Announcement of World Bank Approves Eighty-Four Million Dollars for Power Project in Colombia on November 16, 1978

. FOR IMMEDIATE . RELEASE -World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 79/20 NOVEMBER 16, 1978 WORLD BANK APPROVES $84 MILLION FOR POWER PROJECT IN COLOMBIA The World Bank approved an $84 million loan to Colombia supporting the Mesitas Hydroelectric Power Project. The Mesitas facility will meet a large part of projected additio~al energy demand in the city of Bogota and its suburbs. The project forms part of the 1978-82 national power expansion program and its total cost is estimated at $260.8 million. It includes the construction of the Mesitas hydroelectric facility consisting of two surface powerhouses, each with three generating units, totaling 600 megawatts; tunnels and penstocks; a pumping station; and three 230 kilovolt transmission lines. • The project also comprises strengthening of the Sesquile dam against pos- sible future earthquake damage. The Sesquile dam, built in the early 1960s, is located on the Siecha River, approximately 56 kilometers from Bogota. The strengthening works will be based in part on experience obtained as a result of earthquakes in Japan and Alaska in 1964, and California in 1971. An asset valuation study and technical assistance to the Empresa de Energ(a Elictrica de Bogota (EEEB), a company that operates Bogota's electric service, are also included in the project. The company is owned by the Munici- pality of the Specia1 District of Bogota. The project is an unusually low-cost power development; no dam construction is necessary. The Mesitas facility will meet about 95% of projected incremental energy demand in the EEEB system during 1982-84, including that attributable to 70,000 new subscribers to be connected annually over this period. The $84 million loan to EEEB, with the guarantee of the Republic of Colombia, has a term of 17 years, including 4 years of grace, with interest at 7.35% per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Mesitas Hydroelectric Power Colombia $260.8 million • BANK F INAN CI NG : $84 million for a term of 17 years, including 4 years of grace, with interest at 7.35% per annum. OTHER FINANCING: Colombian Electricity Fund, $10.2 million; Suppliers and/or foreign corrvnercial banks, $54.2 million; Empresa de Energfa Elictrica de Bogota'(EEEB), $112.4 million. IMPLEMENTING ORGANIZATION: Empresa de Energ(a E1Jctrica de BogotJ (EEEB) Ca 11 e 13 , No • 37-35 Bogota, Colombia PROJECT DESCRIPTION: The project includes: a) construction of the Mesitas hydroelectric facility consisting of two surface power- houses, each with three generating units, totaling 600 megawatts; tunnels and penstocks; a pumping station for an existing head pond; and three 230 kilovolt transmission lines; b) strengthening of the Sesquile dam against possible future • earthquake damage; c) an asset valuation study; and d) technical assistance to EEEB on financial planning and staff training. PROCUREMENT: All the items to be financed by the loan (except for consulting services) have been, or will be procured through international competitive bidding (ICB) under Bank guiJeline~. The largest part of the civil works, the tunnel and shaft works, was contracted under ICB consistent with the Bank's guidelines with lmpregilo (Italy). EEEB is expected to contract the remaining uncontracted civil works for Mesitas and the civil works for the Sesquile dam as well as to procure all the equipment under ICB consistent with the Bank's guidelines. Colombian manufacturers will be given a margin of preference of 15% or the applicable custom duty, whichever is lower. CONSULTANTS: About 4,720 man-months of consulting services for engineering and construction supervision are included in the project. The asset study will require an additidnal 35 man-months of consultant servi.ces. ECONOMIC RATE OF RETURN: 10.4% ESTIMATED COMPLETION DATE: 1981 - 0 - •