Announcement of World Bank Assists Power Transmission and Rural Development in Ecuador on July 23, 1981

. . FOR IMMEOIA Tf RELfASf . . jiNorld: Bank 1818 H Streeti'N.W. 1 Washi~gton, D.C. 204h, U.S.A.•Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/11 July 23, 1981 WORLD B·ANK ASSISTS POWER fRANSM ISSI ON AND RURAL DEVELOPMENT IN ECUADOR The World Bank today announced the approval of two loans totaling $i17 mi 11 ion for electric power transmission and rural development in Ecuador. A loan of $100. mi 11 ion wi 11 SUQport the efforts of the governrr'ent to make the power sector more efficient by helping to build up the National Interconnected System, · which will link existing and future generator plants ~ith electric load centers. The loan will be made to the Institute Ecuatoriano de Elec~rificacion (l~ECEL), and will be guarant~ed by the Government of Ecuador. A loan of $17 million will provide funds to carry out a rural development project for improving productivity, incomes, and general living conditions in north- western Ecuador. The loan will be made to the Government of Ecuador. Both loans will have a term of 17 years, including four years of grace, at an inte~est rate of 9.6% per year. Pow~r Transmission With an estimated total cost of $144 million, the power transmission project is expected to reduce Ecuador's dependence on costly thermal generating facilities by linking the national power grid to hydroelectric plants. The Paute hydroelectric station, currently under constructfon, will be connected to the Totoras substation, near the city of Ambat.o; and other transmission 1 ines wi 11 connect the fol lowing centers: Milagro-Machala, Guayaquil-Santa Elenall Cuenca-Lojia, lbarra-Tulcan, and Totoras-Ambato. The power transmission expansion expected under the 1980-85 program, of which this project is part, wi 11 serve some 1.5 mi 11 ion people. The project wi 11 also support improved management of the power sector through training and technical assist- ance. The Bank and its affiliate, the International Development Association, have supported the power sector with three previous 1cans tota 1i ng $16. 8 mi 1.Hon. Rural Development The rural developm~nt project to be carried out in 'Esmeraldas province aims· at improving the incomes and living stanuards of 5,100 rurial families. The $49 million project will enable these families to expand agricultural production (coffee, cocoa, 6ananas, maize, and livestock). It will a1so improve basic social' infr~~tructure in the project area. NOTE: Mbney figures are expressed in U.S. dollar equivalents.  - 2 - • . /,• Agri cul tura 1 services to be provided under the project wi l 1 include /extension, credit, and a land titling program. About 102 kilometers of 1 : feeder roads and two bridges will be constructed, and another 128 kilometers ,9f feeder roads upgraded; A road maintenance program will be established. ·Administrative, marketing, and community centers wi 1 l be provided; a primary he?lth ~rogram will be supported through the construction of facilities and encouragement of community participation; and 76 schoolrooms will be either rehabilitated or constructed. A follow-up project will also.be prepared. The Esmeraldas project will be the Bank's third integrated rural development project in Ecuador. The previous two projects have received $48 million in Bank loans. - 0 - ,. ' • ·. •  f) ,.. . O..MN9.11t10 . :ffj;...1&) i. P~OJECT.: } COUNTRY: Power Transmis,s ion Ecuador ,TOTAL COST: $144 mi l 1i, on BANK Ff NAN~ ING: $100 mil~lion "repayab1e over 17 years, including 4 years of grace, at 9.6% per~nnum 6 OTHER FINANCING: Government of Ecuador, $69 mi 11 ion IMPLEMENTING ORGANIZATION: Institute Ecuatoriano de E1ectri·ficacion (INECEL) Avenida c:'6 de Diciembre 2275 y Ore11ana Quito, Ecuador TELEX: 2243 ED PROJECT DESCRIPTION: It inc1udes: construct.ion of about 338 circuit kilometers of 230 kilovolt (kV) transmission lines linkitig the Paute hydro- electric power pl ant (currently under construction) to the Totoras substation, near Ambato, 0 and the cities" of Milagro and Machc:1la; about 427 circuit ki1ometers of 138 kV transmission 1ines 1 inking Guayaq~i 1-Santa E1e.na, CuencJ~·Loja, Ibarra-Tu lean and Totoras-Amba o; and construction of terminal substations; and insta11ation of the corresponding step-down transformers; training programs and facilities and institutional deve1opment will be sup'ported, in'Cluding the purchase of computer software; ·i;issistance wi 11 be provided to supervise construction of the transmission/substation works, as well as the design and supervision of the 1nstalfati6n"of ~ National Load Dispatch Center. PROCU.REMENT: Most contracts for equipment and n.Jaterials and their installa- tion (including civil works) finan'ced with funds from the loan wi 11 be procured through internc1tional competitive bidding in accordance with Bank guide- lines. Laboratory and training equipment, vehicles an~ computer software and hardware will involve competitive procedures such as international sho~pi~gl ~ CONSULTANTS: Consultants will assist the review of training programs and the organizational and commercial procedures.· Engineering services will assist the supervision of construction work and the design and installation supervision of a load dispatch center. ECONOMIC RATE OF RETURN: 13% ESTIMATED COMPLETION DATE: 1985 - 0 -  T £ C HN t t A L DA T A ~ 0 • I, () . PROJECT: Esmeraldas Rura.1 Development ,COUNTRY: TOT\l COST.! () $49 mi 11 ion , BANK Fl NANCI NG: $17 million payable in 17 years, including 4 years -0f grace, at 9.6% per annum OTHER FINANCING: Republic of Ecuador, $26.1 mi 11 ion; Beneficiaries, $5.9 million IMPLEMENTING ORGANIZATION: SecretarJat for Integrated.Rural Development (SEDRI) c/o Pres i denci a de ] a Repub 1i ca Qui to-~ Ecuador TELEX: 2201 PREREPED PROJECT DESCRIPTION: It includes: carrying out an agricultural extension and .a land titling legalization program; provision of cr~dit for on-farm investments, home improvements and hygienic facilities, and for production working caf/hal; construction or improvement of about 230 ki)ometers of feeder roads, two bridges: and establishment ~nd ope(.at'io.n of a road maintenance program; construction of an administra.. · , tiye center, four marketing facilities, and eight community centers; construction of hea .• i and village water supply facilities and training of health promoters; rehabilitation of 21 and construction of 55 schoolrooms, as well as of living quarters for teachers and water supply and hygiene facilities; operation by SEDRI of a project executing unit; and pre- n paration of a follow-up project in Esmeraldas province. ~ PROCU.REMENT: Ci vi 1 works contracts wi 11 be awarded in accordance with loca 1 competitive bidding procedurej satisfactory to the Bank. All operation and maintenance equipment and other goods valued at $150,000 or more will be procured through international competitive bidding in accordance with Bank_guidelines. \1 CONSULTANTS: Consultants wiU conduct preparation and feasibility studies for a second rural development Oroject in Esmeraldas province • ECONOMIC RATE OF RETURN: ESTIMATED" COMPLETION DATE: , 22% 1988 - 0 - •