icd-idb.org - Islamic corporation for the Development of the private sector

Project Description
This expansion project aims at providing 110,000 new lines by expanding the capacity of telephone exchanges in 33 sites in various parts of the country. This project is part of the Sudatel 5-year plan (1998-2003). The scope of the Project includes constructing buildings to house the telephone exchanges equipment and the procurement, installation and commissioning of these digital switches to add new 110,000 lines to the total capacity of the existing exchanges.

Project Sponsors
Sudan Telecommunications Company (Sudatel) was established in September 1993 with a paid-up capital of USD95 million to take over the late Sudan Telecommunications Public Corporation (STPC). Sudatel started its operations in February 1994 as a private network operator and telecommunications service provider.

Sudatel inherited from STPC 8,000 employees with a network of 12,000 lines and was able to expand its network all over the Country with more than 550,000 lines with only 3,000 staff currently working in the Company. Sudatel intends to expand its network to reach 1,500,000 lines by the end of 2003. Sudatel is listed on the Bahrain Stock Exchange and Khartoum Stock Exchange. Its authorized capital is USD 300 million, out of which USD 254 million is paid up.

Project Location
The project will be implemented in 33 sites in various parts of Sudan (e.g. Al-Fashir and Nyala in the West, El Gedarif in the East, and El Dewim and El Managil in the middle of the country).

Project Cost
The total project cost is estimated at US$21.0 million.

ICD's Role and Developmental Impact
ICD extended a leasing facility not exceeding US$8.0 million to cover the costs of equipment. The Project has a high developmental impact on the country. It involves providing lines to rural areas in various parts of the country. The number of telephone lines per 100 inhabitants in Sudan amounted to 1.24 in the year 2000, which was less than the world average of 16.32 and even less than the average of 2.49 in Africa. Thus, adding capacity and upgrading the network is essential in the development efforts in the country.