Colombia - Third Yumbo Thermal Power and First Calima Hydropower Projects

RETURN TO- REPORTS DESK R E s T R I C T E D WITHIN R e pis r t N o. TO. 239b ONE WEEK This report was prepared for use within the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPRAISAL OF YUMBO III THERMAL AND CALIMA I HYDRO PROJECTS COLOMBIA April 25, 1960 FILE COPY Depa rtment of Technical Operations  CURRENCY EQUIVALENTS U.S. $ 1 - 7.0 Pesos 1 Peso - U.S. $ 0.143 1 million Pesos - US. $ 143,000  TABLE CF CONTENTS Page 1No. SUMARY 9AND CONCLUSIOTS i-i I. IMTRODUCTION 1 II. THE BOPROWERS 1 CVlC 1 Chidral 2 III. YEESEtI POW1ER IlQSTALLATIONS 3 IV. POWER MARKET 3 V. POWER E ,-PAiSION PROGRAM 5 VI. THE PROJECT 6 (a) Yumbo Thermal Plant 6 (b) Calima I Hydro Plant 7 Engineering and Planning 8 Construction 8 Status of Work and Schedule of Construction 8 (c) Transmission System 8 (d) Distribution Systems 9 Cost Estimates 10 VII. ECONOI,UC ASPECTS 11 Rates 11 Audits 12 Present Financial Position 12 Past Financing 13 Past Earnings Record 13 Proposed Financing 13 Estimated Future Earnings 14 Strengthening of Chidral's Financial Position 15  LIST CF ANNEXES 1. Corporacion Autonoma Regional Del Cauca. Financial Structure and Condition 2. Chidral. Percentage Distribution of Power Consumers 3. Chidral. Load Growth 4. Chidral. Installed Capacity in Power Stations and Maxdmum demand on System 5. Chidral. Calima Project Engineering Details 6. Chidral. Calima Project Construction Schedule 7. Chidral. Estimate of Costs 8. Chidral. Actual and Forecast Balance Sheets 1955- 1969 9. Chidral. Actual and Forecast Income Statements 1955-1969 10. Chidral. Forecast Sources and Applications of Funds 1960-1969 11. Chidral. Comparison of Financial Results at Rates of 6.1 and 7.9 centavos 2 Maps  APPRAISAL OF YUMBO III THER1AL AN;D CALIMA I HYDRO POIE PROJECTS COLOMJBIA SUTVK51ARY AND CONCLUSIOPS Corporacion Autonoma Regional del Cauca (WCV) and Central Hidro- electrica del Rio Anchicaya (Chidral) have asked the Bank to consider a loan to finance the foreign exchange cost of a 33 MW extension to the existing Yumbo thermal plant, the construction of the Calima I hydro plant with an initial capacity of 60 MW and associated transmission and distri- bution systems. The total costs of these works are estimated at $37 million equivalent, of which $25 million would be required in foreign exchange. ii. CVC is an autonomous regional organization responsible for the economic devrelopment of the Cauca Valley. It owns a majority of the shares of Chidral, the main power company serving the region. iii. The Bank has made three previous loans to Chidral. The first of '