Liberia - Second Power Project

RESTRICTED Report No. PU-72 Tla report Is for offrdm ue only by the Bank Gioup and peclly authowied orpnizations or pcsons. It may not be pubshed, quoted or cited without BD Group authoriztion. The Dank Group does not acept reSponility for the accuact or othpbteness of the report. INTERNATIONAL BAK FOR RECONSTRUCI1ON AND DEVELPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF PUBLIC UTILITIES AUTHORITY SECOND POWER PROJECT REPUBLIC OF LIBERIA June 4, 1971 Public Utilities Projects Department  Currency Equivalents Liberia utilises U.S. Currency Weights and Measures Equivalents kW - kilowatt MW - Megawatt (1,000 kW) kWh - kilowatt hour MWh = Megawatt hour (1,000 kWh) aWh - Gigawatt hour (1 million) kV - Kilo volt (1,000 volt) One acre ft - 1233.5 m3 One million acre ft - 1233.5 million m3 Ngd - million gallons per day PUA?s Financial Year - Calendar Year Acronyms and Abbreviations PUA - Public Utilities Authority USAID - U.S. Agency for International Development kx-Im Bank - U.S. EFport-Iport Bank ADB - African Development Bank S&P - Sanderson & Porter, Inc.  REPUBLIC OF LIBE?IA PUBLIC UTILITIES AUTHORITY (PUA) APPRAISAL OF THE SECOND PCWER PROJECT Table of Contents Page No. SUMKARY AND CONCLUSIONS i 1. INTRODUCTION 1 2. THE POWER SECTOR 3 The Country and the Economy 3 The Power Sector 3 PUA's Installations 4 Monrovia Power System 4 Secondary Power Systems 4 Water and Sewer Facilities 4 3. THE BORROWER 5 Management 5 Staff Training 5 Insurance 6 4t. THE PCER MARKET - MONROVIA SYSTEM 7 v. DEVELOPMENT STRATEGY 9 Generation 9 Transmission and Distribution 10 Development Costs 11 6. THE PROJECT 12 Description 12 Costs 12 Procurement and Disbursement 13 Schedule of Construction 14 Consultants 14 The Environment 14 7. JUSTIFICATION 15 Least Cost Solutions 15 r*eneration 13 Transmission and Distribution 16 Internal Financial Rate of Return 16 This report was prepared by Messrs. A. N. Memon and E. A. Minnig.  -2- Page No. 8. FINANCEB 17 Past Operating Results and Present Position 17 Collections 17 Tariffs 18 Proposed Financing Plan for the Power Division 18 Financial Outlook for the Power Division 20 Financial Outlook for PUA as a Whole 20 9. RECOMMENDATIONS 21  LIST OF ANNEXES 1. General Economic DNta 2. Private Generating Equipment in Service end 1970 3. Monrovian Power System Existing Facilities . Water and Sewer Divisions Description and Financial Statements (Income Statement, Sources and Applications of Funds and Balance Sheet for Sewer Division and for Water Division) 5. Proposed Organization (Chart) 6. Actual and Forecast Generation, Maximum Demand, Sales and Revenues (Table) 7. Monrovian System Load Forecast 8. Actual and Fbrecast Generation, Sales and Maximum Demand, Installed and Firm Capacity (Diagram) 9. Existing System (One-line Diagram) 10. 69 kV Transmission and 12.5 kV Distribution, Monrovia and Vicinity (Map) 11. Future Transmission System (Map) 12. Design Criteria 13. Cost Estimate 1. Estimated Schedule of Disbursements 1. Distribution Expansion and Maintenance 16. Power Division Income Statement 1967-1976 17. Power Division Sources and Applications of Funds 1971-1976 18. Power Division Balance Sheet 1967-1976 19. Basis of Financial Projections 1971-1976 20. Consolidated Income Statement 1967-1976 21. Consolidated Sources and Applications of Funds 1971-1976 22. Consolidated Balance Sheet 1967-1976 MAP - Liberia   KEPUIJL,iC CL' LIBERIA FUBLIC UTILITMS AUTHOMI;L APPiAILSAL (2w THE SEGCIjD POWER PROJECT SUTMARY _AkID CONcLJSICNS i. The Bank's firsi, power loani to Liberia was signed in June 1970. One of the items financed by that loan -eras a consultants' study of the Public Utilities Authority's (PFUA Y) power transmission and distribution requirements for 1971-198il. The study tmes completed in January 1971. Based on its recommendatior s, thoe Gover:uneant of Liberia, on behalf of PUA (the borrower), has requested a Bank loan of US$4.7 million to cover the off-shore costs of a Project bhi.ch includes transmission, distribution and generation, estimated to cost US$6.4 vdhlion. ii. PUA 's transmission and Lstr:tbition network is at present unsatisfactory. It is over3oaded, requires too much maintenance, and gives rise to high losses and frequent f