Announcement of IDA Approves Thirty-Six Million US Dollars Credit to Sri Lanka for Seventh Power Transmission Project on February 25, 1982

(} , ' . . FOR.. IMM~Dl~T~ RELEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 82/37 Contact: Hugh Blackman February 25, 1982 (202) 477-3879 IDA APPROVES $36 MILLION CREDIT TO SRI LANKA FOR SEVENTH POWER TRANSMISSION PROJECT E1ectricity for the Co1ombo area in Sri Lanka wi11 be transmitted from the hydro power stations to be completed during 1984-87 in the Mahawe1i basin. The transmission line wi\1 be constructed with the assistance of an SOR 31.3 million ($36 million) credit from the International Development Association (IDA). Tbe Wor1d Bank's affiliate for concessionary lending wi11 help finance the construction of 126 kilometers of 220 kilovolt (kV) transmission line from Kotma1e station to the Colombo area, and 38 kilometers of 132 kV line from Rantembe to Badu11a. IDA will also help finance the provision of power transformers and related equipment, and consultant services. The OPEC Fund will lend $11 million to help finance about 24% of the estimated foreign exchange cost of $47 million. The Ceylon Electricity Board will provide the balance needed for the $76.3 million project. • The World Bank and IDA have made six previous loans and credits to Sri Lanka for power generation and transmission, totaling about $79 million. In addition, $29 million was provided to help finance a multi-purpose (irrigation and power) project on the Mahaweli in 1969, including the Ukuwe1a hydro plant. Two of the hydro power stations under the Accelerated Mahaweli Program are scheduled to be put into operation soon--the Victoria station in 1984 and the Kotmale station in 1985- Construction of another station, at Randenigala, is expected to begin this year. Bilateral financing from the United KingJom is helping to pay for the Victoria hydro station, including a 220 kV line from Victoria to Kotmale. The Federal Republic of Germany is contributing funds for the Randenigala plant, including a 220 kV link from Randenigala-Rantembe to Victoria. s~,edish import support credit funds are partially financing the Kotma1e project. As the essential connection from Kotmale to the Co1ombo ~rea is not covered by these bilateral programs, the government requested IDA's assistance. The IDA credit to Sri Lanka is repayable over 50 years including 10 years of grace period. The credit bears no interest rate but carries a service charge of 3/4 of 1% per annum to cover administrative expenses. NOTE: IDA credits are der.ominated in SDRs (Special Drawing Rights), which are va 1ued on the basis of a 11 basket" of currencies. The U.S. do 11 a r equ i va 1ent • of the SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Seventh (Mahaweli Transmission) Power Sri Lanka $76.3 million • IDA FI NANC I NG : SOR 31.3 mi 11 ion ($36 mi 11 ion) , on standard IDA terms OTHER FINANCING: OPEC Fund, $11 million; Ceylon Electricity Board, $29.3 million IMPLEMENTiNG ORGANIZATION: Ceylon Electricity Board P.O. Box 540 Colombo, Sri Lanka TELEX: 21368 KILOWATTSCE CABLE: KILOWATTS COLOMBO PROJECT DESCRIPTION: It will help meet the country's increasing demand for electri- city and is designed to deliver efficiently, reliably, and at a minimum cost the output from the hydroelectric power stations in the Mahaweli basin to the principal load centers in the Colombo area. Components of the project are: 126 km of 220 kilovolt (kV) double circuit and 38 km of 132 kV single circuit transmission line. b) one new 220/132 kV substation, extensions to 3 existing 132 kV substations, one new 132 kV switching station and extensions to an existing 66 kV substation; c) replacement of circuit breakers with new ones of higher rupturing capacity; d) vehicles, tools, and buildings; e) equipment for power factor correction, power line carrier, and for loss reduction cell; and f) engineering consulting services, technical assistance, and training. PROCUREMENT: The 220 kV and 132 kV lines will be constructed under one single responsibility contract, while all substations and switching stations will be covered by another contract. There will be major contracts for power transformers, replacement of circuit breakers and power line carrier equipment, and a number of reiatively minor supply contracts for other materials. All major components to be financed by IDA and the OPEC Fund will be procured under international competitive bidding in accordance with IDA's guidelines. Vehicles, equipment, and materials estimated to cost less than $15JOOO per item may be procured in accordance with local procedures, procedures, but not exceeding $150,000 in aggregate. For mat~rials and equipment tendered internationally, the standard domestic preference of 15% on the c.i.f. price or the preva i 1i ng duty, whichever is 1e·ss, wi 11 be app 1 i ed in bid eva 1uat ion. CONSULTANTS: 140 man-months of foreign engineering services for the detailed design, supervision of contract and construction. Consultants for technical assistance and training are already under contract. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 14% 1984 - 0 - •