Announcement of World Bank Approves Twenty-Two Million Dollars Loan for Telecommunications Project in Oman on June 26, 1980

-' . FOR IMMEDIATE RELEASE World Bank 18'18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 80/132 June 26, 1980 WORLD BANK APPROVES $22 MILLION LOAN FOR TELECOMMUNICATIONS PROJECT IN OMAN The World Bank has approved a $22 million loan to help develop the telecommunications network in Oman. The project is part of the country's first phase of a 12-year overall development program. The $97.22 million First Telecommunications Project will benefit all segments of the Omani society directly or indirectly. It includes the installation of 15,700 new lines of subscribers' switching equipment and replacement of obsolescent equipment. Telephones for about 14,000 subscribers and 5,500 new private automatic branch exchange extensions are also provided for in the project. In addition, for the first time, 350 public call offices will be set up in the country's rural and urban areas to give a broader spectrum of • the population access to telephone facilities. The installation of national and international switching and transmission systems as well as improvement in the automatic telex network equipment will enable the country's businesses, government agencies, and other organizations to function more effectively. Consultant services and technical assistance are also provided to strengthen the management, training, and engineering capabilities of the Oman Telecommunication Corporation, the beneficiary of the loan as well as the implementing organization. The Bank loan, made with the guarantee of the Omani government, is for ten years, including 4-1/2 years of grace, at 8.25% interest rate per annum. The Oman Telecommunication Corporation and the Government of Oman will bear $67.2 million and $8 million of the costs, respectively. NOTE: Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T EC HN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: First Telecommunications Oman $97.22 million • .BANK FINANCING: $22 mill ion for ten years, including 4-1/2 years of grace at 8.25% interest rate per annum OTHER FINANCING: Oman Telecommunication Corporation, $67.22 million; Government of Oman, $8 million IMPLEMENTING ORGANIZATION: Oman Telecommunication Corporation (OMANTEL) P.O. Box 3789 Ruwi, Oman Cable Address: OMANTEL, MUSCAT, OMAN Telex: NB 3400 PROJECT DESCRIPTION: It includes (a) 15,700 new lines of subscribers' switching equipment and replacement of obsolescent equipment; (b) ducts and main cables to provide for 16,000 new lines wJth capacity for growth; (c) telephones for 14,000 new subscribers and about 5,500 new private • automatic branch exchange extensions; (d) 350 public call offices in urban and rural areas; (e) about 6,000 lines of switching capacity in new private branch exchanges; (f) national and international switching and transmission systems; (g) switching and miscellaneous equipment to increase the automatic telex network to about 1,800 sub- scribers; (h) construction of buildings and provision of other equipment; and (i) con- sultant services and technical assistance to strengthen the management, training, and engineering capabilities of OMANTEL. PROCUREMENT: All material or equipment to be financed from the Bank loan will be procured through international competitive bidding. CONSULTANTS: Consultants will help to strengthen the management, training, and engineering capabilities of OMANTEL. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 18% 1984 - 0 - •