Bolivia - BPC and ENDE Power Projects

- & - - l," <D RP TU DN iS i 'y Report No. TO-426a ONE WEEK This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION POWER PROGRAM BOLIVIA June 23, 1964 Department of Technical Operations  TABLE OF CONTENTS Page No. SUMRY i-i I. INTRODUCTION 1 II. EXISTING POWER FACILITIES 1 III. THE BORROWERS AND BENEFICIARIES 2 Proposed Credits and Loan 2 Government Power Entities 3 Corporacion Boliviana de Fomento (CBF) 3 Empresa Nacional de Electricidad (ENDE) 3 The Bolivian Power Company (BPC) 4 IV. AGREEMENT BETWEEN GOVERNMENT AND BOLIVIAN PO'WER COMPANY 5 V. THE PCWER MARKET 7 The Bolivian Power Company Market 7 The Empresa Nacional de Electricidad Market 8 VI. DESCRIPTION OF PROJECTS 9 The Chururaqui Project (BPC) 9 The Corani Project (ENDE) 10 Vll. ALTERNATIVE FORMS OF POWER GENERATION 11 VIII. LONG-RANGE PROGRAM 12 The Bolivian Power Company 12 Empresa Nacional de Electricidad 12 IX. FINANCIAL ASPECTS 13 Credit and Loan Agreements 13 Bolivian Power Company - Past Operations 13 Bolivian Power Company - Financial Forecast 14 Bolivian Power Company - Future Cperations 15 Empresa Nacional de Electricidad - Past Operations 16 Empresa- Nacional de Electricidad - Financial Forecast 17 Empresa Nacional de Electricidad - Future Operations 18 X. CONCLUSICNS 19  ANNEXES 1 - Summary of Investment Program 2 - Legalized Copy - Supreme Decree No. 05999 3 - Scope and Legal Status of the Corporacion Boliviana de Fomento 4 - Empresa Nacional de Electricidad - Preliminary Organization Showing Personnel Already Assigned by January 1964 5 - Expansion of La Paz Division - System Growth, Peak Load and Energy 6 - Corporacion Minera de Bolivia - Load and Capacity Statistics 7 - Cochabamba - Load and Capacity Statistics 8 - Corporacion Minera de Bolivia and Cochabamba - Combined Load and Capacity Statistics 9 - Bolivian Power Company - Actual and Estimated Income Statements 10 - Bolivian Power Company - Forecast of Sources and Applications of Funds 11 - Bolivian Power Company - Actual and Estimated Balance Sheets 12 - Empresa Nacional de Electricidad - Estimated Income Statements 13 - Empresa Nacional de Electricidad - Forecast of Sources and Applications of Funds 14 - Empresa Nacional de Electricidad - Forecast Balance Sheets MAP - Bolivian Power Systems  BOLIVIA POWER PROGRAM SUMMARY i. The Bolivian Government has applied for credits and loans amounting to US$18.5 million from the International Development Associ- tion (IDA) (US$15 million) and from the Inter-American Development Bank (IDB) (US$3.5 million) to be used to finance the construction of the power projects described below. ii. Existing power facilities are mainly owned and operated by the Bolivian Power Company (BPC), a private US and Canadian-owned com- pany. Other facilities are in the Government-owned mines (COIIBOL)and in a number of very small towns throughout the country. None of the facilities is adequate to meet present demands for power and in conse- quence power rationing is in effect everywhere. iii. The Government has created a national electric company, Empresa Nacional de Electricidad (ENDE), to take over and develop po-WO. acil- ties where these are inadequate to meet the demand, except in the area served by BPC, described in paragraph v. below. Since ENDE tS just being formed, consultants will be engaged to assist in its organization to under- take operations and to train a Bolivian staff which eventually will take over. ENDE is to be formed in two stages: (a) Initially as a separate organization under CorporacionwBoliviana de Fomento (CBF) the Government-owned development;cci.poration. (b) A fully autonomous entity with CBF as its major stockholder, iv. An agreement has been reached between the Government and BPC de- fining the area in which BPC will continue to operate and specifying the regulatory arrangements under which BPC will operate. v. BPC will continue to serve La Paz, the capital, and will be re- sponsible for expanding its system there to meet future power demand. In the Oruro area, BPC will continue to supply the COMIBOL mines from its existing plants but will not expand its generating and transmission facili- ties. All present and future power requirements outside the BPC service area will be met by ENDE. vi. In order to meet the power demands in their respective areas, the following new installations are proposed: (a) BPC to build the 11 MW Chururaqui hydro plant to serve La Paz. (b) ENDE to build the 27 MW Corani hydro plant to serve Cochabamba and the COMIBOL mines. (c) Both companies will carry out transmission and distribution system expansions within their respective service areas.  - ii - vii. The Government will relend US$5 million of the IDA credit to BPC to meet the foreign exchange cost of the works to be carried out by this company. The local currency requirements of US$2.7 million will be supplied by BPC from its own resources. viii. The remaining US$10 million of the IDA credit will be made avail- able to ENDE by the Government as an equity contribution. The US$3.5 mil- lion IDB loan will be relent to $NDE. These amounts will be used to finance the total cost (foreign exchange and local currency) of the installations to be constructed by ENDE. ix. The Government will make a further US$2 million contribution to ENDE in cash payments over a period of four years partly from the national budget and partly by making available the proceeds of the BPC loan repay- ment. These funds from the Government will be used to provide buildings, transportation, equipment and working capital for ENDE. x. A regulatory body, Direccion Nacional de Electricidad (DINE), has been established by the Government to supervise the power sector and con- trol tariffs for all entities, both publicly and privately-owned. The same rules, regulations and procedures will be applied equally to all entities. Consultants have been engaged to assist in organizing DINE and establishing the procedures for tariff regulation to permit the power companies to main- tain tariffs at a level which will give them a 9% return on net fixed assets in operation. xi. The power program proposed will only be sufficient to meet demand in 1966; it will not provide any surplus or reserve capacity. It will pro- vide a start towards establishing a coordinated plan for future expansion of power facilities on a sound technical and economic basis. xii. The Government through CBF is discussing with the Agency for International Development (AID) the financing of a number of small power plants for towns elsewhere in the country. Although IDA will not partici- pate in the financing of these projects, AID and IDA will consult with each other regarding future ENDE power system additions and their financing. xiii. The proposed projects form a suitable basis for two IDA credits totalling US$15 million.  BOLIVIA POWER PROGRAM I. INTRODUCTION 1. This report covers an appraisal of the power program presented by the Bolivian Government as a basis for credits and loans totalling US$18.5 million requested from the International Development Associa- tion (IDA) (Us$15 million) and the Inter-American Development Bank (IDB) (US$3.5 million). 2. The proposed arrangements for organizing the power sector and the details of the power program have been appraised by IDA, which has also taken the lead in assisting the Government and the various power entities to reach the agreements described in this report. IDA is work- ing in close cooperation with IDB so that the funds from both institutions may simultaneously be available to finance the projects. 3. The aporaisal is based on information contained in reports pre- pared by consultants and the result of discussions between the IDA and IDB staffs and representatives of the Bolivian Government and the Power Industry, held in Bolivia and in Washington during the past 18 months. II. EXISTING POWER FACILITIES 4. The principal power installations now existing in Bolivia are owned and operated by the Bolivian Power Company (BPC), a subsidiary of International Power Company of Montreal, Canada, owned by private US and Canadian investors. The location of these installations is shown in the attached map. 5. BPC serves the capital city of La Paz and its surroundings from six hydroelectric plants located in the Zongo valley. They have a total capacity of 41.2 MW and are connected to the city by two 66 kv transmis- sion lines about 40 km long. Some 52,000 customers are served and sales in 1963 totalled 138 million kwh. 6. BFC also serves the Oruro area from four hydroelectric plants having a total capacity of 20 MW located close to each other about 78 km from the small town of Oruro. Sales in the Oruro area in 1963 totalled 100 million kwh. BPC's largest customer is the Corporacion Minera de Bolivia (COMIBOL), the Government-owned mining company, which operates several mines located in the 1h0 km long range of mountains between Oruro and Catavi. Sales to COMIBOL in 1963 totalled 80 million kwh and repre- sented about 66% of the power requirements of the mines, the remainder of the power needed was obtained from CCMIBOLtS own power plants (12 small diesel and hydroelectric plants located in the mines). The small dis- tributing company serving 9,000 customers in the town of Oruro purchased 20 million kwh from BPC in 1963. 7. COMIBOL owns the second largest group of power installations in the country. They consist of the 12 MW, already mentioned, in the Central  - 2 - Group of Mines in the Oruro area and 15 MW of hydroelectric and diesel plants in the Southern Group of Mines in the Potosi area, located about 150 km south of the Central Group. All the COMIBOL power facilities are used to serve their own mining installations and the workerst camps. 8. The remaining power installations in the country are owned by the Government, Municipalities, cooperatives and private groups and are located in small towns throughout the country. The more important of these are: Town Total Existing Capacity Cochabamba 6 MW Santa Cruz 1.5 MWr Potosi Now supplied from the COMIBOL mines Sucre 1.8 MW Tarija 0.75 MW III. THE BORROWiERS AND BENEFICIARIES Proposed Credits and Loan 9. The Government of Bolivia proposes to use the IDA credits and IDB loan in the following manner: (a) US$5 million of IDA funds wi'll be relent to BPC by the Government at terms and conditions similar to those of the International Bank for Reconstruction and Development (IBRD), to finance the foreign exchange portion of the cost to construct the 11 MW Chururaqui hydroelectric plant and needed distribution system improvements to augment the power supply to consumers in La Paz and for other transmission system improvements. The local cur- rency cost, equivalent to US$2.7 million is to be provided by BPC out of its earnings. (b) US$10 million of IDA funds will be made available by the Govern- ment as equity to Empresa Nacional de Electricidad (ENDE), the Government-owned power company described below, to form part of ENDE's capital and US$3.5 million of IDB funds will be relent to ENDE, these amounts to be used to finance the total cost (foreign exchange and local currency) of the construction of the projects to be built by ENDE in its service area. These will include (i) the 27 MW Corani hydroelectric plant to serve the Oruro mines and Cochabamba; (ii) a 115-kv transmission line and substations to deliver power from Corani to the mines and inter- connect with the existing BPC system also serving the same mines; (iii) distribution system improvements in Cochabamba; (iv) cost of consulting services.  - 3 - 10. The proposed investment program is summarized in Annex 1 and the necessary IDA and other credit and loan agreements to implement this financing are described in paragraph 73. Government Power Entities 11. The Government of Bolivia decided in 1962 to enter the power field, which until then had been essentially in private hands. By Decree 05999, issued in February 1962 (for details see Annex 2), provi- sion was made to create two new entities having the functions described below, which are now in the process of being formed: (a) The Consejo Nacional de Electricidad (CONDE) to serve as the national advisory and planning council to assist the Govern- ment in policy decisions concerning the power industry. It will also advise on the allocation of funds from the national budget for power facilities. (b) ENDE, a Government-owned autonomous power company being formed by the Corporacion Boliviana de Fomento (CBF), the Government-owned development corporation. It will construct, operate and manage power installations where needed and will finance its operations from earnings from power sales, borrowings and government contributions. Corporacion Boliviana de Fomento 12. CBF is the Government's development corporation, founded in 1942, to promote development and utilization of the country's natural resources. Its initial efforts, financed by a loan from the Export-Import Bank, includ- ed road construction and agricultural development; later industrial develop- ment was added and more recently it became concerned with electric power. 13. Considering the general conditions in Bolivia and the fact that the country is still in a very early stage of development, CBF is reasonably well organized and managed and has an adequate staff. A more detailed des- cription of CBF is given in Annex 3. Empresa Nacional de Electricidad i4. CBF has already taken the initial steps to establish ENDE as a separate organization headed by a Director who reports directly to the President of CBF. This position has been filled by a competent Bolivian engineer who is experienced in power system operations and planning as a result of many years of working outside of Bolivia. The ENDE organization consists of three main departments: engineering, operations and administra- tion, which are at present staffed with only a minimum number of key person- nel (organization chart is shown in Annex 4). 15. The small staff is already operating Empresa Luz y Fuerza Electrica de Cochabamba (ELEFEC) serving the town of Cochabamba and the small company  serving Tarija in both of which CBF became the major shareholder in 1963 by investing about US$1.4 million, borrowed from IDB, in new generation and distribution facilities during the past two years. 16. The ENDE facilities will, as the plants and systems are built or improved, initially consist of the Corani hydro plant with the transmission lines connecting this plant to Cochabamba and Catavi, and the small power systems at Cochabamba and Tarija. In order to ensure that a sound and efficient operating organization is developed ENDE has undertaken to engage a firm of consultants acceptable to IDA which will assist in establishing ENDE and training the staff required to operate all its departments. These consultants will be engaged for a period of at least three years. 17. CBF has prepared the documents, statutes and regulations required to transform the initial ENDE organization into an autonomous legal entity and has started the legal procedure to complete the establishment of ENDE as an autonomous entity, with CBF as its major stockholder. The Governmelnt has undertaken to complete the establishment of ENDE by January 1, 1965. The proposed statutes of ENDE have been reviewed by IDA and found satisfac- tory. The first President and the General Manager of ENDE have been appointed and are satisfactory to IDA. It has also been agreed that IDA will be con- sulted on any future changes in these appointments. 18. CBF has undertaken to transfer all its power facilities, including those already described above and any others which may be acquired in the future, to ENDE once it has been established as an autonomous organization. The value of these assets and other funds CBF is now contributing to cover the initial operating expenditures of ENDE will form part of ENDE's equity capital. 19. According to its proposed statutes ENDE will have complete control of its own finances and as a general policy will reinvest all its earnings and any future contributions from the Government in power facilities. The Bolivian Power Company 20. BPC was incorporated in Canada in 1925 for the purpose of acquir- ing electric, telephone and street railway properties in La Paz, Bolivia. Its operations are now limited to the electric power installations in La Paz and Oruro. 21. While earnings for many years were not sufficient to cover any dividend payments BPC was able until 1956 to finance necessary expansions from retained earnings and borrowings from its parent, the International Power Company. However, since that time the company's financial position has deteriorated due to the very severe inflation in Bolivia and the lack of authorization for tariff adjustments in the La Paz division. In the Oruro division the sales to CO1V1IBCL were billed in US dollars but payments have been delayed so that, at the present time COiBOL owes BPC about US$2.6 million. Agreement has been reached for the settlement of this debt (see paragraph 26).  - 5 - 22. The company is well managed and its power plants are in good condition and efficiently operated. However, because of insufficient earnings, the company has not been able to carry out necessary expansion. Consequently there is an extreme shortage of generating capacity in La Paz and the distribution system is urgently in need of expansion and improvement. 23. BPC's relations with the Government have been made increasingly difficult during the past several years because of the acute shortage of power which has led to severe rationing during the annual dry season. 24. Based on the agreement now reached between the Government and the company, described in Section IV below, there is every reason to ex- pect that BPC will carry out its proposed construction program efficiently and the new operating conditions and tariff adjustments agreed upon should enable the company to achieve and maintain a sound financial position. IV. AGREEMENT BETWEEN GOVERNMENT AND BOLIVIAN POWER COMPANY 25. An essential step towards solving the immediate power problems was for the Government and BPC to reach a formal agreement to define the areas to be served by each and to establish conditions and tariff regula- tions under which they would operate. 26. This basic agreement has now been reached and its essential points are as follows: (a) BPC will continue to own and operate its facilities in the La Paz area and will expand these to keep pace with the demand for power. (b) BPC will continue to own and operate its facilities in Oruro and sell power to COMIBOL and to the distribution company in the town of Oruro, as it is now doing, but will not expand its present generating and transmission facilities. Future in- creases in demand will be met from ENDE's power facilities. (c) In order to enable BPC to meet its obligations the Government has agreed to establish tariffs which would give BPC a 9% annual return on a rate base which is to be calculated as follows: (1) The historical cost of fixed and intangible assets ex- pressed in US dollars as shown on the Company's books, less - (2) "Observed straight-line depreciation" as described in (4) below, plus -  - 6 - (3) Working capital equivalent to 1/8 of annual gross revenue, plus the actual value of stores but not in excess of 3,Z of gross fixed assets in operation. (4) "Observed straight-line depreciation" will be determined by a consulting firm selected by mutual agreement between the Government and BPC. These consultants will determine the remaining useful life of the major units of equipment by actual inspection and observation on site. The depre- ciation will then be determined by reducing the historical cost of each major unit of equipment on a straight-line basis in proportion to the observed depreciation. (5) In future the rate of return will be calculated after pay- ment of all taxes and allowances for depreciation on a "straight-line" basis according to the US Federal Power Commission's tables for depreciation. (d) BPC has agreed to accept payment of the debt owed by COMIBOL in installments over the next five years free of interest. However, interest at 8% per annum is to be charged on any payments not made in accordance with the agreed schedule. (e) The Government has agreed to pay to BFC, on terms accepted by them, the outstanding power bills and amounts owed BPC for the Oruro telephone company which the Government took over in 1956. (f) The Government will relend to BPC US$5 million from the IDA credit. This loan will bear interest at 5-% per annum on the outstanding balance to be repaid over a period of 22 years with repayments to start six months after completion of the Chururaqui plant. (g) Tariff adjustments to achieve the agreed 9% rate of return will only be made after the Chururaqui plant comes into operation. During the construction period only such tariff adjustments will be made as are needed to compensate for increases in operating costs and taxes. Certain abnormally low tariffs will be adjusted by agreement between the Government and BPC. (h) The Government has named the Direccion Nacional de Electrici- dad (DINE), a department under the Ministry of Public Works, as the regulating authority for the power sector with responsi- bility for approving the tariffs for all the power entities in the country. (i) All new electric generating and transmission facilities outside the BPC service area will in future be provided by ENDE. 27, This agreement between the Government and BPC clearly defines the areas in which each will have responsibility for providing power.  - 7 - It further physically separates the two entities, except for the inter- connection between the two systems at the Catavi mines, and BPC and CBF on behalf of ENDE have signed a letter of understanding to define the principles upon which the interconnection of their two systems will work in future. 28. The Government has recognized the importance for the power entities to maintain future tariffs at a level which will provide suffi- cient revenues to cover all operating costs, depreciation, interest charges and dividend payments or an appropriate reserve for contributions to finance future expansion. 29. The Government has retained the Swiss consulting firm Motor- Columbus to assist DINE in establishing the necessary organization, developing the necessary procedures and training staff to enable it to carry out its obligations efficiently and competently. 30. In general, rates will be authorized to assure the power entities a net return of 9% on the rate base. Provision will be made for annual revaluations of the rate base to insure that the value of the property is maintained. 31. Provision will be made to establish time limits for the process- ing of tariff applications and disputes if not otherwise solved will be handled by arbitration procedures to be mutually agreed upon. V. THE POWER MARKET 32. The agreements between the Government and BPC divides the power market into two sections (a) that served by BPC and (b) that to be served by ENDE. The Bolivian Power Company Market 33. The principal market served by BPC is the La Paz area, which at the present time has a population of over 350,000 and which is growing constantly as the result of a steady influx of people from the country to the capital city. 3h. Power has been rationed in La Paz for the past three years, therefore the present load is limited by the installed capacity of the system which is 1.2 MW. Annex 5 shows the historic load growth of this area and the forecast demand for the next four years which is expected to grow from the present 41.2 MW to 53 MW in 1966 and 65 MW by 1967. 35. It is estimated that by the end of 1966 the unsatisfied demand will fully absorb the capacity of the new Chururaqui 11 MW unit. Conse- quently BPC intends to start preparation for the installation of the second unit of 11 MW at Chururaqui before the first unit comes on the line.  - 8 - 36. In the Oruro area BPC will continue to supply Co0MIBOL and the small town of Oruro, which together now absorb the total output from the 20 MW1 of BPC plants. The Oruro load is estimated to grow modestly at about 5% per year as shown in Annex 6. As the demand by the town of Oruro increases BPC will gradually have less capacity and energy to sell to COMIBOL. The Empresa Nacional de Electricidad Narket 37. ENDE will have responsibility for power generation and transmis- sion in the rest of the country except the area served by BPC. Initially its principal customer will be the Central Group of COMIBOL mines which now obtains its power partly from its own hydro and diesel plants with a total capacity of 12 MW and partly by purchases from BPC. COMIBOL estimates that its demand in this area would increase as follows if power were available: 1964 32.6 MW 1965 39.9 " 1966 4o.7 " 1967 41.4 38. This forecast of demand is based upon the increases in power requirements resulting from the program to rehabilitate the mines, which is being sponsored jointly by IDB, the German Government and AID. The pro- gram, which was started in 1962, contemplated an investment of US$37-5 mil- lion in new equipment and other improvements to the mines with the object of increasing production and achieving profitable operations. 39. If the COMIBCL mines increase their demand as predicted, about 12 MW of additional capacity will be required by 1966. However, 6 NW of the diesel units now in service are very old and should be retired as soon as other power is available, increasing requirements for new capacity in 1966 to about 18 MW. Annex 6 gives details of the COPaBOL load forecast and power sources. 4o. The second largest customer of ENDE will be Cochabamba which is now supplied by three small hydro plants and a diesel plant with six units, giving a total combined capacity of 6 SW. Except for 2 NW of diesel capa- city these plants are in a very poor concidion and should gradually be retired. Rationing has been in effect for some time and the development of several small industries is being held back because of the power shortage. It is estimated that the present peak demand would be about 9 MW if power were available. Annex 7 gives the forecast demand for Cochabamba. It will be seen that the demand is estimated at 12 MW by 1966 and reaches 16 MW by 1968. 41. Under the proposed plan the Corani project would serve Cochabamba and the COMIBOL mines through a common transmission line; the two load centers would therefore be combined and the estimated coincident peak in 1966 would reach about 34 MW. The proposed installation of 27 MM at Corani in conjunction with the capacity in existing plants would barely meet this  - 9 - 1966 forecast demand after allowing for retirement of old diesel units. Annex 8 shows the combined capacity and energy requirements of Cochabamba and COvIIBOL to be supplied from the ENDE system. 42. While the future rate of growth of power demand of the COMIBOL mines is uncertain, the proposed plan for the construction of the Corani plant and a transmission line to connect it to the Catavi mining area would be justified even if only to replace existing old generating units in the mines and at Cochabamba and to meet the future load growth at Cochabamba. On the other hand, if the load growth of COiMIBOL and Cochabamba exceed the forecast it will become necessary to plan additional capacity. VI. DESCRIPTICN CF PROJECTS The Chururaqui Project (BPC) 43. The BPC installations in the Zongo valley, all of which were constructed by them, start with a dam to create a storage reservoir with a capacity of 3.2 million cubic meters, fed from the glacier immediately above it. The controlled flow from this reservoir and the additional in- flow from the river and tributaries feed six downstream plants in cascade. The proposed new 11 MW Chururaqui plant will be located about 3 km donm- stream from this series of existing plants. It will be built by BPC's own work force and sub-contractors. 44. This project has been studied for some time by Montreal Engineer- ing Company (NEC), engineering consultants to BFC, as part of the long-range planning for the development of new capacity to serve La Paz. 45. NEC is responsible for the investigation and design of the project and recommends it as the next logical step of development. With the up- stream reservoir and a long period of reliable hydrological records, the estimated average annual output of 53 million kwh can be considered reliable. 46. The geological conditions in the Zongo valley are well known to BPC and its consultants and this information indicates that no particular difficulties should be expected in the construction of the plant. 47. The project would consist of a canal and tunnel to take the dis- charge from the existing plants to a forebay, a short canal to divert the waters of the Pocollo River into the same forebay to provide an additional source of water and a penstock connecting the forebay directly to a power- house with space provided for two 11,000 kw units. Only one of these will be installed initially. 48. BPC will also construct some transmission lines to connect the new plant to the lines now serving La Paz and extensions and additions to the La Paz distribution system will be made. Some equipment will be added to the Oruro transmission system to enable the proper operation of that system after it is interconnected with the ENDE system at Catavi.  - 10 - 49. The cost of the Chururaqui project with one 11,000 kw unit is based on detailed engineering plans and is estimated by BPC as follows: Estimated Cost In Thousands of US$ Equivalent Foreign Local Currency Currency Total Chururaqui plant 1,682 1,629 3,311 Transmission and distribution 2,429 966 3,395 Catavi interconnection 889 105 994 Total 5,000 2,700 7,700 50. BPC has already, with IDAts knowledge, started the civil works and has placed orders for the heavy machinery for the Chururaqui plant, after observing the normal procedures of international comnpetitive bidding. The cost estimates based on these known costs are considered realistic and contain adequate contingencies. The Corani Project (ENDE) 51. The Corani project, located about 45 km from Cochabamba, has been studied for many years and alternative preliminary schemes have been evalu- ated. In 1960 IDB advanced US$300,000 for the preparation of final plans and feasibility studies. MEC was awarded the contract. 52. The Corani project will develop one of the few sites in Boliv1'a where water storage can be provided, assuring a regulated flow of 3.3 m /sec. 53. Stream flow data of the Corani River have been obtained since 1952 and the estimates of water availability are further supported by more than 30 years of experience in the Zongo valley which has similar climatic and rainfall conditions. The estimated plant output of 140 rillion kwh annually is, therefore, considered reliable. 54. The civil works for this plant are relatively simple. Geological conditions, based upon the tests and investigation made, are very similar to other areas in Bolivia, in which the consultants, MEC, have many years of construction experience. No particular difficulties are to be expected. 55. The project will consist of an earth fill dam, 24 meters high, to be built across the lower end of the Corani valley, to create an 82 million cubic meter storage reservoir, a pipeline connecting the reser- voir to a 1.2 km tunnel leading directly into the penstocks, and a power- house. The plant will have a head of 631 meters and is designed for a total capacity of about 39,000 kw; however, only two 13.5 MW units will be installed initially. 56. In addition to the Corani power plant ENDE will construct 150 km of 115 kv transmission lines and associated substations to supply power to  - 11 - Cochabamba and to the mining area at Catavi, where the ENDE and BPC systems will be interconnected. Extensions will also be made to the Cochabamba dis- tribution system. 57. The cost estimates for the major elements of the project are as follows: Estimated Cost In Thousands of US$ Equivalent Foreign Local Currency Currency Total Corani plant 2 x 13.5 Mw./ 8,450 2,150 10,600 Transmission lines and substations 2,136 1,064 3200 Total 10,586 3,214 13,800 1/ Includes consultants' fees and expenses and interest during construction on IDB loan. 58. The estimate has been prepared by NEC and in view of their long experience in Bolivia, and after comparisons with the cost of existing plants in that country, the estimate is considered realistic and contains adequate contingencies. 59. Construction work will be carried out by a contractor. Normal procedures of international competitive bidding will be followed for the award of contracts for civil works and equipment. Based on present plans the Corani plant is scheduled for initial operation by November 1966. This schedule is reasonable provided the civil works contract is awarded by July 1964. VII . ALTERNATIVE FORNS OF POWER GENERATION 60. The proposed sites for the hydroelectric power projects are within reasonable distances from the larger power consuming centers and these plants can be constructed at the moderate cost of US$300 to US$360 per kw installed. Alternative steam plant installations would have nearly the same investment cost, even after making allowances for the cost of transmission facilities for the hydro plants, due to the high transportation charges for taking material to these high altitudes. in addition, high fuel cost would increase total generating costs. If diesel units were to be considered, the high alti- tudes at which they woald operate would make it necessary to de-rate their capacity by about 20-60%o and consequently would increase the capital invest- ment correspondingly. Under these circumstances no purpose would be served by making any detailed calculations on comparative costs of alternative thermal installations to the Corani and Chururaqui projects.  - 12 - VIII. LONG-RANGE PROGRAM 61. The Corani and Chururaqui plants to be constructed now and exist- ing generating facilities will provide the capacity required in 1966 to meet the estimated demands in La Paz, Cochabamba and the COMIBOL Central Mines in the Oruro region. 62. In both the BPC and ENDE service areas there will be need for additional generating capacity to meet anticipated increased demands for power after 1966. 63. The possible means to meet this future demand are discussed below for each entity. The Bolivian Power Company 64. The Chururaqui plant will be built to accommodate two units of 11 MW each. Therefore, the addition of the second unit would be the next logical step of capacity addition. 65. Following the second unit at Chururaqui, which is estimated to meet system demand until 1967, it will probably be necessary to prepare for the construction of the next downstream plant site at Harca. 66. The design for this plant follows the layout used upstream in the Zongo valley. The discharge from the Chururaqui plant would be led through canals, tunnels and a penstock to the new plant. A second system of canals and tunnels would divert the waters of the Harca River to augment the water received from the Zongo. 67. This plant might have a capacity of 22 MIW and would take care of estimated La Paz load growtlh until 1970. Empresa Nacional de Electricidad 68. The Corani plant would be built with two 13.5 MW units with the possibility of adding a second penstock and a third unit later. 69. There are several downstream sites below Corani which might be developed and there are other alternatives in the Choquetanga valley below the existing BPC plants near Oruro. The choice would be made after load requirements are better known and more information is obtained on the various plant sites. 70. ENDE contemplates developing power supplies in other small towns in different parts of the country, mostly by installing small diesel units as a start. Detailed plans have not yet been made nor is information avail- able upon which cost estimates can be prepared. 71. ENDE has started discussions with the Agency for International Development (AID) which has indicated its willingness to finance the power  - 13 - installations for these small towns when more detailed plans are available for review. 72. AID and IDA will consult with each other regarding the future expansion of ENDE's power facilities. ENDE will obtain IDA's agreement before undertaking the construction of any new generating plant with a capacity of more than 3 MW. IX. FINANCIAL ASPECTS Credit and Loan Agreements 73. As a result of the discussions whiich have taken place between IDB and IDA on the one side and BPC, CBF and ENDE on the other side, the proposed firnancing will be made through the following coordinated agreements: (a) A Credit Agreement (ENDE Power Project) between the Governrment and IDA for US$10 million to be used by ENDE for the constructior of the Corani project and associated works. The IDA funds will be contributed by the Government to ENDE as equity capital. (b) A Project Agreement (ENDE Project Agreement) between IDA and CBF, with all rights and obligations to be transferred to ENDE when it becomes an autonomous entity. This agreement will include all requirements and conditions that IDA will want ENDE to observe in carrying out the project. (c) A Credit Agreement (BPC Power Project) between the Government and IDA for US$5 million to be used by BPC for the construction of the Chururaqui project and related works. The IDA funds will be relent to BPC by the Government through a Subsidiary Loan Agree- ment, on terms satisfactory to IDA. (d) A Project Agreement (BPC Project Agreement) between IDA and BPC which will include all the requirements and conditions that IDA will want BPC to observe in carrying out its project. (e) A separate loan agreement will be made between the Government and IDB for US$3.5 million which will be relent to CBF for EJDE by the Government and used for the construction of the Corani project. Bolivian Power Company Past Operations 746. Prior to 1963 operations of the La Paz system consistently re- sulted in very low earnings, with the rate of return on the net fixed assets in operation varying between 1% and 2%. In the Oruro sustem, rates were considerably higher but the bulk of the sales was made to COPIBOL and  collection of this account has been in arrears for several years. The consolidated position of BPC showed that insufficient funds were generated during the period from 1958 to 1963 to provide capital for expanding generating capacity. 75. On January 1, 1963, a rate increase was granted in the La Paz area which resulted in an overall increase in the average revenue per kwh for BPC's consolidated operations from US mills 10.1 in 1962 to US mills 13.6 in 1963 and gross revenue from sales increased about 35% (see Annex 9). 76. At December 31, 1963, total assets amounted to about US$23.5 mil- lion. The capital structure of BPC consisted of about US$21.8 million in common stock and surplus and about US$1.5 million in debt, giving a debt/equity ratio of 6/94. 77. The books and records of BRC have been annually audited by a pro- fessionally recognized public accounting firm, Price Waterhouse Peat and Company. BPC Financial Forecast 78. The BPC project will be financed partly by the Government relend- ing the proceeds of the IDA credit for US$5 million at the terms and condi- tions specified in the agreement described in Section IV. Interest on the loan during the construction period will be paid in cash by BPC. 79. The local currency costs of US$2.7 millon equivalent will be provided by BPC from its own resources through internal generation of cash and repayments received from past due accounts. 80. The sources and applications of funds statements given in Annex 10 indicate that aside from borrowing the IDA funds from the Govern- ment, no other long-term debt or equity investrnents would be required during the period 1964-69. Construction expenditures, other than the Chururaqui project and the Catavi interconnection, amounting to US$11.4 mil- lion would be met from internally generated cash. A summary of the funds statement is shown below:  - 15 - Six-Year Period 1964-69 (Thousands US$) Construction costs 18,000 Interest capitalized during construction 391 Increase in working capital 269 Dividends 5,472 Total fund requirements 24.132 Internal cash generation 18,824 Less debt service charges: Interest charged to expense 917 Amortization 1,885 2,802 16,022 Borrowings 5,000 Miscellaneous income and other sources 3,110 Total fhnds 24,132 81. This summary indicates that the company would provide about 66% of the fund requirement from internal cash generation less debt service charges. BPC Future Operations 82. The estimated income statements given in Annex 9 indicate an increase in the average revenue per kwh from US mills 13.6 in 1963 to US mills 18.4 in 1966. This tariff increase is assumed to take place in accordance with the terms of the agree.nent between the Government and BPC to provide the company with a 9% return on its rate base upon completion of the Chururaqui project. The tariff increase and the estimated increase in sales result in a 50% increase in gross revenue in 1966 over 1965. 83. The balance sheets given in Annex 11 show significant changes when comparing the estimated balance sheet at December 31, 1964, with the actual balance sheet for the previous year. The most important changes are: (a) The Bolivian Government issued a Supreme Decree, No. 6250, on October 9, 1962, which allowed companies to capitalize un- distributed earnings which had been reinvestments in fixed assets and exempted such capitalization from withholding taxes, On April 8, 1963, BPC made application to the M4inister of Finance to capitalize US$15 million of surplus by the issuance of US$6 million of common stock and UJS$9 million of preferred stock; permission was granted by a Ministerial Resolution, No. 212/63, dated December 18, 1963.  - 16 - (b) Amounts owed by the Government have been assumed paid in 1964 in accordance with the terms of the agreement between the Govern- ment and BPC. These include: (1) Amount due as payment for the Oruro automatic telephone system taken over by the Government in 1956. (2) Outstanding bills for power supplied to Government entities in the La Paz area. (3) Payment of the first annual installment on the renegotiated account with COMIBOL. (c) The 1963 reserve for depreciation account was adjusted by trans- ferring US$2.4 million to a special reserve for contingencies (the COMIBOL debt). Amounts equivalent to the COMEBOL annual debt payments are then transferred annually during 1964 to 1967 from the special reserve for contingencies to surplus. 84. The balance in 1963 remaining in the reserve for depreciation account is the amount the company estimates would be allowed when the rate base is determined by the consultants under the agreement between the Government and BPC. 85. The balance sheet in Annex 11 indicates a very conservative financial structure with the debt equity ratio varying from 7/93 in 1964 to 12/88 in 1969. 86. Annual debt service coverage is 1.6 times in 1964 because of an extraordinary repayment of US$1.1 million of long outstanding debt to the International Power Company. From 1965 the annual debt service would be 5.8 times and is more than adequate. 87. BPC has agreed to a debt limitation covenant to be included in its Project Agreement with IDA which provides that no long-term debt would be incurred without IDA's approval unless the net revenue of BPC (before provision for depreciation) during any preceding 12-month-period is at least 1.5 times the maximum annual future debt service. Empresa Nacional de Electricidad Past Operations 88. The present operations of ENDE, as the power department of CBF consist of the small companies in Cochabamba and Tarija, whose operations were financially unsatisfactory until CBF, through its power deDartment (ENDE), took over and, after making investments in new plant, obtained a rate increase which enabled the companies to meet operating expenses, depreciation and generate a small cash surplus.  - 17 - ENDE Financial Forecast 89. The funds required for the execution of the ENDE project, described in Section VI, and the working capital of ENDE will be financed from the following sources: Amount Percentage Source of Funds (Millions of US$) of Total International Development Association 10.0 64.5 Inter-American Development Bank 3.5 22.5 Bolivian Government 2.0 13.0 15.5 100.0 90. The IDA and IDB funds will be used to finance the foreign exchange and local currency costs of the Corani plant including transmission lines, distribution system improvements in Cochabamba and the cost of consultants associated with the ENDE project. 91. The Government's funds will be made available in cash from the national budget and by contributing the interest and amortization payments from the relending to BPC of IDA funds, already described in paragraph 26. These funds will be used to finance the cost of buildings, equipment and transportation for ENDE and to supply the working capital. 92. The IDA funds and the Government's total contributions have been considered as equity investments. IDB funds have been treated as long- term debt repayable over 25 years including a five-year grace period with interest at 4%. The US$3.5 million IDB loan amount includes interest during the three-year construction period. 93. Future plant and system expansion have been assuiaed to take place during 1967 to 1969 at an estimated cost of US$9 million. Future loans of US$1.5 million in 1968 and US$1 million in 1969 have been assumed to finance this expansion after investing the internally generated cash. This is explained further in the tabulation below. 94. The sources and applications of funds statements given in Annex 13 for the period 1964 through 1969, summarized below, show an accumulation of funds available for future construction amounting to US$6.6 million.  - 18 - Six-Year Period 1964-69 (Thousands US$) Construction costs 22,500 Interest capitalized during construction 3h3 Increase in working capital 2,738 Fund requirements 25,581 Internal cash generation 7,121 Less debt service charges: Interest charged to expense 407 Amortization 113 520 6,601 Government equity investments 13,088 Borrowings _9892 Funds available 254581 95. This statement indicates that ENDE's internally generated funds less debt service charges over the six-year period would provide about 26% of the total funds required for new construction. However, for tha last three years, after Corani comes into operation, ENDE would generate about 58% of the funds required. ENDE Future Operations 96. The consolidated results for the five-year period 1964 through 1969 from the operations of the existing power facilities taken over by ENDE, as well as from the additional new assets subsequiently acquired or constructed, are shown in the income statements in Annex 12. A substantial increase has been forecast for sales in 1966 and 1967 when new power facilities will be put into operation. On the assumption that present tariffs continae -to apply and based on the estimatedsales, ENDE shows about a 9% annual rate of return on its rate base after 1966. 97. The debt equity ratio in 1964, when ENDE obtains its first long- term loan, is 14/86 and goes to 22/78 in 1969, after it has obtained its second long-term loan. This is a satisfactory position. (See Annex lt.) 98. Debt service coverage is quite adequate during the period under consideration and ranges from 2.4 times in 1965 to 1h.1 times in 1967 and 5.6 times in 1969, after the second loan is made. The same debt limitation covenant that applies to BPC will also apply to ENDE (see paragraph 37).  - 19 - X. COiNCLUSIONS 99. The power program described in this report is urgently required in Bolivia to alleviate the critical electric power shortages which exist everywhere in the country. 100. The power facilities now planned will only be sufficient to meet immediate demands and further facilities will be required shortly after those now proposed are placed in service to meet estimated future increases in demand. 101. The agreement between the Government and BPC forms a sound basis upon which both public and private power entities can work together and provides the conditions necessary to allow these entities to meet their obligations so that future power demands can be met and financed adequately. 102. The Government's entry into the electric power sector by the cre- ation of ENDE and DINE is being organized and planned through the enactment of appropriate legislation which has been reviewed and found satisfactory. 103. The new entities are lacking in staff and experience but con- sultants, satisfactory to IDA, are being retained for appropriate periods to assist in the organization and the training of staff. 104. The financial forecasts for ENDR and BPC have been based on esti- mated future annual sales and assuming that tariffs are adjusted according to the agreement between the Government and BPC. The estimated results show that both companies will be in a sound financial position during the period 1964 to 1969 and should remain so if tariff adjustments are allowed when needed in the future. 105. The projects to be constructed by BPC and ENDE form a suitable basis for IDA credits in a total amount of US$15 million. During negotia- tions assurances were obtained to confirm the following as binding agreements: (a) The Government's agreement with BPC establishing the future tariff and operating conditions for the company (par. 26). (b) The Government's undertaking to create ENDE as an autonomous com- pany on or before January 1, 1965, with statutes and management satisfactory to IDA (par. 17). (c) The Government's undertakings to provide the capital for ENDE by making available the IDA funds as an equity contribution (par. 9) and by transferring power assets from COF to ENDE and contributing working capital (par. 18). (d) The Government's undertakings to relend IDA funds to BPC and to repay the Government's debts to BPC (par. 26).  - 20 - (e) COMIBOL's agreement to repay its debts to BPC and to pay its future po-er bills to ENDE and BPC as agreed by COM4IBOL with BPC and ENDE. (f) The retention of qualified consultants to assist the Government to establish DINE as a regulatory body (par. 29) and a qualified operating contractor to be responsible for the initial opera- tions of ENDE and to train future staff (par. 16). (g) ENDE will undertake not to construct any future power projects of over 3 MW capacity without IDA's consent (par. 72). (h) The letter of intention bet-ween ENDE and BPC to coordinate the operations of power supply to the Central COIIBOL mines (par. 27). (i) ENDE and BPC will be subject to a suitable debt limitation covenant (par. 87). (j) The appointment of qualified outside auditors, satisfactory to IDA. June 23, 1964  ANNEX 1 BOLIVIA SUMMARY OF INVESTMENT PRPOGRAM (in millions of US$) Foreign Local Financing Currency Currency Total Required Bolivian Power Company (BPC) Chururaqui plant 1,682 1,629 3,311 Transmission and distribution 2,429 966 3,395 Interconnection BPC-ENDE 889 105 994 Total 5,000 2,700J 7,700 5,000 Empresa Nacional de Electricidad (ENDE) Corani plant?/ 8,45o 2,150 10,600 Transmission and distribution 2,136 1,064 3,200 Total 10,586 3,214 13,800 13,800 Grand Total EVTN and BPC Projects 15,286 21,200 18,800 Working Capital and Minor Fixed Assets for ENDE 1,700 1,700 Total Financing Required 20,500 Sources of Financing International Development Association (IDA) 15,000 Inter-American Development Bank (IDB) 3,500 Bolivian Government 2,000 Total 20,500 T aLocal currency costs provided by BPC from own resources, Includes interest during construction on IDB loan. June 23, 1964  ANNEX 2 Page 1 BOLIVIA TRANSLATIGN LEGALIZED COPY SUPREME DECREE No. 05999 WHEREAS: The supply of electric power is an essential public service on which, to a large extent, economic and social development depends: It is necessary to lay down definitive technical guidelines on the question of the construction of power stati.ons and the production, utiliza- tion and distribution of electric power, those activities being at present the responsi.bility of various bodies, both private and public. It is necessary to establish an effective order of priorities for the plans involving electric powTer services, in accordance wzith the programming proposed by the National Plan for Economic and Social Development. It is of the utmost importance for the State to be in charge of certain types of electric power supply services on account of the inability of prlvate companies, and of the limited capacity of other government agancies, in the matter of providing them. VICTOR PAZ ESTEOISSORO, Constitutional President of the Republic, in Council with his Ministers, TIHREFORL DECREES: TITLE I NhATIOITAL ELECTRICITY COUNCIL (Consejo ITacional de Electricidad - CONDE) Article 1 - The Wational Electricity Council (CCNDE) is hereby estab- lished as an agency to control the development of the electric power industry of the coun-ry, it shall be a specialist consultative body of the National Development Council (Consejo Ooacional de Desarrollo). Article 2 - The National Electrici^uy Council shall advise the higher bodies engaged in planning the development of the country in every way necessary. Article 3 - The National Electr.city Council may, if necessary, request the advice or technical assistance of national or international agencies in connection with specific questions. Article 4 - The Council shall have the following functions and powers: a) To propose guidelines for policy in the field of electric power. To answer inquiries and issue reports on that subject.  AI'T\EX 2 Page 2 b) To suggest the adootion of neasures to stimulate the development of the electric power industry. c) To subnit draft legislation in that field and to propose amend- ments to legislation in force. d) To study the provisions required to improve the implementation and regulation of the laws governing that field. e) To propose the creation of bodies to be in charge of matters relating to non-conventional types of energy. f) To propose to the National Council for Economic Development the manner of distributing any lump sums which the State may have available, for implementation of the Electric Power Plan, among the various agencies charged with its execution and to deal with the evaluation of the bids invited for that purpose, informing the National Development Council as required for the appropriate awards to be made. Article 5 - The :,ational Electricity Council shall be made up as follows: By one President, who sliall be the iiinister of Public Works; 1 Vice-President, who shall be the National Lirector of Electricity; and 6 regular members who shall be representatives of the Ministry of Mines and Petroleun, the lolinistry of Agriculture, the National Planning Board, the Professional Association of Engineers of Bolivia, the Bolivian Develop- ment Corporation (Corporacion 301iviana de Fomento)and the concerns pro- ducing Electric Power. Article 6 - The Vice-President shall bc responsible for the admininistra- tion of the National Electricity Coancil. Article 7 - The Supreme Government shall allocate the funds required for the operation of the NTational Electricity Council within the scope of the General Budget of the Nation, under the item for public Works and Communications. TITLE II NATIOCAL E;LECTRTCITY COMPANY (Empresa iqacional de Zlectricidad) Article 8 - The Bolivian Development Corporation is hereby charged with organizing the National ElectricityCompanyas an autonomous body on the basis of its present Power Division. Article 9 - The objectives of the National Electricity Comany shall be as follows: a) To implement all those aspects of the National Power Plan in which the private sector does not participate.  ANNEX 2 Page 3 b) To endeavor to find a permanent solution to the problem of electric power demand. c) To undertake the study, construction and operation of anpropriate electric power stations which, together writh the transmission systems, may replace the deficient and uneconomical systems exist- ing in the various regions of the country. d) To take charge of the production, transmission, distribution, pur- chase and sale of electric power in those cities and other locali- ties which at present lack that service or where it is being rendered by entities which will not be able to do so on a rational basis; it snall endeavor, as far as possible, to set up electricity cooperatives or small companies which would then be responsible for the distribution of low voltage electricity. e) To keep under constant study tho demand of the regions served by theCompanyin order to carry out sufficiently in advance any works that may be necessary. f) To carry out transactions relating to the sale or rental of real estate and chattels, installations, rights, shares, commissions and securities; to issue shares for purposes in accordance withi the objectives for which it was created; to provide financing and carry out any other step required for the efficient discharge of its functions. g) To set forth in detail the objectives of the General Electricity Plan for the regions under its responsibility,by agreemant with the National Planning Board, and in accordance with the general objectives of the National Plan for Economic and Social Develonment. Article 10 - The Bolivian Development Corporation shall assuime the aforementioned duties and powers until the National Electricity Company is in full operation as an autonomous body with the financing provided by the DNational Economic Development Council. Article 11 - All provisions which are in oppositlon to this decree are hereby repealed. The 14inisters of State for Public Works anid Communications, for Finance and Statistics, for National Econoiy, for Mines and Petroleum and for Agri- culture are hereby charged with the implementation of this Decree. Given in the Palace of Government, in the city of La Paz, on 9 February, 1962. Signed by the President and the .,rembers of the Cabinet. Translated by IBRD Translation Section May 27, 1964  ANNEX 3 BOLIVIA SCOPE AND LEGAL STATIJS OF THE CORPORACIOT BOLIVIANA DE FOMENTO The Corporacicn Boliviana de Fomento was constituted as a corporate entity on September 11, 1942, in La Paz. By Supreme Resolution of September 14, 1942 the Executive Powfer recognized the juridical person- ality of the Corporacion and approved its statutes. The founding of the entity, its social agreement, the recognition of its personality and the approval of its statutes were registered in La Paz on March 16, 1943, by the llotary of Finance, Government, War and Colonies, Sr. Justo Diez de Medina, under No. 342 of the corresponding registry. The statutes were amended in 1959 and the amendments approved by Supreme Resolution No. 87347 of September 3 of that year. The Corporacion has its domicile in the Republic of Bolivia and its principal office in La Paz. Its objective is the development and exploita- tion of the natural resources of the country and the developiment, expansion and improvement of agriculture, mining, petroleurn,forestry, general industry and commerce, and transportation, as iwell as the construction and public works, and other fields in interest and general utility within the Republic. Its duration is unlimited. }ihen it iwas constituted social capital of 1,250,000,000 bolivianos was established, divided in shares of 1,000 bolivianoZ each, with the stipulation that this afmount could be increased if believed appropriate. The Corporacion can receive funds of any kind in the form of a loan and can carry out contracts of all kinds (Articles 2, 3, 4, 5 and 6 of the statutes). The Corporacion is administered by a technical-administrative body named Technical Council, consisting of a Chairman and 5 Technical Advisors. The Chairman of the Council is na,,led by the President of the Republic and exercises the legal representation of the entity. The signing of contracts and powers shall require the concurrence of yhe Chairman of the Technical Council, one of the Managers and the Treasurer of the Corporacion (Article 4 of the statutes, amended). Because or' the concentration of tne snares held by the State, the Corporacion has practically become a State entity, retaining, however, its original form as a corporate entity. This is affirmed by the Bolivian lawyer Sr. Santiago Sologuren in a juridical report issued in La Paz on lliay 29, 1961, at the request of the IDB representative in that city. From the above, and from the contents of various documents supplied to IDB for the processing of the loan extended to the same Corporacion in 1961, it appears that the Corporacion has been legally constituted and posseses the capacity necessary to contract the loan being considered. May 27, 1964  EMPRESA IMlCIONAL DE ELECTRICID AD PRELIMIiIARY ORGANIZATION SHOWING PERSONIEL ALi.EADY ASSIGNED BY JANUARY 1964 !CORPORACION BOLIVIANA DF, FOMEl'2TO | ! ~~~PRESIDENTE C O14SULTANTS 1 _ MNTEA EIGINE.ERI'G| DEUTSCHE EPRESA N..AGIONAL DE ELECTR4ICIDAD| COKPA1NY gPROJE-liT U-illIO; D IRFCTLOR SECRETARIAT 2 Secretaries LEGAL ADVISOR 1 Filingz Clerk J ENGINEERING DEPARTMENT OPERATIOTS DEPARTMEI,T 1CVIL Electrical Enngieer CIVIL ELECTRICAL HYDROLOGY1 Mechanical Engineer EITGINEER.ING ENGINEERIING HY Y1 Diesel Mechanic 1 Engineer 3 Enginieers 1 Engineer 1 Economist 1 Assistant 2 Assistants 2 Draftsmen PROJECTS ADIJN!ISTRAiTIVE DEPARTIENT r Santa Cruz O arija Cochabamba 1 Accountant etc. 1 Auditor 1 Cashier 1 Buyer _ - - - - - - - - - - - - - - - - - - - - 2 Assistants 1 FUTURE EMPRESA NACIONAL DE ELECTRICIDAD I STAFF TO SUPERVISE CORATI PROJECT I 'Iay 27, 1964  900 I I i 500 BOLIVIAN POWER COMPANY LTD. - 700 EXPANSION OF LA PAZ DIVISION 600 SYSTEM GROWTH, PEAK LOAD- 500 AND ENERGY - 300 DEPENDABLE SYSTEM CAPABILITY 200 I'M_I_209 KWH/ANIUMx IC _ 209 - '6_ GROSS GENE RATION - KWH R x 10 6\ 100 90 80 70 64_8__ _ _ 156 _ , ,______ 60 NI G E SA INSTALLED CAPACITY - MW - 5.3.0 ,- 40 = ____-_ 30 ___ _ =,CHURURAQUI CHURU RAQUI 20tPE AK LOAD - MW| N0.1 NO.2n 20__ _ __ _ _ : 1 l ~~~~~~~~~SAINANI > z rrt 1950 1951 1952 1953 1954 1955 1956 1 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1 1967 1968 1969 MARCH 1964 IBRD-1311  ANITEX 6 Page 1 BOLIVIA CORPCRACICT! MINERA DE BOLIVIA (CO:aBOL) LOAD AND CAPACITY STATISTICS The Central Group of COMIBOL mines, most of which lie between Oruro and Catavi, a distance of about 80 km, are interconnected by a 66 kv trans- mission line owvned by Bolivian Power Company and fed from the Oruro plants of that company located in the Nliguilla valley about 140 km from Catavi. In addition CO7IBOL has 12 rNW of effective generating capacity located at various mines, as shown in the tabulation below: Name of Nine Name-plate Capacity MW Hydro Diesel Catavi 2.9 4.5 Colquiri 2.3 2.0 Huanuni - o.6 Caracoles 1.0 Viloco 1.0 _ Total 7.2 7.1 Effective Capacity 6.o 6.o During 1964 COZIBOL plans to add 3 NW of diesels, which will be brought from the Southern Group of Mines, where they are not needed. Thus the total effective COPUBOL-owned capacity in the Central Piines will be about 15 Ml in 1964. The estimated energy and capacity requirements and the possible sources of power are tabulated on page 2 of this annex. The peak capacity requirements are based upon completion of the rehabili- tation program for the miines and the shutting do-n of all diesel capacity, which would remain in place for stand-by service.  ANHEX 6 Page 2 LOAD REQUIREMENTS (in millions of kwh)