Announcement of Uruguay to Receive World Bank Loan for Tele Communications Project on July 9, 1981

<>' C o ·. 0 . ul818 H Street/N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 " 0 BANK NEWS RELEASE NO. 82/2 J u 1y 9 , 19:a 1 URUGUAY TQ",:,REC.EI VE WORLD BANK LQAN FOR TELE COMMUNICATIONS PROJECT The. World Bank today approved a $40 million loan to Uruguay for a project to improve and expand ,> the country's telecommunications services. Funds from the World Bank loan wi 11 be used by the Admini stracion Nacional de 11 Telecommunicaciones (ANTEL) to help finance part of its 1981-85 telecommunic~tion investment program. T( he investment program aims to improve the quality and rel ia- 1 bi 1 ity of telephone, tklegraph, and telex services Ln Uruguay through the large- scale replacement of w~~rn and obsolete switching equipment and cabl~s, and to in- crease 'the number of ~ain lines from about 221,000 in 1981 to aboutl~66,000 by the end of 1985. In the capital city of Montevideo, project works will include the installation of 208,800 lines for local automatic telephone exchanges to replace obsolete and faulty lines and'to meet demand; the provision of cables and telephones to"connect abou~ 60,000 main lines; and the replacement of existing deteriorated locat cabies. In the rest of the country, about 19,700 local automatic exchange equipment lines will be installed to replace some manual exchange equipment, and to expand the e~isting automatic exchanges. Cables and telephones will be provided to connect about 13,000 additional main lines. To facilitate long-distance and international communications, a combined national and international automatic exchange will be installed as well as a standard A earth station for satellite communicatio~~ Consultant services will also be provided to assist ANTEL in the management and execution of the project and the improvement of its financial management and personnel policies, and to carry out tariff studies. The project is expected to greatly improve domestic and international telephone service in Uruguay, resulting in better contact~ with the international business · 0 community, and increased efficiency in industry. Commercial co-financing amounting to $40 million is expected tO'-'be associated with the World Bank loan at some time in the future. The World Bank loan has a term of 15 years, including three years of grace, and bear~ interest at 9.6% per annum. NOTE: M~ney figures are ~xpressed in U.S. dollar equivalents~  ') O,.;, . (,; II GOUN1')[R.Y~: " Q TOTAL COST: ..\ \\I . " Tel~~omm~nications " C) ,J 0 Urbgfhiiy r, ,2~04.& ) 1.:} ~-.1 ,, mi 1i ion C . l • 8;/lN K· F1NANc· 1NG,: $40; mi r°'f ion, ·repay$bl e in 15 years, inc 1ud i ng three years of grace, wi,th intere,~t at 9.6% per annum 0 . \',; OTHER F f,NANC I NG: ~9mmercra i · cb-f i nan~ i ng, $40 ri, i 1J lon; Adm (n i strac ion Na!c i ona 1 de Te 1e,~onvnun i cac'lones,. $124. 8 mi ,11 ion · 0 0 ,.,. ,11 ·S IMPLEMENTING ORGAN~~'jZATION:.1c:A'dm,!,nl~tracion· National de Telecommupicaciones (ANTEL) 0 ~ P~~aguay 2431 Montev·ideQ,, Uruguay ,) \) The p~ojec;t includ~s -:(a) ·ln Montevideo, installation of PROJECT DESCtt'tPTION: a tot,aJ .of 208,800 lines of local automatic tefephone exchange equipm@!lt and th~ retiremeht of about 99,000 local exchange equipment lines; associated cable~and telephones to~connect about 60,000 main lines; and replacement of existing deteriorated local cables; (b) ln the rest of the ·country, lnstallat,loh 1 • of about 19,700 local autqmatlc exchangeneq~t~ment line to replace some manual ex- . change equipment, and to expand existing automaiic ~xchanges; associated cables and telephones to connect about 13,000 additional main lines; (c) a station for satellite communication; (d) c, combine national and international .autd'rnatic exchange with a 0 tot-l of about 4,200 terminations including terminations for about 1,300 long distance and 900 international circuits; about 900 additional natronal long distance circuits; (e) butl~gs to house equipment; and (f) consultants to assist in project execution" and institution building aspects~ PROCUREMENT: Al 1 goods financed under the World 6ank loan wi 11 be pro- cured through international competitive bidding. Certain . goods, such as internc1l wires, cable ducts, etc., which are· manufacture;d locally wi 11 be financed by ANTEL and procured through competitive bidding from domestic suppliers. \. CONSULTANTS: Consultant services totaling 279 man-month~>; wi 11 be re- qui red to assist::,ANTEt in project manc1gemen't and execution; and the improvement of organization, salaries, staff plan. maintenance, financial management; and to car.ry out tariff studies. ECONOMIC.RATE OF RETURN: 30% ESTIMATED COMPLETION DATE: 1985 - 0 -