Haiti - Fourth Power Project

Document of The World Bank FOIR OFFICIAL USE ONLY Repoirt No. 488 9-HA STAFF APPRAISAL REPORT FOUJRTH POWER PROJECT October 25 , 84 Projects Department Latin America and the Caribbean Regional Office This document has a restricted distribution and may be used by recipients only in the it -qrnnLice of| their official duties. Its contents may not otherwise be disclosed without World Baul a- bhoriil fi(. l  CURRENCY EQUIVALENTS Currency unit Gourde (G) G 1.00 = 100 centimes = US$0.20 Million US dollars (MUS$) = US$1,000,000.00 French Franc = FF UNITS AND MEASURES 1 kilovolt (kV) = 1,000 volts (V) 1 kilowatt (kW) - 1,000 watts (W) 1 megawatt (MW) = 1,000 kilowatts (kW) 1 kilowatt-hour (kWh) = 1,000 watt-hours (Wh) 1 gigawatt-hour (GWh) = 1,000 megawatt-hours (MWh) I megavolt-ampere (MVA) = 1,000 kilovolt-ampere (kVA) 1 kilometer (km) = 0.6214 mile (mi) 1 square kilometer (km2) 0.386 square mile (sq. mi.) 1 barrel (bbl) = 42 US gallons = 159 liters 1 meter (m) = 3.281 feet (ft.) 1 cubic meter (m3) = 35.32 cubic feet (ft3) 1 kg - 2.206 pounds (lb) ABBREVIATIONS AND ACRONYMS EdH = Electricite d'Haiti TELECO = Telecommunications d'Haiti ODVA = L'Organisme de Developpement de la Vallee d'Artibonite CIDA = Canadian International Development Agency - Canada CCCE Caisse Centrale de Cooperation Economique - France FAC = Fonds d'Aide et de Cooperation - France IDB = Inter-American Development Bank KfW = Kreditanstalt fuer Wiederaufbau (Federal Republic of Germany) UNDP = United Nations Development Programs HQI Hydro Quebec International - Canada PW Price Waterhouse - Canada SOFRELEC = Societe Francaise d'Etude et de Realisation d'Equipements Electriques - France EdH FISCAL YEAR (FY) October 1 - September 30  FOR OFFICIAL USE ONLY HAITI ELECTRICITE D'HAITI FOURTH POWER PROJECT Table of Contents Page No. 1. PROJECT SUMMARY ..................... .................... 1 2. THE POWER SECTOR ............* *.... , , , .**** **** 3 Energy Resources 3.... ...*.*..*.... ... ................ 3 Power Sector and its Organization........................ 3 Electricite d'Haiti ...... 4 EdH's Financial Situation .............................,. 5 Power Sector Strategy and Development ...... 6 Sector Constraints .. ***** *** *0eS ** .0 ... ... **.. 7 IDA Strategy and Participation in the Power Sector ....** 7 3. THE PROJECT *..................... 9 Project Origin and Preparation .......................... 9 Project Objectives and Description ...................... 9 Project Execution .............................. * 12 Project Cost and Financing .. 13. Procurement and Disbursement 14 Economic Evaluation 15 Project Risks .............................. .. 15 4. PROJECT IMPLEM4ENTATION DETAILS ....... 16 Cost Estimates ...........16 Implementation Schedule ..... *. 16 Procurement Details ..... 17 Disbursement Schedule ..... 18 Environmental Aspects ..... - 18 Project File . 18 5. AGREEMENTS REACHED AND RECOMMENDATION *. 18 This report is based on the findings of an appraisal mission which visited Haiti during September-October 1983. The mission comprised Messrs. L. R. Luzuriaga (Power Engineer), C. Moreno-Pineda and J. Davis (Financial Analysts). 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 - Page No. ANNEXES Annex 1: The Beneficiary ........... ............... 20 Attachment 1: Organization Chart *v**.e .................. 24 Attachment 2: Performance Indicators ..................... 25 Annex 2: The Power Market .......................... 26 Attachment 1: Distribution of Electricity Consumption .... 31 Attachment 2: ixisting and Proposed Generating Facilities 32 Attachment 3: Capacity Balance for Port-au-Prince 33 Attachment 4: Actual and Forecast Generation 34 Attachment 5: Actual and Forecast Sales ................. 35 Annex Z: Financial Analysis ... . *. 36 Attachment 1: Actual and Forecast Income Statements 41 Attachment 2: Estimated and Forecast Funds Statements .... 42 Attachment 3: Actual and Forecast Balance Sheets ,.,.. 43 Attachment 4: Investment Program for Period 1984-88 ...... 44 Attachment 5: Actual and Forecast Rate Base 45 Attachment 6: Statement of Changes in Work in Progress.... 46 Attachment 7: Terms of Existing and Future Loans 47 Attachment 8: Electricity Tariffs as of October 1983 48 Attachment 9: Fuel Cost Forecast 49 Annex 4: Internal Rate of Return .................................. 50 Annex 5: Project Cost Estimates ...... 51 Annex 6: Project Implementation Schedule ........52 Annex 7: Credit Disbursement Schedule 53 Annex 8: Contents of Project File ........................ 54 MAP No. IBED 17956  H ITI EL1;CTRICITE D'SLAITI - FdAl FOURTH POWER PROJECT l. PROJECT SUMARY H vv Rep ib lic of Haiti pitlv t Ll:lazrv: Electricite d'Iiaiti. (EdH) and the Ministry of Finance SDIt 21.8 million from IDA, equivalent to US$22.1 millIon Standard o-b.n4ing iTerms: T-e amount of SDR 21.3 million from proceeds of the e:redit would be on-lent by the Government to EdH for a period of 20 years, including four years grace, at an Interest rate of 9.89% per annum. Interest during eon4tcructioii would be capitilized. EdH would assume the foreign exchange risk. PasralttS inasctng: Cais6e Centrale de Cooperation Economique (CCCE), FF 72.0 million, to be lent to the Government of 'haiti for on-lending to EdH. t l