Announcement of World Bank Approves Eighty-One Million Two Hundred Thousand Dollars Loan to Peru for Power Distribution in Lima and Engineering Studies for Hydroelectricity on June 17, 1982

• FOR tMME:UIA1E· RELEASE •WorJdBank 1818 H Street, N~W., Washington, D.C. 20433, U.S.A.•Telephone: (202) 477-1234 "' BA~K NEWS RELEASE NO. ~:U 123 Contact: Ciro Gamarra ','June 17, 1982 (202) 477-8034 WORLD BANK APPROVES, $81.2 MILLION LOAN TO PERU FOR POWER DISTRIBUTION IN LIMA AND ENGINEERING STUDIES FOR HYDROELECTRICITY A $265.5 million project to expand power distribution facilities in Lima, Peru, and help three Peruvian p6~er cQmpanies in conducting engineering studies for high-priority hydroelectricity projects will be assisted with a loan of $81.2 million, the World Bank announced today. This is the seventh power project to be assisted by the World Bank .in Peru and will also support improvements in maqagement and financial capability of the three major power companies--ELECTROLIMA, ELECTROPERU, and HIDRANDINA. ELECTROLIMA's component, representing about $165.1 million or 89% of the project costs, consists of its 1982-86 distribution program, which will make electricity availabl~ to some 130,000 customers in Lima, mostly for residential use. It will also . . include construction of the Yuracmayo dam, which would regulate the water needed to ~enerate pow~r at the 120 megawatt Matucana plant, thus increasing its output by 88 gigawatt hours per year of dry season energy. Three additional studies related to the use of additional water to be made available by the Mantaro Transfer scheme will also be undertaken by ELECTROLIMA with the aid of consultants. ELECTROPERU's component accounts for about $16.4 million, or 9% of the project costs. Part of the 'funds will finance a contract signed with Binnie and Partners (United Kingdom) to prepare bidding documents and complete engineering design of the Mantaro Transfer project. This project will increase the water available to Lima--for both household use and power generation--by divert~ng water from the Mantaro basin. HIDRANDINA's component consists of final design and preparation of bidding documents for the Mayush hydro project. The estimated cost is about $3.5 million, or 2% of the project costs. This project, with an installed capacity of up to 130 megawatts, would complement the existing 40 megawatt plant at Cahua on the Pativilca river. The World Bank loan is to ELECTROLIMA, S.A. and is guaranteed by the Republic of Peru. It is for 17 years, including four years of grace, with interest at 11.6% per annum. The loan also carries an annual commitment charge of 0.75% on undisbursed balances, and includes a front-end fee of 1.5% on the amount of the loan. · • :. ;,on ~' '' the ELECTROLIMA will in turn lend a portion of the loan to ELECTROPERU and HIDRANDINA 'same terms and conditions as the World Bank loan • NOTE: . Money amounts are in U.S. dollar equivalents.