Thailand - Third Yanhee Project

RESTRICTED Report No. P-422 r~~~~~~* . I 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 The report may not be published nor may it be quoted as representing their views.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 REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE YANHEE ELECTRICITY AUTHORITY FOR THE THIRD YANHEE PROJECT March 1, 1965  INTERNATIOYAL BANK FOR RECONSTRUCTT:ON AND DEVELOPNENT PRESIDENTIS REPORT AND RECOIrENDATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE YANHEE ELECTRICITY AUTHORITY FOR THE THIRD YANHEE PROJECT 1. I submit the following report and recommendation on a proposed loan to the Yanhee Electricity Authority (YEA), to be guaranteed by the Kingdom of Thailand, in an amount in various currencies equivalent to $6 million, to assist in financing YEAls construction program for the period 1965-1968. PART I - BACKGROUND 2. The Bank has made two loans to YEA for power development and transmission in Thailand. The first for t'66 million in 1957 was for the Yanhee multi-purpose project and included the ccnstruction of the Bhumibol dam with provision for eight 70 mw units, of which two were initially installed, and the erection of a 230 kv transmission line to serve Bangkok and some secondary transmission lines. This project is now completed and the two units came into operation during 196h4 The principal part of the second loan of $6.6 million which was made in 1963, was for the second 230 kv circuit between the Bhumibol dam and Bangkok. This part of the project was also completed in 1964, and construction of the remainder of the project is on schedule. 3. 'The proposed loan would help finance the installation of Units 3 and 4 (70 rmw each) at the Bhumibol dam, construction of the penstocks for future Units 5 and 6 and additions to the transmission system. 4. The project was appraised by the Bank in March 1964. The proposed loan was negotiated by a delegation headed by H.E4 Sukich Nimmanhaeminda, the Th:al. Ambassador in Washington and Mr. Kasane Chatikavanij, General Manager of YEA. Negotiations were completed on January 21, 1965.  - 2 - 5. If approved this would be the BankTs fourteenth loan to Thailand and would increase the total amount lent by the Bank to $192 million net of cancellations. Loans previously made are: Year Original of Borrower Purpose Principal Loan kmount 1950 Kingdom of Thailand Railway Rehaoilitation $ 3,0oO,0Co Kingdom of Thailand Port Improvement L,OgO,000 Kingdom of Thailand Irrigation 18,000,000 1955 State Railways Railway Rehabilitation 12,000,000 1956 Port Authority Port Improvement 3,L1s