Announcement of Honduras Receives Thirty-Five Million for Rio Lindo Power Project on January 9, 1975 : Announcement of Honduras Receives Thirty-Five Million for Rio Lindo Power Project on January 9, 1975

INTERNATJONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W .. WASHINGTON D. c. 20433 TELEPHONE: EXECUTIVE 3-63eo Bank News Release No. 75/2 January 9, 197 5 HONDURAS RECEIVES $35.0 MILLION FOR RIO LINDO POWER PROJECT The World Bank has approved a $35.0 million loan to Honduras for the t'hird stage of the Lake Yojoa-Rio Lindo Hydroelectric Power Project. An important feature of the project is the extension of electric energy supply to rural areas and villages where related necessary infrastructure works are planned or have already been completed. The project will provide electricity service to about 300,000 additional people in Honduras and contribute to fuel cost savings estimated at $2.0 million by 1978. This sixth Bank-supported power project in Honduras, with an estimated total cost of $60.0 million, provides mainly for: construction of four dams • on three rivers; a new pipeline and penstock, and 46,000 kw of hydroelectric generating facilities; improvements in the distribution systems; equipment and material for repairs made necessary by the devastation caused by Hurricane Fifi, and training of professional staff. There is growing demand on the part of industry and agriculture for in- creased electricity supply. Although generation of electric power has almost doubled in the past five years, the annual electricity consumption rate of 150 kwh per capita is one of the lowest in.Central America. The Bank loan is made to Empresa Nacional de Energia Electrica (ENEE) with the guarantee of the Republic of Honduras. It will have a term of 25 years including 4~ years of grace with interest at 8% per annum. Including this loan, World Bank Group commitments for development projects in Honduras have reached $162 million. Note: Money figures are expressed in US dollar equivalents . •  T E C HN I C AL DAT A PROJECT: COUNTRY: Sixth Fower Project Honduras • TOTAL COST: $60.0 million BANK FINANCING: $35.0 million, 25 years, including a grace period of 4~ years at 8 per cent per annum OTHER FINANCING: $9.28 million by the Central American Bank for Economic Integration (Cabei) and $15.7 million equivalent by ENEE (Government). IMPLEMENTING ORGANIZATION: The loan will be made to Empresa Nacional de Energia Electrica (ENEE), Apartado 99, Tegucigalpa, D.C. Honduras PROJECT DESCRIPTION: Extension of the Rio Lindo hyd~o plant, including four dams and construction of a new pipeline and penstock; distribution system improvements; extension of electricity supply to rural areas; materials and equipment needed for system repairs necessitated by hurricane Fifi; training of staff. • PROCUREMENT: All contracts for Bank-financed civil works, plant and equipment will be procured following international competitive bidding. CONSULTANTS: Will be retained. • ESTIMATED COMPLETION DATE: 1978