Uruguay - Appraisal of Power and Telephone Expansion Project

r W- A. .2 L. t. " ; In I.M_ A '-~ ww_'~ - _, _ - LI U1 /LAiWIf Q _iZ~ 30_ J A2RESTRICTED M^ I" r , ._r - llu This report is restricted to use within the Rt' It INTERNATIONAL BANK FOR RECONSTRUCTION AND LDEVELOPUE:N-, II1 1, ((nVv APPRAISAL PrOWvER AIND I-T E'LiLEPHO~iNz XPNSONPRJEIT OF ADMINISTRACION GENERAL DE LAS USINAS ELECTRICAS Y LOS; TELEFONOS DEL ESTADO (U. T. E.) URUG'UAY July 24, 1950 Loan Department  TABLiZ OF CONTEJLTS Paragraph3 FOREWiORD PART I. Project Appraisal. . . . . . . . . . . . . . . . . . . . . 1 - 81 Description of Projects and Borrower . . . . . . . . . . . . . 1 - 9 The Projects . .. . . . . . . . . . . . . . . . . . . . . 1 - 6 Desc,ription of UTE. . . . . . . . . . . . . . . . . . . . 7 - 9 Power Program. . . . 10 - 57 Power Resources . . . . . . . . . . . . . . . . . . . . . 10 - 16 UTE's Povwer System. . . . . . . . . . . . . . . . . . . . 17 - 18 Rincon del Bonete Project . . . . . . . . . . . . . . . . 19 - 20 Age of Installations. . . . . . . . . . . . . . . . . . . 21 - 22 Energy Generated by zach Type of 'UTZ Installation . . . . 23 Pattern of Consumption. . . . . . . . . . . . . . . . . . 24 Comparisons with Consumption in Other Countries . . . . . 25 Consumption by Types of Users . . . . . . . . . . . . . . 26 Characteristics of the Loads in Interior and Mviontevideo . 27 - 29 Rate ',tructure. . . . . . . . . . . . . . . . . . . . . . 30 - 31 Revemnes from Sales of linergy . . . , . . . . . . . . . . 32 - 33 Present hvTarket for Power. . . . . . . . . . . . . . . . 34 - 35 Future Market for Power . . . . . . . . . . . . . . . . . 36 _ 39 Power L`xpansion Program . . . . . . . . . . . . . . . . . 40 Anticipated Schedule of Construction. . . . . . . . . . . 41 Cost of Power Program .... 42-L43 UTE's Engineering btaff and Plan of Construction. . . . . 44 - 45 Dependable Capacity Available . . . . . . . . . . . . . . 46 Need for Additional Capacity - Montevideo-Rincon System . 47 - 52 Need for Additional Capacity - Interior . . . . . . . . . 53 - 54 Estimated Income from Sales of Electric Energv. 19h9-1958 55 - 56 Conclusions - Power Expansion Program . . . . . . . . . . 57 Telephone Program. . . . . . . . . . . . . . . . . . . . . . . 58 - 81 Historical Development of UTL's Telephone Svstem. . . . . 58 - 60 TelephoneRates .... 61-664 Telenhone Revenues. . . . . . . . . . . . . . . . . . . . 65 - 67 Existing Telephone Plant in Iviontevideo. . . . . . . . .68 Eyisting Telephnne Plant in the Interinr. . . . 69 - 71 Prospective Demand for Telephone Service. . . . . . . . . 72 Need f'nr Expansion of Lnng Distance Facilitis . . 73 - 714 Proposed Expansion Program. . . . . . . . . . . . . . . . 75 Cost. r,f the Tlponhn Prnaram- 76 Views of Bank's Consultants . . . . . . . . . . . . . . . 77 Comment on Consultants' Views--. . . . . 78 Future Gross itevenues from Telephones . . . . . . . . . . 79 - 80 Conclu sions =- Telephorsnre _xp"anvsion Program . . . . . . . . 81  Para<gYa)hs PART II. UT.: Financial Appraisal . . . . . . . . . 82 - 123 Function and Status of UTE. . . . . . ... . . . . . . . . . . 82 - 13 Financial Position. . . . . . . . . . . . . . . . . . . . . . . 85 - 100 Balance Sheet . . . . . .8 . . . . . . 8 - 9 Income Accounts. . . . . . . . . . . . . . . . . . . . . . 95 - LOO Acquisition of RIONM's Hydroelectric Project. . . . . . . . . . 101 - 105 F'inancial Alspects of UTE-RIONE Merger . . . . ... . . . . . . . 106 - 1l1 Law Promulgated April 21, 1950 . . . . . . . . . . . 106 RIONE: Settlement of Liabilities. . . . . . . . . . . . . 107 - 108 Pro Forma Balance Sheets . . . . . . . . . . . . . . . . . 109 - ].1 Earnings E