Announcement of Sixty-One Million US Dollars Loan for Electric Power in the Philippines on July 5, 1974

tt4TF'RNATIONAL BAN~<. FOR F~ECONSl-RUCTIOI\J AND DEVELOPMENT 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-8380 Banlt Press Release No. 74/63 Subject: $61 million loan for electric power July 5, 1974 in the Philippines The World Bank has approved a loan of $61 million to assist the Philippines in increasing the country's electric power generating capacity and in expanding the transmission network. The Bank loan will help to finance a $92 million project consisting of the installation of a 100 Mv hydroelectric power plant at Pantabangan, as an exten- sion to the Upper Pampanga River Project and additions to the transmission grid for Luzon. The project also includes studies for hydro power development of the Chico River and for a dispatching center for the National Power Corporation (NPC). Electricity consumption in Luzon has increased at the rate of 10% a year, and is·forecast to grow at about the same rate·up to 1982. NPC's generation is pri- • marily from hydroelectric sources which have insufficient reservoir capacity for seasonal regulation. Consequently plant capacities are reduced during the dry season. The Pantabangan project will provide ideal peaking capacity by utilizing irrigation water releases during the dry season. The transmission lines associated with the project willconnect about 130 towns and mtmicipal:i.ties and about 60 large consumers, including 2 7 pumped irrigation projects to the Luzon ·grid by 19 80. Of the towns to be connected, 60 now rely on small, high-cost diesel plants and 70 have no electricity supply at all. The grid connections will make reliable, lower cost electricity available to consumers and will encourage pumped irrigation, agro- industry development and dispersal of industry. The Bank loan of $61 million will finance the foreign exchange cost of the project. Execution of the project will be the responsibility of NPC. The Bank loan is being made to NPC, with the guarantee of the Government of the Philippines, for a term of 25 years, including four years of grace, with interest at 7-1/4% per annum. The project is scheduled for completion in 1978. • Note: - 0 - Money figures are expressed in US dollar equivalent.  July 5, 1974 PROJEcr: COUNTRY: TOTAL FINANCING: TEaJNICAL ~TA Electric Power Philippines $92 ,a.llion • BANK FINANCING: $61 million, for a term of 25 years, including a grace period of four years with interest at 7-1/4% per annum. OTHER FINANCING: 'Die National Power Corporation (NPC), Manila, Philippines. IMPLEMENTING ORGANIZATION: The National Powe:t Corporation, Manila, Philippines. PROJECT DESCRIPTION: Construction of the 100 MW (two 50 MW units) Pantabangan hydro power plant, including an earth and rockfill re-regulaticm dam downstre81Jl · of the plant and an associated tranemiasion line; erection and installation of about 210 kilometers of 230 kV and about 53S kilometers of 69 kV transmission lines and 33 substations, total capacity 1, 37S MVA for the Lqzon grid; and feasibility studies for hydro power development of the Chico River and for a dispatching center for NPC. PROCUREMENT: Goode and services, including basic materials and equipment for civil works construction, will be procured through intemational competitive bidding in accordance with the Bank's guidelines. Since some of the project items may be manufactured locally a preference of 15% of the c.i.f. price of imported goods, or the customs duty if lower, will be extended to domestic manufacturers in the evaluation of bids. Civil works for the project will be undertaken by t h . contractor for the Upper Pampanga River Project under the terms of a negotiated con tract. This con tract is not Bank financed. OONSULTANTS: Engineering Con~ultants, Inc. of the ·u.s.A. and Engineering Development Corporation of the Philippines, appointed by NPC to prepare ·the specifications of the project, will continue as consultants for the Pantabangan project during its implementation,. Lahmeyer Intemational Gmbh were appointed by NPC to lD.ldertake the feasibility studies for the Chico River. Consultants for the dispatching study are yet to be selected. ESTIMATED COMPLETION DATE: 1978. •