El Salvador - Guajoyo Hydroelectric Project

RESTRI CT E D FILE COPY Report No. P-229 This report was prepared for use within the Bank. It may not be published nor may it be quoted as representing the Bank's views. The Bank accepts no responsibility for the accuracy or completeness of the contents of the report. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO COMISION EJECUTIVA HIDROELECTRICA DEL RIO LEMPA (CEL) IN EL SALVADOR July 20, 1960  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPME\T REPORT AND RECOMlIEMNfATIONS OF TIE PRLSIDENT TO THE EXiECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE CONISION EJECUTIVA HIDROEIECTRICA DEL RIO LETI?A (CEL) OF EL SALVADOR 1. I submit the following report and recommendations on a proposed loan in an amount in various currencies eouivalent to $3.84 million to the Comision Ejecutiva Ilidroelectrica del Rio Lempa (CEL) to help finance the foreign excharg..r. cost of the Guajoyo Hydroelectric Project in El Salvadcr. PART I - HISTOPICAL 2. A loan of .l2,545,COO (22 ES) was made to CEL, a Government-owned agency, in 1949 to heln finance the construction of the Guayabo hydroelectric plant on the Rio Lemoa with an initial installation of 30 SOW. In 1957, using its omm funds, CEL installed an additional 15 MW generatinc unit and built a regulatory dam at the outflow of Lake Guija on the Rio Desague, a tributary of the Rio Lemna in its upper watershed. In Februarv l95 a second loan of $3.0 million (221 ES) twas made to CEL to help finance the installation of a fourth 15 PIJ unit at the Guayabo plant! this is scheduled to be in operation in early 1961. 3. The next stage in CELts powfer program, as recommended by CELts consultinF engineers, would be the construction of the Guajoyo hydroelectric generating plant of 15 NW capacity near the outlet of Lake Guija, and a transmission line connecting the proposed plant w