Tanzania Data Network (DATEL)

completed

Summary Of Project Information (SPI)Project NameTanzania-Datel Tanzania Limited (“Datel”)     RegionSub-Saharan AfricaSectorProject No007894Projected Board DateMay 9, 1997Company NameDatel Tanzania Limited (“Datel”)Technical Partner and/or Major Shareholders - 36% - Nexus International, a 100% owned subsidiary of France Telecom; - 35% - Tanzania Telecommunications Company Limited (TTCL), the state owned provider of telecommunications services in Tanzania.Project Cost Including proposed IFC investment Total project cost is US$10.0 million. IFC would provide a loan of US$2.25 million for its own account and make an equity investment of US$507,500 for 14.5% of the Company’s shareholdings.Location of project and Description of site The central hub, comprising the switching and control center for the network, would be located in Dar es Salaam and the VSAT terminals would be spread throughout Tanzania. In addition, to facilitate communication between customer sites/branches in Dar es Salaam, a Wireless Local Loop will be implemented to create a “metropolitan” backbone at 64/128 kbit/sec.Description of Company and Purpose of Project Datel is a joint venture between Nexus International and TTCL with a concession to establish, operate and maintain a national data communications network in Tanzania. The project, which employs Very Small Apperture Terminal (VSAT) satellite technology upcountry, will be implemented in a gradual manner and grow to meet estimated demand of approximately 300 VSATs. Datel began commercial operation in December 1996. The telecommunications sector in Tanzania is extremely underdeveloped. The present infrastructure is not able to serve the current needs for data communications due to its limited capacity, poor quality and unreliability. The business community has indicated a need for reliable data transmission services, especially for money transactions. Eliminating the physical transfer of money is likely to lead to increased security and confidence in the banking system, resulting in a relatively higher rate in the mobilization of domestic savings. Moreover, improved data transmission would greatly increase overall business efficiency, thereby encouraging investment in other sectors and promoting economic growth.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental issues associated with this project include: right-of-way alignment, tower site selection, PCBs, solid and liquid waste disposal. Occupational health and safety issues include fire prevention and general employee safety. The project will include installation of automatic fire fighting systems, alarms and extinguishers. All wastes will be disposed via local municipal services. Datel employees will receive relevant safety training.The is available from the Public Information Center.Date SPI sent to PIC      April 9, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).