Turkey - Third TEK Transmission Project

Document of' The World Bank IC FOR OFFICIAL USE ONLY Report No. P-3542-TUJ REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPME TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$163.0 MILLION TO THE TURKISH ELECTRICITY AUTHORITY WITH THE GUARANTEE OF THE REPUBLIC OF TURKEY FOR A THIRD TRANSMISSION PROJECT June 2, 1983 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit Jan. 1980 /1 Jan. 1981 January 1982 March 1983 US Dollar - TL 70.0 TL 91.00 TL 127.00 TL 195.00 TL 1 - US$ 0.014 US$ 0.011 US$ 0.008 us$ 0.005 /1 Since January 1980, the rate is being adjusted for the differential inflation between Turkey and its major trading partners. TL 190/1 was used for Parts III and IV of this report. FISCAL YEAR Republic of Turkey March 1 to February 28 (through 1981) March 1 to December 31 (1982) January 1 to December 31 (from 1983) WEIGHTS AND MEASURES kW Kilowatt MW 1,000 kW kWh kilowatt hour GWh (Gigawatt hour) 1,000,000 kWh kV (kilovolt) 1,000 volts One meter (m) 3.28 feet One kilometer (km) 0.624 miles One kilogram (kg) (1,000 grams) - 2.2 pounds One ton (metric ton) (1,000 kg.) 2,205 pounds One kilocalorie (kcal) (1,000 calories) 3.968 BTU toe tons of oil equivalent GLOSSARY AND ABBREVIATIONS ACSR - Aluminium Cable Steel Reinforced CEAS - Cukurova Elektrik A. S. (Cukurova Power Company) DSI - Devlet Su Isleri (State Hydraulic Works) DYB - Devlet Yatirim Bankasi (State Investment Bank) EIEI - Elektrik Isleri Etut Idaresi (Electric Studies Insitute) EdF - Electricite de France EGO - Ankara Electricity, Gas and Transport Company ESF - European Settlements Fund ESHOT - Izmir Electricity and Transport Company HCB - High Control Board IETT - Istanbul Elektrik, Tramway, Tunnel Isletmeleri (Istanbul Electricity, Tramway and Tunnel Company) KEPEZ - Kepez Electric Company KfW - Kreditanstalt fur Wiederaufbau MENR - Ministry of Energy and Natural Resources MTA - Mineral Research Institute OECD - Organization for Economic Cooperation & Development SEE - State Economic Enterprise SPO - State Planning Organization TEK - Turkiye Elektrik Kurumu (Turkish Electricity Authority) TKI - Turkiye Komur Isletmeleri Kurumu (Turkish Coal Enterprise) TPAO - Turkiye Petrolleri Anonim Ortakligi (Turkish Petroleum Corporation) TSKB - Industrial Development Bank of Turkey  FOR OFFICIAL USE ONLY TURKEY THIRD TRANSMISSION PROJECT Loan and Project Summary Borrower: Turkish Electricity Authority (TEK) Guarantor: Republic of Turkey Amount: US$163.0 million (including capitalized front-end fee). Terms: Seventeen years including four years of grace, with standard variable interest rate. Project Description: The Project would support the construction of about 1500 Km of 380-kV transmission lines to accommodate new generating capacity from plants being commissioned between 1983 and 1986. The Project would also include a technical assistance component to support: (a) improved organization and operation of municipal distribution of electricity, including preparation of feasibility studies for future investments in distribution; (b) preparation and implementation of a program of load research, tariff analysis and formulation, demand management, and energy conservation; (c) manpower development and training; and (d) development and implementation of a management information system. Project Benefits and Risks: The Project is an important part of TEK's system development program for electricity supply. Construction of the transmission lines would allow full utilization of large generation plants now under construction. Benefits of the technical assistance component would include strengthening of TEK as an institution, increased efficiency for the power subsector through improved operation of distribution activities, the expansion of the current training program, an improved tariff structure and introduction of demand management. A physical project risk would be the possibility that adverse climate and terrain conditions would delay construction during the winter. Adequate construction technology is available and would be used. The possible risk of inadequate local currency funds delaying the implementation of the project would be taken account of by the proposed establishment of a TL account. This document has a restricted distribution and may be used by recipients only in the performance of I their official duties. Its contents may not otherwise be disclosed without World Bank authorization. |