Announcement of Fifty Million Dollars for Thailand Hydro-Electric Project on September 1, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/ 13 SEPTEMBER 1 , 1977 $50 MILLION FOR THAILAND HYDRO-ELECTRIC PROJECT The World Bank has announced the approval of a $50 million loan to the Electricity Generating Authority of Thailand (EGAT, to help finance the develop- ment of the Pattani River hydro-electric project in southern Thailand. Project costs would also be financed with a $20 mill ion loan from the Ku~ait Fund for Arab Economic Development (KFAED), $20 mill ion from commercial banks, and by the Government of Thailand and the Electricity Generating Authority of Thailand (EGAT). The project consists of a multi-purpose dam with an ·installed capacity • of 60 MW -- for storage, power and as an irrigation outlet. In addition, the existing substations and the transmission system will be expanded to meet increas- ing load requirements in the Provincial Electricity Authority's rural electri- fication program. A study of power tariffs will be done to ascertain the marginal costs of supplying power to consumers at different voltage levels and as a basis for recommending a tariff schedule for the power sector. Electricity demand and generation increased by about 19% annually in Thailand over the past decade. At present only 22% of the population has access to elect.ricity. By 1983, however, some 45% of all households are expected to have access to electricity, largely as a result of an accelerated rural elec- trification program. The project will help meet this increased demand, particu- larly in the less-developed southern region, which is not yet integrated with the national grid. The Bank loan to EGAT will carry the guarantee of the Government of Thailand. It will be for 20 years, including five years of grace, and will carry interest at 8% per annum . • NOTE: - 0 - Money figures are expressed in US dollar equivalents. FORM NO. 1121 (5-76} TECH N I c· AL D A T A PROJECi.: COUNTRY: TOTAL COST: Pattani Hydro-Electric Kingdom of Thailand $144. 6 mi 11 ion • Bank FINANCING: $50 mill ion at 20 years, including 5 years of grace OTHER FINANCING: $20 million from Kuwait Fund for Arab Economic Development (KFAED) $20 million from commercial banks Remainder from Government equity and EGAT IMPLEMENTING ORGANIZATION: Electricity Generating Authority of Thailand (EGAT) Rama 6 Bridge Nonthaburi Thailand Cable Address: EGAT, NONTHABURI, THAILAND PROJECT DESCRIPTION: Development of a multipurpose rockfill dam on the Pattani River in southern Thailand with an installed capacity of 60 MW, including related transmission expansion and resettlement of the affected population; expansion of existing 115 KV transmission system and substations to support • the rural electrification program; and study of power tariffs to ascertain the marginal costs. of supplying power to consumers at different voltage levels and as a basis for recommending a tariff schedule for the power sector. PROCUREMENT: All civil works, materials and equipment financed under the proposed Uank loan will be procured on the basis of international competitive bidding in accordance with the Bank's Procurement Guidelines. The Bank's usual preference of 15% (or the custom duties, whichever is less) will be granted to local manufacturers. Specifications and tender documents for the civil works contract were issued with Bank approval in December 1976. Bids were opened in April 1977 and are now under evaluation by EGAT. For equipment contracts, tenders will be issued in mid- J 977. CONSULTANTS: Consultants may be hired for the tariff study ECONOMIC RATE OF RETURN: 11 % (on hyd ro-e lee tr i c deve I opment, representing 85% of proj e l . ESTIMATED COMPLETION DATE: 1981 . - .o -