Announcement of Jordan Expands Telephone Service on June 16, 1988

FOR IMMEDIATE RELEASE 'VorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 88/84 Contact: Fawzi Rihane (202) 473-2675 JORDAN EXPANDS TELEPHONE SERVICE WASHINGTON, June 16, 1988 -- To promote the continued growth of its services sector, Jordan is launching a project to expand telephone services and improve the country's telecommunications network. The World Bank is supporting the project with a $36 million loan. The services sector dominates Jordan's economy, accounting for about three-fifths of the country's gross domestic product. But the sector cannot be expected to continue to grow without reliable, modern communications services. The $338.1 million project will finance the establishment of more than 200,000 new telephone lines, microwave and cable transmission links, computer systems, a satellite-earth station, and other key equipment. It also includes measures that will streamline the operations of telecommunications agencies, particularly the Jordan Telecommunications Corporation, and increase efficiency and lead to commercialization of the system. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.72 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 in U.S. dollar equivalents.