Bolivia - Third ENDE Power Project

FILE COPY DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSElTON Not For Public Use Report No. 190a-BO APPRAISAL OF THE THIRD POWER PROJECT EMPRESA NACIONAL DE ELECTRICIDAD BOLIVIA August 29, 1973 Regional Projects Department Latin America and the Caribbean Regional Office This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsbility for the accuracy Or completeness of the report.  CURRENCY EQUIVALENTS Currency Unit = Bolivian Peso ($b) $b 1 = 100 Bolivian Centavos (tb) $b 1 = us$0.05 $b 1,000,000 = US$50,000 US$1 = $b 20 US$ mill - 2 1lb UNITS AND MEASURES kW = Kilowatt MW = Megawatt = 1,000 kW kWh = Kilowatt hour GWh = Cigawatt hour = 1,000,000 kWh kV = Kilovolt kVA = Kilovolt-ampere MVA Megavolt-ampere m Meter = 3.28 ft km2 = Kilometer = 0.621 mi km = Square kilometer = 0.386 sq mi m3 = Cubic meter = 35.3 cu ft ENDE'S FISCAL YEAR January 1 to December 31 ACRONYMS AND ABBREVIATIONS CBF - Corporaci6n Boliviana de Fomento DINE - Direcci6n Nacional de Electricidad ENDE - Empresa Nacional de Electricidad BPC - Bolivian Power Company OGE - Cooperativa Rural de Electrificaci6n ELFEC - Empresa de Luz y Fuerza de Cochabamba ELFEO - Empresa de Luz y Fuerza de Oruro SEPSA - Servicios Electricos Potosi COMIBOL - Corporaci6n Minera de Bolivia YPFB - Yacimientos Petrolfferos Fiscales Boliviana UNDP - United Nations Development Program USAID - United States Agency for International Development IDB - Inter-American Development 3ank ENDESA - Empresa Nacional de Electricidad de Chile C.I. Power - Canadian International Power Company Harza - Harza Engineering Company, Chicago, Ill., USA Motor Columbus - Motor Columbus, Baden, Switzerland  BOLIVIA APPRAISAL OF TEE THIRD POWER PROJECT EMPRESA NACIONAL DE ELECTRICIDAD TABLE OF CONTENTS PA.ge No. SUMMARY AND CONCLUISIONS i 1. INTRODUCTION 1 2. THE PONER SECTOR 3 General 3 The Sector 3 Interconnection 5 Future Development 5 Rural Electrification 6 Tariffs 6 3. THE BENEFICIARIES 8 ENDE 8 DINE 9 4. THE PROGRAM AND PROJECT 10 ENDE's Five-year Expansion Program 10 The Proposed Project 10 Cost of the ENDE III Project 11 Cost of DINE's Part of the Project 12 Engineering & Construction 12 Construction Schedale 12 Procurement and Disbursement 12 Environment 13 5. JUSTIFICATION 14 Load Forecasts 14 Gas Turbine Units at Santa Cruz 14 Warnes - Montero Transmission Line 15 Central System Transmission 15 Office Building 16 6. FINANCE 17 Capital Structure and Financial Position of ENDE 17 Earnings Record 18 Financing Plan 18 Future Earnings 20 Future Financial Position 20 7. AGREEMENTS REACHED AND RECOMMENDATIONS 22 This Appraisal Report was prepared by Messrs. V. Nercissiantz (Financial Analyst) and J. Cavallotti (Engineer).   BOLIVIA APPRAISAL CF THE THIRD POWER PROJECT EMPRESA NACIONAL DE ELE