Announcement of Romania Receives Fifty Million US Dollars for Riul Mare-Retezat Hydropower Project on April 15, 1976

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 76/38 APRIL 15, 1976 ROMANIA RECEIVES $50 MILLION FOR RIUL MARE-RETEZAT HVDROPOWER PROJECT The World Bank has approved a $50 million loan to Romania to help finance the foreign exchange cost of the Riul Mare-Retezat hydropower project. The project is the key component of a complex development scheme on the Riul Mare and Strei rivers. Its main components include construction of a reservoir, called Gura Apelor, formed by a 173-meter-high clay-cored rock-filled dam; an 18.4-kilometer-long pressure tunnel to convey the water to the power station; a two-unit underground power ptant of 335 megawatts (~w) and an aboveground pONerhouse of 14 MW. The project also includes • construction of transmission lines and roads required for the execution of the project. power sector. This project wi 11 help Romania meet its growing demands in the The river regulation will provide a perennially secure flow in the Riul Mare and Strei rivers and the Gura Apelor reservoir wi 11 offer recreational benefits. Moreover, the road works will later serve general communication and tourism pur~oses. The Bank loan is made to the Investment Bank of Romania, with the guarantee of the Socialist Republlc of Romania. It will have a term of 20 years, including 5 years of grace with interest at 8-1/2 percent per annum. Note: Money figures are expressed in U.S. dollar equivalents . • Form No. 1121 (9-75) T E CHN I CA L DA T A PROJECT: COUNTRY: Riul Mare-Retezat Hydropower Romani a • TOTAL COST: $250. 1 mi 11 i on BANK FINAN CING : $50 ~: llion, 20 years, 7ncluding a qrace oeriod of 5 years at 8-1/2 percent per annum OTHER FINANCING: Internal cash qeneration of the powe:r enterorises of the Ministry of Electric~I Enerqy and State Budget IMPLEMENTING ORGANIZATION: Ha~eg Generating Enterprise Hunedoara District Ha\eg Agency responsible for foreign p~ocurement: ROME~EGRO Foreign Trade Enterprise Bucharest, Romania I , BD- Lacu 1te i P.O. Box 736 • Cable: ROMENEGRO-BUCHAREST TELEX: Ol 1-525 PROJECT DESCRIPTION: The project wil 1 invoive the construction of: (a) a reservoir cal led Gura Apelor to be formed by a clay-cored, rock-filled damt Tomeasa, 173 meters high across the valley of the Riui Mare in the neighborhood of Mount Retezat from which the project takes its name. A high pressure tunnel 18.4 kilometers long conveys the reservoir releases to the Retezat underground pOV.Jer plant of 335 megawatts having two units working with a gross head of 583 m. The tai 1-race of Retezat is also the headrace of the aboveground 14-MW powerhouse, C1opotiva, which uses a head of 25 m. TherP. are 25 secondary intakes which co1 lect water from adjacent streams and drop it into the pressure tunnel or convey it through a tunnel of 34 km lonq to ~ura Apelor reservoir; (b) transmission lines at 110 i<.ilovolt lines will interconnect the Re~ezat--C 1opot i va power st at ions and 220-k\1 lines wi 11 connect the Retezat power station with the existinq system at Buiul Mare; and (c) roadworks needed f~r the execution of the proj;ci a~e in ~and. These wi 11 later serve general communication and tourism purposes. PROCUREMENT: The Bank loan will finance equipment anrl materials requirer for the project. Al 1 items to be financed under the Bank loan wi 11 be subject to international competitive bidding under the Bank's Guide} ines for Procurement. For purposes of bid comparison, ~omanian suppliers wil 1 be accorded a preference of 15 percent or applicable customs duty, whichever is lo.-Jer. ECONOH·it- RATE OF RETURN: ESTIMATED COMPLETION DATE: 1983 6-1 /2% •