Turkey - Communications Liberalization Project

Report No. PIC1036 Project Name Turkey-Communications Liberalization... Project Region Europe and Central Asia Sector Infrastructure Project ID TRPA9038 Implementing Agency Ministry of Transport, Ulastirma Bakanligi, 91 Sokak, Emek, Ankara, Turkey Ali Tulumen, Acting Director General Tel No. 90-312-212-2135 Fax No. 90-312-212-4900 Date PID Prepared December 19, 1995 Appraisal Date December 3, 1995 Projected Board Date July 1996 Objectives 1. The objectives of the proposed Project are to provide the necessary infrastructure to enable the Government to maximize the productive use of the radio frequency spectrum and to improve frequency allocation criteria with a consequent increase in government revenues through an expansion of broadcasting and wireless communications services provision by the private sector. Description 2. The proposed Project would provide: (a) equipment and services for installing a modern radio Frequency Spectrum Management System (FSMS); and (b) technical assistance for TGM's institutional development and establishment of modern methods of frequency allocation (including auctions). Implementation 3. Under the Ministry of Transport, TGM would be responsible for implementing the FSMS component. A special project unit has been established in TGM, headed by a Deputy Director General to implement FSMS, and this team is presently working with consultants helping in the preparation of the component. 4. The proposed Project will be implemented over a 4-year period beginning FY97. One turnkey contract is expected to be let out for FSMS. Preparation of bidding documents has already started and should be completed by appraisal. Cost and Financing 5. The total cost of the proposed Project is estimated at US$63  million equivalent including physical and price contingencies of about US$8 million. Direct and indirect foreign exchange costs are estimated at US$40 million (63.5w of total project cost). The foreign costs would be financed by the Bank and GOT would finance local costs. The Bank Loan amounting to US$40 million, will be made to GOT. Environmental Aspects 6. The project components will not raise environmental issues since the regional frequency management centers would be accommodated within existing sites, and the equipment to be procured is non-polluting. Hence, the project does not have any measurable adverse environmental impact and is considered within Category C for the purposes of Environmental Assessment. Nevertheless, during project supervision, the Bank will ensure that the physical components of the project are being implemented in an environmentally prudent manner. In fact, the proposed Project is expected to have some environmental benefits, as more efficient use of telecommunications will substitute for personal transportation and correspondingly reduce environmental pollution and promote energy conservation. Task Manager: Raghuveer Sharma, EClIN (202) 473-2302 (tel) (202) 477-1386 (fax) Contact Point: Public Information Center The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. - 2 -