Announcement of IDA Lends Sixteen Million Five Hundred Thousand Dollars for a Second Power Project in Haiti on April 19, 1979

. FOR l·MMEDIATE RELEASE .world Bank 1818 H Street, N.W., Washington, 0.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/60 April 19, 1979 lOA LENDS $16.5 MILLION FOR A SECOND POWER PROJECT IN HAITI The International Development Association (iOA), the soft-loan affiliate of the World Bank, has approved a $16.5 million credit to help finance a second power project in Haiti. IDA will also act as adminis- trator for an EEC Special Action Account credit of $6 million for the project, in accordance with an agreement between IDA and the EEC. The project to be carried out by Electricite d'Haiti (EdH), the state-owned power company, at an estimated total cost of $43 million, will be a continuation of the po.,..,er sector development program initiated in 1976 with the support of an earlier IDA credit of $16 million. The first power project is now nearing completion. • Under the new project, EdH is expected to add 22-23 MW of additional diesel capacity in Port-au-Prince, 3.5 MW in Cap Haitien, 1 MW in Port-de-Paix, and 250 kW in a new power station at Miragoane. Seven substations will be expanded and three new ones built in Port-au- Prince, and there will be rehabilitation, renovation, and expansion of distribution networks in the capital city and provincial towns. The project is expected to increase service to households and labor-intensive industries as well as provide an adequate and reliable electricity service in Port-au-Prince and provincial towns. Consulting services will assist EdH in detailed engineering and related studies, as well as in staff training. The IDA credit and the EEC Special Action Account credit will be supplemented by a CIDA (Canadian International Development Agency) grant. Parts of the program will be supported by financing provided by Kreditanstalt fGr Wiedaraufbau (KfW) of the Federal Republic of Germany as well as by the Haitian Government and EdH itself. The IDA and the EEC Special Action Account credits are being made to the Government of Haiti on standard IDA terms. The government will re-lend the proceeds of the credit to EdH for a period of 20 years, including 4 years of grace, at 8% annual interest • • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Power Haiti $43 mi 11 ion • I DA FI NANC I NG : $16.5 million supplemented by $6 million from EEC Special Action Account for 50 years on standard IDA terms. OTHER FINANCING: Canadian International Development Agency (CIDA), grant of Can $17.1 million, and EdH own resources, $6 million. IMPLEMENTING ORGANIZATION: Electricite d'Haiti (EdH) Boite Postale D Port-au-Prince, Haiti TELEX: 3490113 ELECDHA Port-au-Prince, Haiti PROJECT DESCRIPTION: The project includes: (1) expansion of generating capacity in Port-au-Prince (22 MW), Cap Haiti en (3.5 MW), Port-de-Paix (1 MW), and Miragoane (250 kW); (2) expansion of seven and construction of three new substations and acquisition of telecommunications equipment; (3) eon- struction of about 32 km of transmission 1.ines; rehabilitation of about 30% of the distribution network in Port-au-Prince and renovation and expansion of network in Les Caves ('IO km), Port-de-Pa ix (16 km), and Mi ragoane (18 km); (4) staff training, It and (5) related consultant services for the project, and for operational assistance· to EdH. PROCU.REMENT: Procurement of goods under the I DA credit wi 11 ·be made in accordance with Bank guidelines for procurement. Because of the need to match existing equipment for telecommunications, control and switching panels and protection equipment, up to $2.25 million of such equipment will be obtained by direct negotiation. Local manufacturers will be offered a preferential margin of 15~~ of the c. i .f. cost. For civi 1 v-JOrks, local bidders wi 11 be al lowed a 7.5% margin of preference. Procurement under the Specii3l Acti·on Account credit will be limited to members of the European Economic Community. Procurement under the CIDA grant will be made in Canada and Hatti, under CIDA procedures. CONSULTANTS: SOFRELEC of France, a firm retained under the first project, will continue as EdH's general consultant and assist it in detailed engineering and procurement in connection with the IDA/EEC components. Canadian consultants will be contracted in connection with the CIDA- financed component. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 9% 1983 - 0 - •