Announcement of World Bank Lends One Hundred Three Million Dollars for Two Development Projects in Colombia on June 14, 1979

.FbR IMMEDIATE RELEASE. eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/108 June 14, 1979 '·:~D BANK LENDS $103 MILLION FOR TWO DEVELOPMENT PROJECTS IN COLOMBIA The World Bank has approved two loans totalling $103 million to assist two development projects in Colombia. The first loan, of $31 million, will help finance water supply and sewerage facilities in 23 cities with between 20,000 to 400,000 inhabitants. These medium- and small-sized cities have a combined population of 1.9 million. The second loan, of $72 million, will assist the second phase of the San Carlos hydroelectric power project that forms part of the lnterconexi6n Electrica S.A. (ISA) 's 1978-85 expansion program. The project will provide about 15% of the planned increase in generation capacity. The loans have a term of 17 years, including 4 years of grace, with interest at 7.9% per year. • Water Supply and Sewerage With an estimated total cost of $71.9 million, the water supply and sewerage project will represent about 26% of the National Institute for Municipal Development (INSFOPAL) 's investment program for 1979-83. INSFOPAL supervises and finances regional and municipal water companies in towns with populations of 2,500 or more. Although Colombia compares favorably with other Latin American countries in the coverage of water supply and sewerage services, one fourth of its urban population still does not have direct access to public water supply, and about 40% lack sewerage services. Service levels i~ rural areas are far lower; 40% of rural families had piped water and only 12% had sewerage facilities in 1978. The project wi 11 improve sanitary conditions in the 23 cities by ' providing additional water supply and sewerage services, as well as improving existing services. It will also strengthen INSFOPAL and the participating water and sewerage regional and municipal companies. About 35% of pioject investments will be for sewerage works, 20% for distribution pipes, 17% for water production works, 11% for engineering and administration, and the remainder (17%) for pumping stations, storage tanks, meters, operation equipment, and technical assistance. I • • • • I NOTE: Money figures are expressed in U.S. dollar equivalents.  ,. - 2 - By 1983, the project is expected to provide water through house connections to about 472,000 people in 19 cities, and sewerage services to 654,000 people in 14 cities. About half of these people are among the poorest residents earning less than one third of the per capita national income, or approximately $200. • The cities included in the project are: Cartagena, lbague, Valledupar, Pasto, Neiva, Monteria, Sincelejo, Soledad, Riohacha, Girardot, Cartago, Copacabana, and Rio Negro. Dos Quebradas, Calarca, Aguachica, Tumaco, Magangue, Codazzi, Pamplona, Chiquinquira, Sabanalarga, and Espinal are also among the cities to be covered by the project. The two previous Bank loans to INSFOPAL totalling $36.1 million were for the expansion of water supply and sewerage services in medium- and small-sized cities (seven cities in the first one and eight cities in the second). Power The second San Carlos hydroelectric power project has an estimated total cost of $156.l million. The project will provide part of the additional power required through the mid-1980s and comprises mainly the second phase of the San Carlos hydroelectric power development, with a capacity of 620 megawatts (MW). The San Carlos hydroelectric complex, which will be located about • 150 kilometers from Medellin in Northwest Colombia, is being built in three stages. The first one, also of 620 MW, is being financed pGrtly by a World Bank loan of $126 million approved in May 1978. A third and final stage (310 MW) will be added when additional capaaity would be required for peaking purposes. The project included construction of a second penstock at San Carlos with four turbine-generators and transformers, a 15-meter-high concrete dam on the Calderas River and a surface power station with 15 MW generating unit, and a two 230-kilovolt transmission lines. Studies of dispatch aspects and of ISA's manpower and training requirements are also included. Once completed, the San Carlos hydro plant will be the largest power generating facility within the integrated system, with an aggregate installed capacity of 1,240 MW. The project will support the government's objective of developing domestic sources of energy. - 0 - •  FORM~- 1121 (5-16) T E C HN I CA L DA TA • PROJECT: COUNTRY: TOTAL COST: The Third Medium- and Small-Size Cities Water Supply and Sewerage Colombia $71 • 9 mi 11 i on BANK FINANCING: $31 mi 11 ion for a term of 17 years, inc· .H.!in9 4 \ _..,rs 0 of grace, with interest at 7.9% per annum OTHER FINANCING: Government of Colombia, $31.7 million; Net internal cash generation, $9.2 million • IMPLEMENTING ORGANIZATION: lnstituto Nacional de Fomento Municipal (l~SFOPAL) CAN - Bloque 2 TELEX: 440098 (ITT.) 248423 (RCA), or Bogota, Colombia ' 64145 (WUI) CABLE: INSFOPAL, Bogota PROJECT DESCRIPTION: It comprises: a) the construction of new, or optimization of existing, water treatment facilities in 14 cities; b) the construction of pumping and transmission facf litfes connecting the water production facilities of the city of Barranquilla to the distribution system of the city of • Soledad; c) the improvement of water intakes, pumping stations, and raw water trans- mission lines in 14 cities; d) the construction of additional water storage in 16 cities with an aggregate capacity of about 60,000 cubic meters; e) the extension of water distribution networks in 19 cities, by about 420 km in the aggregate; f) the construction of about 80,000 metered house water connections in 16 cities and the purchase and installation of about 62,000 residential water meters; g) the purchase and installation of water production meters; h) the construction of sewers in 14 cities, with an aggregate length of about 400 km; i) the construction of interceptors and outfalls in 11 cities with an aggregate length of about 80 km; j) the construction of about 110,000 domiciliary sewerage connections; k) the construction of water pumping stations in four cities and sewerage pumping stations in three cities; l) the construction of stabilization ponds for sewerage treatment in the city of Sabanalarga; and m) technical assistance. PROCUREMENT: All contracts will be awarded through international competi- tive bidding in accordance with Bank guidelines, except for civil works contracts under $150,000, not exceeding an aggregate of $2.5 million, which will be awarded on the basis of local competitive bidding procedures satisfactory to the Bank. CONSULTANTS: About 2,878 man-months of consultant services for providing assistance to the municipal public companies and the regional or municipal sanitary works companies,and to INSFOPAL wi 11 be required. • ECONOMIC RATE OF RETURN: ESTIMATED COMPLET·ION DATE: 13% 1983 - 0 -  . FORM NO. 1121 • .( (5-76) T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: San Carlos I I Hydro Power Colombia $ l 56. 1 mi 11 ion • BANK FINANCING: $72 million for a term of 17 years, including 4 years of grace, with interest at 7.9% per annum OTHER FINANCING:. Net internal cash generation and .shareholder contributions, $54 million; Suppliers' credit, $30.l million • IMPLEMENTING ORGANIZATION: lnterconexi6n Electrica, S.A. (ISA) Calle 50, No. 50-21, Piso 14 Medellin, Colombia TELEX: 6559 PROJECT DESCRIPTION: It comprises: i) construction and erection of a second penstock at San Carlos, and turbine-generators and and transformers totalling 620 megawatts (MW); ii) construction of a 15-meter-high concrete dam on the Calderas River, inlet and discharge tunnels and a surface power station wiih a 15-MW generating unit; iii) construction of two 230-kilovolt (kV) transmission lines; iv) consultant services for engineering, civil works, and ~ superv1s1on; v). a dispatch study and· associated training; and vi) a manpower requirements study and related training. PROCU.REMENT: Procurement under the loan wi 11 be in accordance with international competitive bidding consistent with Bank guidelines. Colombian manufacturers will receive a preference of 15% of the c.i.f. price or applicable duties, whichever is less, for bid evaluation purposes. CONSULTANTS: About 4,750 man-months of consultant ser~ices will be required for engineering, studies, and training. ECONOMIC RATE OF RETURN: 14% ESTIMATED COMPLETION DATE: 1984 - 0 - •