Announcement of 1.6 Million Dollars Power Loan in Nicaragua on November 15, 1956

{.) . .... FOR IMMEDIATE RELEA:.l,E WOIILrii • INTERNATIONAL BANK FOR RECONSJRUCT!()N .t\ND DEVEL<)Pfvt ;• 1818 H STREET, N.W., WASHINGT0!'{=:2.s, D. C. TELEPHONE: EXECUTIVE 3-6360 PRESS RELEASE NO. 46S SUBJECTS $1.6 million power loan in Nicaragua. ~· November 1S, 19S6 The World Bank todc\V made a loan of $1.,6 ., millio~ for electric · power development in Nicaragua. The loan will supplement~ loan of $7.l million made in July 19SS to finance ,)the foreign exchange costs of constructing a 30 ,ooO-kilowatt thermal power plant and expansion of the distri~uti.on system in nanagua, and transmission lines to ,;J 15 outlying tOw"'llBe . . ; . Grace . National Bank of New ·Yol!k -is· pm-iticipating ... .. . in the loan., without the World . ... •, .. - Bank's guarantee., to the extent of $101,000 1 representing the first two maturities falling due in October 1959 and April 1960. • The loan was ma.de to the F.mpresa Nacional de Luz y Fuerza of Managua and is guaranteed by the Republic of Nicaragua. Empresa is~ autonomous government cor• poration which supplies power to the Managua area. Tl'ie loan is for a term of:( 15 years and bears interest of 4-3/4% including the 1% commission charged by the Bank. Amortization will begin October 1 1 1959. Today's loan was made to cover the additional foreign exchange needed for the Managua power project. The total cost of the project will be approximately the same as had been originally estimated -- ~10.6 million -- but after the award of contracts for equipment and construction, it was found that the .foreign exchange component was larger than had been estimated. Construction of the foundations for the power plant and building started dn May 1956. The first 15.,000-kilowatt unit should be ready for commercial operat:torl in Ma?::ch 1958, and the second 15,000-kilowatt unit five months later. The Managua distribution system is scheduled for completion before the end of 19S7, and the trans- mission lines by February 1958. When completed., the project will double electric generating capacity in l\Ticaragua and help to meet the demand for power in the Managua and Pacific coastal plain areas, the,most populous and productive in the country. ~· , Bank loans in Nicaragua, now total $2) million. They have been made for electric ~• power, agriculture, road transport and improvements at Cqrinto, t,he main seaport on · · ·.· the Pacific. After having been approved by tl'le;i Bank's Executive Directors, the loan documents were signed by Col. Julio c. M~r.ales, Charge d 'Affaires a.i. of the Embassy of Nicaragua µi Washington, on.behalf of the Republic of Nicaragua., by~. Humberto Salvo, General l-fanager of Empresa Nacional de Luz y Fuerza, on behalf of the borrower, and ....:.,., ..... ,. ,. Pl. ,.~.!.~~A-..;B..... J+.:IA'.f .Y~Q!..~~~g~n:t . . . 9!tJ~.~h~lf... e>.t:...tb~ . .W~ld,.Bank.•