Announcement of Loan Granted to Mexico on January 11, 1952

(/ lRDRKATIONA~ BANK FOR t /\ RmOHSTRUCTION AND DEVELOPNENT ,'.,,,·,) . ' <1 Wa11:tu.ngton, D.c. FOR THE PRE$ FOR D2MEDIATE RELEASE Press Release No. 274 January 11, 19,2 !,) / The International~iik tor. Reconstruction ~nd Development toda7,ma.de a loan of $29,7001 000 tor electric powe~ development :in Mexico. . )', The loan will be ue~ to finance imports or equipment and materials need(;d to ;:::,carry out seven major projects in the 1952-$$ construction program olf1Iexibo•s ;/ Federal Electricity Commi~~ion • . Additional electric power is essential to support the rapid develop- mentor industry and agr.iculture riow taking place in Mexico. This is the Bank's third power loan in the eountryJ one,was made in 1949 for the ~ - '- Commission, another in 19SO to the privately-owned Mexican Light and Power • C ' Co., Ltd. Wilen the projects in the Commission•s curr~nt program are pleted, the Bank; by its three loans, will have contributed, by an additional 700,000 ·,kw, to a near doubling or electric gen~ating capacity com- in Mexico - from 1,000,000 kw in 1948 to 1,as·o,000 kw in 19SS. Because or the rapid growth ot the eountryts population ~d industry, this increase . •,.,,::yt""' will be only s~tt.icient to cover the most essential requireSien~th The projects to be financed under the loan made today.will consist , or two hydroelectricplants, four steam electric stations, and the axten~ion of distribution facilities.. The, projects are located in widely different i.,· \ ' parts of the countryJ some of them will serve areas, such aa Mexico.City and Monterrey, where indu$trial development has tended to outrun the , eupply ot power; others will help stimulate the development or·agriculture and industry in relatively undeveloped regionf'such as Yucatan and Lower •• .. ...  0 ~~ I\~ • .. 2 - ·california, ,0 D The largest of the projects is the construction of a 1501 000 kw r? hydroelectric sta.\ion at Tingambato :Ln the State of Mexico. This station \ 0 will be the largest .i,.n the country as well as the largest unit in,the Electricity Conunissionrs "Miguel Aleman" system, whlch supplies part () -;:-- ot ,1 the power used in the Mexico. ii City' area,. ,,' A ,p~#tion \ !l or the Bank t's earlier loan of $24,100-1 000 to the Co1'1"Jnission made •;in January 1949 was used to help build other stations int-bis system. The bulk of t,he output of the Higuel \(\. .~ Aleman ey stem is bought and distributed by. the Mexicari Ligh~ tJ,ncl Power Company, Ltd.1 which also produces and distributes its own power. Additions·· to Hexlight's installations are being f'inanced by a Bank loan of $26,000,000 made in April l950. The second hydroelectric project is the construction of a" 5$,000 kw station at El Cobano.in the State of Nichoacan. This project will make use of hydraulic works already constructed for irrigation, and will pro- • vide additional power for a population or 1,650,000 in'' the areas or Guadalajara, Chapala, Michoacan and Guanajuato, where rapid industrial development is taking place. Steam electric stations or 30 1 000 kw and 10,000 kw will relieve ser~ous pressure on existing g~nerating capacity at Monterrey, Mexico's chief seaport. A steam electric station of 2,500 kw at La Paz, Lower California., will . ~, hel~ to develop a new agricultural area by providing power for irrigation pumping and for processing indu3tries. Another station of 4,000 kw at l)  1 -)- '1 Motul, Yucatan, will. pro:vide electric power tor processing plants in an' c 11 importan~ hemp-growing area, and will burn ae fuel hemp bagasse, fomerly '1/· treated as was"t;,e. ,, The seventh project involves considerable i..xtension or·' distribution 1 ii systems in the State of Sonora; where agriculture and fisheries have Jnade marked progresS: in recent years. The new syst~s will utilize more fully the generating stations constructed at piudad.Qbregon and Guaymas with the help of the Bank's previous loan to the Conunission. C) The joint borrowers a1"~,"~he Comision Federal de Electricidad (Fect~al ,,,.,\\ . \ . ' Electricity Commiss,t~on), a goveri~ent agency /charged with the dev~lopment \ ' of' electr,ic p~er, and Nacional Financiera, the ~fficial financing in- stitution of the Mexican Government, whose !unctions include ~he negotiation· of foreign loans on behalf of the Government. The loan is guaranteed by • the Mexican Govenunent. The Federal Electricity Oonunission supplements, where necessary, the facilities·provided by private electric power companies. In areas where private companies are established, the Commission normally confines itself to providing such needed increases of generating capacity as the companies themselves are unable to finance, and to selling the power produced to private companies for distribution through their networks. In other areas, ..,, especially ru.val areas, where there is no organized :3upply of pow~ 1 .the Commission undertakes the retail distribution, as well as the generation, ,=:;::- of power. The loan of .~29., 700,000 made today is fot a term of 25 years and bears interest at the rate? of 4-1/2% ,.per annwn, including the 1% commission (\ C • '· \ \·i v l  -4- ! which, 1n accordance with the Bank's Artic:les of Agreement, is allocated (? to .its special reserve. Amortizs.tion payments will begin II ~f'ter approval by the Bank's Executive Directors, the. Loan Agreement n in l9SS. '~• \\ ~· was ~igne~ today 'by Alejandro Paez-Urquidi, Director Gen~al, on behalf tf, 1 ' + (i - of the Comision Federal1 de Electri(?idad, _by Altonso Cai-tina, Mi.nister, Ec9nomic°Counselor . or the Mexican Embassy in Washington, . on behal! of Na~i<?.11al F~anciera, a~d by Eugene R. Black, President, on behalf. of the . _(,, International Bank for Reconstructi9n and Development. The Guarantee I• .; (' Agreement was signed by Senor Don Rafael de la Colina, Mexican Ambassador -to the United States, on behalf of·the United Mexican S~~es, and by ' (j I ,• • Mr. Black on behalf or . the International ;Bank . • • • . _,,\ ·~ I· ( , -~ ~=;UANA-·-·-·-;, \ \''"u "·, U N I T E D STATES ·,. • ·~ . ENSENAOA "- . ·,. ....... ......... .... c-,:._, -··._._ .............. i( -·-·-·-·-·-·-· t' ,,ii • CIUDAD JU.:IREZ EL PASO, TEX. ~ ELECTRIC POWER PROJECTS -.. 15,000 KW ·, \ INVOLVING I BR D PARTICIPATION °'"·,. \. ( \ MEXICO r·r·-·-/" SIETE ·"· j \..., CERROS RA\ " ' ....... _.) \ ' SAN , , / . CHIHUAHUA PROPOSED PROJECTS IN PROJECTS IN 'I) 45,000 KW CFE PROJECTS FIRST CFE LOAN MEXLIGHT LOAN - - - GUAYM•;.;s HYDRO ELECTRIC PROJECT [g § [r~_jJ \DKW oCAMARGO .. STEAM ELECTRIC PROJECT \ , \ ' - . LAREDO TEX. ' .. i;1 /_ NUEVO LAREDOCV ' ~ DIESEL ELECTRIC PROJECT ~ ·,. - ~JIMENEZ . PARRAL .o MONCLOVAo \\..""-. ,'. - ~ TRANSMISSION LINE -- -- --- (} DISTRIBUTION NETWORK I ........ _, -... BROWNSVILLE, TEX. RURAL DIESEL PROJECT !:SJ .. ~g~6~~~y- MATAMORO~· 0 TORREON o 'SANTIAGO ' ~- SALTILLO ""ZONTEMORELOS 0 UNARES • \.AZATLAN G U L F 0 F MEXICO 0 SAN LUIS ) ~CUALA POTOSI SANTIAGO~ IXCUINTLA 0 TEPIC PROGRES ~~ t MOTUL MERIOAo 4000 KW GUAOALAJARAo-..,....._ N CHA~~ t MANZANILU0° j s,./ - ~ VILLA HERMOSA r-·-·-·-·-·- PACIFIC _ •....i i ..... cr!I ~OAXACA '"' ·, 0 :oo 200 300 5,000KW ~~ "·~ • ACAPULCO ... 100 MILES 200 i -·---·~ KILOMETERS i i ·, // {