Announcement of Loan of Thirty-Two Million US Dollars for a Telecommunications Project in Zambia on May 29, 1975

INTERNATIONAL BANK FOR .RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Hank News Release No. 75/45 May 29, 1975 LOAN OF $32 MILLION FOR A TELECOMMUNICATIONS PROJECT IN ZAMBIA The World Bank is providing $32 million for a $78 million telecommunications project in Zambia, part of a comprehensive telecommunications development program to be implemented during 1975-1980 at an estimated coat of $109· million equivalent. The program will be of assistance in the economic development of Zambia through the expansion and improvement of teleconununication services throughout Zambia's eight provinces. In particular, ex~h~nge equipment will be installed in 60 towns, includ~ng 32 towns that presently have no facilities and to which the long distance network will also be extended. The capital city of Lusaka will be linked by reli,llble microwave communications with the main provincial centers, including towns on the borders of neighboring countries such as Malawi and Tanzania. Included in the project will be the installation of local exchange equipment for • about 31,000 lines in towns and rural centers. Of the total, about 7,900 of the new lines will replace worn-out equipment, and 23,100 will be a net addition to existing facilities. Thie re will be an expansion of the cable networks in 79 towns to provide about 31,000 connections and an extension of gentex service to about 25 additional localities which are at present served by means of point-to-point telegraph circuits. The new microwave facilities to be installed under the project will link Lusaka» Kasama and Nakon~e, on the Tanzanian border, Lusakaj Chipata and Malawi, and Livingstone and Mongu. Other towns in the outlying provinces will also be linked by the microwave system and new radio links. The project will also include a new switching center in Lusaka for international communications. The African Development Bank and the Swedish International Develcp~ent Authority (SIDA) are also helping to finance parts of the Zambian telecommunications development program which will be implemented by the Posts and Telecommunications Corporation (PTC) of Zambia. The Bank loan is being made to PTC with the guarantee of the Republic of Zambia for a term of 20 years, including four years of grace, with interest at 8-1/2% per annum.. • Note: Money figures are exprflssed in US dollar equivalents. 0  T E CHNI CAL DAT A PROJECT: COUNTRY: Telecommunications Project Zambia • TOTAL COST: $78 million BANK FINANCING: $32 million, 20 years, with 4 years of grace, at 8-1/2% interest per annum. OTHER FINANCING: $5.2 million loan from the African Development Bank, $2.5 million grant from the Swedish International Development Authority, Government funds and future borrowing for works to be completed after 1980. IMPLEMENTING ORGANIZATION: The Post and Telecommunications Corporation (PTC) Lusaka, Zambia PROJECT DESCRIPTION: The project consists of installing 31,000 lines of local exchange equipment, cables and aubscriber apparatus to provide about 31,000 connections; expanding long distance equipment through three • 960 channel microwave links, multiplex and trunk.switching equipment, and expanding telegraph, gentex and international facilities. PROCUREMENT: All goods financed by the Bank loan will be purchased under international competitive bidding in accordance with Bank's, Guidelines. A preference margin of 15% of the c.i.f. cost or the applicable customs duties, whichever is lower, will be afforded to local manufacturers of telephone cables. CONSULTANTS: Consultants will be employed to assist PTC in planning, detailed engineering, and bid preparation and evaluation. Other consultants will assist in surveying microwave links and VHF/UHF radio systems, and others may be required to assist in the supervision of installation and com- missioning of switching equipment. Financial/accounti~g consultants have already been retained. ECONOMIC RATE OF RETURN: 16% ESTIMATED COMPLETION DATE: Dece.mber, 1980 •  INTERNATIONAL BANK FOR .RECONSTRUCTION AND DEVELOPMENT' 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3,6360 Bank News Release No. 75/45 May 29, 1975 LOAN OF $32 MILLION FOR A TELECOMMUNICATIONS PROJECT IN ZAMBIA The World Bank is providing $32 million for a $78 million telecommunications project in Zambia, part of a comprehensive telecommunications development program to be implemented during 1975-1980 at an estimated cost of $109· million equivalent. The program will be of assistance in the economic development of Zambia through the expansion and impro·vement of telecommunication services throughout Zambia's eight provinces. In paLLicular, exchange equipment will be installed in 60 towns, includ~ng 32 towns that presently have no facilities and to which the long distance network will also be extended. The capital city of Lusaka will be linked by reliable micr4'")Yave communications with the main provincial centers, including towns on the borders of neighboring countries such as Malawi and Tanzania. Included in the ~·roject will be the installation of local exchange equipmen~ for • about 31,000 lines in towns and rural centers. Of the total, about 7,900 of the new lines will replace worn-out equipment, and 23,100 will be a net. addition to existing facilities. There will be an expansion of the cable networks in 79 towns to provide about 31,000 connec.tions and an extension of gentex service to about 25 additional localities which are at present served by means of point-to-point telegraph circuits. The new microwave facilities to be installed under the project will link Lusaka, K.asama and Nakonde, on the Tanzanian border, Lusaka, Chipata and Malawi, and Livingstone and Mongu. Other towns in the outlying provinces will also be linked by the microwave system and new radio links. The project will also include a new switching center in Lusaka for international communications. The African Development Bank and the Swedish International Development Authority (SIDA) are also helping to finance parts of the Zambian telecommunications development program which will be implemented by the Posts and Teleconnnunications Corporation (PTC) of Zambia. The Bank loan is being made to PTC with the guarantee of the Republic of Zambia for a term of 20 years, including four years of grace, with interest at 8-1/2% per annum • • Note: Money figures are expressed in US dollar equivalents. 0