Announcement of World Bank Approves Eighty-Five Million Dollars Loan for Hydropower Project in Colombia on March 5, 1981

• l FOR IMMEDIATE RELEASE eWorldBank 1818 H Street. '-1.\V., Washington, D.C. 20433, U.S.A.• Telephone: r202, 477-1234 BANK NEWS RELEASE NO. 81/55 \·JORLD BANK APPROVES $85 MILLION LOAN FOR HYDROPOWER .PROJECT IN COLOMBIA The \forld Bank has approved an $85 mi 11 ion loan for a hydropo1,,,1er pro- ject in Colombia. The project is designed to provide electricity required to facilitate continued industrial and commercial qrowth in Medel 1 (n and its environs. Medell (n is the capital and the pri~cipal center of Antio- quia, the most heavily populated state in Colombia. The main feature of the project, which is estimated to cost a total of $346.4 rni 11 ion, is the construction of the Playas hydro plant. It wi 11 form part of the integrated hydroelectric development of the Nare and Guatape Rivers, which includes the Guatape, San Carlos, and Jaguas plants. The 200-megawatt Playas hydro plant will be constructed 16 kilometers • upstream from the San Carlos station and will use the waters of the Guatape River 3ugmented by the flow diverted from the Nare River for the Guatape and Jaguas plants. It wil 1 operate under a gross head of 190 meters and generate an average of 1,450 Gigawatt-hours a year. Consulting services will also be provided for engineering and other studies, including a study to protect the Playas reservoir against siltation and pollution caused by the increasing population and industrialization along the Guatape River. The project implementing authority is Empresas Publicas de Medellin, an autonomous company owned by the Municipality of Medellin. The company has previously received six World Bank loans, including $260 mil 1 ion for power development and $44 million for telecommunications. The World Bank loan to Empresas Publ icas de Medel 11n is guaranteed by the Republic of Colombia and is for 17 years including 4 years of grace, with interest at 9.6% per annum. Co-financing amounting to $85 million is being provided by the Inter-American Development Bank. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I CAL DAT A PROJECT: Playas Hydro Power ~ COUNTRY: Colombia TOTAL COST: $346. 4 mil 1 ion BANK FINANCING: $85 million, for 17 years, including 4 years of grace, at 9.6% interest per annu~ OTHER FINANCING: Inter-American Development Bank (IDB), $85 million; Internal Cash Generation, $130.6 mi 1 lion; and Suppliers 1 Credits/ Other External Borrowings, $45.8 million IMPLEMENTING ORGANIZATION: Empresas Pubiicas de Medell 1n (EPM) Calle 53, No. 52-16 Medel 1 in, Colombia Telex: 440098 (ITT); 248423 (RCA); 64145 (WUI) PROJECT DESCRIPTION: The project consists of: (a) 65-meter earthfill dam volume of about 1 .9 million cubic meters, including a spillway with a 2,800 cubic meters per second discharge capacity, tunnels, and underground penstock; (b) a 200 Megawatt underground power station with three Francis turbines and three gene- rators of 67 Megawatts each; (c) a substation and 1 kilometer of 230-kilovolts transm.ic- sion line to link with the San Carlos-Guatape line; and (d) studies to: (1) assist determining actions necessary to ensure adequate environmental protection of the Playas reservoir; (2) provide a least-cost plan for power rationing in the event of need; and (3) determine the feasibility of the acquisitioning by EPM of the Electrificadoras of Antioquia and Chaco, and to assess the works needed to bring their systems up to adequate standards. PROCUREMENT: All the items to be financed by this loan (except for consulting services) will be procured by international competi- tive bidding under Bank guidelines. Colombian manufacturers wil 1 receive a margin of pref- erence of 15% or the applicable import duty, whichever is lower, for purposes of bid evaluation. The cost estimate assumes that local manufacturers will be able to supply some items required for the project, the cost of which is estimated not to exceed $2 mill ion. Project works will begin in August 1981 and be completed by February 1986. To take account of the different procurement arrangements of the Bank and IDB, the financing of each insti- tution will be associated with separate bid documents, w1th the Bank covering the foreign cost of contracts for the river diversion, electromechanical equipment, and some consultant services, and IDB, underground works contract, and remaining consultants. CONSULTANTS: About 9,700 man-months of services re1uired over 5 years for engineering and supervision. Project consultants are: Servi- cios de lngenieria de Consulta, Lt. of Colombia. ECONOMIC R~TE OF RETURN: ESTIMATED COMPLETION DATE: 15.5% 1986 - 0 - •