Colombia - Power Interconnection Project

I RE-TLU RESII " oIK.TR ITeDu EREPORTS COPY WUx hReport No. TO-688a 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 The report may not be published nor may it be quoted as- representing their views.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 APPRAISAL OF INTERCONEXION ELECTRICA S.A. COLOMBIA October 21, 1968 Projects Department  CURRENCY EQUIVALENTS US$ 1 =Col$ 16.3 Col$ 1 = US$ 0. 061 Col$ 1 million =US$ 61, 350 MEASURES EQUIVALENTS One kilometer (km) = 0. 6214 miles One megawatt (Mw) = 1, 000 kilowatts One kilovolt (kv) = 1, 000 volts One gigawatt hour (Gwh) = 1, 000, 000 kilowatt hours One megavolt ampere (Mva) = 1, 000 kilovolt amperes INTERCONEXION's Fiscal Year ends December 31  APPRAISAL OF INTERCONEXION ELECTRICA S.A. COLOMBIA TABLE OF CONTENTS Page SUMMARY i I. INTRODUCTION 1 II. BACKGROUND 2 III. THE PROJECT h Technical Aspects 6 Project Cost Estimate 6 Status of Procurement and Method of Financing 6 Engineering Arrangements 7 Construction Schedule 7 IV. JUSTIFICATION FUR THE PROJECT 7 Market Forecast 7 Immediate Future Developments 8 Longer-Range Developments 9 Justification for Interconnection 10 V. THE BORROWER 12 Financial Arrangements 12 Transmission System 12 Generating Plants 12 Operations 13 Management 14 Current Situation 15 VI. FINANCIAL ASPECTS 15 Financing Plan 18 Sponsors' Positions 18 INTERCONEXION's Operating Results 19 Accounts and Audits 19 VII. CONCLUSIONS 19 This report was prepared from information coIlected and analyses prepared by Messrs. Howell, Arnold and Vigie and staff of the sponsors during various visits to Colombia and discussions in Washington.  LIST OF ANNEES 1. Comparison of Investment Streams: Interconnection vs Independent Development Interconexion Electrica S.A. 2. Sponsors' Contributions & Investments, 1967-1974 3. Forecast Income Statements, 1971-1974 4. Forecast Sources and Applications of Funds, 1968-1974 5. Pro-Forma and Forecast Balance Sheets, 1967-1974 6. Sponsors' Actual & Foreicast Financial Statements, 1967-1974 (Income Statements, Sources and Applications of Funds, Balance Sheets) Tables 1 - 3 Empresa de Energia Electrica de Bogota 4 - 6 Empresas Ptublicas de Medellin 7 - 9 Consolidaited Statements for Central Hidroelectrica del Rio Anchicaya, Limitada and Corporacion Autonoma Regional del Cauca Map  LIST OF ORGANIZATIONS Interconexion Electrica S.A. (INTERCONEXION). The new company formed to electrically interconnect the power systems of four sponsors. Empresa de Energia Electrica de Bogota (BOGOTA). The electric utility serving Bogota and vicinity. One of the four sponsors. Empresas Publicas de Medellin (EPM). The utility -- electric, telephone, water and sewerage -- serving Medellin and vicinity. One of the four sponsors. Central Ridroelectrica del Rio Anchicaya Limitada (CHIDRAL). A bulk power producer, owned about 65 percent by the Corporacion Autonoma Regional del Cauca (CVC) and about 35 percent by the Municipality of Cali. CVC/CHIDRAL are jointly one of the four sponsors. Central Hidroelectrica de Caldas (CHBC). The electric utility serving Manizales and vicinity. CHEC is a subsidiary of the national agency Instituto de Aprovechimiento de Aguas y Fomento Electrico (ELECTRLGUAS). ELWETRAGUAS/CHEC are jointly one of the four sponsors. Comite de Interconexion. A committee formed by the sponsors to investigate the benefits of interconnection. The Comite was superseded by the formation of INTERCONEXION. Ingetec, Integral and Merz Associates (IIMA). A joint venture of two Colombian firms with Merz Associates of London. IIMA i8 the project engineering consultant. Middle West Service Company. A U.S. engineering firm which earlier advised the Comite. No longer involved with the project.   APPRAISAL OF IN