Announcement of Thirty-Six Million US Dollars to Peru for Fifth Power Project on March 4, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 76/17 March lt, 1~76 $36 MILLION TO PERU FOR FIFTH POWER PROJECT The World Bank has approved a $36 mil lion loan for a fifth power project in Peru. ·~· The project, with an estimated total cost of $137.~ million, consists of two distinct components: 1) the 1975-78 expansion program of Electroltma's transmission and distribution systems, and 2) technical assistance to, and training for, the State entitles in the power sector. The first compQnent will include transmission, subtransmission and distribution facilities, auxiliary services and consultant services and training needed to carry out the expansion program. The technical assistance comi,onent for the power sector consists of: a) consulting services to: assist the GovernflM!nt in improving coordination among Its power agencies, estab1fsh a "master plan" of • future generating and transmission works and Identify the training needs of sector personnel; b) a training program for sector personnel In the.operation, planning and administration of large public utilities enterprises; and c) a tariff study. By providing facilities to expand Lima's distribution system and thus meet future demand for electricity in the city, which accounts for 35 percent of the national market, an important constraint for future growth will be removed. The project, moreover, will be Instrumental in making available electricity to the poor settlements In the outskt rts of Lima, since F.lectroHma wl 11 build the distribution facilities, Including the necessary substations and transmission llnes. It is expected that the number of households In those settlements with public service electricity wl11 Increase by 230 percent by mld-1979, thereby alleviating the present poor living conditions of those areas of metropolitan Lima. In addition, planning and management of the power sector will be strengthened by the technical assistance component of the project. The Bank loan to Peru ts for a term of 20 y~ars, including a grace period of 3 years, with interest at 8-1/2 percent per ann1.111. • NOTE: Honey ft gures are expressed in US do 11 ar equ f va 1ents.• Form No. 1121 (g-75) TECHNICAL DATA PROJECT: COUNTRY: Fifth Power Repub 1I c of Project Peru • TOTAL COST: $137.4 million BANK FINANCING: $36 million, 20 years Including 3 years of grace at 8-1/2 percent Interest per annum OTHER FINANCIHG: Electro1 Ima' s Internal cash generation; connection fees; long-term borrowing from COFIDE; and Government contributions IMPLEMENTING ORGANIZATION: Expansion program: E1ectrolima - Casflla 1384, Lima, Peru Cable: 20053 PU Technical assistance component: Mfnisterlo de Energia y Minas Avenfda las Art~c M7.;t. J-9 Lr rr,a • P~ n, t. PROJECT DESCRIPTION: The project consists of: I) Expansron program of Electrolima for 1975-7.8, includf ng the fol lowing major elements: a) trans- miss ion and subtransmisslon: I) 26 circuit-kilometers of 220 kV and 125 circuit-km of 60 kV 1i ne extensions; and II) construction, expa~s ion and/q_r improyemen~ of 6 220/60 kV subs tat and of 17 60/10 kV substations; b) dtstrtbution: I) Installation of about 2,300 transformers, 10,000/220 V, with an aggregate capacity of about 233 MVA; ii) installation of about 1,000 circuit-km of 10 kV lines; and iii) installation of 200,000 meters; c) auxiliary services: i) expansion of the existing communications and control center; ii) auxiliary equipment for the data processing center; aHd fii) laboratory, shop, transportation and maintenance equipment; d) consultant services and training (25 man-months): i) consultant serviees for the expansion· of the comnunlcatfons and control center, for a .-eview of distrJbution planning standards, and for hot-line maintenance of overhead dfstrfbutton and transmission lines; and tr) training of Electrolfma personnel In hot-line maintenance of overhead distribution and transmfssfon lines; and 2) Technical assistance for the Government (195 man-months) which wf11 Include: a) a study of the organization of the power sector to suggest ·~ays of Improving the coordination between sector entitles and identify sector training requirements; b) the preparation of a master plan for future generation and transmission additions In th, north-central Interconnected syste~ of the country; c) a po.,i,er tariff structure study; and d) training of sector personnel in operations, planning and administration. · PROCUREHEtlT: Equipment to be financed under the loan wr 11 be procured after fnternatlonal canpetitive bfddinQ. Procurement of equipment which is produced in Peru (about one-thf rd of t'he total expansion program of Electro I ima) wi 11 be made domestically and will not be financed by the Bank. CO~SULTANTS: Electrolima will retain consult~nts to assist i~ part I (d) (i) of the above description of the pr,.,ject. The Ministry of F.nern·1 and Mines will retain consultants to assist in part 2 (a, band c) or the above oroject 4lt descrl pt ion. ESTIMATED COMPLETION DATE~ 1980