Sri Lanka - Ninth (Distribution, Expansion and Rehabilitation) Power Project

The World Bank FOR OFFICIAL USE ONLY Report No. P-4389-CE REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE TNTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 43.2 MILLION TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A NINTH POWER PROJECT September 24, 1986 This document has a restricted distribution and may be used by recipicnts only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Sri Lanka Rupee US$1.00 = SL Rs 27.4 SL Re 1 - US$0.0365 ABBREVIATIONS AND ACRONYMS AMP - Accelerated Mahaweli Program CEB - Ceylon Electricity Board DDRB - Distribution Development and Rehabilitation Branch ECT - Energy Coordinating Team kgoe - Kilogram of Oil Equivalent LECO - Lanka Electric Company LRMC - Long-Run Marginal Cost WTP - Willingness to Pay FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY SRI LANKA NINTH POWER PROJECT Credit and Project Summarv Borrower : Democratic Socialist Republic of Sri Lanka Beneficiary : Ceylon Electricity Board (CEB) Amount : SDR 43.2 million (US$52.0 million equivalent) Terms : Standard Relending Terms : The Government would relend the credit proceeds to CEB at an interest rate of 10 percent per annum, repayable over 20 years including 5 years grace. The Government would bear the foreign exchange risk. Project : The proposed project seeks to improve the reliability Description and quality of power supply, reduce losses to more reasonable levels, and expand the distribution system to meet forecast demand for electricity. The proposed project is a four-year slice of Ceylon Electricity Board's distribution rehabilitation and expansion program, and the project comprises the erection of about 950 km of 33-kV lines, extension and rehabilitation of low-voltage distribution networks, and technical assistance. Although delays in implementation could arise because of the wide geographical area covered and the many interfaces with the existing network, this risk has been minimized by providing consultants for project management, clearly identifying responsibilities in supply and erect contracts, and providing for the early appointment of other essential consultants. This document has a restricted distribution and may be used by recipients only in the performance or their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Cost: a/ Local Foreign Total