Philippines - Sixth Power Project

Docu.- ant of '.e World Bank FOR OFFICIAL USE ONLY Report No. 4847 PROJECT COMPLETION REPORT PHILIPPINES SIXTH POWER PROJECT (LOAN 1034-PH) December 22, 1983 Projects Department East Asia and Pacific Regional Office 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.  FOR OFFICIAL USE ONLY PHILIPPINES SIXTH POWER PROJECT (LOAN 1034-PR) PROJECT COMPLETION REPORT TABLE OF CONTENTS Page No. Preface *....0.******* ********i************************** i Bas ic Da ta She et ....*a*.*****.*.... *...0. . .. . 0. .* ...* i i Highlights S................................................... ii 1. INTRODUCTION ...**.....*.............I*.*.****. .* . 1 II. PROJECT DESCRIPTION *... * .. **. ..*e.**. .......* 2 Original Project Description ........., 2 Changes to the Project ... ....... ..*......,.... 3 III. PROJECT IMPLEMRNTATION AND COST .......................... 5 Project Execution ............. 5 Feasibility Studies * 6 Procurement and Award of Main Contracts 6 Project Cost ............... . .. ....... . ..... 7 Disbursements * 8 Operating Performance . ......................... ..... . 8 IV. FINANCIAL PERFORMANCE ..... ..... ...*..*... ... ...*... 10 Rate of Return .n . ........... ........ 11 Financial Covenants .................. . 12 V. INSTITUTIONAL PERFORMANCE AND DEVELOPMENT ................ 13 VI. PROJECT JUSTIFICATION *.*****.*******.**.,**.*. ................. 15 Load Growth .......... ...... 15 Least-Cost Solution: Pantabangan ....................... 15 Rate of Return: Pantabangan ............................ 15 Transmission Component ..................... * . 15 VII. CONCLUSIONS ............... . ,,, 17 ANNEXES: 1. Transmission Subprojects - Appraisal Estimate vs. Actual . 19 2. Transmission Subprojects - Appraisal Estimate vs. Actual . 21 3. Data of Major Contracts .... ... ........ .. ....... 22 4. Comparison of Appraisal Estimate and Actual Cost ......... 29 5. Actual Expenditures ..................................... . 30 6. Accumulated Disbursements ............,................... 31 7. NPC: Income Statements *........e. * *,**.**** ... 32 8. NPC: Funds Flow Statements ............................... 33 9. NPC: Balance Sheets .................. ... O ****** 34 10. Actual and Forecast Energy Sates, Peak Demand and Installed Capacity, Luzon Grid ......................... 35 11. Pantabangan Hydropower Plants: Costs and Benefits ....... 36 12. Main Undertakings in Loan Documents ........h.......-. 37 13. Comments from NPC and NEDA .. * . ........... * * * * * .. * 38 This document has a restricted distribution and may be used by recipients only in the performance or Itheir ofricial duties. Its contents may not otherwise be disclosed withouit World Bank authorization.  - i - PHII PPI NES SIXTII POWER PROJECT (LOAN 1034-PR) PROJECT COMPLETIONI REPORT Preface The project comprised construction of a 100 NW hydroelectric power plant at Pantabangan, on the Pampanga river in Luzon; various transmission lines and substations on Luzon; and feasibility studies for another hydropower plant and for a load dispatching center for the Luzon grid. The borrower was the 'National Power Corporation (NPC), which implemented the transmission component of the project; the generation component was implemented by the National Irrigation Adwinistration (NIA). The Project Completion Report (PCR) was prepared by the East Asia and Pacific Regional Office on the basis of the Appraisal Report, Supervision Reports and other docunents in the Bank's files, Completion Reports prepared by NPC and NIA, and a project completion mission to the Philippines. A project audit was not performed by the Operations Evaluation Department (OED). Following standard OED procedures, a copy of the draft report was sent to the Borrower (NPC) and to the Government of the Philippines for comment. Comments were received from NPC and from the National Econo- mic Development Authority (NEDlA); they are reproduced at Annex 13 and have been taken into account in finalizing the report.  - II - PROJECT COMPLETIONf REPORT BASIC DATA ShREET PHILIPPINES SIYTH POWERt PROJECT LOAN 1034-PH (Country) (Project Ti tie.) (LnC/r tNo. KEY PFO.gECT DATA Appraleal Actual or Iteem Expactation Current Estimate Total Project Cost (US$ million) 92.0 130.3 Overrun (C) ______41.6 Loan/Credit Amount (US$ million) ,61.0 Disbursed ) ___ 60.5 Cancei. 4 ) __ 0.5 Repaid to ) March 31, 1983 _ 7.5 Outstanding to ) March 31, 1983 . _ _ _ 53.0 Dete Physical Components Completed 12/31/77 12/3 182 Proportion Completed by Above Date LZ) 16% iooZ Proportion of Time Underrun or Overrun (X) __- L 43% Economic Rate of Return (Z) 162 r/a 202 /a Financial Performance - Fair Institutional Performance Good OTHER PROJECT DATA Original Actual or Item Plan Revisione Est. Actual First Mention in Files or Timetable / 1 / / 11/1 3166 Government's Application /777 / -7 t7c Negotiations t 05/1 4/74 Board Approval 07 0 70 2174 Loan/Credit Agreement Date s T / 07/3 1774 Effectiveness Date /_/_|_/_1171 5/74 Closing Date 12/31/78 | 7 07/01/82 Borrower National Pover Corporation (N P) Executing Agency Rational Pover Corporatio' (NPC) Fiscal Year of Borrower January 1 - De cmber 31 lb Follow-on Project Name SeventS Power Project Loan/Credit Number Loa- 1460-PR Amount (US$ million) US$58. 0 Eaillion Loan/Credit Agreemnnt Date 1977 MISSION DATA Sent No. of No. of Date of Item by Month, Year Weeks Persoons Man-weeks Report Identification /c a / Preparation /c I t Preappraisal _ / ___ Appraisal 11/73 4 2 8 06713774 Total 4 8 Supervision I 12/74 1 2 2_ 04/04175 Supervision II 10/75 t 2 8 01/15/76 Supervision III 091i7 5 2 10 03/2/778 Supervision IV _ 07/78 3 2 6 08716f78 Supervision V _ 05/81 3 2 6 06/26/86 Supervision VI 02/82 2 3 6 04/23/881 Completion 04/83 2 3 6 05/27e83 Total 20 44 COUNTRY EXCG iNGE RAES Name of Currency (Abbreviation) Peso ( P Year: Appraisal Year Average Excchange Rate- US$1 - P 6.85 Intervening Years Average US$1 _ P 7.47 Completion year US$1 - P 8.50 /a On the generation component. 7S Since 1976. T7 The possibility of the generation coraponent was first mooted in the feasiblity atudy for the Upper Pampanga irrigation project in May 1966. It van the subject of further review and refineraent between NPC, GOP and the Bank at varictia times between then and appraieal, both by correspondence and during supervision of ongoing projects.  - iii - PHILIPPINES SIXTH POWER PROJECT (LOAN 1034-PH) PROJECT COMPLETION REPORT Hlighlights The objectives of the project were the expansion of the availability of electric power through extension of the transmis6ion systen to facilitate connection of further rural electric coope-ratives, and the augmentation of NPC's peak generating capability. The project was successful in achieving both of these objectives, as evidenced by the growth of energy sales in provincial Luzon, which advanced at an average of over 10% p.a. between 1977 and 1980 without deterioration in the reliability of service (para. 6.05). Facilities constructed under the project have operated satisfactorily since entry into coamercial use (paras. 3.23-3.24). However, some of the subprojects in the transmission component were completed very late (para. 3.03). Changes in the design of various subcomponents and slow procurement procedures were the principal causes of delay (paras. 3.04-3.09). Largely as a consequence of this slippage, there was a considerable cost overrun, especially on the local currency element (para. 3.19). The genera- tion component was completed on time, and although there was a cost overrun it was largely attributable to exceptional circumstances (para. 3.18). This component shows a satisfactory rate of return in terms of fuel oil savings (pars. 6.03). NPC's financial condition was under considerable pressure during the period of project construction as a result of the rapid rise in fuel costs (para. 4.03) and the burden of debt service associated with its substantial development program (para. 4.05). Tariffs did not keep pace wlth the increase in NPC's costs and, as a result, NPC was unable to meet the rate of return target of 8% covenanted with the Bank (para. 4.06).  PHILIPPIRNS SIXTH POWER PROJECT (LOAN 1034-PH) Project Completion Report I. INTRODUCTION 1.01 The supply of electric power in the Philippines involves a number of entities in both the public and private sectors. Power generation is prin- cipally the responsibility of the National Power Corporation (NPC), which transmits it to a number of large industrial users, and to the retail distri- butors. These include a number of private utilities, of which MgRALCO, serving the Metro Manila area, is by far the largest, municipalities, and over 100 rural electric cooperatives. 1.02 Since 1957, the Bank has made nine loans to the power sector in the Philippines amounting to US$290.2 million equivalent, including seven loans amiounting to US$218.2 million to NPC. The first loan to NPC (183-PH, US$18.4 million, 1957) helped finance the Binga Hydroelectric Project and the second (297-PH, US$33.5 million, 1961) financed the Angat Hydroelectric Project. The third loan (325-PH, US$3.3 million, 1962) was used to finance the third unit of the Maria Cristina hydroelectric power plant, located in Mindanao. The fourth loan (491-PH, US$12.0 million, 1967) was used for the construction pf a thermal power plant (75 MW) at Bataan, Luzon, and addition of a fourth unit at Maria Cristina hydropower plant. The fifth loan (809-PH, US$22.0 million, 1972) and credit (296-PH, US$10.0 million, 1972) financed the second (150 MW) steam power plant at Bataan and extensions to the transmission system. Apart from considerable slippage in the project construction schedules and a consequential cost overrun on the fifth project, all these projects were completed without major problems and are operating satisfactorily. The sixth power project, financed by Loan 1034-PH, is the subject of this report. The seventh loan, which is the Bank's latest operation with NPC (1460-PH, US$58.0 million, 1977) is financing the expansion of the transmission system in Luzon and construction of a load dispatching center, and is expected to be completed in 1984. 1.03 Bank Group lending to the Philippines power sector has also included: (a) a loan to the National Electrification Administration (NEA) for US$60 million in 1978 to help finance the 1979/80 portion of the rural electrification program; and (b) a commitment by the International Finance Corporation (IFC) equivalent to US$12 million in 1967 to MERALCO.  - 2 - II. PROJECT DESCRIPTION Original Project Description 2.0l The original project description for the NPC Sixth Power Project included the following items: (a) Generation, Construction of Pantabangan hydropower plant (100 MW) as a part of the multi-purpose Upper Panpanga River Project, already being assisted by the Bank under Loan 637-PH. The power addition financed by this loan includes: (i) construction of an enclosed type power plant at the foot of the dam and installation of two 50 MW turbine generators; (ii) construction of a switchyard adjacent to the power house with two 64 MVA step-up transformers and associated 230 kV switching equipment; (iii) construction of a 230 kV double-circuit transmission line about 23 km long to connect the Pantabangan plant to the existing 230 kV Luzon grid; and (iv) construction of a re-regulation data about 24 m high between the power plant and the downstream irrigation diversion dam. (b) Transmission. A transmission program for Ilocos, Central .uzon, Zamfbales, Laguna, Batangas, Southern Luzon regions and a "Special Project" (consisting of isolated works in various other regions), comprising altogether: (i) 301 km of 230 kV lines;/l (ii) 444 km of 69 kV lines;/l (iii) 33 substations with a total capacity of 1,375 EVA. Of these, 91 km of 230 kV lines, 162 km of 69 kV lines and 13 substations (75 MVA) originally included in the Fifth Power project have been transferred to this project owing to cost overruns. /1 The annexes to the Appraisal Report quote different lengths for 230 kV and 69 kV lines respectively, but still totaling 745 km combined. The lengths quoted above are those used by NPC from the beginning of design work.  -3- (c) Feasibility-Studies (i) A feasibility study of the Chico river hydropower development and preparation of the definite design for the Chico II site. Changes to the Project 2.02 The scope of the project remained essentially the same as envisaged at appraisal, with the exception detail changes in the works for the transmission expansion program and the suspension of design work in Chico II. 2.03 During implementation of the transmission expansion program, a large number of detailed changes in sub-projects were made. The changes, however, did not affect the original objectives to meet increasing demands of existing NPC customers in the Luzon grid and to ex.end electricity supply to rural areas. 2.04 Major changes in transmission subprojects include the following: (a) Several transmission lines were rerouted or revised after more detailed investigation, either to avoid poor soil conditions which would necessitate the use of costly special foundations or to avoid traversing more populated areas. This resulted in changes to the terminating points and/or originating points of the lines, as well as relocation of substation sites. (b) Some load-end substations were already provided by the Electric Cooperatives in their areas, hence the intended substation equipment for the specific areas was allocated to other areas. (c) Some transmission lines, which were proposed to pass specific areas as indicated in the original study, were rerouted to other areas where such lines were more urgently needed to supply increased demands for electricity. Annex 1 shows details of these changes, which also indicates the increases or decreases in length of the lines. 2.05 A comparison between the original estimates and actual lengths of transmission lines and capacity of substations is shown below. The overall result was a net decrease in lengths of transmission line and numbers of substations, suggesting that implementation changes resulted in better and more economical routing of lines and location of substations. Details are shown in Annex 2.  -4- * Transmission lines Item ------ (km) ------ Substations Voltage 230 69 230 115 69 No. MVA No. MVA No. MVA Original 301 (91)/a 444 (162) 7 1,175 1 50 25 (12) 150 (75) Actual 285 (91) 397 (162) 7 1,175 1 50 22 (12) 135 (75) /a Figures in parentheses for transmission lines and substations are the items transferred from the Fifth Power Project. Compar'ad with the original estimation, there are decreases of only 16 km-230 kV and 47 km-69 kV transmission lines in the implementation of the project.  III. PROJECT IMPLEMENTATION ANI) COST Project Execution Pantabangan Hydropower Plant 3.01 The construction of the Pantabangan Hydropower Plant was implemented by the National Irrigation Administration, which already had responsibility for construction works at the damsite as part of the Upper Pampanga irrigation scheme. The civil works were undertaken by Hydro Resources Contractors Corporation. The Engineering Consultants of Denver, Colorado, together with the Engineering and Development Corporation of the Philippines, provided engineering consulting services. 3.02 The Pantabangan Hydropower Plant, the downstream Masiway re-regula- tion dam and the associated transmission line to the Luzon grid were completed on schedule as appraised. The first 50 111W generating unit was placed into commercial operation on April 10, 1977. Commercial operation of Unit No. 2 commenced on April 15, 1977. The project was officially turned over to XPC for operation and maintenance in June 1977. Transmission 3.03 The transmission program for Ilocos, Central Luzon, Zambales, Laguna, Batangas, Southern Luzon regions and Special Project was less than half completed by the scheduled date of December 1977; the final subproject was completed only in December 1982. The delays in execution of the trans- mission subprojects were mainly due to inadequate planning and the slow pace of engineering design, delays in procurement and acquisition of right-of-way. These are described briefly below; suggestions for improvement of performance in future projects are at para. 7.03. 3.04 The loan was signed on July 31, 1974 and became effective in November of that year. The only funds utilized in the first twelve months from effectiveness were the $8 million portion of the loan allocated to the cost overruns in the Fifth Power Project (Loan 809-PH and IDA Credit 296-PH), in order to 'ontinue the ongoing construction of lines and substations that were being carried over to the Sixth Power Project. 3.05 NPC delegated the planning, surveying and construction functions to the regional offices, but retained all design activity at headquarters. Head office staff design all the details for each and every project of NPC, regard- less of type, voltage or capacity. This has created a tremendous burden on the design division at headquarters, wihich contributed to the delay in implementation. 3.06 Survey and the preparation of plans and specifications were done mostly in the latter part of 1975, and it took almost the entire year of 1976 and a part of 1977 for NPC to advertise, bid out, evaluate bids and recommend  - 6 - award up to contract approval for the supply contracts for furnishing and delivering of transmission line materials, steel towers and substation equipment and accessories. 3.07 About 50% of the 230 kV transmission line from Naga-San Antonio- Tiwi and San Antonio-Daraga bed to be rerouted, new soil tests conducted, and special tower foundations redesigned, due to poor soil conditions in that area. This accounted for about a 30% time delay, based on the construction contract time. 3.08 Almost 70% of the line routes were affected by right-of-way problems where landowners and tenants refused entry unless their right-of-way claims were settled outright. 3.09 Numerous delays in the delivery of transmission line materials and substation equipment naturally affected the local labor contracts for construction of the transmission system, so that final completion of one subproject was on December 31, 1982, which is five years later than target completion date. Feasibility Studieq 3.10 The feasibility study of Chico River hydropower development was completed. However, due to the local security problem the consultant could not get necessary data for the completion of Chico II definite design. 3.11 The feasibility study of NPC's dispatching center was completed. The dispatching center was financed by the Bank's Seventh Power Project and is now under construction. Procurement and Award of Main Contracts 3.12 Procurement of the equipment and materials for the Pantanbangan Hydropower Project was arranged through 16 contract packages during September 1974 through August 1976. The contract of hydroturbines governors and inlet valves was awarded to Mitsubishi Heavy Industries Ltd. (Japan). Generators, transformers and associated equipment was awarded to Mitsubishi rlectric Corporation (Japan). Details of other contracts are given in Annex 3. 3.13 The major civil works contract for the Pantanbangan Hydropower Project was divided into two contract schedules. Schedule I covers the construction of the powerhouse complex while Schedule II i%ivolves the construction of the Masiway re-regulation dam and appurtenant structures. The whole contract was negotiated with Hydro Resources Contractors Corpora- tion as an extension of Contract for construction of the Pantabangan Dam. Payments for the contract work were made. under two categories, the fixed price and cost plus basis. 3.14 The contracts for the transmission program were awarded between 1974 and 1980. Those for transmission equipment and materials were awarded  - 7 - mainly to foreign s:uppliers thronpgh local. representatives; t.hose for construction and installation works were awarded to local contractors. Details of major contracts are given in Annex 3. 3.15 Despite the delivery periods set in the procurement and construc- tion schedule of the transmission program, most of the deliveries by suppliers were delayed by about six months and the longest delnys in the deliveries were by: (a) Apar Private Ltd. - an Indian firm, for the supply of conductors, delayed by 27 months; (b) Connell Bros. for the supply of substation steel structures and grounding materials, delayed by 41 months; (c) Kanematsu Gosho for the supply of metal clad switchgears, delayed for 36 months; (d) Kanematsu for the supply of power transformers, delayed for 31 months; and (e) Dodsal Private Ltd. for the supply of steel towers and transmissioni line materials, delayed for 22 months. Late deliveries were mostly without peralty. The award, and later the contract approval for the turnkey contract fcr the Dolores-Sapang Palay 230 kV transmission line, was delayed by more than two years. Project Cost 3.16 The actual total project cost is $130.33 million against the appraisal estimate of $91.96 million. The comparison of appraisal estimate and actual costs is detailed in Annexes 4 and 5 and summarized below (in US$ million): Appraisal Actual Local Foreign Total Local Foreign Total Pantabangan hydro plant 10.51 12.25 22.76 26.40 16.15 42.55 Transmission 9.41 30.55 39.96 35.08 44.00 79.08 Consulting services 0.34 1.60 1.94 0.54 1.72 2.26 Contingencies 8.28 11.60 19.88 - - - Total 28.54 56.00 84.54 62.02 61.87 123.89 Interest during construction 2.42 5.00 7.42 1.44 5.00 6.44 GRAND TOTAL 30.96 61.00 91.96 63.46 66.87 130.33 3.17 The total project cost exceeded the appraisal forecast by about US$38 million equivalent (or 42%). The major cost overrun was on the local peso portion of the project cost, a total of P 261.92 million (US$32.5 nil- lion equivalent), representing 124% of the appraisal estimate of P 212.10 million (US$30.96 million equivalent).  -8- 3.18 A local cost overrun of P 97.85 million (US$11.9 million) in the construction of Pantabangan Hydropower Plant was due to increased civil works, including those works which had not been well defined in the prelim- inary design, and those in connection with heavy rains and floods in December 1974 which caused a major landslide at the right abutment of the Masiway re-regulation dam. 3.19 Out of the local cost overrun of P 168.19 million (US$21.38 mil- "ion equivalent) in the construction of the transmission system, P 100 million (60%) represents the difference between the appraisal estimate and the original contract costs as awarded to the various contractors; of this, approximately half can be directly related to the project slippage, resulting in works being carried out at higher prices than anticipated at appraisal. A further 35% represents change orders and extra works required to complete and protect the various subprojects; and 15% represents the price adjustments due to escalation. 3.20 A foreign cost overrun of $6.0 million in the procurement of transmission lines equipment and materials is attributed to quantities being greater than anticipated from the rough designs used for appraisal, and to certain prices and price adjustment due to escalation. This cost overrun represents 9.8% of the total foreign cost of the project. It was financed out of commercial funding arranged by NPC. 3.21 Considering that the actual contract implementation was prolonged to about 8 vears vs. 3 years, the contemplated contingency could not cover the additional costs of the prolonged project. The additional local costs were financed out of NPC's own cash flow and equity capital subscription by GOP. Despite the cost-overrun, interest during construction was slightly less than estimated at appraisal, mainly as a result of a lower-than- expected debt component in the financing plan (para. 4.07) Disbursements 3.22 Because of project delays, the Bank extended the closing date from December 31, 1978, to June 30, 1981 and then to March 31, 1982. The final payment from the loan was made on March 9, 1982, more than three years behind appraisal schedule. The loan account was closed on July 1, 1982 with the cancellation of a balance then remaining of $507,971.41. The total disbursed was $60,492,028.59. A summary of estimated and actual loan disbursements is shown in Annex 6. Operating Performance 3.23 From April 1977-82, the Pantabangan power plant has contributed electric power on average about 239 GWh annually to Luzon grid, less than the expected 293 GWh due to three consecutive dry years after commencing of  the power plant. The installed capacity is fully utilized for peaking. Operation of the plant has been satisfactory. 3.24 The operation of the transmission subprojects is also satisfactory.  - 10 - IV. rINANCIAL PERFORMANCE 4.01 Summarized financial results /1 of NPC during the period of project construction (1974-82) appear at Annex 7 through 9, together with the appraisal forecasts, which were prepared for the period 1974-80. 4.02 NPC consistently earned a positive net income throughout the period, as anticipated at appraisal. However, the actual results differed substantially from the forecasts as a result chiefly of three factors: (a) the escalation of fuel costs; (b) the acquisition of MERALCO's generating facilities in 1977-79; and (c) the rate of growth of NPC's expansion program and the associated financing requirements. 4.03 Fuel Costs. The appraisal assumptions on general cost inflation (about 9% p.a.) were close to the actual, which averaged 10% over the period. But the rapid rise in international fuel prices and the deprecia- tion of the peso, which for most of the period st ,d about 10% below the assumed rate of P 6.85 = $1, soon raised NPC's cect of generation well above forecast levels. By 1977, it was 6.5 centavos/kWh sold compared to 2.5 forecast, and by 1980, after assimilation of the ex-MERALCO plants into the system, it had reached 24 centavos/kWh compared to 2.8 forecast. NPC was able to recover these additional costs through its fuel cost adjustment (FCA) mechanism; as a result, the average revenue per kWh sold reached 34 centavos in 1980 compared with 9 centavos forecast. 4.04 MERALCO. The significance for NPC of the acquisition of MEKALCO's generating facilities is described in para. 5.02. Financially, the acquisi- tion increased NPC's sales and costs to such an extent that the forecasts for those years are no longer comparable. 4.05 Expansion Program. Acceleration of NPC's expansion plans as a result of GOP's drive for imported fuel substitution, as weli as normal load growth (para. 5.03), raised capital expenditures increasingly higher than appraisal expectations from 1976 onwards; by 1980 at P 4.5 billion, they were running over seven times appraisal forecast. /t NPC changed its financial year-end from June 30 to December 31, in 1976. Appraisal estimates are based on the former; actual results for individual years are as published. Aggregates for the construction period have been adjusted to a December 31 basis throughout.  - 11 - Rate of Return 4.06 Although NPC was able to recover its increased fuel costs through FCA (para. 4.03), its basic rate schedule was not moved along fast enough to keep pace with the growth of its other costs and provide the 8% rate of return covenanted with the Bank. Actual annual rates of return ranged between 3.9% and 7.7% during the period of project construction. The rate base was revalued each fourth year as agreed with the Bank, and in the intermediate years was updated by reference to a composite construction cost index compiled by NPC for the purpose. Financing 4.07 The acceleration of the expansion program called for the mobiliza- cion of much larger amounts of finance than envisioned ar appraisal. Borrowing was over four times greater than forecast in the period through 1980, and in some cases involved substantially harder terms, To mitigate the overall cost of funds to NPC, GOP has made annual subscriptions to NP?C's equity capital since 1975 in the ratio of approximately 1:2 to aggregate borrowings, which had not been anticipated at appraisal. As a result, NPC's capitalization at the end of 1980 was 54:46 debt:capital, compared with 70:30 forecast. The sources and uses of funds for the period of construc- tion was as follows: 1975-80 1975-82 Forecast Actual Actual P mln x P mln %Pn mln . Internal funds 1,693 38 2,821 14 5,851 17 Debt service (909) (20) (3,793) (19) (6,610) (19) working capital (18) - (1,659) (8) 350 (1) 766 18 (2,631) (13) (409) (3) Borrowing 3,717 82 15,680 79 23,603 70 Equity 21 - 6,859 34 10,767 33 Total Sources 4,504 100 19,908 100 33,961 100 Capital expenditure 4,504 100 18,297 92 31,044 91 Other investments - - 1,611 8 2,917 9 Total Uses 4,504 100 19,908 100 33,961 100  - 12 - Financial Covenants 4.08 NPC's compliance with the main undertakings in the loan agreement is summarized in Annex 12. It has been noted (para. 4.03) that UPC was not able to reach the covenanted rate of return of 8%. With operating casb flow thus constrained and faced with a rapidly rising burden of debt service as a result of accelerated borrowing (para. 4.07), NPC was also urnable in most years to achieve the covenanted 1.3-times coverage of debt service. However, receivables, which had escalated rapidly in 1975/76, were brought under control in 1977 and reduced below the covenanted level of 3 mornts' billing in 1978. NPC has consistently provided the Bank with audited financial statements in a timely manner.  - 13 - V. INSTITUTIONAL PERFORMANCE AND DEVELOP1ENT 5.01 As noted earl.er (para. 4.02), the appraisal mission did not anti- cipate NPC's rate of growth during the project construction period. Some indicators of the latter are given below: 1974 1982 Increase Energy generation (GWh) 2,650 17,413 6.5x Energy sales (GWh) 2,360 16,000 6.8x Installed capacity (NW, year-end) 501 4,324 8.6x Capacity under construction (MW, year-end) 225 2,210 9.gx Employees 4,060 11,980 3.Ox 5.02 Early in the construction period of the project, NPC began to assume the responsibilities assigned to it by Presidential Decree No. 40 of 1972, including in particular planning and operating all power generation facilities throughout the Philippines. A major step in this process was the takeover from MERALCO of the latter's generating plants serving the Metro Manila area. This takeover - implemented in stages over 1977-79 - trebled NPC's generating capacity and energy sales, and required the assimilation of about 1,000 ex-MERALCO personnel into 1NPC's organization. 5.03 During the same period, the sudden escalation of fuel oil prices prompted an amnbitious and urgent GOP program of fuel oiL substitution in electric power generation, and NPC commissioned the first geothermal power plants (Tiwi and Mak Ban) in the Philippines in 1979, as well as initiating exploitation of other geothermal fields, commencing construction of the first nuclear povier plant (PN?P) and continuing developrent of hydropower resources, particularly in Mindanao. 5.04 These activities, combined with the normal system growth attribu- table to increasing energy use and new connections and with the requirements of the expanding rural electrification program, placed heavy demands on NPC's organizatiou.l capability. Since their timing was uncertain when the Sixth Power project was appraised - and in the case of the consequences of the oil price explosion, could hardly have been foreseen - the project itself contained no components specifically designed to address then. How- ever, the Seventh Power project (loan 1460-PH) contained a number of techni- cal assistance components designed to assist corporate development, and with  - 14 - these inputs and under the direction of a strong top management team, NPC gained in strength throughout the period. The rapid expansion of the system - especially in Luzon - provoked some faltering in service standards towards the end of the seventies, but this has now been largely overcome. Apart from this, NPC vas able to sustain its expansiorn without deterioration in efficiencv, as evidenced by the following indicators: 1974 1982 System losses (%) 10.9 8.1 Energy generation per employee (kWh) 652,000 1,454,000 Installed capacity per employee (kW) 123 361  - 15 - VI. PROJECT JUSTIFICATION Load Growth 6.01 From the commnissioning of the Pantabangan power station (1977) through the end of the appraisal forecast period (1980), both energy sales and peak demand on the Luson grid grew rather more slowly than anticipated (Annex 10). Major influences were the effect of fuel costs in raising the average price per kWh much higher than expected (para.. 4n03), and the impact of several consecutive years of drought on the supply capability of the hydro plants (including Pantabangan itself, para. 3.23). Nevertheless, during the same perlod NPC maintained its construction of new generating capacity exactly on program; one of the consequences of the resultant enhanced reserve capacity wEs a gradual improvement in the reliability of supply on the Luzon grid. Least-Cost Solution: Pantabangan 6.02 The appraisal mission compared the efficiency of the Pantabangan station in providing peak power to the Luzon grid with the alternative available in a similar time frame, a gas turbine plant of equivalent size. It found the Pantabangan project to be more economical at discount rates up to 35%. The comparison has been recalculated at 1982 prices projected to the end of the 50-year estimated life of the hydropower plant, and the choice of Pantabangan as the least-cost solution is confirmed. The project is more economical even at its current reduced level of operation (para. 3.23) at discount rates up to 37%; at the full level of operation envisioned at appraisal, the eutoff rate rises to 41%. Rate of Return: Pantabangan 6.03 The appraisal report measured Pantabangan's economic benefits by reference to the fuel savings that would be secured by substituting power generation by existing thermal stations, disregarding Pantabangan's capa- bility for pealcing power and its superiority over gas turbine generation for that purpose. On this relatively conser-vati.ve basis a rate of return of 16% was forecast for the project. Recalculated on the same methodology at 1982 prices, the rate of return is 16% at the current level of operation and would be 20% at full operation. Cost and benefit data are at Annex 11. Transmission Component 6.04 The Appraisal Report did not attempt to calculate a rate of return on the transmission facilities "due to the difficulties in quantifying economic and social benefits and allocating meaningful incremental revenues to the facilities." However, it may be noted that the Philippines' rural electrification program for the years 1979-82, (which about half of the transmission component was designed to serve) has recently been reevaluated  - 16 - in the context of the completion report on the First Rural Electrification project (Loan 1547-PH), and yields a rate of return of about 16% after taking into account the full economic costs of bulk power generated and transmitted by NPC. 6.05 The transmission facilities included in the project, particularly the extension of the 141 kn, 230 kV transmission line backbone to the Bicol region, insured the transmission of 200 MW generated power from the Tiwi Geothermal Power Plant to Metro Manila. As of 1982, the installed capacity of the Tiwi Geothermal Plant was 4 units of 55 MW each, augmenting the Makban Geothermal Plants in Los Banos, Laguna, of a similar capacity. The completion of the Sapang Palay-Dolores 230 kV transmission line finally established a strong link between the North and South Luzon power systems of NPC. On the other hand, the extension of 69 kV transmission lines and installation of load-end substations extended the electricity supply to about 130 towns covered by the newly organized Rural Electric Cooperatives, provided industrial power to the EBxport Processing Zone Authority at Bataan and expanded various stubstations in terms of transformer capacities and 9witching facilities for reliability and flexibility of system operations. These additional transmission facilities enabled Luzon Grid, excluding the Meralco franchise area, to maintain a 10.7% annual growth rate in the sale of electric energy from 1977-80.  - 17 - VII. CONCLUSIONS 7.01 The Pantabangan hydropower plant was constructed efficiently under the supervision of NIA, and commissioned and turned over to NPC for operation on schedule in 1977. The local currency cost overrun on the project is attributable in large measure to the effects of severe weather at an early stage of project construction. 7.02 The implementation of the rest of the project was not so successful. The transmission component was completed with its last subproject only in December 1982, five years late, and at a cost nearly double the appraisal estimate. 7.03 Design proceeded at a slow pace, and extensive rerouting of the subprojects and redesign of structures evidenced a lack of adequate planning. In order to improve the preparation of future projects, it is recommended that organization for the planning and design works be reviewed and functional authority and responsibility be redefined. The following measures are also recommended: (a) early negotiations of rights-of-way; (b) thorough physical (subsoil) studies during detailed engineering; and (c) early preparation of letters of credit for procurement of foreign supplies. 7.04 Project implementation was also affected by some of the delays in the procurement process which contributed to the late conpletion of the Fifth Power Project (Loan 809-PH and Credit 296-PH). These included factors beyond NIPC's control; in particular, government regulations in force at that time required all publicly bid or negotiated contracts with values exceeding P 2 million (about $250,000) to be submitted to the UEDA Contracts Review Committee for review and subsequent endorsement and approval by the President - frequently a time-consuming process./I UPC itself was slow in dealing with procurement. Revised GOP procedures introduced between 1978 and 1982 will alleviate causes of delay external to NPC. 7.05 Although not specifically the subject of any components in this project, NPC's organizational growth was rapid and sound during the project construction period. Financially, problems began to emerge toward the elnd of the 1970s as a result of the accelerated pace of the construction program at a time when basic electric rates were being advanced only slowly. NPC /1 NEDA have commented that in according to their records, the Contracts Review Committee was not a "significant cause of delay" (Annex 13, pg. 6).  - 1e - never attained the 8% rate of return on assets employed envisioned at appraisal and covenanted in the loan documents, and by the early 1980s cash flow was reduced to a point where debt service (inflated by high interest rates and the depreciating peso) had become a matter of concern. In 1982 and again in 1983 NPC's basic rates were increased, and at the same time recession in the Philippines slowed the capital program. Although NPC's financial condition is still difficult these measures have stabilized the situation. The Bank continues to work with NPC on this and other aspects of its development through the ongoing Seventh Power Project (Loan 1460-PH) and the second Structural adjustment Loan.  ANNEX I _19- 1Faso I of 2 PhILIPPINPS NATIONAL PD)WER CORPORATION (NPC) (LOAN 1034-PN) PROJECT CONFLUTTON ROPORT Tranomisanion Subprclecta -Aprateonl Ratimate vs, Actual ApprAisal Actual VolEagN Lemnith Capacity nltajRe Length Capacity Subpro loers (kV) (km) (NV.4) (kV) (kmn) (OVA) Remarke Tlncen Reptlon Lloctrtifcptaon Project (OREP) Transml ns!on Lines 1. iin5a-BRckel (afrlrnging of sopnd 230 17 - _ _ Ochedtiuled for rebidding. to be Impleinented inder cirreit) the next prwer project, 2. Neckel-ono-ng, nC, ST 69 24 - Roro.ttd/rovistd. 1. oneng-COuinoyang, MC, ST 69 46 - R _ _ Oerouted/rovi.od. Reckel-Monkeyen, IC, ST & - - - 69 54 - Completed 04/26/82. HulAcoo-Lepeants, SC, WP 4. Rauang/Copper Smelter, SC 230 5 - - - Not noce.sary. S. iCI-Ambtiruyan, WP 69 32 - - RoviSed. BCI-Bal.oan - - 69 9 _ Completed 08/25/80. 6. Berkel Incoming/outgoing T/L - - - 230 1 - Complctel 11/18/NO. Sibtotnl - 124 - - 64 Substat ions -. -inga 1iY. plant S/S (expansion of I - - - - - - Clvivl nd eleotromechanicel orka, underteken by 230 kV fender) 7th Power Project. 2. Beckel S/S expaneson 230 - 75 230 - 75 Completed 08/17/81. 3. Culnnyang S/S 69 - 10 - - - Reallocated to Mlonkayan. Mankayon S/S - - - 69 10 Completed 12/11/81. 4. Copper smelter switchlng 5/S - - - Not neceasery. 5. Amburayan 69 - 5 - - - Rol ocated. La.on S/S expansion - - - 69 _ 10 Completed 10/05/81 6. Beotay S/S /a 69 5 69 - (5) Completed 04/25/78. Subt.tol - 95 - 100 - - Th) - Central Luxen Electrification Project (CLEP) Traosn..alor, Line. 1. Calasoio-San trlos, WP 69 9 - _ - - Rr.outed/re vsed. Oinamley-San Carlos, WP1 - - 69 12 - Completed 04/13/80. 2. Carmen-Royambang, WP 69 17 - 69 21 - 3. Tarlae-Paniqui, VP 69 20 - 69 22 - Completed 05/26/79. 4. V0A-Clark Fleld, DC, ST, lot circult 69 38 - - - - Revised, Mexico-Angeles, UP - - - 69 18 - Completed 08/22/81. 5. V0A-CAT, WP 69 2 - - - - Revised. 6. WA-Concepclon, WP 69 2 - - - - Revised. Paniqui-Camillag, wp - - - 69 19 - Completed 04/15/81. 7. Tap-Stp. Ana, WP 69 9 - - - - Rerouted/revised. Tap San Lui-Sta. Ana, WP - - - 69 6 - Completed 05/26/79. N. Tap-Bonaabon, WP 69 34 - - - - Nerouted/revised. TBIAVar.-Bsngeebs, WP - - - JO 30 - Completed 04/13/80. 9. Bataen Thermal Plant-EPZA, DC, lt 230 25 - 230 15 - Comptetqd 06/20/76. clrcuit 10. NASSCO-Porto del. Sol 69 5 - - - - Not neceseary. It. Calasiao-Bon-. wr /n 69 (60) - 69 (60) - Completed 11/75. 12. Petoan Tiellne - - - 230 1 - Completed 10/26/80. Subtotal - 221 - - 204 - - 7he) - - TO) - Substations 1. Snn C4rlos P/S 69 - 5 - . - ot Implemented/provided by Cooperatlve. Completed 09/.It/N0. Sugallon S/S - - - 69 - 5 Completed 05/17/81. 2. Oayambang R/S 69 - 5 69 - 5 Completed O7/,26/el. 3. Paniqui S/S 69 - 5 - - Noet implems'tPbed/prvtided by Cooperative. Completed 00/24/80. CAeling S/S - - 60 - 5 Completed 07/21/81. 4. Bongabon 69 - 5 - - - Not taplemented/provided by Cooperative. Completed 10/15/R0. 5. Porto d.i Sol 69 - 5 _ _ _ Not lu.PlemeAted/provided by Cooperative. * 6. Additional .'O0 kV and 69 kV poeer - - - - - Not neceomaey. circuit breakers at San Hanuel S/S 7. VOA S/S expanaion 230 - 50 230 - 50 Completed 06/15/80. 8. Expansion ol Clark Field S/S, 69 kV - _ - - Not necessery. 9. Mat.ao thermnl plant S/S espa.ason 230 - 50 230 - 50 Completed 10/16/80. 10. EPZA Substation 230 - 50 - - - Revised Prado Substation - - 230 50 Completed 03/R1. 11. TayasR SubstotIon /a 69 - (5) 69 - (5) Completed 05/76. Subtotal - - IN0 - - 170 - - 3) - - ) Zamba'en ElectrifiC4tion Project (ZEP) Trenamiosion Linea 1. Haif-Moon-Subic, DC, WP 230 2 - - - - Not neceassry. 2. Solmra-Maolnloc, VP 69 15 - - Rerouted/revised. 3. MCaSelop-Spe. truz, IUP 69 29 - - Rero.ted/revised. Salasa-Mesinloc-Sta. Cruz, w' - - - 69 30 - Completed 10/4/79. Subtotal - 46 - - 30 -  ANNEX I -20 Pagr 2 of 2 Vsltege 1,00916 Caph oty IVltaie Longte CIpaPcity Subprojctts (ItO) (k6) (OVA) (IsV) (kin) (HYA) Ramarka Subestattono =T7.7- soe ot fublc S/S w/addition of 2 -hNot noecesary. 230 kV fee8er, 2 Sts. Crus S/S 69 - 10 _ - - NSot Implomentod. Traoefornor llocaeCd to Loong CoastSllsjoa S/S _ - - 69 - 5 Comopleted 12/31/01. 3. Expansion of Sen 6ntonlo S/5, 69 kV - - Not nocetoary. 4. 9Salaa 9ubatatios L 69 (5) - - (5) Complated 08/08/7. Subtotal - S 10 Lsausna-ratacgNs Electrification Projeet (L8PP) Tran,migBSos Liles 1. Cglco-Oosgbu, is /, 69 (31) - - Roeruted/4evrsed. ceilca-Balayan _ - - 69 (9) _ Undertaken by Admlnlstration. Completed 06/75. DlaeyPn-Hasusbu _ _ _ 69 22 - C.omplated 04/15/76. Subtotal - (SI) - (31) Stabatatlons Iiimi;/8 69 - 5 - - - Reoalocated 2 Tuy S/S - - 69 5 Curiploted 1976. 3. Dolbok S/S /a 69 - (IC) - 69 (10) UndertAken by UtilIty Operatloi.n Subtotal - 15 - - 15 - - (IE) - (I0) Southern Luson 1 eleetritics act (SIFoPP traonamtnlaon Lines 1. NeSa-l.et6apL, DC. sT, lot ctituit 230 81 - - - Roviaed. Naga-San Antonto. DC, ST, lot circuir - - - 230 28 - Completed 07/13/78. S a Anto,Oo-DaranRa. IC, ST, lot circ.1t - - 230 42 _ Completed 12/31/78. 2. LisaO Top-Tvi, DC, sr 2U0 34 - - Reveed. rap Son Antonro-T'ri, DC oT - S r 230 32 - Completed 06/30/78 3. Callraya-Gumaca, DC, ST, lot cireuit /a 230 (91) _ 230 (91) - CompIctod 08/20/76. 4oaloya-CalSrayt - - _ 230 26 - Completed 06/15/76. 4. Guaco-5o,ndaoge up /in 69 (19) _ 69 (19) - Completed (9/77. .Hondgoua-ToaRkfayan, WP /D 69 (32) _ 69 4.8(32) - Completed 09/77. 6. Labo-Doet, WP 69 (20) - - Rev'ised. Labo-Th1saiy, VP /a - - 69 18(20) - Completed 09/13/76. 7. Kalaya micta 1 2 transfornor to NPC'o - - - 230 1 - Coapleted 12/80. 230 kV Koloya S/S swicteyard S.btotol - 277 - - 305 - - U2 _ - (Tr) Substalopa r1.N_n_g_a S exrne1ion, additionl power - - - Comtrlet,d 12/31/78. circuit bronkero 2. Le S.apl 1/S exPaeoneO 230 - 50 - - - Relocated. Darage Substatli.t - - 230 - 50 Completed 05/30/80. 3. TiwS S/S exopanslon _- - Completed. 4. Collrary hydroelectric Plant S/S. - - - - - Not neceesary. additional 2-115 kV PCB S. ,r,&a 5/5 69 - 5 69 - 5 Coempleted 09/30/79. 6. Putilo S/ 69 - 5 69 - Completed 05/3c/79. 7. totSogon 69 - 5 _ - - Reallocated. s.i srece _ - - 69 - 5 Completed 09/30/79. 8. GUbot 69 - - - Not tmplesuented/prov1ded by cooperative. 9. I4loyA S/S emxpan0lon - - - - - - Completed 03/16180. 10. Philippine Iron Sises S/S 69 - (10) - - - Revised ntne to Larnp. Lsarap s/S /a - - 69 _ (30) Completed 1977. il. DaSt S/S 69 - (5) - - - Relocated. TolloOy S/S /l a - - 69 (5) Completed 07/08/77. 12. Parocale S/S 69 - (5) _ - - Reloceted. 8atob3anlt S/S to - - - 69 - (5) Completed 07/27/77. 13. Tagkaway3n S/S 7 69 - (5) 69 - (5) Completed 06/05/77. 14. HondegaO S/S 0/ 69 - (5) 69 - (5) Completed 09/28/77. 15. sari Jose 5/5 69 - (5) - - tlartd L850o00Y S/0 /a - - - 6 (5) Completed 07/2t/77. 16. Sipocot S/S 69 - (5) _ - - Rolocoted. Libmanan S/S /a - - 69 - (5) Completed 07/21/77. 17. Liao S/S ./ 69 - (10) 69 - (50) Coepletod 1977. Sobtotal - - 120 - - 115 - - (5so) - - Ri Special Project 1. Ooloreo-Spaognn Polay, DC, ST. 2-795 KCN, 230 38 _ 230 30 - Changed to 4-795 HCM, ACSR/Phase. Completed ACSR/phnse 02/10181. 2. Tap-Spnnr Polay, DC, ST 230 8 - - g evsed, Sta. Morla-Sapatg Palay, DC, ST - - - 230 10 _ Completed 09/27/82. 3. San Jose (SapOnt Fa2a9) Incoing/outgoing - - - 115 3 - Completed 01/13/81. T/L Subtotal - 46 _ - 51 Substtloons h 0/Mres VS, 2-300 14MY 230 - 600 230 - 600 Complet.d 1982. 2. 0/0, 1-300 MVA 6 1-50 MVp4 230/115 - 350 - - - Son Jose Subatitton 230 1 00 Completed 10/05/81. - - - ~~~~11 5 - 50 Completed 10/03/81. Subtotel - - 9S0 - 950 - engtrh and rating for transmission lines and substations partly financed by Plfth Powre Project and from other sources. DC Double circult Sr - Steel tower SC - single cirtuit WP - sooden pole T/L - tranomisssion line S/S - auhotstion In Transferred from P0fth Power Pro.ect and finneced partly by PiftO Poser Projecrt and from other sourcen.  PHILIPPINES NATIONAtL OWER CORPORATION (NPC) SIXTH POWER PROJECT (LOAN 1034-PH) PROJECT COMPLETION REPORT Transmission Subprojects-Appraisal Estimate vs. Actual Subproject 230 kV 115 kV 69 kV Substations Appraisal Actual Appraisal Actual Appraisal Actual Appraisal Actual (km) No. kV MVA No. kV MVA Iloc.s 22 1 102 63 1 230 75 1 230 75 3 (1) 69 20 (5) 3 (1) 69 25 (5) Central Luzon 25 16 196 (60) 188 (60) 3 230 150 3 230 IS0 6 '1I) 69 30 (5) 4 (1) 69 20 (5) Zambales 2 0 44 30 2 (1) 69 15 (5) 2 (1) 69 10 (5) Laguna Batangas 0 0 31 (31) 31 (31) 2 (1) 69 15(10) 2 (1) 69 15(10) Southern Luzon 206(91) 220(91) 71 (71) 85 (71) 1 230 50 1 230 50 12 (8) 69 70(50) 11 (8) 69 65(50 Special Project 46 48 0 3 0 0 2 230 900 2 230 900 - 115 50 - 115 50 Subtotal 301(91) 25(91) 0 3 444(162) 397(162) 7 230 1,175 7 230 1,175 1 115 50 - 115 50 25(12) 69 159(75) 22(12) 69 135(75) Total 745(253) 685(253) 33(12) 1,375MVA(75) 1,360(75)  PHILIPPINTES NATIONAL POWER CORPORATION (NPC) SIXrH POWER PROJECT (LOAN 1034-PH) PROJECT COMPLETIO! REPORT Data of Major Contracts Contract value Contractor/ Award Completion Final USS Description Contract no. supplier Beneficiary date date Original equivalent Construction Transmission Furnishing, erecting & installing the Sp75DDc-293(a) T&D Engrg. & Mktg. - 04/15/77 07/13/78 P 9,321,875 1,247,908.30 Naga-San Antonio Junction (DC) 230 kV Corp. T/L Schedule I Furnishing, erecting 6 installing the Sp79DDc-293(c-d) PHESCO Inc. - 05/16/77 12/31/78 13,569,175 1,816,489.29 San Antonio-Daraga Junction (DC) 230 kV T/L Schedule III Furnishing, erecting & installing the Sp7,DDc-293(b) INFRAPHIL - 04/04/77 06/30/78 18,621,875 4,492,888.22 Tap San Antonio-Tiwi Junction 230 kV T/L Schedule IT Furnishing, erecting & installing the Sp79DDc-295(c-d) PHESCO Inc. - 05/16/77 09/27/78 2,133,110 285,556.89 Sta. Maria-Sapang Palay 230 kV T/L Schedule IV Installation & erection of Dolores- Sp75DDe-287(a) Kolon Elect. Mach. - 07/14/79 02/10/81 11,693,707 8,127,628.75 Sapang Palay 230 kV T/L Co., Ltd. 6,562,206 Erection & installation of Sta. Ana- Sp77DLc-362(a) T&D Engrg. 6 Hktg. - 12128/78 05/26/79 $ 696,346 93,219.04 San Luis & Tarlac Paniqui 69 kV T/L 3-phase under Schedule 1 (28 km) Erection & installation of Carmen- Sp77DLc-362(b) Citation Engrg. & - 01/29/78 04/13/80 1,475,560 197,531.57 Bayamibang, Talavera-Bongabon & Mktg. Corp. Binmaley-San Carlos 69 kV T/L, 3-phase under Schedule II (63 km) Erection & installation of Sp77DLc-362(c) Eureka Const. Inc. - 01/25/79 10/04/79 916,524 122,694.04 Salaza-Masinloc, Sta. Cruz 69 kV T/L, 3-phase under Schedule III (30 kn) Erection & installation of BCI-Balaoan Sp79DLc-469 T&D Engrg. & Nktg. - 05(23/80 08/25/80 264,660 35,429.72 69 kV T/L Corp. Erection & installation of Bataan - T&D Engrg. & Mktg. - 11/14/74 06120/76 1,615,840 216,310.58 Thermal Plant EPZA 230 kV Corp. Erection & installation of Me._ico Sp80DLe-511 Audion Electric - 03/24/81 08/22/81 405,039 54,222.13 Angeles 69 kV T/L 3-phase (18 km) Co., Inc. Erection & installation of Camiling- Sp80DLc-486 Zodiac Electric - 12102/80 04/25/81 668,583 89,502.51 Paniqui 69 kV 3-phase TIL (19 km) Co. o 5 C  Contract value Contractor/ Award Completion Final US$ Description Contract no. supplier Beneficiary date date Original equivalent Construction - Trans (Cont-d) Erection s installation of Beckel- Sp79DLc-460 Powergen Inc. - - - 3,303,280 Mankayan, sulalacao Lepanto 69 kV T/L (Schedule I) (Sched. I& II), 02/16/81 - 5,064,834 531,934.40 T&D Engrg. 02/16/81 04/26/82 3,973,550 (Sched. III) Erection 4 installation of Balayan- Sp75MDc-258(a) T&D Engrg. & Mktg. - - 04/15176 264,610 35,423.03 Nasugbu 69 kV T/L Corp. Erection & installation of Gumaca- Sp75D0c-258(c) Audion Electric - 12/29/75 06/30177 1,171,686 156,852.21 Hondagua-Tagkawayan 69 kV T/L Co. Erection & installation of Labo- Sp75DDc-258(d) T&D Engrg. & Mktg. - 03/12/76 09115/77 883,160 118,227.58 Talisay 69 kV Corp. Furnishing & installation of Malaya- Sp75MDe-215(b) Sumitomo Shoji - 03/26/74 08/15/76 8,0C8,231 1,072,052.34 Gumaca 230 kV T/L Kaisha Construction & erection of Beckel S/S SpTIDLc-360(a) C.M. Pancho (C.W.) - 12/14/78 - 6,265,993 838,821.02 Sp77DLc-360(h) Herrera Engrg. 08129179 08(17/81 2,101,920 281,381.53 (E.w.) Construction/erection of incoming & - C.M. Pancho Const. - 09/03/80 - 459,692 61,538.42 outgoing line Beckel S/S Erection/installation of Mankayan 10 Sp80DLc-507 P.A.D.E. - 07/07/81 12/1181 279,000 37,349.40 MVA S/S Erection/installation of Laoag 10 MVA Sp80DLc-507 P.A.D.E. - 07/07/81 10/05/81 269,000 36,010.71 S1s Erectionlinstallation of Bantay 10 MVA - Herrera Engrg. - 10/26177 04/25/78 606,520 82,194.11 S/S Corp. Erection/installation of sugallon 5 Sp80DLc-507(a) Power Consultant - 02/16/81 05/17/81 322,6nO 43,186.61 MVA s/S Inc. Erection/installation of Camiiling Sp80DLe-507(b) Power Consultant - 02/16/81 07/21/81 361,398 48,379.92 5 IVA S/S Inc. Erection/installation of Bayambang Sp80DLe-507(c) Power Consultant - 02/16/81 07/26/81 401,681 53,772.56 5 MVA SIS Inc. Constructior. & installation of VOA Sp77DLc-360(i} Herrera Eng. (E.W.) - 07/16/79 - 1,030,467 137,947.39 50 MVA s!s Asian Lumber (C.W.) 03/08179 06/15180 3,547,116 474,848.19 Construction & installation of Bataan Sp77DLc-360(g) C.M. Pancho (C.W.) - 12/26/78 - 949,819 1,127,151.00 50 MVA S/S expansion Sp77DLc-360(h) P.A.D.E. (E.W.) 02/09/79 10(16/80 724,670 97,010.71 Erection/installatin of New Takeoff - Olympic - 03/18/80 - 310,000 41,499.33 Line for Bataan 50 NVA S/S IW  Contract value Contractor/ Award Completion Final US$ Description Contract no. supplier Beneficiary date date Original equivalent Construction - Trans.(Cont-d) Construction & installation of Daraga Sp77DLc-360(e) CBT Const. (C.W.) - 12/29178 05/30/80 P 4,706,382 630,037.79 50 MVA S/S Sp77DLc-360(n) Power Consultant 03/02/79 _ 637,715 85,370.15 (E.W.) Construction/installation of Malaya 50 Sp77DLc-360(m) FIECO (E.W.) - 0Z114179 - 237,487 31,792.17 MVA S/S Sp77DLc-360(d) CAB (C.W.) 02/12/79 03116/80 593,440 29,443.11 Construction of Naga S/S Sp77DLc-360 CBT Const. (C.W.) - 09/14/78 12131/28 688,388 92,153.68 Construction/erection of San Jose 650 Sp77DLc-360(b) CBT Const. (C.W.) - 12129/78 - 6,869,912 919,666.97 NVA S|S Sp77DLc-360(k) P.G. Dakay (E.W.) 12/17/79 10/05/81 2,194,330 293,752.34 Construction/erecting & stringing of - T6D Engrg. & Mktg. - 06102180 - 387,600 51,887.55 incoming & outSoing 115 kV T/L, Son Corp. Jose 650 MVA S/S Erectionuinstallation of Castillejos Sp8ODLC-507 P.A.D.E. - 07107J81 12/31/81 306,9256 41,091.87 50 XVA S/S Erection/installation of Talisay 5 - Herrera Engrg. - 11/15/77 07/08/77 129,500 17,336.01 M7A S/S Corp. Erection/installation of Hondagua 5 - HIerrera Engrg. - 08619177 09128/77 95,000 12,.17.54 N MVA S/S Corp. Supply Pantabangan Power Plant 2 units, 70,000 hp 180 rpm Francis UPI-S-8 Remerco Mitsubishi hy-Ind. 09/26/74 I-04/10/77 0 3,216,600 - turbines. drauliepelectic governors & Inc. - II-04115/77 Y 859,381,000 3,572,644.47 inlet butterfly 1-unit power house 125/25 ton UPI-S-9 Marubei Corp. Marubeni Corp. 01/14/75 04115/77 P 236,269 - overhead crane If 141,514,050 499,273.66 2 units, hydraulic turbine-driven AC UPI-S-10 Remerco Mitsubishi hy-Ind. 11/15/74 1-04/10/77 e 4,226,000 - generators, 55,555 kVA, 0.90 PF, 13.8 - II-04/15/77 Y 874,280,000 3,672,384.30 kV 180 rpm plus Swiss 1,117,953.14 2 units 64,000 kVA, 3 phase, 60 hertz, UPI-S-11 Remerco Mitsubishi hy-Ind. 03/20/75 11/18176 P 120,000 - class FOA outdoor type 13.2-230 kV Inc. Y 170,300,000 737,593.55 power transformer 17, 19, 21, 22, 24, 35, 38-100 mm UPI-S-12 Msrubeni Corp. Marubeni Corp. 01/15/75 02/14/75 $ 606,365 606,365.09 Penstock steel plates Control boards UPI-5-13 MIESCOR General Electric 11/20/75 01/29/77 P 760,118 - $ 216,295 216,295.00 Station service & motor control UP1-S-14 Engrg. Equip. Westinghouse 6 11/17/75 02/10/77 P 122,860 - equipment Co., Inc. Siemens DM 328,966 140,494.19 w Z 230 kV outdoor package type switchyard UPI-S-15 Sumitomo Sumitomo Shoji 11/27/75 12|07/76 P 403,180 - Kaisha Ltd. 'Y 224,518,538 771,144.09 U  Contract value Contractor/ Award Completion Final US$ Descripti,.. Cnntracrt no. supplier Beneficiary date date Original equivalent 2 ointts draft tube gates, 4 sets gulide UPI-S-19 - Taihef co., Ltd. 10/16175 l0O1 5176 P 110,400 - frames h I .,ntt lifting bean -Y 19,253,000 64,519.18 mliscellaneous service factlitlpg 111'1 s 20 - - Sched. I untts 500 kg capacity 1i(-- I - At18s Klev. Co. Schindler - - P 144, 5? - passenger freight clevat.r Sw F 73, 750 44,198.73 $ 15,980 15,980.00 Sched. 11 2 units compressri 1al.1 (IS1I Qluv l'acl'if - 03/04/76 03/11177 P 37,25' - system Me.,-h :1; s Finc. $ 48,994 48,994.00 Sched. ItI fire protection system II1 C-'(I Maknil i l1h. 2 Ch,,hb - - P 12 I.,7- - Eq1ip. () i lt. ..l 16.476.00 Sched. IV machine tools & 5-ton Mn-; , I, gr. -pli'. Co., Muenchmeyer '/i * 13797 P I)t s1 18 - capacity machine D1 - n h).1)92 40,651.62 Sched. I unit 250 kW capacity diesel Illr ?o 1.. t l,, u I i- MWM Diesel 02/18176 11II;I Sii (q,(nn 41,526.07 electric generator S,l Is Sched. VI storage battery charger & 7 ?11 I qn) 1,.qIps. '-I emens A(. 02/18/76 01/13/77 P 30.537 - units D.C. distribution panel i,,il flec. DM 91.533 37,822.16 u" 15 kV cable bus duct system il1 !' .-,t)IA 1. ".,, I'.I, II (h-, 07/19/76 04/16/77 P 397,000 - M.iI- ,...-y C'',I'. $ 62,208 62,208.00 Communication equipment Ili 1 ,- lul Iu, I III - 06115178 P 336,450 - I'-l .; It -s * 1t, 3 units service spiliway tainter garas 1 :i- :!.,1 i 1 idil. 11i-1 U.. Ltd. 04/25/7S 03117/78 P 35,935 - 11 m x 8.5 m -Y 160,227,200 548,866.47 4 units service spillway stoplog 6 'i . l4 Senll 1i;rI. W1sk. . 08/15175 (11Z07/76 1P 675,550 - accessories I'l I i I pp- 5 29,387 29,387.67 111 230 kV transmission line Sched. 1. )11'1 II 11 ..... 1,1s ii- is(* ( 11 il- 1nt. 11110/75 10111l36 P 3,587,490 - Steel transmission tower & accessories I .ii. S 478.332 478,332.00 Transmission Power Conductor, Ground Wires, Line Hardwares, Appurtenances and Acces- sories for 69 kV Transmission Lines Schedule 1-69 kV, 336.4 MC4, ACS& Sp79l((.- .")Hk. , P tF 1V :t.. i.td. 07/06/77 )41/12/78 P 3L,29) pover cond,uctor RS 4,807,64ft 498,738.41 Schedule 11-69 kV. overhead & tower Is;.PII,. l1ti .1 I'hesean K,,k,,ki 'I ei Wire/ 09/01/77 04/29/78 P 3,842 foottng ground utres iniiiim it (;osho Y 31,116.962 134,170.41 Schedule IV-69 kVI, conductor 6 over- S ) 9R() *P'1 %: Ii- IA c tric 09/1O/77 02(Z8(80 P 35,668 head ground wire clasps, line hard- r f. $ 236,947 236,947.24 a wares & accessories xs  Contract value Contra. or/ Award Completion Final USS Deq,ription Cou,t.'t no. q'pIeIr Rene I i,-iarv date date Original equivalent Transmission (Cont'd) Steel Tower Structures, Power Conductor, Ground Wires, Line 5ardwares, Appurte- nances & Accessories for Recker-Boneng- Cufnayang f9 kV T/l. Schedule [-Steel towers, body-leg SplSODe-274(a) A;&P Jodsal Private Ltd. 08/08/77 12/31/78 P 85,1l0 Ext., Foundation st,,bs & templates $ 412.507 412,507.11 Schedule 11-69 kV, 336.4 MCM, ACSR Sp75Dle-274(b) Wimpey Int11 China Wire & Cable 03108/77 12/31/78 P 41,268 power condllctor Co. NTS 7,893.366 232,082.42 Schedule 111)verhead and tower Sp75DDe-274(c) Projects Equip. Kanematsu-Gosho, Ltd. 03/15/77 03/31180 ' 5,936,000 22,413.53 Eooting ground wire for 65 kV T/L Corp. of India Schedule V-69 kV, Condu,otors & over- Sp79DDe-274(d) Projects Equipt. Indo Asiatic Corp. 08/23/77 12131/79 S 55,906 55,906.53 head ground wire clamps, line hard Corp. ov rndia wares and accessories Suspension Insulators for the Beckel- Sp771)Lm-373 Sumttomu Corp. Sumitomo Shoji 10105179 'f 64,003,200 279,273.95 Soneng-Guinayang 69 kV Trans. Line Kaisha Ltd. 69 kV Outdoor Load-end S/S equipmenit, appurtenances, accessories & spares Schedule 1-69 kV outdoor load-end S/S Sp75lDe-291(a) Connell Bros. Structural S/S 07/19/77 07/14/78 P 35,269 & terminallswitching station equipt. (Phil.) Inc./Connell Bros. $ 274,935 247,935.37 appurtenances, accessories and spares Co. Ltd. Schedule 11 a IV-pawer ctrcult Sp75DDe-291 Phesco, Inc. Takaoka/Kane- 08/23/76 09/30/80 Y Z86,827,600 1,480,775.07 breakers and power transformer (b) & (d) matsu-Gosho Ltd. Schedule I11-Metalclad Switchgear, Sp7lDDe-291(c) Phesco, Inc. FujilKanematsu- 01/16180 batteries & charger, control switch- Gosho Ltd. board, power & control cable 230 kV Substation Equipment, Appurte- nances, Aecessories and Spares Schedule t-V & VI-Power circuit Sp75DDe-297 Sumsitomo Corp. Sumitomo Shoji 07/04/77 05/30/80 Y 1,439,078,500 6,832,464.17 breakers, suspension insulators, Kaisha steel structures, grounding & inst. ' 135,561,848 623.051.94 mat'ls incl. extra works Schedule 1t-Disconnect switches, Sp75DDe-297(b) Pheasco, Inc. Kanematsu-Gosho, 08/22177 08/Z7/78 Y 256,335,400 1,142,666.87 ABS, FDS and Lightning arresters, Ltd. add'ti D.S. -Y 4,953,600 22,384.70 Schedule IlI-Motor control switch- Sp75DDe-297(c) - Marubeni Corp. 07129177 0104/78 '1 119,528,670 789,985.78 board, station batteries 6 battery charges tncl. excra works -Y 36,251,803 Schedule IV-Station service transf. Sp75DDe-297(d) Edward Keller Le Transformateur 08110177 07/26179 p 12.000 power transf. 6 couDling capacitor Actien-gesellschaft FF 41.796 8,639.96 i potential device SF 43,347 24.151.53 , U,  Contract value Award Cnmpletion Final USS Description Contract no. q.il 'let l i.'ttciary date date Original equivalent Transmission (Cont'd) 230 kV Substation Equipment, Appurte- nances, Accessories and Spares Schedule I & 111-i>over transformers, 5p75D1)b Q >97(a) rh I.-. 435,501,092 2,061,613.83 appurtenances, a ,essorle.4 & spares including repeat order ^1 141,846,700 602,535.76 Communicatton Equipment for Luzon Electrification Project Power line carrier, line relays and Sp75DDe-294 KEdwardl Kellpr iHii lrown Boveri 06(15/77 e 118,711 communication equipment 5,993,075 3,217,223.68 230 kV Substation Equipment. Appurte- nances, Accessories and Spares for Beckel Substation Substation equipment under three (3) Sp75DDe-296 S1limo tanrp Sumitomo Shoji 07/29177 06-24178 Y 556,479,328 2,581.849.54 sehedules and power transformer Kalsha Ltd. High Volt3ge Metering Equipment Schedule 1-Power transformer and SpN7DLe-363(a) Phescr, Inv. Kanemeatsu-G,sht Ltd. 03(21179 05(3i(8l Y 1L5,270,000 491,738.71 lV metering equipment Schedule tt-Instrument transformer SP77DLe-363(b) (onnell Rron. Connell Rros. I/07178 09123179 S 777,396 777,396.85 Co. (Phil.) Co. Ltd. Schedule I1I-Lightning arresters SP77DLe-363(c) Avesc,' Hktg. Bowthorie FmP 11/07/78 11/30/81 P 45,807 (:orp. -L 74,074 159,994.69 Schedule IV-Meters and accessories SP77DLe-363(d) Sumitomo Corp. Sumitomo Shoji 03-14/79 02/2 5/60 5 130,129 130,129.00 Schedule V-Steel scructures and SP77DLe-363(e) Sams-na Co., Ltd. 05/08/79 s 239,888 239,888-04 supports Reinforcing Bars - Laguna Missho-lwai 03/26175 - S 799.350 799,350.00 Power Line Carrier - - Brawn Boveri 01(19/76 - SF 2,868,340 1,224,628.97 15,000 volts power cabale - - MtscubLshi 10/29/76 - Y 5,550,000 20,698.85 Steel Towers - - Int'l. Elect. 07125177 - S 19.250 19,250.30 Installation Services - - titsui & Co. 09fl3177 - 9 1,7ZZ,500 6,617.95 69 kV - - Sutomo 02/10/75 - '1 115,987,580 398,503.43  Contract value Contractor/ Award CompletIon Fiinal USS Description Contract no. supplier Benef tciar7 date date Original equivalent Power Conductor CELEASCO China Uire 1210/J74 NTS 27,867.38S 734,318.40 230 kV Sumitomo 1ZZ174 Y 694.321,300 2,439,523.38 69 kV New World 12/20/74 S 94,609 94,609.13 Power CotlductLr Aklls Electric 02)18)75 S 184,672 184.672.58 69 kV CERAVER 12120/74 S 249.350 249.350.13 Transmission Steel Towers TCta Fxports 09/107/5 KS 15,559,566 1,777,946.04 Substatlon Equipment 51-mitfmo 06120175 FF 2.440,000 512,790.58 S,bbrstion Equipment I.;tAn 06120115 Y 1,106,505,020 3,938,645.82 C11.qStation Equipment Fd Keller Rr.'wo 8 overt 02/26/75 DfM 4,216,644 1,788,164.71 ;ibstat1on Equipment Ed elYl r RrVr,- Bo.vert 06/27/75 SF l,367,617 598,794.03 230 kV (NlA1 I.ast Dragon 03)17)76 S 14,400 14,400.00 F Llne (l.n.hrc-r5 *(NIA) Wa(sin l.thiwa 03119116 S 238,050 238.050.00 Con t,c.r/Rhield Wlires (NIA) Mn-t1 04/26/76 36,e76,z3z IZ7,918.00 ltesel GeneratinR Set (N1A) Sp71s0l)ip ?RQ C-.mlns Elcees 08117/76 S 54,912 54,912.00 Po.er Sractfn (NIA) lpnqpn 09115)76 $ 187 387.58 Power Staclcn (NIA1 . 09t15(76 8,000 8,000.00 230 kV Steel Structure (NIA) '