Project Name Tanzania-Datel

Region Sub-Saharan Africa

Sector Telecommunications

Project No. 007894


1. This project involves the establishment of a national data communication network based on the VSAT technology (Very Small Aperture Terminal). The network will primarily serve various financial, business, educational and governmental institutions. Total VSAT demand is estimated at 300. Total project cost is estimated at US$10 million of which IFC will provide US$2.76 million in total financing.

2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of the appraisal of technical and environmental information submitted by the project sponsor and completed by IFC’s Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:

· subscriber line right-of-way alignment;
· antenna tower site selection;
· solid and liquid waste disposal;
· PCBs;
· fire prevention; and
· general employee safety and training.

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

3. The VSAT dish and mount will be installed at 10 feet high on the customer premises (roof or compound). Thus, eliminating any possibility of right-of-way alignment issues.

4. There is no concern of generation of industrial solid wastes during the first years of operation since new equipment will be used. The life span for the electronic parts is approximately 5 years and for the mechanical parts is almost 10 years. However, if any industrial waste were generated, the sponsor will follow the local requirements for the proper disposal of these wastes. The domestic solid wastes generated will be disposed through the local utility system.

5. Every remote VSAT will be powered by the customer themselves. No PCB transformer or equivalent equipment will be used by Datel.

6. The project includes the installation of automatic fire detection system with local alarm during working hours plus remote alarms through telephone to responsible homes at off-hours. Extinguishers in the technical rooms, offices and hallways will be also installed.

7. The employees are trained about general safety issues and the sponsor follows the local requirements about health issues.

8. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Tanzania requirements, and World Bank policies, and environmental, health and safety guidelines.

9. IFC will monitor Datel’s compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor coinciding with the anniversary of the signing of the investment agreement and by conducting periodic site reviews during project supervision.





L:\CIND3\TANZAN\DATEL\ERS.DOC
March 19, 1997 5:55 PM