Mexico - Third CFE Power Project

R E S T R I C T E D R e p o r t N o. TO- 166b This report was prepared for use within the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPRAISAL OF THE INVESTMENT PROGRAM OF THE COMISION FEDERAL DE ELECTRICIDAD MEXICO April 22, 1958 D epa rtment of Technical Operations  CURRENCY EQUIVALENTS One U.S. $ - 12.50 Pesos One Peso a 8 Cents (U.S.) U.S. $ 1 Million a 12,500,000 Pesos Pesos 1 Million = U.S. $80,000  1_ E X I C 0 APPRAIS3L OF 713T TN:ii>TE4ii'T PROCfIAI OF THE CCMI3ION FZDEBAL Di EL?CT-PICTI)AD Tab]le of Conten;s PAGE ur=ar,- and Conclusions I Lstroduction 1 II Th-e C5r .3ion Federal de Electricidlad 1 III Cu e Current Tnvestnent Program 2 IV Projects Proposed for Bank-: nancing 3 V General Planning of the Ccmisior's Investments 5 VT Crganization and iHanagement 7 VII Tariff Rates 7 VIII Past M.nancial Results 8 IX Financial Projections 8 X Conclusions 12 A-1i'NKES: 1 Sunmary of the Projects Proposed for Bank Financing 2 Construction Program 1958-62 - Forecast of Expenditures 3 List of Vajor Steari and Hydro Fiants 4 Forecast of Ecpenditures for Hfajor Steam and Iiydro Plants 5 Balance Sheets for 1953 to 1956 6 Sources of Consolidated mnd (Patrimornio) 1953-1956 7 Profit and Loss Accounts for 1953-1950 8 Earnings, Source and Application of Funds for 1957-1967 9 Percentage of iHlew Construction financed from Comision's Earnings 10 Balance 3heets for the Years 1957-1967 11 Sources of Consolidated hind (Patrimonio) for 1957-1967 Five 3ystem Haps  SUMMARY A]j\TD CONCLUSIONS i. The Government of Mlexico requested in September 1957 the Bank's assistance in financing the foreign currency cost, estimated at US$ 78.3 million, of the major steam and hydro plants which are included in the current investment program of the Ccmision Federal de Electricidad. The Bank has rae- twro previous loans to the Comision, in 1949 and 1951, in the total amoura of USiP 53.S million. ii. The Comision's current investment program, which was initiated towards tlPe end of 1955 and is scheduled for completion in 1962, would add some 750,1DOY kw in manor steam and hydro plants and some 20 - 30,000 kw in diesel plants serving rural electrification, and would extend existing transmissicen and distribution networks. Tne total cost of this program is estimated T'h Pesos 3.1 billicn or the equivalent of US$ 252 million. iii. Thle major steam and hydro projects of the current program faJl into two groups, the projects of the first group being the most urgent and already underway, and those of the second group being either somewhat less urgent or needing substantial further plarnning and engineering before their economic justification can be established. The Government and the Comision have agreed, therefore, that the Bank consider at this time only the financing of the projects of the first group, which are: Mazatepec (156,000 kw