Colombia - Development of the Upper Cauca Valley

UNN-25 The AUTONOMOUS REGIONAL CORPORATION OF THE CAUCA and the Development of the UPPER CAUCA VALLEY TERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMEN1 November, 1955  --- 0 -,  The AUTONOMOUS REGIONAL CORPORATION OF THE CAUCA and the Development of the UPPER CAUCA VALLEY Report of a Mission organized by the International Bank for Reconstruction and Development at the request of The Government of the Republic of Colombia and The Autonomous Regional Corporation of the Cauca Washington, D. C. November 1955   THE MISSION Harold Larsen Chief of Mission Robert A. Monroe Engineering Adviser Douwe Groenveld Agricultural Economist Juan Bazo Adviser on Agricultural Production Torgeir Finsaas Transport Economist James L. Kunen Adviser on Resource Development   Preface This is the report of a mission to the region of the Upper Cauca Valley in Colombia, organized by the International Bank for Reconstruction and Development at the request of the Government of Colombia and of the Autonomous Regional Corporation of the Cauca. The purpose of the mission was to study the principal subjects of importance in the future economic development of the Cauca Region, and to make recommendations for a practical program of action to foster such development in the interest of stimulating the economic progress of Colombia as a whole and of providing a demonstration center for regional development. The mission addressed itself primarily to the role which the newly established Autonomous Regional Corporation of the Cauca could play, and to the activities and methods by which it could make a maximum contribution to the economic advance of the region and of Colombia. The mission consisted of six members, three recruited by the Bank from outside its staff and three from the Bank's regular staff. The mission arrived in Colombia early in February 1955 and remained for two months. Members traveled widely and conferred extensively with government officials in the region and in Bogota, and with private indi- viduals and interests. The mission then reassembled in Washington to pre- pare this report. The chief of mission returned to Colombia in September 1955 to discuss the content of the report with officials of the Corpo- ration and to obtain the latest engineering data; the recommendations contained in the report are, however, the responsibility of the mission solely. In transmitting the report to the Government of Colombia and to ii  the Corporation, the President of the Bank pointed out that, since the Executive Directors and the management customarily do not review recom- mendations of missions in detail, the report represented the views of the mission rather than positive recommendations of the Bank itself. He added, however, that the Bank believed that the findings and recommendations of the mission deserved most careful consideration and discussion. Chapter 1 of the report presents a general view of the antecedents and nature of the Corporation, together with a summary of the activities recommended by the mission. Subsequent chapters present a more detailed discussion of those activities, the reasons why the mission thinks them desirable and appropriate, and the methods by which the mission believes that they should be undertaken. Finally, there is an Appendix setting forth engineering and other considerations in greater detail. The mission wishes to emphasize that at many points it had to utilize tentative and preliminary data, and that it is quite likely that later engineering and economic surveys and analyses may alter the figures it has used. Never- theless, the mission believes that it has made use of the best data avail- able, and that its findings as to the general orientation of the Corpo- ration's work are valid. The mission wishes to express its appreciation for the wholehearted cooperation and warm hospitality extended to it by government officials and private citizens. The mission was granted every facility for its work in Manizales, Cali, Popayan and Bogota. In particular, the mission wishes to acknowledge the initiative and understanding of His Excellency'the Presi- dent of the Republic, General Gustavo Rojas Pinilla, and the inspiration of iii  Mr. David Lilienthal, former Chairman of the Tennessee Valley Authority and now Special Adviser to the Corporation. Its work was greatly facilitated by the invaluable encouragement and assistance of Dr. Diego Garces Giraldo, Governor of the Department of Valle del Cauca and President of the Board of the Cauca Corporation, the members of the Board of the Corporation and the Corporation's Executive Director, Dr. Bernardo Garces Cordoba, with all of, whom the mission worked closely. iv  I  C O N T E N T S Page The Mission i Preface ii CHAPTER 1 - OBJECTIVES, POLICIES AND ACTIVITIES OF THE CORPORATION I. The Creation of the Corporation . ............... 1 II. The Region .......... 3 III. The Role of the Corporation .................... 6 IV. The Recommended Program ........................ 9 V. Financing the Program ........................... 12 VI. The Governments and the Corporation ............ 20 CHAPTER 2 - FLOOD PROTECTION AND ELECTRIC POWUER I. Flood Protection ....... ........................ 24 Economic Effects of Floods ..... .............. 25 Determining the Benefits of Flood Protection . 26 II. Electric Power ....................... ........ . 29 Future Demand ................................ 29 Power Supply to 1960 ...... .................. . 30 Demand for Power after 1960 .................. 31 Major Engineering Possibilities .. ............. 32 Calima Project ............................ . 32 Yumbo Projects ............................. 33 Timba Projects ............................. 34 Salvajina Projects ..... .................... 35 III. The Appraisal of Alternatives .................. 35 Comparison of Costs . ......................... 36 Cost Allocation between Power and Flood Protection ............ 37 The Cost of Flood Protection .......... IV. Summary of Conclusions on Engineering Possibili- ties ................... 42 V. Financial Considerations ..... .................. 43 Power Rate Policies .......................... 46 VI. Transmission and Distribution ..l...48 Transmission ....... .......................... 48 VII. Electrical Distribution ........................ 50 VIII. Additional Flood Protection Measures ....... .... 51 CHAPTER 3 - DRAINAGE, IRRIGATION AND RIVER POLLUTION I. Drainage ............ 53 II. Irrigation ...................................... 57 III. River Pollution ................................ 60 v  CHAPTER 4 - AGRICULTURE AND FORESTRY Page I. Summary of Recommendations .................. . 62 II. Present and Potential Regional Agricultural Activity . . 64 III. Land Ownership and Use .* ...... ................ 66 IV. Farm Machinery Service .............. .......... 68 V. Agricultural Extension Services .............. . 71 VI. Agricultural Credit , . . ............... 75 VII. Marketing ........ .................. ............ 76 VIII. Forestry .- .................................. 78 IX. Livestock Sanitation .... . ...................... 78 CHAPTER 5 - TRANSPORT I. General ...... . . 81 II. Departmental Roads ... 84 III. Technical Assistance ................ .......... 87 IV. Financing of Road Works .............. ......... 88 CHAPTER 6 - MINERALS, INDUSTRY AND TECHNICAL ASSISTANCE I. Minerals .. .......................... ............ 95 II. Industry . ...................................... 98 III. Technical Assistance ............loh............. 104 APPENDIX Abbreviations and Conversions .................... 105 The Corporation's Charter ....... .............................. 106 Principal Existing Public Utility Generating Facilities ........ 120 Tabulation of Data for Anchicaya Project ..................... 121 Undeveloped Hydroelectric Projects ............................. 123 Tabulation of Data for Proposed Calima I Project ... .............. 124 Tabulation of Data for Yumbo Steam Plant so.*. 126 Tabulation of Data for Proposed Timba Projects ............... 127 Power Study for Timba Project ..............................,. 128 Flood Control and Power Study for Timba Project Alone . 129 Tabulation of Data for Proposed Salvajina Projects .... ......... 131 Flood Control and Power Study for Combined Salvajina and Timba Projects ................................................ o. 132 The Costs and Benefits of Flood Protection ..................... 134 Actual Approximate Operating Cost for Standard Trucks on Unimproved Roads ....... ............................ 143 Approximate Operating Cost for Standard Trucks Assuming Paved Roads ...............,. ...., 144 Estimate of Funds Available in 1956 for Road Construction and Rehabilitation in the Three Departments Assiuning a Gasoline Tax of 10, 7 and 5 Centavos per Gallon Respectively ....... 145 vi  MAPS Following Page General . ................................................. vii Drainage Area . ............................................ 25 Flooded Area ...................................... 25 Present and Potential Power Plants .. . . 32 Transport ................................................ . 84 DIAGRAMS Rule Curve for Timba Reservoir, Operated Alone .... ....... 130 Area-Capacity Curves: Timba ...... ....................... 130 Salvajina .............. ... ......... 131 Rule Curves: Salvajina ..... .............. . .. , 131 Timba, Operated with Salvajina ............. 131 vii   MAPA N. 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