TELECOMMUNICATIONS

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The objective of the Telecommunications Project is to help develop a modern commercial telecommunications sector that will evolve increasingly towards allocation of resources on the basis of market forces. The project will include priority tasks that are part of an agreed Medium Term Policy Action Program of sector reform for 1994-97, thus helping develop conditions for increasing competition and private participation. The government expects the reforms will enable sustained rapid sector development as needed to overcome widespread telecommunications shortages which result in high costs throughout the economy and impede effective implementation of development programs in other productive and social sectors. In the course of helping the government achieve these objectives, the project will finance investments in modern technology for fiber optic long distance links connecting eleven provinces and local digital switching in three provinces.