Announcement of World Bank Assists Two Power Projects in Colombia on June 1, 1978

I .FOR ,·MMEDIATE"RELEASE • ... I • I •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/102 June l, 1978 WORLD BANK ASSISTS TWO POWER PROJECTS IN COLOMBIA Two power pr0jects in Colombia, aimed at providing additional capacity and interconnecting the country's two largest electricity systems, will be assJsted by World Bank loans totalling $176 million. The first loan of $126 million supports the San Carlos I Hydro Power Project. The project forms part of the lnterconexi6n Elfctrica S.A. (ISA) 's 1978-82 expansion program and will provide about 15% of the ad- ditional capacity required in the early 1980s. It will require a total investment of $421.3 mill ion. A second loan, of $50 million, will help finance the 500 kilovolts (kV) Interconnection Project. This project will 1 ink the hydro-based Cen- • tral System with the thermal-based Atlantic Coast System. The total cost of the project is estimated at $167.2 mil lion. Both loans have a term of 17 years, including with interest at 7.5% per annum. 4 years of grace, San Carlos I Hydro Power The San Carlos Hydroelectric complex will be located about 150 kilometers from Medellfn, in northwest Colombia. The project will comprise the first stage of the complex, with an installed capacity of 620 Megawatts (MW). A future second phase will permit installation of an additional 930 MW. The project includes the construction of a 70-meter high earth dam on the Guatape River, inlet and discharge tunnels, and an underground power station. The San Carlos I station will be the largest power generat- ing facility within the integrated system. It wi 11 have considerable impact on Colombia's development, adding 3,700 Gigawatt-hours(GWh) of hydropower to the system. The project will satisfy part of the forecast demand at least cost by utilizing the country's large hydroelectric potential and will enhance • ISA's role as a major generating and transmission company. It will also improve long-term sector planni~g and operating efficiency. ... / NOTE: Money figures are expressed in U.S. dollar equivalents.  - 2 - About 42% of the power generated i, expected to be for the resi- dential sector and 35% for industry. The number of residential consumers is projected to expand by 95,000 each year, and a sizeable percentage of them are expected to be in rural areas. • The project includes also a study of power losses in the systems of ISA and its shareholders,which comprise the independent municipal companies of Bogota and Medellin and three Government-owned national power companies. Interconnection Project The Interconnection Project includes the construction of a single circuit, 523-kilometer long 500 kV transmission line between the San Carlos substation and Sabanalarga, near the Atlantic coast. The project will achieve the long-standing objective of intercon- necting the country's major power systems. It will result in more economical development and operation of the national power system, by substituting some hydro for thermal generation and reducing otherwise required reserve capacity. The interconnection line will ease projected energy deficits under adverse hydrological conditions by providing thermal backup to the Central System. It will also contribute to substantial fuel savings, totalling • $1.3 billion in end-1976 prices over the life of the project or about $160 million at present value. One of the line's intermediate substations will provide electricity to the planned Cerro Matoso nickel project, with proven deposits of about 25 million tons of high-grade nickel ore. Credit Commercial de France (Suisse) S.A., Geneva, has agreed to participate in the first maturity of this loan. - 0 - • FORM NO. 1121 (5-76) T E C HN I S A L D A T A • PROJECT: COUNTRY: TOTAL COST: San Carlos I Hydro Power ColomLra $421 • 3 mi 11 ion BANK FINANCING: $126 million for a term of 17 years, including 4 years of grace, with interest at 7.5% per annum. OTHER FINANCING: Inter-American Development Bank (IDB), $70 million Supplier's credits, $40 million lnterconexi6n Electrica (iSA) 1 s shareholders, $185.3 mi 11 ion IMPLEMENTING ORGANIZATION: lnterconexi6n Electrica (ISA) Calle 50, No. 50-21, Piso 16 Medellin, Colombia CABLE: ISA, Medellfn TELEX: 440098/248423/64145 PROJECT DESCRIPTION: It consists of: (i) Physical facilities including (a) the Punchina earth dam, with a volume of six million cubic meters, on the Guatapl River, which will impound a reservoir with a useful capacity • of 50 mill ion cubic meters; (b) an intake tower and a 4.5-kilometer long pressure tunnel, and a discharge tunnel about 1.5 km long; (c) an underground power station consisting of two caverns with a volume to be excavated of about 140,000 cubic meters, and four vertical Pelton turbine generators aggregating 620 Megawatts; and (d) a control building, a 230-kilowatt switchyard and 230-kV lines, totalling about 245 km, together with the related terminal substations, to connect the station to Guatape and Torca in the vicinity of Bogota. (ii) Engineering services; and (iii) a st .~tv- ~f1 losses in the system of ISA and its shareholders. PROCUREMENT: Procurement of goods and services will be in accordance with international competitive bidding consistent with Bank'sguidelines. Colombian manufacturers will receive a preference of 15% or applicable duties, whichever is less, for bid evaluation purposes. The contract for the under- ground civil works was awarded to a consortium comprising lngenieros Civiles Associados Ltds. (ICA) from Mexico and GRANDICON Ltda. from Colombia. CONSULTANTS: About 70 man-months of consulting services will be required. Integral Ltda. is being engaged for construction supervision • • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 7.5% 1983 - 0 - FORM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: COUNTRY: TOTAL COST: 500 kV Interconnection Colombia $ l 6 7 • 2 mi l l i on • BANK FINANCING: $50 million, for a term of 17 years, including 4 years of grace, with interest at 7.5% per annum. OTHER FINANCING: Kreditanstalt fur Wiederaufbau (KfW), $40 million Government of Colombia, $67.2 million Suppliers' credits, $10 million IMPLEMENTING ORGANIZATION: lnterconexi6n Electrica S.A. (ISA) Calle 50, No. 50-21, Piso 16 Medellin, Colombia CABLE: ISA, Medell(n TELEX: 440098/248423/64145 PROJE~T DESCRIPTION: It comprises: (a) a single-circuit 500-kilovolt (kV) trans- mission line, 523 kilometers long, between San Carlos in the central region and the Sabanalarga substation in the Atlantic (Northern) region; (b) two 500/230/34.5-kV terminal substation, each with an initial capacity of 450 Megavolt ampere (MVA), one at San Carlos and the other at Sabanalarga; (c) two intermediate 500/115/ • 34.5-kV substations, each with an individual capacity of 150 MVA, one at Cerromatoso and one at Chi nu; and (d) a shunt compensation system with a capacity of 600 Megavolt ampere reactive (MVAr). PROCUREMENT: Procurement for goods and services to be financed by the Bank loan will be under international competitive bidding according Bank's guidelines. Bids on the transmission line contract were received in November 1977. Local bidders, who did not bid on this contract, will receive a preference margin of 15% or the applicable customs duty (whichever is lower) on the minor equipment still to be procured. CONSULTANTS: About 200 man-months of consulting services for engineering, civil works and supervision are required. ECONOMIC RATE OF RETURN: EST IMATED COMP LET ION DATE: 35% 1981 - 0 - •