Announcement of Improved Telephone and Telex Services Aim of Morocco Project on April 23, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 87/54 Contact: Fawzi Rihane (202) 477-5325 IMPROVED TELEPHONE, TELEX SERVICES AIM OF MOROCCO PROJECT WASHINGTON, April 23 -- The quality of telecommunications services in Morocco is expected to improve substantially between now and 1994 as the result of a World Bank-supported project. A Bank loan of $125 million will assist the first telecommunications project which aims at expansion, improvement and modernization of Morocco's telecommunications network. Existing telecommunications services in the country -- telephones, telex, data systems, mobile land and maritime radio -- are concentrated in urban areas, but some form of telecommunications is available in most provinces and rural areas. Though existing facilities are reasonably well-equipped and operated, the quality of service is a problem. Demand remains quite high. At the end of 1986, about 169,000 applicants were on the waiting list for telephone service and the waiting time was seven years. Waiting time for a telex connection is currently two years. it The project is expected to satisfy about 80 percent of the demand for telephone service by 1994; demand for telex and specialized services would be met fully by that time. Specifically, the project, which is an integral but self-contained part of the Office National des Postes et Telecommunications du Maroc (ONPT), comprises: (a) installation of exchange capacity of about 290,000 telephone lines together with associated external plant and transmission equipment which includes replacement of obsolete line distribution networks; (b) automation of networks for about 20,000 subscribers in distant rural districts, and provision of service to 89 isolated areas; (c) improvement and expansion of specialized services; (d) strengthening of ONPT's subscriber line connection, maintenance and service quality monitoring capacity; (e) improvement of common service facilities; and (f) training and technical assistance. The total cost of the project is $674.5 million, with ONPT providing $359.6 million and bilateral sources expected to provide $189.9 million. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents. 綢 l