Argentina - Yacyreta Hydroelectric Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2625-AR REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE ARGENTINE REPUBLIC FOR THE YACYRETA HYDROELECTRIC PROJECT September 25, 1979 I This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Equivalents December 1977* August 31, 1979 Currency Unit Argentine Peso ($a) Argentine Peso ($a) US$1 $a599 $al,401 $al Million US$1,669.45 US$713.78 *Used in the Appraisal Report Weights and Measures kW = Kilowatt MW = Megawatt (1,000 kW) GW Gigawatt (1,000 MW) kWh = Kilowatt hour GWh = Gigawatt hour (106 kWh) m3 Cubic meter (35.3 cubic feet) hm3 Hecto cubic meter (106 m3) Glossary of Abbreviations AyEE = Agua y Energia Electrica ANDE = Administracion Nacional de Energia Electrica (Paraguay) CIDY = Consultores Internacionales de Yacyreta CNEA = Comision Nacional de Energia Atomica CTMSG = Comision Tecnica Mixta de Salto Grande DEBA = Direccion de Energia Electrica de la Provincia de Buenos Aires EPEC = Empresa Provincial de Energia de Cordoba FNGOE = Fondo Nacional de Grandes Obras Electricas HIDRONOR = Hidroelectrica Norpatagonica, Sociedad Anonima SEGBA = Servicios Electricos del Gran Buenos Aires YACYRETA = Entidad Binacional Yacyreta Fiscal Year January 1 - December 31  FOR OFFICIAL, USE ONLY ARGENTINA YACYRETA HYDROELECTRIC PROJECT LOAN AND PROJECT SUMMARY Borrower: The Argentine Republic. Beneficiary: Entidad Binacional Yacyreta (YACYRETA). Amount: US$210.0 million equivalent. Terms: 15 years, including 6 years of grace; interest at 7.9% per annum. Relending Terms: Same as above. Project Description: The primary objective is to provide least-cost base- load electric energy. Other objectives are to improve navigation on the Parana River, to facilitate future irrigation projects in both Argentine and Paraguayan territories, and to develop fishery. The continued Bank involvement in the Argentine energy sector through the project will help improve sector organi- zation, management, tariff policies, and investment planning for generation and transmission facilities. The project consists of (a) 70 km of earth dam; (b) a power house with 20 units each of 135 MW capacity to be installed between 1986-90 and intake structures for 10 additional units; (c) a navigation lock; (d) fish passage facilities; (e) irrigation intakes and Aguapey, Tacuary, Caragueta and San Martin dikes to prevent flooding; (f) ancillary works including housing for personnel during and after construction; (g) relocation of infrastructure and resettlement of a total of about 33,000 people on both banks of the river; and (h) Argentine power sector studies on transmission system and small hydroelectric plants. The project would benefit the Argentine population at large by supplying electricity for the continued economic development of the country and provide substantial earnings for Paraguay through royalty payments and payments made on its share of electricity sold to Argentina. The project faces no special engineering and technical rLsks although (a) the complex nature of the resettlement program requires careful supervision; (b) the binational nature of the organization may strain decision-making capacity on such matters as procurement and resettlement; and (c) the large financing requirement of the project makes it vulnerable to changes in overall economic policy of the Argentine Government and international financial market conditions. This document has re stricted distribution and may be used by recipients only in the performance of their omcial duties. Its contents may not otherwise be disclosed without World Batk authorization.  - ii - Estimated Cost: Local Foreign Total (US$ Million Equivalent) Yacyreta Preliminary works and land 169.7 - 169.7 Main civil works 595.6 609.5 1,204.7 Major equipment 78.8 322.7 401.5 Relocation/Resettlement: (a) replacement 172.7 - 172.7 (b) improvement 189.3 - 189.3 Engineering and Administration 169.5 53.0 222.5 Total Base Cost 1,375.6 984.8 2,360.4 Physical contingency 168.4 128.5 296.9 Price contingency 643.1 405.9 1,049.0 Working capital 74.7 - 74.7 Total Project Cost 2,261.8 1,519.2 3,781.0 Sector Studies 2.6 1.2 3.8 TOTAL -- Yacyreta and Studies 2,264.4 1,520.4 3,784.8 Financing Plan to 1990: Local Foreign Total (US$ Million Equivalent) Investment, Working Capital and Studies IBRD 0.7 209.3 210.0 IDB - 210.0 210.0 1/ Export Credits - 829.5 829.5 Foreign Commercial Banks 430.0 111.8 541.8 Local Banks 300.0 - 300.0 Electrical Funds - Loans 1,474.9 162.7 1,636.8 Capital 50.0 - 50.0 Government (for Studies) 2.0 - 2.0 Internal Cash Generation 6.8 - 6.8 Total 2,264.4 1,522.5 3,786.9 Debt Service - Interest and Amortization Foreign Commercial Banks - 403.5 403.5 Electrical Funds 669.4 304.2 973.6 Internal Cash Generation - 1,877.6 1,877.6 Total Debt Service 669.4 2,585.3 3,254.7 TOTAL FINANCING 2,933.8 4,107.8 7,041.6 1/ Includes US$2.1 million IDB inspection fee.  - iii - Estimated Disbursements: Bank FY Annual Cumulative