Ecuador - INECEL Power Transmission Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-3103-EC REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE INSTITUTO ECUATORIANO DE ELECTRIFICACION (INECEL) WITH THE GUARANTEE OF THE REPUBLIC OF ECUADOR FOR A POWER TRANSMISSION PROJECT June 30, 1981 This document has a resticted dlsurbton snd may be used by recipients only in the perforance of their oficn udes. Its cmtents may not otherwise be disclosed without World Bank snthorbatlon.  CURRENCY EQUIVALENTS The official exchange rate is US$1 - SI. 25. There is, however, a free market rate which has been fluctuating around US$1 - S/. 30 during the past few months. The currency equivalents given below are based on the official exchange rate. Currency Unit: Sucre (SI.) Calendar 1980 June 1, 1981 US$1 SI. 25 S/. 25 S/. 1 US$0.04 US$0.04 UNITS AND MEASURES kW - Kilowatt (103 watt) MW - Megawatt (10 kW)6 GWh - Gigawatt hous (10 kWh) kV - Kilovolt (10 voltsA MVA - Megavolt-ampere (10 kVA) FISCAL YEAR January 1 to December 31 ABBREVIATIONS CEPE - Corporacion Estatal Petrolera Ecuatoriana (State Petroleum Corporation) CONADE - Consejo Nacional de Desarrollo (National Planning Council) EEQ - Empresa Electrica de Quito S.A. (Quito Power Company) EMELEC - Empresa Electrica del Ecuador, Inc. (Electric Company of Ecuador) IDB - Inter-American Development Bank INE - Instituto Nacional de Energia (National Energy Institute) INECEL - Instituto Ecuatoriano de Electrificacion (Ecuadorian Electrification Institute) MRNE - Ministerio de Recursos Naturales y Energeticos (Natural and Energy Resources Ministry) SNI - Sistema Nacional Interconectado (National Interconnected System) USAID - U.S. Agency for International Development  FOR OFFICIAL USE ONLY REPUBLIC OF ECUADOR POWER TRANSMISSION PROJECT LOAN AND PROJECT SUMMARY Borrower: Instituto Ecuatoriano de Electrificacion (INECEL) Guarantor: Republic of Ecuador Amount: US$100.0 million equivalent Terms: Repayable over 17 years, including 4 years of grace, at 9.6 percent interest per annum. Project The proposed project would consist of: (a) the construction Description: of 230 kV and 138 kV transmission lines and corresponding conversion substations; (b) training and institutional development programs for INECEL; (c) engineering services for the design and supervision of installation of a National Load Dispatch Center; and (d) consultant services for supervision of the civil works. The project faces no special technical risks. It is, however, part of an ambitious power sector program which requires a major funding effort. To minimize the risk of program delays because of funding shortfalls, the Government has agreed under the proposed project to provide sufficient financing for the overall program. Estimated Cost: Local Foreign Total