Announcement of World Bank Lends One Hundred Twenty-Five Million Dollars for Expanding Electricity in Medellin, Colombia on June 12, 1980

-- "' .FOR ..&MME DIA ~ ~ ...) TE . . RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE N0.80/118 June 12, 1980 WORLD BANK LENDS $125 MILLION FOR EXPANDING ELECTRICITY IN MEDELLIN, COLOMBIA A World Bank loan of $125 mi 11 ion to Colombia wi 11 assist in the expansion of electricity services to Medell (n, the country's major industrial center, and the surrounding urban and rural centers. The project will make electricity available to about 81,000 new consumers. With an estimated total cost of $228.3 mill ion, the Guadalupe IV Hydro Power Project includes the construction of a 213-megawatt hydroelectric plant on the Guadalupe River, 150 kilometers of transmission 1 ines, the expan- sion of about six existing substations, and the construction of about five new ones. The power project covers planned 1980-84 hydro power, transmission, • and urban distribution system expansion to be carried out by the Empresas P~bl icas de Medel 1 i'n. This is an autonomous company, owned by the Municipality of Medell(n, which is responsible for providing the city and its nearby areas with electricity, water, sewerage, and telephone services. Medell(~ is the capital and principal center of Antioquia, the most heavily populated state in Colombia. Medell (n and its immediate suburbs, situa- ted in the Aburra' Valley of the Central Mountain range, account for about one-half of the state's estimated 3.5 mill ion people. The project will provide the power capacit_ ,,1d facilities necessary to supply electricity to an estimated 66,000 new industrial, commercial, and residen- tial users in the city of Medellin by 1984. It will also expand electricity supply to 15,000 families in rural areas and permit the substitution of relatively in- expensive hydro-based power for ·0stly and unreliable diesel plant generation. The project also includes construction of a regional energy control center which is expected to enable the company to participate in the least-cost operation of the national power system. A training program for the utility's specialized staff is also provided under the project. The loan to the Empresas PUbl icas de Medellfn has the guarantee of the Republic of Colombia. It is for a term of 17 years, including four years of grace, with interest at 8.25% per annum. Since 1950, the World Bank has supported Colombia 1 s power sector with • 24 loans including the present one, tota11 ing $894. 13 mill ion. These operations have assisted the expansion of generating capaci1)', transmission, and distribution facilities in the systems serving Begot~, Medell 1n, Cali, Cartagena, Bucaramanga, and Manizales. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Guadalupe IV Hydro Power Colombia $228. 3 mi 11 ion • BA.NK FINANCING: $125 mill ion for a term of 17 years, including four years of grace, with interest at 8.25% per annum OTHER FINANCING: Empresas P~bl icas de Medell (n (EPM), $73. 1 mill ion; Commercial borrowings and suppliers' credits, $30.2 mi 11 ion IMPLEMENTING ORGANIZATION: Empresas P~bl icas de Medell (n (EPM) Mede 11 in, Co 1omb: a. Cable: EMPRESAS MEDELLIN Telex: 06649 PROJECT DESCRIPTION: It consists of: (a) the addition of a 213-megawatt (MW) hydroelectric generating plant, Guadalupe IV; (b) the construction of 150 kilometers of transmission lines; (c) the expansion of 5 or 6 ing substations; (d) the construction of 4 or 5 new ones; (e) the rehabilitation and exi. expansion of EPM's electricity distribution network; (f) the construction of a regional energy control center which will enable EPM to ~articipate in the least-cost operati6n of the national power system; and (g) a training program for EPM's specialized staff. PROCUREMENT: All the items to be financed by the loan will be procured by international competitive bidding under Bank guidelines. Colombian manufacturers will receive a margin of preference of 15% of the c. i .f. price or the applicable import duties, whichever is the lower, for purposes of bid evaluation. CONSULTANTS: About 3,200 man-months of consultant services for engineering supervision will be required. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 13% 1984 - 0 - •