Compania Anonima Nacional Telefonos de Venezuela (CANTV) Summary Of Project Information (SPI)       Project Name    Venezuela - Compañia Anónima Nacional Teléfonos de Venezuela (CANTV)                Region    Latin America      Sector   Project No007104   Projected Board DateMarch 28, 1996   Company NameCompañía Anónima Nacional Teléfonos de Venezuela (CANTV)   Technical Partner and/or Major Shareholders    	- 40% Venworld Telecom CA (A holding company controlled by GTE            Corporation(USA), but including Telefónica de España, AT&T)             Electricidad de Caracas, and Banco Mercantil Group, Venezuela;        - 11% Employees of CANTV                                                - 49% F.I.V. (Venezuelan Government holding company)    Project Cost Including proposed IFC investment    	Total project cost is US$1.33 billion.  IFC would provide a loan of US$250 million, of which US$75 million would be for IFCs own account. The balance would be provided through debt for debt swaps from existing lenders (US$100 million) and through a syndication with participant banks (US$75 million).    Location of project and Description of site    	Throughout Venezuela    Description of Company and Purpose of Project    	CANTV is the Venezuelan national and international telecommunications operator which was partly privatized in 1991, with World Bank assistance.  The privatization involved the sale of 40% of the Companys shares, with control, via a competitive bidding process to a consortium led by GTE Corporation, for a consideration of US$1.885 billion. CANTV currently operates a telecommunication network with 2.5 million telephone lines in service, plus a cellular telephone subsidiary with 170,000 subscribers. In accordance with its Concession Agreement, CANTV is required to modernize and expand its telephone network annually during the period 1992-2000.  During this period CANTV must, inter alia, install a minimum of 3 million new digital telephone lines (including 640,000 replacement lines) and 53,400 additional new public telephones.                                                                              Given the current difficulties Venezuelan companies are experiencing in accessing international capital and bank syndicated loan markets, IFC has been requested to arrange a syndicated loan of about  US$250 million, of which US$75 million would be from IFCs own resources.  The loan would (i) assist with the funding of the 1996 and 1997 portions of the Investment Program which will cost US$774 million, and (ii) help with a US$556 million restructuring of CANTVs debt by swapping US$100 million of existing 3 and 4 year loans into an 8 year IFC B loan.                                                                                               Environmental Category and Issues    	This is a category B project according to IFCs 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. Key environmental and occupational health and safety issues that are of potential concern in this project include: right-of-way alignment; development of previously undisturbed land (e.g. forest); solid and liquid wastes; PCBs; fire prevention and emergency response; and employee exposure to noise, other physical agents, and hazardous  materials.  The Environment Division has completed a review of the environmental information submitted by CANTV, dated December 18, 1995.  This information adequately addresses issues pertaining to right-of way, waste disposal, and safety issues.  Issues relating to PCBs and installations in national parks which CANTV is currently addressing, remain outstanding.  Once these issues are adequately addressed it is anticipated that the project will comply with applicable World Bank policies and guidelines and national and local requirements.    The  is  March 4, 1996 from the Public Information Center.       Date SPI sent to PIC     March 4, 1996      For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 676-0365  Environmental 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).