Announcement of IDA Assists Telecommunications Project in Sri Lanka on May 19, 1980

FOR IMMEDIATE RELEASE .VorldBank 1818 H Street, N.W ., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/70 May 19, 1980 IDA ASSISTS TELECOMMUNICATIONS PROJECT IN SRI LANKA The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $30 million to help finance a telecommunications project in Sri Lanka. Sri Lanka has 0.36 telephone 1 ines per 100 population, which is about the average of developing countries in Asia, but poor compared with developed countries. Replacement and expansion of telecommunications facilities are needed in urban areas to meet part of the unsatisfied demand and to relieve congestion. In smaller towns and more remote areas the service needs considerable improvement and expansion. The $36.3 mill ion project is designed to improve telecommunications services in Sri Lanka through the installation of 17,000 1 ines of local automatic switching equipment, about 16,000 new telephone connections, and • 250 local call offices. In addition 500 long distance public call offices will be established in rural areas currently without telephone service . The IDA credit to Sri Lanka is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents • FORM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Telecommunications Sri Lanka $36.3 million • I DA FINANCING: $30 mill ion credit on standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTING ORGANIZATION: Posts and Telecommunications Department Government of Sri Lanka Colombo, Sri Lanka PROJECT DESCRIPTION: The project consists of: a) installation of about 17,000 lines of local automatic switching equipment (including.8,000 lines for replacement), associated cables and subscribers plant, and a total of about 16,000 new telephone connections, and about 250 local call offices; b) installation of three new trunk automatic exchanges and expansion • of eight existing trunk automatic exchanges; c) the upgrading of two existing microwave systems, installation of five new microwave systems, about 150 UHF/VHF systems of differen· .izes and 5,200 channel ends; and d) about 500 long distance public call offices : 1 rural areas. PROCUREMENT: All goods to be financed by the credit will be procured through International Competitive Bidding (ICB), except for switching equipment ($0.7 mill ion) required for extension of existing combined local and trunk exchanges originally procured from Japan under a bilateral credit. CONSULTANTS: The project includes about 100 man-months of consultants. ECONOMIC RATE OF RETURN: 33% ESTIMATED COMPLETION DATE: 1984 - 0 - •