Announcement of Six Million Dollars Credit to Bolivia for a Third Power Project on September 13, 1973

. FOR . IMMEDIATE RELEASE .. • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET.NW WASHINGTON DC 20433 TELEPHONE EXEC"UTIVE 3-6360 IDA Press Release No. 73/75 Subject: $6.0 million credit to Bolivia September 13, 1973 for a third power project The International Development Association(IDA), announced today a $6.0 million credit to support expansion of electric power facilities and services in Bolivia. The project forms part of the 1973-77 expansion program of Empresa Nacional de Electricidad, S.A. (ENDE), a Government-owned company responsible for the generation and transmission of power in Bolivia, outside the capital city of La Paz. It will supply energy to satisfy rapidly rising demand in • Santa Cruz, and expand and strengthen transmission systems in the Santa Cruz and The project includes the installation of two 8-megawatt gas turbine units at the Santa Cruz diesel power plant and the construction of a 13.6-mile long, 66 kv. transmission line from Miguillas substation to two mines near Viloco, and a 25-mile long, 115 kv. transmission line between the Santa Isabel plant and the Sacaba substation in the Cochabamba-Oruro area. Expansion of several substations in the Santa Cruz and Cochabamba-Oruro areas will also be undertaken. The IDA credit will also finance consultants' services for ENDE in the carrying out of studies of future projects. Part of the funds provided by IDA will assist the Direccion General de Electricidad (DINE), a Goverrun~nt agency set up to regulate the electricity industry, to improve its procedures and • ~ practices, and to carry out sector studies . Note: Money figures are expressed in US dollar equivalents. /more  ' IDA P.R. No. 73/75 -- Bolivia -- power project - 2 - • The expansion of generating and transmission facilities in the Santa Cruz system is of high priqrity due to the rapid increase in demand arising from steady growth of population and economic activity in the area; estimates for the next five years show a prospective increase in demand of 22% a year. In the Cochabamba-Oruro area, strengthening of the transmission system is urgently needed to ensure greater continuity and higher quality of service. The transmission line to be built under the project between the Santa Isabel plan.t, assisted by an earlier IDA credit, and the Sacaba substation will become the first section of the Cochabamba-La Paz interconnection planned for the next few years. The IDA credit is being made to the Republic of Bolivia for a term of • 50 years, including 10 years of grace. It will be interest free but a service charge of 3/4 of 1% will be charged to cover IDA'~ achninistrative expenses. The Government will re-lend $5.92 million of the credit to ENDE for a period of 20 years, including 3 years of grace, with annual interest at 7~%. The Government will make available the remaining $80,000 to DINE for consultants' services. - 0 - • • • September 13, 1973 TECHNICAL DATA PROJECT: ENDE Power III COUNTRY: Bolivia TOTAL COST: $7. 3 million IDA FINANCING: $6.0 million; 50 years; 10-year grace period; 3/4 of 1% service charge to cover IDA's administrative expenses. • OTHER FINANCING: ENDE's own resources • IMPLEMENTING ORGANIZATION: Empresa Nacional de Electricidad S.A. (ENDE), Avenida 14 de Enero No. 4574, Cochabamba, Bolivia. Cable Address: ENELECTRIC, Cochabamba. PROJECT DESCRIPTION: Installation of two 8-MW gas turbine units in Santa Cruz; extension of the 66-k and 115-kv transmission system; con- struction of an office building in Cochabamba; and consulting service3. PROCUREMENT: All equipment and materials financed under the credit will be procured, and the contracts for their erection will be awarded, through international competitive bidding; domestic suppliers will have a 15% margin of preference. ESTIMATED COMPLETION DATE: End of 1975. - 0 - •