Announcement of IDA Provides Fourteen Million Five Hundred Thousand Dollars for Telecommunication Development in Nepal on May 15, 1978

FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/67 MAY 15, 1978 IDA PROVIDES $14.5 MILLION FOR TELECOMMUNICATION DEVELOPMENT IN NEPAL The International Development Association (IDA), an affiliate of the World Bank, is extending a credit of $14.5 million for a telecommunications project in Nepal. With one telephone per thousand people, telephone density in Nepal is one of the lowest in the world. The inadequate communications system is a constraint on the development of agricultural and industrial production, trade and tourism. Imp roved and expanded fac i 1 it i es under the project wi 11 raise the telephone density to 2.5 per thousand people by 1983 and contribute importantly towards economic and social development of the country. • The $25.6 million project is designed to meet about 70% of the demand for local telephone service. Under the project, Jong-distance network will be extended to areas without service; exchange service at 21 new locations will be opened; subscriber radio facilities at 100 isolated locations will be provided; and telex facilities will be expanded. The IDA credit to Nepal is for 50 years, including 10 years of grace. It will be interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. The credit, third from IDA for tele- communication development in Nepal, brings the total of such assistance to $21 . 7 mi 11 ion. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRV: TOTAL COST: Third Telecorrmunications Nepal $25.6 mi 11 ion •• IDA FINANCING: $14.5 mi 11 ion, standard IDA terms OTHER FINANCING: The Nepal Telecommunications Corporation (The Government of Nepal is seeking financing in the amount of $3 million from bilateral sources) IMPLEMENTING ORGANIZATION: The Nepal Telecommunications Corporation $ i nha Durbar Kathmandu, Nepal. PROJECT DESCRIPTION: The project includes: (a) an increase in telephone exchange network capacity to pro- vide for 20,600 additional subscriber 1 ines, including provision of 21 new exchanges (10 automatic and 11 manual), and conversion of 6 existing manual exchanges to automatic operation; (b) extension of microwave and UHF/VHF radio systems and land 1 ines to serve 14 new centers; (c) provision of sub- scriber radio facilities to 100 isolated locations (mainly community centers); (d) introduction of Subscriber Trunk Dialing (STD) at 19 automatic exchanges; (e) provision of automatic telex exchange facilities for the country as a whole serving up to 400 subscribers; and (f) provision of a small satellite • earth station to improve and expand international telephone facilities. PROCUREMENT: All proc1,rement \o.Ould be through international competitive 500 channels of multiplex equipment for expansion of existing facilities which are estimated to cost $1.2 million. ECONOMIC RATE OF RETURN: 18% ESTIMATED COMPLETION DATE: 1984 - 0 -