Colombia - List of projects for external financing 1975-1977

Report No. 762-CO FIE COPY 2' M List of Projects for External Financing 1975-1977 Colombia May 20, 1975 Latin America and the Caribbean Regional Office Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared tor 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 It may not be published, quoted or cited without Bank Group authorization.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.   CONSULTATIVE GROUP FOR COLOMBIA PROJECT LIST INDEX Introduction Annex A: External Loans Signed During 197L4 Annex B: 1975 Project List Annex C: 1976 Project List Annex D: 1977 Project List Annex E: Projects Deleted from Previous Project Lists Annex F: Individual Project Descriptions   INTRODUCTION 1. This report contains a list of loans approved by the Consultative Group members during 1974 (Annex A), a list of projects for which. external finance will be sought during the period 1975-77 (Annexes B, C, and D), a list of projects deleted from the previous Project List (Annex E), and individual project descriptions (Annex F). Each year's list contains the name of the project, executing agency, expected lender, the total, cost, external financing required, and status of readiness of the project. The individual descriptions contain additional information which would be of interest to potential lenders. 2. Data for this Project List, which will be presented at the meeting of the Consultative Group scheduled for June 23, 1975, was compiled by the National Planning Department (DNP) on the basis of the informaticn provided by the Colombian institutions likely to require external financing for their proposed investment programs. The information was screened by DP on the basis of overall national priorities. The projects listed are those which DNP considers to be of priority, and which appear to be in a sufficiently advanced state of preparation to make it reasonable to assume that considered individually, they could be contracted in the year in question, However, the total amount listed requires an adjustment since although projects financed with suppliers credits have been listed in the year in which the credit is contracted, such credits are usually utilized according to the phasing of specific projects undertaken. Assuming an average phasing of 3 years, the Project List totals would amount to US$575 million in 1975, US$750 million in 1976 and uS$644 million in 1977.  - 2 - 3. The report "Economic Position and Prospects of Colombia" dated April 25, 1975, indicates that in order to provide adequate external support to Colombia's development effort, annuial commitments required from external borrowers for project financing would need to amount to US$347 million in 1975, US$498 million in 1976 and US$589 million in 1977. The difference between these requirements and the amounts indicated above reflects the anticipated slippage of about 30-35 percent that could occur in project implementation over the 3-year period under discussion. This slippage tendency has been estimated by considering the historical tendency for slippage to occur, as a result of technical, financial and personnel resource constraints which can delay project implementation. 4. The Project List reflects the development priorities of the Colombian Government, which has developed a broad strategy for improving the quality of life for the poorest 50 percent of Colombia's population, stimulating output in industry and agriculture, particularly in export- oriented production, dealing with the crucial problem of energy by increasing non-thermal generating capacity, and increasing petroleum production within Colombia. Consequently, the most important initiatives proposed in the Project List are in the fields of nutrition and health, rural and urban development, industrial finance, hydroelectric power and petroleum exploration and production. A preparatory meeting for the June meeting was held in Bogota on December 6, 1974. A Project List for 1975 was presented, and recent economic developments and Government investment policy for 1976 and 1977 were discussed.  -3- The present list reflects the results of the review of the 1975 list under- taken at that time, as well as the exchange of views that subsequently took place regarding the Government's 1976 and 1977 investment program.. 6. The following table suimmarizes by sector and year the amount of external financing which would be required to finance those projects presented in the Project List. It also indicates the percentage of total financing which would be utilized by each sector. COLOMBIA - CONSULTATIVE GROUP PROJECT LIST - 1975-1977: SUMMARY OF EXTERNAL FINANCING BY SECTOR Sector 1975 1976 1977 1975-77 Percentage 1. Power 115.5 -268.7 316.0 700.2 26.6 2. Transportation 66.6 71.1 - 137.7 5-.2 3. Water Supply and Sewerage 27.0 102.8 9.5 139.3 5.; )4. Education 18.0 35.o - 53.0 2.0 5. Nutrition and Health 32.5 74.5 - 107.0 4.1 6. Agricu:Lture 160.9 174.3 75.1 410.3 15.6 7. Industi.y 327.8 232.1 241.7 801.6 30.it 8. Comrminu.cations 71.8 16.1 7).O :157.9 6.o 9. Urban and Regional Development 31.8 83.2 - :115.0 10. Pre-Investment - 3.0 8.0 11.0 0.: TOTAL 851.9 1,060.8 720.3 2,633.0 100.0   ANNEX A Page 1 COLOMBIA-CONSULTATIVE GROUP EXTERNAL LOANS SIGNED IN 1974 (US$ million) Commitment External Interest Amortization Grace Fee Category Name and Borrower Financing Source Percent (Years) (Years) (Percent) Signed A. Projects POWER 1. Additions and Improvements to the Insula- San Francisco-Esmeralda System. CHEC 4.5 IDB 8.0 20 4 1/2 1 1/4 June 18 2. Additions and Im.provemen-ts to the Insula- San Francisco-Esmeralda System. CHEC 2.4 IDB 2.0 30 4 1/2 1/2 June 18 3. Northeast Substation,- H Shroder ICEL. 3.34_X (UK) 6,o 10 1 - July 25 4. San Andres Power Plant and State additional infrastructure, Street ELECTROSAN. 2,0 Bank and 3/4_ 7 1/2 1 1/2 - May 31 Trust Co, of Boston (USA) 5. TLrbines for the Guatape II Project. EE.PP. de Medellln 3.31- X KFW 6 1/2 13 3/4 5 1/3 1/4 May 20 2/ Equivalent of Pounds Sterling 1.4 million. v/ Above London Interbank Rate for 6 months deposits.. J Equivalent of Deutsche Mark $S,78 mi-llion  ANNEX A Page 2 (Us$ million) Commitment External Interest Amortization Grace Fee Category Name and Borrower Financing Source (Percent) (Years) (Years) (Percent) Signed 6. Equipment and materials Brown for Guatape II Project. Boveri EE.PP. de Medellin 3.3 (Brazil) 7.0 13 3/4 4 1/3 _ June 6 7. Chivor II Power Project and Telecotmmunicationt Equipment. ISA. 48.5 IDB 8.0 20 5 1/2 1 1/4 Dec.20 8. Equipment for Paipa Thermo- Ban.ers Unit. Electroboyaca. 1.0 Trust 1.0 .2/ 10 3 - Sep.18 *_____ (USA) SUB-TOTAL 68.35 II TRANSPORTATION 6' WFC Corp. 1. Aerial Navigation Aids.YS (USA) National Aeronautical Unibank 0 Fund. 8.0 (Panama) 7/8 10 4 1/_ Jan.30 2. Financing of 25% of 200 Automotive taxis. Corporacion Fi- Industry nanciera del Transporte. O.Q9 External 8.0 2 _ _ Jan.2 Trade Office (Poland) 3. Financing of 25% of 400 Dacia taxis.Corporaci6n Financiera auto- del Transporte. 0.17 motive 7.0 2 _ _ Jan.? Group (Romania) 2/ Additional $0.6 million under negotiation. S/ Above London Interbank Rate for 6 months deposits. S/ Also partially financed by French Government bilateral agreement. Additional financing required in 1975  AMI4E A Page 3 (US$ million) External In'srest Amortiz,tAi')r Grace Fee Category Name and Borrower Financing Source ercent) mars) (Years) nt) Signed 4. Port 3quipment and Parts. 2/ Lancer COLPUERTOS 0.76 / Boss 7.0 5 - - March 13 Ltd.(UK) SUB-TOTAL 9.02 III WATER SUPPLY AND SEWERAGE 1 Water Supply and Sewerage System Project, EE.PP. de Medellin. 3.8 m B 8 PO r 1 1/4 Jan,. 31 2. Water Supply and Sewerage System EE.PP. de Medellin 8.5 IDB 2 30 7 1/2 1/'' Jan.31 3. Water Supply and Sewerage 2% dulring Program i/ INSFOPAL 7.5 USATD grace 40 , 10 _ DecJ17 period and 3% theroafter SUB-TOTAL 19.8 IV HEALTH 1. Medi',al Equipment. fQr Compagnie Clinica Fray Bartolome de Financiera las Casas. Social Security de le Offic?c for the District Deutsche of BogotA. 1.21 Bank A.G. 9 10 / - April 24 (Lulxemburg) SUB-TOTAL 1.21. 2/ Equivalent of Pounds Sterling 0,32 million. ;' Additional Finaicing would he requirod Jn 197r,. 2/ Project listed for the first time.  AINNEX A Page 4 (US$ million) Commitment External Interest Amortization Grace Fee Categcry Name and _Bor-wer Financing Scurce _Percent) (Years) (Years) (Percent) Signed V AGR1CULTURE 1. Agricultural Wholesale and Retail Marketing Centers. COFIAGRO. 6.0 IDB 8.0 15 3 1/2 1 1/4 March 4 SUB-TOTAL o.) VI INDUISTRY 1. Pipes for Aya2ucho- Sumitomo Barrancabermeja pipe- Shoji line. ECOFETROJ. 3-53 Kaisha Ltd.7 1/2 4 1/2 - Feb. 12 and C.ItTh and Cr. (Japan) 2. Equipment for Indust.-y, Union of IFI lol Swiss 8.0 5 - - Jan.18 Banks SIJB-TOTAL I .9 VII CCi UICtIITNS 1. Raidai Eq,uipmrnt. Institut,-, Jnter- !