Announcement of IDA to Support Power Generation Project in Haiti on July 8, 1982

. . FOR IMMEDIATE . •RELEASE . ' 4'\lorld Bank . ,. 1818 H Str~~t, N.W., Washington, D.C. 20433 1 U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 83/4 Contact: Melhem Salman July 8, 1982 (202) 477~5328 IDA TO SUP.PORT POWER GENERATION PROJECT IN HAITI Haiti will develop its power sector with the assistance of an SDR 23 .1 million ( $26 million) credit from the International Development Association (IDA). The funds from the World Bank's affiliate for concessionary lending will support a $34 million third power project aimed at increasing diesel generation capacity for •:c Port-au-Prl:nce, the capital, which accounts for the highest power generation in the country. Due to increased industrial and domestic demand, electricity consumption in the capital has grown at an average annual rate of 16.4% and is projected to grow 13. 8% annually till 1986. To meet future requirements, the project will construct a new power station with two 7 megawatt diesel generating units at Carrefour in Port-au-Prince. Inadequate and obsolete equipment have resulted in the deterioration of the • capital's distribution network. The project will rehabilitate about 10 square kilometers of the network in order to establish adequate and reliable power supply to Port-au-Prince and the surrounding areas. More households will benefit from improved access to electricity. The project will also provide funds for 1;-epairing hydro-mechanical facilities at the Peligre hydro-power station, the largest in the country. Because of siltation, caused by soil erosion, the volume of the station's reservoir has decreased from 470 million cubic meters to 37 5 million cubic meters. A feasibility study, surveys, and bid documents will be prepe.red to protect the reservoir from further siltation through the construction of the first Guayamouc hydropower scheme. I Consultant services and staff training programs to Electricite d'Haiti, which were initiated under the second power project, will be continued to strengthen operations and planning. A new head office, designed to meet the corporation's manpower and growth requirements, will be constructed in the capital. The $26 million IDA credit is for SO years, including 10 years of grac~; it carries no interest but bears a small annual service charge of 0.5% on the undisbursed balances of the credit, and 0.75% on the disbursed balances. The first and second power projects supported technical, institutional, and financial improvements in Haiti's power sector, and the construction of the Varreux diesel generating station. •- NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.s. dollar equivalent r~ the SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit.