Guyana - Power Project

a~CIRCULATING COPY TO BE REfURNED TO REPORTS DESK DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. P-1147 REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE GUYANA ELECTRICITY CORPORATION WITH THE GUARANTEE OF GUYANA FOR A POWER PROJECT December 18, 1972 IThis report was prepared for official use only by the Bank Group. It may not be published, quoted I or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS US$1 - G$2.1667 G01 - US$0.4615 The Guyana dollar is currently floating  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOP1MENT INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE GUYANA ELECTRICITY CORPORATION WITH THE GUARANTEE OF GUYANA FOR A POWER PROJECT 1. I submit the following report and recommendation on a proposed loan to the Guyana Electricity Corporation (GEC), with the guarantee of Guyana, for the equivalent of US$6.0 million to help finance a power project. The loan would have a term of 20 years, including four years of grace, with interest at 7-1/4 percent per annum. The Government of Guyana would charge GEC a guarantee fee of one percent per annum on the outstanding amount of the Bank loan, bringing the cost of the loan to GEC to 8-1/4 percent per annum. 2. Under parallel financing arrangements, the Canadian International Development Agency (CIDA) and the U.K. Overseas Development Administration (ODA) will lend the Government Can$4.0 million (about US$4.0 million equivalent) and