Mexico - Third Power Sector Project

z01*U G59-86 ILE COPY RESTRICTED Report No. PU-27a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF THE 1970 - 71 INVESTMENT PROGRAM OF THE ELECTRIC POWER SECTOR MEXICO February 6, 1970 Public Utilities Projects Department  CURRENCY UQUIVAIMTS Currency Unit - Peso (Me$) UU$1 - MAx12.50 MIx$1 million- US$80,000 CFE's Fiscal Year - Calendar Year WEIGHTS AND MASURES kW - Kilowatt .S m- Megawatt kWh - Kilowatt hour GWh - Gigawatt hour kV - Kilo volt kVA - Kilo volt-appere MVA - Megavolt-ampere 1 kilometer (km) - 0.6214 mile 1 meter (a) = 3.281 feet  ABBREVIATIONS AND ACRONYMS CFE - Comision Federal de Electricidad Centro - Compania de Luz y Fuerza del Centro IEMSA - Industrial Electrica Mexicana, S.A. IMPULSORA - Impulsora de Empresas Electricas, S.A. Mexlight - The Mexican Light and Power Company, Limited NAFINSA - Nacional Financiera, S.A.  MEXICO APPRAISIL OF THE 1970-71 INVESTMENT PROGRAM OF THE ELECTRIC POWER SECTOR TABLE OF CONTENTS Page No. SUIgHARY AND CONCLUSIONS i-ii 1. INTRODUCTION 1 2. THE BORROWMER 4 Comision Federal de Electricidad 4 Compania de Luz y Fuerza del Centro S.A. 4 Integration of the Power Sector 5 Capital Structure and Financial Position 6 Earnings and Cash Flow 9 Auditors 10 Tariffs 10 3. THE SECTOR PROGRAM 12 The Bank Project 12 Frequency Unification 12 Nuclear Plant 14 Design and Supervision 14 Capital Requirements 15 4t. JUSTIFICATION OF THE PROGRAMA 17 Power Market 17 Expansion Planning 18 5. THE LOAN 20 Procurement 21 Disbursement 21 6. FINANCING PLAN AND FUTURE FINANCIAL POSITION 22 Proposed Financing Plan 22 Future Earnings 24 Future Financial Position 25 7. AGREEMENTS REACHED DURING NEGOTIATIONS 26 This report is based on the findings of a mission to Mexico in May and October 1969, composed of Messrs. R. H. Sheehan, C. de Beaufort, T. Berrie, and R. Ribi  LIST OF ANNEXES 1. Installed Capacity and Generation 2. Sales to Ultimate Consumers 3. Sales and Revenues by Consumer Categories 4. Estimated Demand and Capacity 5. Construction Program - List of