Zambia - Kafue Hydroelectric Project - Stage Two

UIIUULAIING GUPY TO BE RETURNED TO REPORTS DES DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Not For Public Use Report No. P-1220a-ZA REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE ZAMBIA ELECTRICITY SUPPLY CORPORATION LIMITED WITH THE GUARANTEE OF THE REPUBLIC OF ZAMBIA FOR THE KAFUE HYDRO-ELECTRIC PROJECT JUNE 21, 1973 This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS Zambian Kwacha (K)1 = US$1.)b US$1 = KO.64 GOVERNMENT OF REFUBLIC OF ZAMBIA FISCAL YEAR January 1 - December 31 ZAMBIA ELECTRICITY SUPPLY CORPORATION FISCAL YEAR July 1 - June 30  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPRNT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO ZESCO FOR THE KAFr.TE HYDRO-ELECTRIC POWER PROJECT 1. I submit the following report and recommendation on a proposed loan in an amount in various currencies equivalent to US$115.0 million to the Zambia Electricity Supply Corporation Limited (ZESCO) for the construction of a storage dam at Itezhi Tezhi, a 300 MW extension of the Kafue power station and a 60 km, 330 kv transmission line. The loan would have a term of 25 years, including 5'2 years of grace, with interest at 7