Colombia - Guavio Hydro Power Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-3060-CO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO EMPRESA DE ENERGIA ELECTRICA DE BOGOTA WITH THE GUARANTEE OF THE REPUBLIC OF COLOMBIA FOR THE GUAVIO HYDRO POWER PROJECT May 6. 1981 This document hs resticted distribution and may be used by recipients only in the performance of their ofiAcial duties. Its contents may not otherwise be disclosed without World Bank authorion.  CUPPENCY EOUIVALENTS Average Calendar 1979 Average Calendar 1980 Currency llnit = Peso - ColS IJS$1 = Col$42.550 US$1 = Col$47.280 Col$1 = US$0.02350 Col$1 = US$0.02115 Exchange Rate Effective April 1, 1981 TIJSS = Col$52.49 ColSl = TIS$0.01905 PF.IC-mn'S AND ?TASURES 1 meter (m) = 3.281 feet (ft) 1 square kilometer (km2) = 0.386 square mile (mi2) 1 cubic meter (i3) = 35.315 cubic feet (ft3) '' = 264.2 gallons (gal) I kilogram (kg) = 2.206 pounds (lb) 1 ton (t. metric;1,000 kg) = 1.100 short tons (sh. tons) 1 kilowatt (kF) = 1 ,000 Watts (103 kW = 106 W) 1 kilowatt-hour (kVch) = 830.3 kilocalories (kcal) 1 Megawatt (MW) = 1,000 kW (103 kW = 106 VI) 1 Cigawatt (GW) = 1,000 MW (106 kW = 109 W) 1 Gigawatt-hour (OWh) = 1,000,000 kWh (106 ktAh) 1 kilovolt (kV) = 1,000 Volts (V) CLOSSARY OF ABBREVIATIONS CORELCA = Corporacion Flectrica de la Costa Atlantica CVC = Corporacion Autonoma Regional del Valle del Rio Cauca DNP = Departmento Nacional de Planeacion FEEB = Empresa de Energia Flectrica de Bogota FPM = Fmpresas Publicas de Medellin ICFL = Instituto Colombiano de Energia Flectrica IDB = Inter-American Development Bank ISA = Interconexion Flectrica, S.A. JNT = Junta Nacional de Tarifas de Servicios Publicos PIN = Plan de Integracion NTacional FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY COLOMBIA GUAVIO HYDRO POWER PROJECT LOAN AND PROJECT SUMMARY Borrower: Empresa de Energia Electrica de Bogota (EEEB) Guarantor: Republic of Colombia Amount: US$359 million equivalent Terms: Repayment in seventeen years, including four years of grace at 9.6% interest per annum. Project Description: The Guavio hydro power plant will be the largest hydro- electric facility yet constructed in Colombia (1,000 MW to be installed under the project; ultimate aggregate capacity, 1,600 MW). In addition to increasing the supply of renewable energy, the project would provide 15% of the electricity needed in Colombia by 1988, a substantial part of which would be for the city of Bogota, and its environs. The project consists of: (a) river diversion, dam and spillway tunnels; (b) intake and diversion of the Chivor and Batatas Rivers into the Guavio reservoir; (c) pressure tunnel, underground powerhouse and transformer caverns, and tailrace tunnel; and (d) a 230 kV step-up substation at the site, two double-circuit 230 kV trans- mission lines to Bogota, and four 230 kV line bays at the Bogota 230 kV ring. The project further includes construc- tion of EEEB's load dispatch and telecommunications center, which will function as a regional satellite of the national dispatch center under construction by ISA. Also included is a study to assist in adequately protecting the environ- ment of the Guavio River, and a training program to enhance the expertise of EEEB's technical staff. In connection with the project, a substantial part of the sector would be reorganized to improve its overall viability and efficiency. The tariff measures provided for under the project would continue to support the Government's objective of sound sector financing. The project is subject to the risks associated with large underground civil works. However, all appropriate safeguards have been provided for and the project is expected to be carried out as scheduled. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: 1/ Local Foreign Total (US$ million equivalent) Civil Works Infrastructure and land 12.7 9.1 21.8 River diversion, dam and spillway 92.8 172.2 265.0 Underground works and caverns 80.0 120.0 200.0 Subtotal 185.5 301.3 486.8 Equipment Ancillary equipment 2.0 16.5 18.5 Main mechanical equipment 1.0 32.3 33.3 Main electrical equipment 1.7 40.3 42.0 Subtotal 4.7 89.1 93.8 Transmission System Equipment and materials 1.5 16.4 17.9 Erection and installation 6.0 2.8 8.8 Subtotal 7.5 19.2 26.7 Engineering and Administration 51.6 6.4 58.0 EEEB's Load-dispatch center 2.1 13.0 15.1 Studies and training 0.5 0.8 1.3 Total Base Cost 2/ 251.9 429.8 681.7 Contingencies Physical 40.0 60.5 100.5 Price 83.0 187.9 270.9 Total Project Cost 374.9 678.2 1,053.1 Interest During Construction - 250.0 250.0 Total Investment Cost 374.9 928.2 1,303.1 1/ Applicable taxes are included, but the amount is negligible. 2/ December 1980 prices.  - iii. Project Financing Plan: Local Foreign Total % (USS million equivalent) EEEB 225 - 225 17 ISA 150 - 150 12 Commercial Bank Co-financing - 340 340 26 Suppliers' Credits - 129 129 10 IDB - 100 100 8 World Bank - 359 359 27 375 928 1,303 100 Financing Plan for EEEB's 1981-87 Investment Program: (USS million equivalent) % Internal Cash Generation 1,607 44 Existing Loans 254 7 External Commercial Banks/Suppliers' Credits 752 20 Local Borrowings 328 9 Proposed IBRD and IDB Loan for Guavio 459 12 ISA 292 8 Total 3,692 100 Estimated Disbursements: FY82 FY83 FY84 FY85 FY86 FY87 FY88