Colombia - Fourth Telecommunications Project

Document of ; The World Bank FOR OFFICIAL USE ONLY Report No. 7893 PROJE,CT COMPLETION REPORT COLOMBIA FOURTH TELECOMMUNICATIONS PROJECT (LOAN 1450-CO) JUNE 22, 1989 Infrastructure and Energy Division Country Department III Latin America and the Caribbean Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Fox OFFCILu use ONLY THE WORLD BANK Washington. DC 20433 U.S A Oace d~ Ow.tw.GmfaI Op0atum Ihajwtrnn June 22, 1989 MEMORANDTUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Colombia Fourth Telecormunications Proiect (Loan 1450-CO) Attached, for information, is a copy of a report entitled "Project Completion Report on Colombia - Fourth Telecommunications Project (Loan 1450- CO)n prepared by the Latin America and the Caribbean Regional Office. No audit of this project has been made by the Operations Evaluation Department at thi': time. Attachment |Ths document has a restrieted distribution and may be used by recipients only in the performance a of their official duties. Its contents may not otherwise be disclosed without World Bank authoriation.  .' . .. AL IL... COLOMBIA LOAN 1450-CO FOURTH TELECOMMUNICATIONS PROJECT PROJECT COMPLETION REPORT Table of Conte-ts Page No. PREFACE ................................................... BASIC DATA SHEET .ii HIGHLIGHTS............ ..... ....... iv I. INTRODUCTION .1 II. PROJECT IDENTIFICATION, PREPARATION AND APPRAISAL 2 Origin .2 Preparation, Appraisal, Negotiation and Approval 2 Project's Role in Long-Term Plan ................. ....... 5 Project Description ............................. ........ 5 III. PROJECT IMPLEMENTATION. 6 Effectiveness and Start-Up. 6 Changes in Project Scope. 6 Implementation Schet'ule. 8 Project Cost and Financing .10 Disbursements and Financial Sources .12 Loan Allocation .13 Reporting .13 Procurement .14 Performance of Consultants and Contractors .14 IV. OPERATING PERFORMANCE .14 V. FINANCIAL PERFORMANCE .15 Financial Results .15 Financial Rate of Return .16 Financial Covenants .17 VI. INSTITUTIONAL PERFORMANCE .18 TELECOM Management aid Organization .19 Other Covenants .21 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwi e be disclosed without Wor!d Bank authorization.  Table of Contents (Cont.) Page No. VII. PROJECT JUSTIFICATION .................................. 21 VIII. BANK PERFORMANCE ...................................... 22 IX. CONCLUSIONS ............................................. 24 ANNEXES 1 Results of consolidation program .......................... 26 2 Telecom's basic data ........................ 27 3 Physical targets of the Project ........................... 29 4 Procurement schedule ...................................... 30 5 Summary of Project costs .................................. 31 6 Project costs ............................................. 32 7 Schedule of disbursements ................................. 34 8 Balance sheets ................. ......................... 35 9 Flow of funds ............................................. 36 10 Income statements ......................................... 37 11 Accounts receivable ....................... 38 12 Telephone and Telex service tariffs ....................... 39 13 Revenues and Participations for long distance. serv!.ces ...... 40 14 Rate of return calculation ................................ 41 15 Key performance indicators ................................ 42 ATTACHMENT 1. Comments from the Borrower . ...... . ........... . 43  i PROJECT COMPLETION REPORT COLOMBIA FOURTH TELECOMMDNICATIONS PROJECT (LOAN 1450-CO) PREFACE This is the Project Completion Report (PCR) for the Fourth Telecommunications PreJect in Colombia, for which Loan 1450-CO in the amount of US$60.0 million was approved on June 7, 1977. The loan was closed on March 31, 1986, 15 months behind schedule. The loan was not fully disbursed, with US$9.1 million cancelled. The last disbursement was on February 19, 1986. The PCR was prepared by the Infrastructure and Energy Division, Country Department III, of Latin America and the Caribbean Regional Office. The PCR is based on a final report prepared by TELECOM, on the Staff Appraisal Report; the Loan, Guarantee, and Project Agreements; supervision reports, correspondence between the Bank and the Borrower; and internal Bank memoranda. This PCR was read by the Operations Evaluation Department (OED). The draft PCR was sent to the Borrower for comments and they are attached to the Report (Attachment 1).  ii PROJECT COMPLETION REPORT COLOMBIA FOURTH TELECOMMUNICATIONS PROJECT (LOAN 1450-CO) BASIC DATA SHEET KEY PROJECT DATA TEM EXPECTATION ACTUAL