Announcement of Three Million Six Hundred Thousand Dollars Credit for a Telecommunications Project in Mali on June 19, 1972

o"'~ ,:.1.0,,,,,~4.>- • INTERNATIONAL DEVELOPMENT ASSOCIATION ( ~) 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/37 Subject: $3.6 million credit for a tele- June 19, 1972 corrnnunications project in Mali The International Development Association (IDA), an affiliate of the World Bank, has approved a credit equivalent to $3.6 million to help finance a project designed to improve telecommunications in the Republic of Mali. Mali is a large land-locked country extending from the center of the Sahara in the north into savannah-type open forest regions in the south. Nearly 40% of its area is desert; another 40% is suitable for livestock production, leaving only 20% for rain-fed or irrigated agriculture. Mali's telephone density is extremely low, and the main concentration of tele- comrm.mications services is in Bamako, the capital, with the remainder of the vast country virtually uncovered. The inadequacy and cost of telecommunications service·- represents a major bottleneck to efficient organization of the country's production trade and public administration. To eliminate this bottleneck, the Government has decided to double investment in telecommunication services in the forthcoming developroont plan. This -would provide • sufficient capacity to cover the existing backlog and projected future demand t.hrough 1976 • The project, which comprises the 1972-1975 telecommunications investment program, aims at the rehabilitation and expansion of principal local and long-distance telephone facilities to improve the network and quality of service. In addition to general improvements in function and service, the project specifically includes rehabilitation of existing switching equipment, replacement of manual equipment by automatic switching, rehabilitation and expansion of existing cable and subscriber networks and construction of a microwave link between the capital, Bamako, and the towns of San and MoptL Financial rehabilitation of the Telecormnunications Department including the imple- mentation of a modem accounting system is an important part of the project. Office des Pastes et Telecommunications du Mali (OPTM) will have overall responsibility for execution of the project. Construction of the main -works, however, is to be carried out by the equipment suppliers under the supervision of consultants. OPTM' s staff will receive training in the maintenance of equipment. The project also provides for training and advice to Malian counterparts in managerial and technical capacities. Total project costs are estimated at $4.J million with a foreign exchange component of $3.1 million. The IDA credit of $3.6 million will finance 84% of total costs, covering the foreign exchange component, and 45% of local expenditures. The balance, $0. 7 million equivalent, would be financed by OPTM. The proceeds of the credit will be relent by the Government to OPTM at ?!% interest per annum to be repaid in 20 years, including a grace period of four years. There will be a service charge of 3/4 of 1% to meet IDA's administrative expenses .. • - 0 -  • June 19, 19 72 TECHNICAL DATA PROJECT: Telecommunications C.OUNTRY ~ The Republic of Mali TOTAL COST: $4.3 million IDA FINANCING: $3.6 million, 20 years~ 4 years of grace, 3/4 of 1% service charge to cover IDA's administrative expenses. OTHER FINANCING: Net intemal cash generation, $0. 7 million. IMPLEMENTING ORGANIZATION: OPTM, Bamako, Mali. OPTM will have overall responsibility, but construction of the main works will be by the· equipment suppliers under the supervision of consultants. PROJECT DESCRIPTION: Rehabilitation of existing switching equipment and • replacement of manual equipment by automatic switching equipment; rehabilitation and expansion of existing cable and subscriber distribution networks and construction of a microwave link between Bamako, Segou, San and Mopti; introduction of modem accollllting system and financial rehabilitation of the Telecommunications Department of the Office des Postes et Telecommunications du Mali (OPTM). PROCURE11ENT: Buildings, vehicles, tools, miscellaneous works, transmission equipment, trtmk switching equipment. Detailed engineering, management adviser and accounting consultants. International competitive biddinge CONSULTANTS: Consultants to be employed for the reorganization of OPTI.f' s accounts, to advise on bidding doctm1ents, and for supervision of the execution of the works. ESTIMATED COMPLETION DATE: 1976. - 0 - •