Colombia - Esmeralda Power Project

R E S T R I C T E D FILE COPY Report N o.P- 185 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 REPORT AND RECOMMENDATIONS OF THE PRESIDENT to the EXECUTIVE DIRECTORS on the PROPOSED LOAN - to the CENTRAL HIDROELECTRICA DE CALDAS LTDA. COLOMBIA lanuary 21, 1959   REPORT AND REIvC1ENDATIONS OF THE PRESIDENT TO TIE EXECUTiVE .DIBl CTORS 011 A ?ROPOSED LOAN TO CENTRAL HIDROELECTRICA DE GALDAS LTDA. COLOMBIA 1. I submit the following report and recommendations on a proposed loan of 81.6 million or its equivalent in other currencies, to the Central Hidroelectrica de Caldas Ltda., Colombia (hereinafter sometimes called "CHEC') to finance the construction of the La Esmeralda hlydroelectric project. PART I - HISTORICAL 2. The Bank made a loan of $2.6 million (39 CO) to CHEC in December 1950 to finance the completion of a l6,COO kw. hyjdroelectric plant at La Insula. This plant came into operation in December 1951. The La Esmeralda project is the second stage, following La Insula, of an overall plan for the development of the waters of the Chinchina and Campoalegre river basins. In February 1955 the Colombian Government informed the Bank that it would suoport a request by CHEC for a loan to finance the La Esmeralda project and in March 1955 a Bank mission made a preliminary study of it. 3. In September-October 1