones (ANTEL) to develop local networks in San Salvador, the capital, and other cities to meet part of the demand for local connections. The project includes the provision of telephone services to low-income urban areas, with at least 200,000 people, through 320 public call boxes. The project will expand telephone services to 200 rural communities providing access for the first time to 400,000 rural residents also through public call offices. It will upgrade and expand the internal long-distance network, and improve the quality of service. The project wil 1 also improve financial management and practices of the telecommunications authority. Through system capacity expansion, the project will help reduce the number of subscribers waiting--in some cases up to three years--for t~lephones. The project includes the installation of about 41,000 additional lines of local automatic telephone exchange equipment and the connection of about 36,000 addi- tional subscribers. • The two previous World Bank loans to ANTEL, of $9.~ million each, were made in 1963 and 1972 • • •• I NOTE: Money figures are expressed in U.S. dollar equivalents.  - 2 - Industrial and Agricultural Training The project will assist the Government in establishing a nationwide institutional structure for non-formal agricultural and industrial training • to meet the country's requirements for skilled manpower. It has an estimated total cost of $12.7 million. The project inc1udes construction, equipping, and furnishing of three industrial and nine agricultural training centers, ten mobile training units, and also facilities for training management and supervisory personnel and small- and medium-scale entrepreneurs. Technical assistance is also included~ The project will improve the workers'productivity and provide part of the trained manpower needed for the agricultural sector and the industrial di- versification of the Salvadorian economy. Some 5,600 skilled and unskilled workers, and about 9,600 to 12,000 farmers and rural workers will benefit annu- ally from the courses at the tralning centers. In addition, some 420 supervi- sory pers9nnel and entrepreneurs, and 250 agricultural technicians and profes- sionals will also benefit yearly from the training. Earnings of the farmers and rural workers who undertake courses at the rural training centers are expected to double within five years. - 0 - • • FORM NO. 1121 (5-76) T E C HN I CA L DAT A .PROJECT: Third Telecommunications Development COUNTRY: El Salvador TOTAL COST: $ 51 • 6 mi l l ion BANK FINANCING: $23 mil lion, for a term of 20 years, including a grace ~eriod of 5 years, with interest at 7.5% per annum. OTHER .FINANCING: Administracidn Nacional de Telecomunicaciones (ANTEL), $28. 6 mi 11 ion IMPLEMENTING ORGANIZATION: Administracio'n Nacional de Telecomunicaciones (ANTEL) San Salvador El Salvador PROJECT DESCRIPTION: It consists of: (a) installation of about 41,000 additional lines of local automatic telephone exchange equipment; (b) expansion of the local cable network and subscriber facilities to provide about 36,000 additional individual connections, as well as about 320 additional public cal 1 boxes to be installed in low-income urban areaswithatotal population of over 200,000; (c) installation • of two long-distance automatic exchanges with about 2,200 terminations; (d) installation of long-distance equipment on various routes to provide about 2,400 additional circuts; (e) expansion of the telegraph network by 300 channels; (f) installation of 600 teleprinters at subscribers' premises; and, (g) installation of about 200 long-distance public call offices in municipalities and rural areas with populations of 2,000 or more, currently without service. PROCUREMENT: All equipment to be obtained under the project with Bank financing will be procured through international competitive bidding in accordance with Bank guidelines. All local cost items, which are to be financed with ANTEL's own funds, will be procured through local competitive bidding procedures. Manufacturers from the Central American Common Market will be allowed a preference of 15% of the CIF price, or 50% of the tariff payable by non-CACM manufacturers, whichever is lower. ECONOMIC RATE OF RETURN: 16% EST I MATED COMPLETION DATE: 1982 • - 0 - FORM NO. 1121 (5-76) T E C HN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Industrial and Agricultural Training El Salvador $ 12 • 7 mi i 1 i on • BANK FINANCING: $9 million, for a term of 20 years, including 5 years of grace, with interest at 7.5% per annum. OTHER FINANCING: Government of El Salvador, $3.7 millidn ~MPLEMENTING ORGANIZATION: Ministerio de Trabajo y Asistencia Social Calle Arce No. 827 San Salvador, El Salvador PROJECT DESCRIPTION: It consists of: (a) construction, equipping and f,, ..... ·;;;hing of three industrial training centers, and equipping and furnishing of ten mobile training units; (b) construction, equipping, and furnishing of fa- cilities for training a total of 420 supervisory personnel and small- and medium-scale en- trepreneurs each year; (c) construction, equipping, and furnishing of nine new agricultural training centers including facilities for a national center and eight regional centers; an~ (d) technical assistance to the Government for project implementation and evaluation, for initiating new training programs, and for strengthening the institutional framework for national vocational training. PROCU.REMENT: Contracts for furniture and equipment will be awarded on the basis of international competitive bidding in accord- ance with Bank guidelines. Furniture and equipment that cannot be grouped into packages of at least $50,000 (but not exceeding in aggregate $300-,000) will be procured through local bidding procedures. Suppliers from the Central American Common. Market (CACM) countries will receive a preferential margin in bid evaluation equal to 15% of the· C,.I.F. cost of imports, or 50% of the tariff payable by non-CACM manufacturers, whichever is lower. Contracts for civil works (estimated to total $6.2 million) will be awarded on the basis of competitive bidding advertised locally in accordance with procedures acceptable to the Bank. CONSULTANTS: The technical assistance component includes 315 man-months. of consultant services in agricultural, industrial, and management training, and in project administration. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: n.a. 1982 - 0 - •