Liberia - Fourth Power Project

FILE COPY Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-2347-LER REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE LIBERIA ELECTRICITY CORPORATION WITH THE GUARANTEE OF THE REPUBLIC OF LIBERIA FOR A FOURTH POWER PROJECT June 5, 1978 I This document has a restridcted dWibution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS The official monetary unit is the Liberian dollar with a par value equal to that of the U. S. dollar. The U.S. dollar is legal tender in Liberia. FISCAL YEAR - GOVERNMENT OF LIBERIA July 1 - June 30 Fiscal Year - Liberia Electricity Corporation January 1 - December 31 ABBREVIATIONS AND ACRONYMS BADEA - Banque Arabe du Developpement Economique en Afrique EIB = European Investment Bank LEC - Liberia Electricity Corporation PUA - Public Utilities Authority JICA - Japanese International Cooperation Agency MD 8 Managing Director, LEC Saudi Fund - Saudi Fund for Development  FOR OFFICIAL USE ONLY LIBERIA - FOURTH POWER PROJECT LOAN AND PROJECT SUMMARY Borrower: Liberia Electricity Corporation Guarantor: Republic of Liberia Amount: US$10 million equivalent Terms: Payable in 20 years, including 5 years of grace, at 7.5 percent per annum. Project Description: I. Oblectives: to assist the Liberia Electricity Corporation (LEC) in: (a) expanding its generating capacity; (b) strengthening its management, staffing, and financial position; and (c) in- creasing access to electric power for low-income urban households. II. The prolect would consist of: expansion of generating facilities by about 26 MW; power distribution to urban poor; vehicles and equipment; rural transmission and frequency conversion studies; and technical assistance for management and training. III. Benefits would comprise: (a) satisfaction of power demand in the LEC system until 1985 and its positive impact on economic, indus- trial and commercial activities; (b) improvement of LEC's management, staffing and finances; and (c) supply of electric power to about 5,000 low-income families in the Monrovia area. IV. Risks: The risks involved in the physical implementation of the project are not greater than normal for projects of this type. However, there may be risks with respect to the implementation of the non-physical aspects of the project (e.g., management, training and financial viability of LEC), although measures have been included in the Loan and Guarantee Agreements to minimize them. This document has a restricted distribution and may be used by recipients only in the performance of their ofBcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: (net of taxes and duties) Foreign Local Total Costs Costs ---In Million US Dollars----- Equipment 16.01 15.71 0.30 Civil Works 6.58 5.24 1.34 Engineering Services 1.32 1.24 0.08 Service Connections and Interior Wiring for Urban Poor Households 0.45 0.32 0.13 Maintenance Vehicles and Tools 0.41 0.41 - Staff Training 0.90 0.68 0.22 Employment of a Management Support Team 0.68 0.68 - Frequency Conversion Study 0.05 0.05 - Study of Transmission 0.14 0.09 0.05 Contingencies 5.01 4.96 0.05 TOTAL 31.55 29.38 2.17 Financing Plan: Expenditure Local Foreign Total