Sri Lanka - Second Power Distribution and Transmission Project

Docuenut of T"he World Bank FOR OICIAL USE ONLY A,.,,.,ut, ~ ~ ~ ~ ~ ~ ~ ~ qw No. '4i-RTru:(N)Rp0b P-5546-CE llu., i. ,X'3u<X2'~ ,' ,; h' 1E MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 37.5 MILLION TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A SECOND POWER DISTRIBUTION AND TRANSMISSION PROJECT JUNE 28, 1991 Thi documen has a rericted distfbution and may be usd by recipients oly in the perfomance of their offcial duties Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (As of May 22, 1991) Currency Unit Sri Lankan Rupee (SLRes) US$1.0 SLRs .1.0 SLRs 1.0 US$0.024 MEASURES AID EQUIVALENTS 1 kilovolt (kV) m 1,000 volts 1 megavolt-ampere (MVA) = 1 million volt-amperes a 1,000 kilovolt-amperes 1 megavolt-ampere reactive (MVAR) m 1 million volt-amperes reactive = 1,000 kilovolt-amperes reactive 1 kilowatt (kW) - 1,000 watts 1 megawatt (MW) 1 million watts - 1,000 kilowatts 1 kilowatt hour (kWh) - 1,000 watt hours 1 gigawatt hour (GWh) - 1 million kilowatt hours ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AMP - Accelerated Mahaveli Program CEA Central Environmental Agency CEB - Ceylon Electricity Board CER - Country Economic Memorandum COW - Committee of the Whole CTB - Ceylon Transport Board ERC - Economic Restructuring Credit FIAS Foreign Investment Advisory Service FSP F Food Stamps Program GDP - Gross Domestic Product GOSL Government of Sri Lanka IMF 8 International Monetary Fund JSP - Jana Saviya Program LECO - Lanka Electricity Company (Private) Limited NGO Non-Government Organization PE Public Enterprise PFP X Policy Framework Paper PMEAC - Public Manufacturing Enterprises Adjustment Credit PME Public Manufacturing Enterprise SAP - Structural Adjustment Facility FISCAL YEAR January 1 - December 31  FOR OFmFCIAL USE ONLY SRI LN SECOND POWER DISTRIBUTION AND TRANSMISSION TROJECT CREDIT AND PROJECT SUMMARY Borrower: Democratic Socialist Republic of Sri Lanka Beneficiary: Ceylon Electricity Board (CEB) Amount: SDR 37.5 million (US$50.0 million equivalent) Terms: Standard, with 40 years maturity Onlendina Term.: The Government of Sri Lanka (GOSL) would onlend the proceeds of the credit to CEB at an interest rate of 12.51 per annum, repayable over 20 years, includfrg a five-year grace period. GOSL would baar the foreign ex tange risk. Financina Plan: Local Foreisn Total