Announcement of Ten Million Dollars Loan for Telecommunications and Nine Million Two Hundred Thousand Dollars Credit for Ports in Papua New Guinea on April 27, 1972

• INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTRHNA'l~IONAL DJi~Vl~LOPMF~NT ASSOCIATION 1818 H STREF.:T NW WASHINGTON D.C.20433 TELEPHONE: EXECUTIVE 3-6360 Bsuk Press Release·No. 72/22 Subject: $10.0 million loan for tele- IDA Press Release ifo. 72 /29 communications and $9 •. 2 million April 27, 1972 credit for ports in Papua New Guinea The World Bank Group is providing $19.2 million to extend anc improve the telecommunication service in Papua New Guinea and to construct one new port and improve three existing ports, it was announced today. The Horld Bank itself is lending 010.0 million for a $17 .2 million second • telecornmunicatio~s project to extend and improve local and long-distance services and to meeti as much as possible, latent de~and for service. The Iutern.qtional Development Associatic~, (IDA), an affiliate of the World Bank, has approved a '.;9 .2 million credit to help finance sh:i.pping facilities improve- ments at Port l"or8sby, La2 and K.ieta and construction of a small new port at Alotau --- at a total cost of $11.1 million equivalent. The telecommunications project constitutes the bulk of the Posts and I Telegraphs Jepartment's $20. 7 million equivalent second development plan (fiscal 1973-.::..975). The. Bank assisted the first development plan with a $7 .0 rr.illion loan in 1968. Rapid and reliable telecorr.munications are essential to the development of Papua New Guinea. In the face of extremely difficult terrain, widely scattered pcp·1lation and very limited surface transportation, they provide the means of • exchanging information betweeri the producers and the administrative and commercial centers of the country. /more Bank P.R. No. 72/22 -- Papua New Guinea -- telecom. IDA P.R. ~o. 72/29 -- Papua New Guinea -~ports •· provided by the first projec.t. - 2 - The p~esent project is designed to utilize and expand the facilities It includes the installation of 13,500 lines of • local automatic e1cchange equipment; a local exchange cable network mid equip- ment to connect an additional 6,100 direct exchange l:f.::.es; multiplex equipment on long-distance routes to provide about 650 additional circuits; UHF/VHF radio systems and equipment to connect 11 base stations; telex exchanges with a total of 600 lines and SOQ teleprinters; and technical and operational buildings. In addition, the Bank loan will finance the cost of engineering consultants to help in preparation of specifications and bid documents, evaluation of bids, and planning and maintenance procedures. The Bank loan to Papua 1~ew Guinea is being ruaranteed by the Commonwealth of Australia. It is for 20 years) including a four-year grace period, with interest at 7~% per annum. Ihe ports project originated w:,i_ th a study fir:anced by the United Nati01:s • DevelopmeL1t Programme and supervised by the World Bank. It is expected to reduce ships' waiting time and service ti~, and lower cargo-h::indling cos ts. Papua r~eH Guinea relies heavily on ocean and coastal shipping because it consists of a number of scattered islands and because few land routes have been developed across its rugged topography. I'ort traffic has increased rapidly in recent years, but services have not kept pacet resultin~ in serious conges-, tion. The project consists of land reclamationj a storage shed and stacking area at Port Horesby~ construction (?fa deep-water berth that can handle container traffic at Lae; construction of coaster be!'th fac::.liti_es at ·rcieta; construction of the small ·new port at Alotau; provision of c3rgo-handling equipment and engineering, training and management consultant services. /more •  Bank P.R. lfo. 72/22 -- Papua New Guinea -- telec·om. IDA P.R. Ho. 72/29 -- Papua New Guinea -- ports • - 3 - '.fhe credit is being made to the Government for a period of 50 years, including 10 years cf grace, and is interest-free except for a 3/4 of 1% service charge to meet IDA' s adm:!.n.istrative expenses. The Government will relend the flllldE to the Papua Hew Cuin~a Harbours Hoard for a term of 25 years, incl __ · ,.ig a four-year grace period, at an in te rest rate of 71.,4% per annum. Twenty United States and Japanese financial institutions are participating in the Bank loaa for a total amotL."lt of approximately $3.2 million equivalent. They are: The ni.tsubishi Trust & Banking Corporation, Tokyo; Nanufacturers H3nover Tru&t Company, New York; The Mitsui Trust & Banking Co., Ltd., Tokyo; Tr:e Sumitomo Trust & Banking Co., Ltd., Tokyo; the Takai Bank Limited, Hagoya:; Girard International Bank, ~Jew York; United States National Bank of Oregon, :Portland~ The Riggs ~fational Ban1':. of Washington, D.C.; Securit:,-Pacific i.fational • 13ank, Los Angeles; The Kyowa Bank, Limited, Tokyo; The Hitsui Bank, Limited, Tokyo; The Industrial Ba.nk of Japan, Ltd., Tokyo; The Taiyo Bank~ Limited, Tokyo; The Toyo Trust & Banking Co., Ltd., Tokyo;; Bank of America, New York; The Bank of Tokyo, Ltd., Tokyo; European-American Banking Corporation, Nassau; Industrial .Jational Bank of Rhode Island, Providence; Seattle-First lJational Bank, Seattle; and Union Bank, Los ~~eele~. 0 -  INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVRLOPM~~NT ASSOCIATION 1818 H STREF.:T, NW WASHINGTON D.C.20433 TELEPHONE. EXECUTIVE 3-6360 April 2 7, 1972 TECHNICAL DATA PROJECT: Ports COUNTRY: Papua New Guinea TOTAL COST: $11.1 million equivalent. IDA FINANCING: $9.2 million, 50 years, 10 years of grace, interest-free • except for 3/4 of 1% service charge to meet IDA's administrative expenses • OTHER FINANCING~ Papua New Guinea Harbours Board (PNGHB) internal cash generation. DfPLEMEUTDTG OP.GANIZATION: PNGHB, Box 6 71, Port Moresby, Papua New Guinea. PROJECT DESCRIPTION: Improve three of the main public seaports -- Port Moresby, Lae a~d Kieta; construct a new port at Alotau; provide cargo-handling equipnent; provide consultant services for engineering, training and management. iJORK TO BE PERFOR1'1ED: Land reclamation, a storage shed and a stacking area at Port Noresby; construction of a deep-water berth for container traffic at Lae; addition of coaster berth facilities at Kieta; construction of a small port at· Alotau; purchase of cargo-handling equipment; consultant services. PROCUEMENT: All off-shore procurement is being financed by the IDA credi.t and is subject to international competitive bidding. The credit will also finance the off-shore cost of civil works. CONSULTANT SERVICSS: To be provided by the Australian Department of Works and the Papua New Guinea Public Works Department. • ESTIMATED COMPLETION DATE: mid-1976 • - 0 -  INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION 181 8 H STREET, N W WASHINGTON D.C.20433 TELEPHONE: EXECUTIVE 3-6360 April 2 7, 19 72 TECHiHCAL DATA PROJECT: Telecommunkations II com~TRY: Papua New Guinea TOTAL COST: $17.2 million BANK FINANCING: $10 .0 million, 20 years, four years grace, 7~% interest· • per annum • OTHER FINANCING: Posts and Telegraphs Department (P&T) internally generated funds; Papua New Guinea Treasury advance. INPLEFT':~1TIN'G 0RGA£HZATI0N: P&T, PoI't !;c;resby, Papua New Guinea; Cable Acl.<lress: POSTAL, Port Moresby 7 Papua New Guinea. PROJECT DESCRIPTION: £},:~end and improve local and long-distance services by utilizing and expa.ndi ng the facilities provided by an earlier project which the World Bank also assisted. {'70RK TO BE PtRFOFl\IED: Installation of 13,500 lines of local automatic exchange equj_pment; 1.ocal exchange n~twork and equipment to connect an additional 6,100 direct e.xchange. lines; installation of multiJlex equipment on long- distance route.:; to provide a.bout 650 addHion.al circuits; installation of u1lF/VHF radfo syste:;1s and outstanding radio eq uij_)ment to connect 11 base 8ta~ions; installation of telex exchanges with a total of 600 lines and provision of 500 teleprinters; construction of technical and operational buildings; engineering consultants. PROCUREHENT: All Bank-financed pr.ocurement subject to international competitiv,! bidding except for about $800,000 in certain additions requiring compati- bility. CONSULTANTS: Preece, Carclew & Rider 1 Paston House, 165-167 Preston Road, • Brighton BNI 6AF, Su..c,sex, England • ESTIMATED COMPLETION DATE: mid·-19 75. - 0 -