Announcement of World Bank Assistance to Improve Telecommunications in Philippines on February 21, 1985

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 85/29 Contact: P.B. Sison February 21, 1985 (202) 477-3573 WORLD BANK ASSISTANCE TO IMPROVE TELECOMMUNICATIONS IN PHILIPPINES The World Bank has approved a loan of $4 million to finance a technical assistance project to strengthen telecommunications services in the Philippines. The major objective of the project is to establish the National Telecommunications Commission (NTC), within the Ministry of Transportation and Communications (MOTC), as an effective regulatory agency and to strengthen its ability to promote sound development of the telecommunications sector. The project is also designed to lay the groundwork for rationalizing the tariff system for telephone services and to create procedures for assigning radio frequencies efficiently. Further, the project aims at updating MOTC's telephone network plan, based on the latest forecasts for demand and on available technology, and at expanding staff training. A series of studies on the economic, engineering, and financial aspects of the current tariff system will be carried out. The studies are aimed at promoting the timely adjustment of tariffs when needed and at making them more equitable. Another aim is to provide incentives to operating companies to expand their services in less profitable areas and to improve the quality of service. Consultants will be hired to help the NTC develop an effective organizational structure and staffing plan, and the ability to be financially autonomous. The NTC will acquire remote computer terminals, monitoring vehicles, and test instruments to strengthen its ability to manage the radio frequency network. The need for more advanced training in new technologies will be reviewed. Specific training needs will be determined to ensure that NTC staff are qualified to regulate operations in the telecommunications sector. Consultants will also review and revise the existing plans and programs for the telecommunications network. The project is estimated to cost $4.8 million. The Government of the Philippines is contributing $0.8 million towards the cost. The World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 9.29 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.