Announcement of Eleven Million Two Hundred Thousand US Dollars Loan for Telecommunications in Jamaica on January 20, 1967

1818 H STREET, N.W., WASHINGTON D. C.'20433 TELEPHONE: EXECUTIVE 3-6360 1'--'\ Bank Press· Release No. 6,7 /2 Subject: $11.2 million loan for Tele- January 20, 1967 communications in Jamaica The World Bank has approved a loan equivalent to $11.2 million to the Jamaica Telephone Company Limited.· The loan wilt finance the foreign ex- change costs of a five-year program being carried out by the Company to ex- pand a~d imp~ove telephone and telex services in Jamaica. The First Pennsylvania Banking and Tr\Jst ,company, Phfladelphia has agreed to participate in the loan, without the World Bank's guarantee, for an amount of -$50,000 representing part of the f~rst maturity which falls due. in March 1972 • • The Jamaica Telephone Company (JTC) is a private corporation licensed by the Government to operate all public local and long distance telephone and telex facili~ies throughout Jamaica. The Company is efficiently managed and operated but facilities are inadequate to satisfy the present high demand for ~fervice.· At the end of 1965 JTC had some 50,000 telephones of all kinds connected to the general telephone network. This represents only 2.9 tele- phones per 100 people in Jamaica, which compares with averages of 45 in North America and 18 in Western Europe and is low ~ompared with other countries in the Caribbean area. Jamaica has experienced a high rate of economic growth (7.5% per ann\Dll) since mid-1963 and prospects continue to be favorable. The expec~ ted increased rate of growth will generate a substantially larger demand for teleconnnunications services; ~dequate facilities are of particular impor- • tance to the mining sector, industry and tourism. The program is designed to alleviate present congestion in long distance and urban traffic, and ()  11· ;, - 2 - should provide by 1971 ~ telecommunications system which will be able to handle the traffic expected at that time. )) (_\ !'/ The five-year progratn includes (a)' the installation of automati{~ tele- phone equipment for 26,000 \'. new subscriber lines and 700 new trunk circuits ;\ with provision for long-distance dialing facilities and subscrtbers' special services throughout ~he island; (b) the extension of underground cables and open wire lines for connecting new subs,cribers and extending existing net- works; (c) tne addition of interurban toll facilities to increase the number of long distance circuits between the main centers of population and,. to son- nect areas which~'will receive service fo~~ the first··1time; (d) the provision o~ 28,000 Eelephone instruments, as well as some· private automatic branch exchanges; ( e) the ins tall~~ion 9l a new lcOO- line a'utoniatic telex ~xchange ' \, ii in Kings ton and the extensidh ~ of telex se1'.•vices /1.;;1 to the main tourist and in- :1 I/ dustri.al centers\i°ln Jamaica; and (f) the construction of new buildings and \: the expansion of existing ones and the acquisition of land to meet space re- quirements for the additional equipment. ,, The works are scheduled to be completed in successive s,teps over the 1967- 71 period at a total cost equivalent to $18. 3 million.,: The Bank loan will cover $11. 2 million of this total and JTG will finance the remaind~r from its own resources. The program wiU be carried out by the Jamaica Tele- phone Company with the assistance of its consulting engineers. Equipment will be installed by JTC's own staff, except for some specialized equipment ~\ which will be installed by the suppliers. Materials and equipmen~ to be ) financed by the Bank loan will be purchased on the basis of irrt:i~national competitive 'bidding. The Bank loan will be for a term of 15 years and bear interest at the rate · of 6% per annum. Amortization will begin March 15, 1~72. .will be guaranteed by the Govermnent of Jamaica. The loan ••