Peru - Fifth Power Project

Docmauu of The World Bank Foa oFnCIAL USE ONLY 3upt N. 6125 PERU PROJECT COMPLETION REPORT FIFTH POWER PROJECT (LOAN 1215-PE) April 2, 1986 Latin America and the Caribbean Regional Office Thi dscmmt h a m6e __i dhbIbuI _ my be md by redpa In lb pewaac. of Ildd d1. lb cumt m ad thww. be db.domE wh Woi Bank s_ab_da,._  THE WORLD BANK FOR OFCIAL USE ONL' Washington. o.c. 20433 U.S.A. April 2, 1986 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND rHE PRESIDENT SUBJECT: Project Completion Report on Peru - Fifth Power Project (Loan 1215-PE) Attached, for information, is a copy of a report entitled "Project Completion Report on Peru - Fifth Power Project (Loan 1215-PE)" prepared by the Latin America and the Carribean Regional Office. Under the modified system for project performance auditing, further evaluation of this project by the Operations Evaluation Department has not been made. Attachment 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.  FOR OMCUL USE ONLY PERU PROJECT COMPLETION REPORT FIFTH POWER PROJECT (LOAN 1215-PE) TABLE OF CONTENTS Preface ............* (i) Basic Data Sheet ......... ..... ,.... (iii Highlightsheet.................................................. (iv) CHAPTER I: BACKGROUND .................... Bank Lending to the Electric Sector 1 Organization of the Electric Power Sector 1 The Beneficiary 2 CHAPTER II: PROJECT ORIGIN, APPRAISAL, PROJECT DESCRIPTION AND NEGOTIATION 3..... ..... ....3 Project Origin and Appraisal 3 Project Description 3 Negotiation 4 CHAPTER III: IMPLEMENTATION "5o ......05 Effectiveness and Beginning of the Works ..... 5 Changes in the Project 5 Project Timetable ..... 5 Procurement of Goods and Selection of Consultants 6 Project Cost 7..........7 Performance of Consultants, Contractors and Suppliers ...... 7 Participation of Other Financing Agencies ........ 8 CHAPTER IV: PROJECT JUSTIFICATION ............ 9 "lectrolima's Load 9 Return on Investment ....... 9 CHAPTER V: FINANCIAL PERFORMANCE 10 Comparison of Actual and Forecast Data 10 CHAPTER VI: INSTITUTIONAL PERFORMANCE AND ORGANIZATION 11 The Government and the Beneficiary 11 The Bank 999999999999999999999999999999999999 11 CHAPTER VII: LESSONS TO BE LEARNED*.*..*.**................. ... 12 I 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 authoriation.  ANNEXES Page Annex 1: Summary of the Bank lending to the Power Sector 13-14 Annex 2: Project Implementation Schedule 15-16 Annex 3: Project Cost Estimates 17 Annex 4: Actual and Forecast Loan Allocation 18 Annex 5: Actual and Forecast Disbursements 19 Annex 6: Rate of Return 20 Annex 7: Performance Indicators (1975-1982) 21 Annex 8: Electrolima - Actual and Estimated Income Statement (1975-1982) 22 Annex 9: Electrolima - Actual and Estimated Soxnces and Applications of Funds (1975-1982) 23 Annex 10: Electrolima - Actual and Estimated Balance Sheet at Year-end (1975-1982) 24 Annex 11: Major Covenants of the Loan and Project Agreement for Loan 1215-PE 25-26  (i) PERU PROJECT COMPLETION REPORT FIFTH POWER PROJECT - (LOAN 1215-PE) Preface This is the Project Completion Report (PCR) for the Fifth Power Project which was partially financed by Loan 1215-PE. The borrower was the Government of Peru which utilized US$2.6 million of the proceeds to finance the technical assistance component carried out by the Direccion General de Electricidad (DGE), a Government Agency under the Ministry of Energy and Minns. The remainder of the loan, or US$32.8 million, was reloaned by the Government to Electrolima, the utility serving Lima, to help to finance the distribution project of the latter for the period 1975-79. The Project was completed in 1982, about three and one half years late. The PCR was prepared by the Energy Division of the Latin America and the Caribbean Regional Office based on information in the Bank files, a final project report prepared by Electrolima, and discussions with staff of the Bank and Electrolima. In accordance with the revised procedures for project performance audit reporting, this PCR was read by the Operations Evaluation Department (OED) but the project was not audited by OED staff. Following standard procedures, OED sent copies of the draft report to the Borrower for comments; however, no comments were received.  ( ~~~~~~~~~~~~~~~(ii ) PERU PROJECT COMPLETION REPORT BASIC DATA SHEET FIFTH POWER PROJECT (LOAN 1215-PE) Borrower: Government of Peru Beneficiary: Electrolima and Ministerio de Energia y Minas KEY PROJECT DATA Appraisal Actual Total project cost (US$ million) 137.3 107.9 1/ Cost overrun (or underrun) % (21.4) 1/ Loan Amount (US$ million equivalent) Disbursed (as of April 30, 1985) 36.0 3t.4 Cancelled (as of April 30, 1985) None 0.6 Repaid (as of April 30, 1985) 7.5 7.4 Outstanding (as of April 30, 1985) 28.5 20.7 2/ Date physical components completed 6/79 12/82 3/ Return on Investment (%) 8.4 3.6 4/ Institutional performance Improving Adequate 1/ Project costs are understated due to the method of inventory valuation employed by Electrolima (para. 3.11). 2/ Exchange adjustment favorable to the borrower: US$7.3 million. 3/ Except for three 60 kV transmission lines, two 60/10 kV substations and the control center. The delayed completion reflected a lower-than- expected demand increase, and inexperience in procurement matters and in handling the procedures for selection of consultants (paras. 3.9 and 3.10). 4/ The less-than-expected level of return is due mainly to the fact that tariff increases did not keep pace with cost increases (para. 4.2).  (iii) MISSION DATA Month No. of No. of Staff Date of Type of Mission Year Weeks Persons Weeks Report Appraisal 3/73 N.A. N.A. N.A. 4/20/73 5/ Preparation 5/74 1 1 1 7/02/74 Preparation 12/74 1 1 1 12/16/74 Reappraisal 7/75 2 3 6 2/11/76 Sn1 Supervision 5/76 1 1 1 5/21/76 Supervision 10/76 1 1 1 10/29/76 Supervision 4177 2 3 6 4/15/77 Supervision 9/77 1 1 1 9/12/77 Supervision 11/77 1 1 1 12/23/77 Supervision 5/78 1 2 2 5/23/78 Supervision 12/78 1 1 1 1/05/79 Supervision 1/79 1 1 1 2/18/79 Supervision 7/79 1 2 2 8!03/79 Supervision 12/79 1 1 1 1/18/80 Supervision 5/80 2 1 2 6/04/80 Supervision 8/80 1 1 1 8/20/80 Supervision 12/80 1 1 1 12/31/80 Supervision 6/81 2 2 4 7/16/81 Supervision 11/82 1 2 2 1/27/83 Supervision 9/83 2 3 6 1/4/84 33 OTHER PROJECT DATA I t e m Original Plan Revision Actual First mention in files 02/10/72 Loan application - - N.A. 6/ Negotiations 4/72 11/75 01/26/76 Board approval date 6/72 1/76 03/02/76 Loan agreement date - - 09/18/76 Effectiveness date 5/30/76 - 11/18/76 Borrower - - Government Executing agency - Government/ Electrolima Fiscal year of borrower - Calendar year Follow-on Project Sixth Power Project Closing date 12/31/79 12/31/81 12/31/82 CURRENCY EXCHANGE RATE Name of currency Sol (S/-) Exchange Rate At appraisal US$1.00 S/45 Intervening year average - US$1.00 S/250 Completion date US$1.00 S/993 5/ A Decision Memorandum was issued. Data on this appraisal as well as on prior preparation missions were not available in the Bank's file. 6/ Information was not availabln in the Bank files.  (iv) PERU PROJECT COMPLETION REPORT FIFTH POWER PROJECT - LOAN 1215-PE Highlights 1. The Loan 1215-PE (US$36.0 million equivalent)1/ helped to finance training, consultant services for engineering design anU studies, and distribution facilities, including transmission, substransmission and distribution lines, substations, pole transformers, meters, communication and control facilities. Electrolima succeeded in meeting its objectives of providing facilities to meet system demand and also succeeded in connecting about 90% of the low-income consumers estimated at appraisal (para. 4.1). 2. Due to variations in the actual rates of growth of different load centers from the rates expected at appraisal, Electrolima, with Bank agreement, changed Part A of the Project by adding and cancelling, as necessary, items such as substations and subtranamission lines. Likewise, there was an enlargement in the scope of the studies included in the Part B of the Project. However, the net effect on the physical quantities of the project was minor. The cost of the project was lower than the original estimate by 21%, but the cost is understated due to the method of inventory valuation employed by Electrolima (para. 3.11). 3. The Project was completed by the end of 1982, approximately three and a half years later than the target completion date. The delay was partly due to the lower-than-expected demand increase, and also to inexperience in procurement matters and in consultant-selection procedures. 4. Electrolima's financial performance during the period was weak as a result of the Government's policy of not increasing tariffs in line with costs. The issue of tariffs was addressed by the Bank in the processing of Power VI and again has been raised in the context of the Engineering Loan recently negotiated. 1/ Approximately US$0.6 million of the loan was cancelled.  PERU FIFTH POWE-k PROJECT - LOAN 1215-Ps I. BACKGROUND Bank Lending to the Electric Power Sector 1.1 Since 1960 the Bank has made seven loans totalling $208.7 million to Peru's power sector. The first four loans were to Electrolims, the utility serving metropolitan Lima. The loans helped finance 220 NW of hydropower as well as expansions to the transmission and distribution systems. 1.2 The fIfth loan was for the Fifth Power Project (Loan 1215-PE) which is the subject of this report. The loan principally halped finance Electrolima's 1976-79 distributiton Program. The loan also helped to finance a much smaller but important part of the project: technical assistance and training components to assist Government entities in strengthening sector organization and planning. 1.3 The sixth loan, amounting to US$25 million, was made in 1981 principally to finance prefeasibility and feasibility studies for 12 hydroelectric plants. The beneficiaries were Electroperu, Electrolima, Hidrandina, and Centromin, a state-owned mining company, which has developed its own electric power system. 1.4 The seventh loan, amounting to US$81.2 million, was made in 1982 to help finance Electrolima's 1982-86 distribution program, construction of the Yuracmayo dam and expansion of Huinco plant; Electroperu's final design for the Mantaro transfer scheme which would increase its hydro production, and Hidrandina's final design for the Mayush hydro project. Organization of the Electric Power Sector 1.5 A 1972 Electricity Law reserved to the Government the responsibility for public service electricity supply, provided for Government participation in the ownership of existing private utilities and provided for interconnection of power systems. The 1972 Law also created Electroperu which was made responsible for planning, design, construction and operation of all new generating facilities larger than 10 MW and for the development and construction of the transmission network. However, Electroperu was unable to carry out efficiently its responsibilities. 1.6 In 1982 a General Electricity Law was passed. The Law called for a decentralization of the power sector. Pursuant to the Law, eight new regional utilities have been created on the basis of either existing utilities (Electrolima, Hidrandina, Coserelec, Seal) or former Electroperu regional units. Under t1ie 1982 Electricity Law, regional utilities have the responsibility for developing regional generation works (smaller than 500 NW of installed capacity), transmission and distribution networks, and marketing electricity. Electroperu is to be in charge of (a) the preparation  - 2 - of Power Master Plans; (o) the construction and operation of power projects and transmission lines involving two or more regional companies and power projects with 500 MW or more installed capacity; and (c) supervision of regional companies. 1.7 The Ministry of Energy and Mines through the Direccion General de Electricidad (DGE), is in charge of the regulation of the power sector in all aspects except those related to tariffs. A Tariff Commission handles tariff matters and regulates the Compensation Fund for Generation. 1/ 1.8 The sector organization is promising but still ieak. The regional companies inherited deteriorated plants and networks, weak system for billing, collection and administration, and poorly trained personnel. Losses in some of the distribution networks are extremely high and reliability extremely low. Through Loan 2179-PE the Bank has already provided assistance for training for staff of the regional utilities. A new loan under negotiation, the Power Engineering Loan, provides assistance for studies. All these efforts are expected to help improve the efficiency of the sector. The Beneficiaries 1.9 Electrolima was the major beneficiary of the loan. Formerly a privately ownpd company known as Empresas Electricas Asociadas. The Government controlled Electrolima since 1973. Electrolima is the best managed of the regional distribution companies in Peru. 1/ The compensation Fund for Generation is a mechanism created to transfer financial resources between regions to average-out generation and transportation costs and allow greater uniformity in electricity tariffs to final consumers.  -3- II. PROJECT ORIGIN, APPRAISAL, PROJECT DESCRIPTION AND NEGOTIASIONS Project Origin and Appraisal 2.1 The Bank staff first appraised the Project in March 1973 based on the preparation work carried out by Electrolima's staff. The Project originally covered the period 1973-77. Information on the firt appraisal has been lost from the Bank files. Because of Electrolima's delay in taking actions on tariffs and on the refinancing of short-term debt (which the Bank sought), the implementation period was shifted to 1976-79. The project was reappraised in July 1975, after Electrolima had taken actions on tariffs and on the refinancing of the short-term debt mentioned above. Project Description 2.2 The agreed Project consisted of the following: ELECTROLIMA components (Part A) a. Transmisson andl subtransmission: (i) 26 circuit-km of 220 kV and 125 circuit-km of 60 kV line extensions; (ii) constructioti, expansion and/or improvement of six 220/60 kV substations and qf seventeen 60/10 kV substations. b. Distribution: (i) Installation of about 2,300 transformers, 10,000/220 V, with an aggregate capacity of about 233 MVA; (ii) installation of about 1,000 circuit-km of 10 kV lines; (iii) installation of 200,000 meters. c. Auxiliary services: (i) expansion of the existing communications and control center; (ii) auxiliary equipment for the data processing center; (iii) laboratory, shop, transportation and maintenance equipment. d. Consultant services and training: (25 staff-months) i. consultant services for the expansion of the communications and control center, for a review of distribution planning standards and for hot-line maintenance of overhead distribution and transmission lines; and  -4- ii. training of Electrolima personnel in hot-line maintenance of overhead distribution and transmission lines. Government technical assistance (Part B) a. a power sector organization study which would attempt to suggest ways of improving the division of responsibilities and coordination between sector entities and identify sector training requirements (25 staff-months of consultants' effort); b. the preparation of a master plan for future generation and transmission additions in the north-central intercornected system of the country (160 staff-months); c. training of sector personnel in operation, planning and administration of large public utility enterprises; and d. tariff structure studies (10 staff-months). Negoti.tion 2.3 Negotiations took place on January 26-30, 1976, without any significant problems. The loan was approved on March 2, 1976 and signed on September 20, 1976, for a term of 20 years including three years of grace and a rate of interest at 8.5% p.a. There was a six months delay between the approval of the Loan and its signature, due to slow authorization of the Loan Agreement by the Government.  - 5 - III - INPLEMENTATION Effectiveness and beginMni of the works 3.1 The loan became effective on November 18, 1976 five months later than expected during appraisal. This delay was due to the slow authorization of the Loan Agreement by the Government (para. 2.3). 3.2 Implementation of the Project began as planned (April 1976); however, due to inexperience there were procurement problems and delays in the engagement of consultants. This did not allow the Project to proceed in a timely manner, specially the parts related to the studies (paras. 3.9 and 3.10). Changes in the projects 3.3 The original project was changed mainly as a result of variations in the rate of growth at different load centers. The 60 kV lines Balneario-Jorge Chavez, Pershing-Pando, Persing-San Isidro were excluded from the project, and there were added Balnearios-Barranco, Moyopampa-Chosica, Barsi-Pando and Entrada Pershing. Likewise, the 60/10 kV substations, Jorge Chavez, Chorrillos, San Isidro, Tacna and Mirones were excluded from the project and Barranco and Chosica were added. 3.4 As regards the studies included in the project, Electrolima obtained the Bank's agreement to undertake a new study on procurement practices, which was only completed to its first phase; the second phase, for implementing the recommendations, was cancelled by Electrolima because of financial constraints and the desire to carry out the second phase with a foreign individual consultant, an arrangement that was considered by them to be more effective and economical. The Bank agreed to include the second phase in the Sixth Power Project (Loan 2179-PE), which was under consideration at that time; however, the study has not been implemented yet. The Bank has been pressing Electrolima to fulfill its commitment. Project Timetable 3.5 The project was completed, except for three 60 kV transmission lines, two 60/10 kV substations, and the control center, by the end of 1982, approximately three and a half years later than the target completion date (Annex 2). The delay was partly due to the lower-than-expected demand increase, and also to inexperience in procurement matters and in the administrative procedures for selecting consultants (paras. 3.9 and 3.10). 3.6 The 60 kV transmission lines nct yet completed at the end of 1982 were San Juan-Chorrios, Barsi-Pando and Moyopampa-Chosica and the two 60/10 kV substations were Pando and Chosica. The control center was commissioned at the middle of 1983. l  -6- 3.7 The project included a training component for Electrolima and the Direccion General de Electricidad (DGE)2/. Electrolima's component provided for the training of operational staff in the maintenance of hot overhead lines. Electrolima accomplished this task by sendi tg six technicians to be trained by the supplier who was awarded the contr i to supply the tools to work with hot overhead lines, and by hiring one expert from the same firm to give training courses in Lima. The Bank agreed as well to finance from the loan account the training of three engineers in software and hardware for the telecontrol system. The project also provided for the training of sector personnel in operation, planning and administration of large public utility enterprises, but due to a lack of information from DGE and weakness in the supervision of this project component, the Bank staff was unable to evaluate the results. Procurement of Goods and selection of consultant 3.8 According to the loan agreement, goods, works anc services would be procured under international competitive bidding, and consultants would be selected "sing procedures satisfactory to the Bank. The loan also allowed retroactive financing of US$1.1 million for equipment and material that Electrolima purchased for the project after July 1, 1975. Even though local industry could supply some of the equipment and materials, the loan did not provide any margin of preference for local suppliers. 3.9 Procurement was one of the causes for the delay in the execution of the Project. On the one hand, even though this was the fifth loan to Electrolima, the last loan had been made ten years previously and staff were not familiar with the changes that had taken place in the Bank procurement guidelines. Frequent correspondence to clarify points related to bid invitations and to settle matters produced by inadequate evaluation and award reports was required. On the other hand, the Government was extremely strict in the application of regulations that protect local manufacturers, even though in many cases this required purchasing goods of lower quality at higher prices, and Electrolima had to finance these purchases with its own resources. As Electrolima awarded three contracts to firms who were not the lowest evaluated bidders, the Bank considered these awards as misprocurement and cancelled US$371,421 from the loan account. Besides advising the Government and Electrolima on procurement matters by normal correspondance and during routine supervision missions, in May 1977 the Bank sent a procurement engineer to advise Electrolima on procurement matters. There was an improvement in the handling of procurement, specifically near completion of the Project. Likewise, the Bank has continued cooperating recently in strengthening the procurement area, and to this end a seminar was organized by the Bank in Lima in August 1984 in which high level Government officials participated. 2/ The Direccion General de Electricidad is the unit of the Ministry of Energy and Mines that was responsible to carry out the Part B of the Project.  - 7 - 3.10 The selection and engagement of consultants, especially in relation to Part B of the project, also delayed ptoject execution. This was basically due to lack of experience of Electrolima and the Direccion General de Electricidad (DGE) with Bank's procedures. In the case of DGE, another reason was the frequent changes in the management and staff (DGE had five different directors during project execution). It also appears that delay was due to scepticism of DGE's management and staff as to the importance of the studies, which had been included in the project but had had the opposition of the DGE. Project Cost 3.11 The final Project cost estimate, based on Electrolima data, is US$107.9 million (Annex 3), 21X lower than the appraisal estimates. However, this cost is understated. Some adjustments were made to the foreign cost component using disbursement data, but the local cost component is understated due to tile method of inventory valuation employed by Electrolima.3/ 3.12 The cost issue was not addressed with sufficient attention by the Bank during the implementation period of the Project, and is likely to arise again in the projects under implementation (Power VI). The Bank should discuss this problem with Electrolima and seek changes in accounting policy. 3.13 Annex 4 shows that the actual and forecast loan allocation by categories were close, except for consultants' services, for which the final figures were 83% higher than the estimates. This was mainly due to enlargement in the scope of some studies. Annex 5 shows the disbursements lagged behind the appraisal estimates, which reflects the delays in project execution discussed in paras. 3.9 and 3.10. Performance of consultants, contractors and suppliers Consultants 3.14 Electrolima's staff carried out the project engineering design and construction supervision, and hired consulting firms to carry out the studies of communication and control system, procurement practices, and planning, design, operation and maintenance of the distribution system. The work of the consultants was generally considered satisfactory by Electrolima and the Bank. However, Electrolima cancelled the second phase of the procurement practices study (para. 3.4), and as far as the third study is concerned (planning, design, operation and maintenance of distribution system), Electrolima's staff felt that the results were not as expected because the study covered too many areas and there were many specialists involved, causing lack of coordination. With both consultants for the studies mentioned above, glectrolima had to settle differences regarding billings, which were finally solved satisfactorily. 3/ Electrolima values its inventories at average cost, which due to inflation is significantly lower than the cost of the last purchase. They do not revalue their inventories to reflect inflation.  - 8 - 3.15 The Bank does not have an opinion from DGE regarding the per'ormance of the consultants hired for undertaking the studies under Part B of the Project: power market, hydropower assessment, thermal stations catalogue, master plan, organization and tariffs. Bank staff who supervised the project considered the work of the consultants to be satisfactory, except the work of the consultant related to the sector organization study. This study was severely criticized by DGE and the Bank and needed the issuance of various draft versions in order to fulfill the requirements of both entities. Contractor and supplier 3.16 The contractors and suppliers had a satisfactory performance, but there were some problems with deliveries. The longest delay was experience with the telecontrol system. The equipment was received 10 months later than the original schedule. The manufacturer offered additional hardware and software to compensate ElectroLima for the delay, an arrangement that was acceptable to Electrolima and the Bank. Minor delivery problems were faced with manufacturers who supplied the 60 kV blades, the 10 kV circuit breakers, and the measurement transformers. Participation of Other Financing Agencies 3.17 During project implementation, the German Agency for Technical Cooperation (GTZ) agreed to finance the optimization study included as part of the Master Plan. There was a successful cordination between GTZ and the Bank in dealing with this project component.  -9- IV. PROJECT JUSTIFICATION Electrolima's load 4.1 The main objective of the Project was to provide Electrolima with the distribution facilities needed to meet the increased demands on the system, including the demand of a large influx of lower-income population living in new communities, "pueblos jovenes', in Lima's outskirts. The Project was adequate in meeting its objectives because even though lower than expected economic growth was experienced during the period 1975-1979 actual energy sales and connections to low-income consumers were approximately 90% of the target figure, and the system was capable of meeting the demand approximately two years ahead of the original forecast. Without the Project the country would have faced rationing. Return on Investment 4.2 It was not possible to estimate the return on the Project because the borrower did not supply the data on annual construction expenditures for the Project. Furthermore, a rate of return on a project of this nature would have little meaning, and the procedure currently followed by the Bank for distribution projects is to focus on the investment program as a whole. Bank staff estimated the financial rate of return on the construction program for the period 1975-1982, and it was 3.6% (Annex 6), which is lower than the return estimated for the project during appraisal (8.4%). The reasons for this low return are low incremental energy sales4/, failure of tariffs to increase at the same pace as costs and higher-than-expected energy purchase price from Electroperu. Of these, the failure of tariffs to increase at the same pace as costs was the main cause for the lower-than-expected return on investment. Chapter V contains details on the Bank's effort to influence Government policy in this respect during the period of project implementation (1975-82), and more recently, in the context of the Engineering Loan negotiated. 4/ At appraisal, the incremental sales forecast for the period 1975-79 were 2,445 GWh, which may be compared with an actual figure of 1,279 GWh (48% lower).  - 10 - V. FINANCIAL PERFORMANCE Comparison of Actual and Forecast Data 5.1 Annexes 7 to 10 compare the actual and appraisal forecast key financial ratios, income statement, sources and application of funds and balance sheet for the period 1975-82. Electrolima's financial performance during that period was weak. Actual ratios for rate of return, debt-service coverage, contribution to expansion and debt-equity were below expected levels. Likewise, energy sales were lower than foreca3ted due to economic recession. Energy losses were higher than estimated. The rate of return was similar to the forecast during the period 1975-80, but deteriorated significantly in 1981 and 1982 (4.8% and 3.2% respectively). Contribution to expansion ratio was lower than the covenanted 30Q for 1976 and 45% in subsequent years, showing negative actual figures for 1979 and 1980, but improving somewhat for 1981. The deterioration of these key financial indicators was mainly due to failure by the Government to increase tariffs adequately at a pace to offset cost increases. In December 1975 prices, tariffs increased from SI. 1.35/kWh in 1975 to S/. 1.72/kWh in 1982, and operating costs from SI. 1.12/kWh in 1974 to SI. 1.68/kWh in 1982. The rate of growth was faster for operating costs, particularly in 1981 and 1982. 5.2 Eletrolima did not comply with the revenue covenant for Loan 1215-PE. During project supervision the Bank expressed to the Government and Electrolima its concern about the evolution of costs and tariffs and pressed for higher and more systematic tariff increases. This issue was also addressed in the context of Loan 2179-PE negotiated in 1982, by which the Government agreed to increase steadily the rate of return from 4% in 1982 to 12% in 1985. The Government made reasonable efforts to accomplish this, but due to economic and political problems it did not succed in fulfilling its commitment. 5.3 Other aspects that contributed, though to a lesser degree, to the financial deterioration of Electrolima are the high system losses and increase in the number of employees. During the Project implementation, system losses were one percent over the SAR's target of 9%, and showed a tendency to increase in recent years (10.6% in 1982). The number of employees was about 5% higher than the SAR expectation. 5.4 Even though Electrolima's construction program lagged behind the forecast, because of lower demand, Electrolima had funding problems; and had to cover its cash gap basically through short-term borrowings. 5.5 The issues of tariffs and efficiency in the electric sector have recently been reviewed by the Bank in the context of an Engineering Loan recently negotiated. There is a Government commitment to seek tariff increases of 2% in real terms per month over a period of the next two years.  - }1 - VI. INSTITUTIONAL PERFORMANCE AND ORGANIZATION rhe Government and the Beneficiary 6.1 Annex 11 describes the major covenants of the Loan and Project Agreement. Compliance with these covenants on the part of the Government, the Direccion General de Electricidad and Electrolima was generally satisfactory, except with respect to the tariff covenants, the extreme delay in the engagement of consultants (para. 3.10) and lack of progress reports on part B of the project. 6.2 Electrolima has enjoyed a history of good management and administration. With respect to the project its performance was satisfactory, except for the initial procurement problems which were overcome. 6.3 By holding down tariffs, the Government has tended to weaken the financial strength of Electrolima. This issue was addressed by the Bank in the processing of Power VI and again has been raised in the context of the Engineering Loan recently negotiated (para. 5.5). The Bank expects to review the rate of return commitment on a realistic tariff policy with the new administration of Peru after it takes office and completes its assessment of sector finances. The Bank 6.4 The Bank staff successfully contributed to the implementation of the project by responding quickly to requested changes to the project (para. 3.3), by advising Electrolima and DGE on procurement matters (para. 3.9) and by pressing the Government to take actions on tariffs and other financial matters, even though it did not fully succeed in this task. However, the Bank staff failed to suggest changes in the loan agreement to provide a reasonable margin of protection to local industry (para. 7.1.1) and to press DGE to supply the quarterly reports on part B of the project (para. 6.1).  - 12 - VII. LESSONS TO BE LEARNED 7.1 Specific lessons to be learned from the Fifth Power Project are: 7.1.1 In the early stages of the project, Bank staff had detected that local industry was willing to participate in the project by supplying equipment and materials. This was not taken into account at appraisal and negotiations, and therefore no margin of protection was provided. A modification of the loan agreement to allow an adequate margin of protection might have satisfied the concern of local industry and at the same time might have diminished the procurement problems faced (as the Government might then have exerted less pressure on Electrolima to depart from the award procedures agreed with the Bank), but neither the Bank nor Electrolima nor the Government presented suggestions to modi4 the Loan Agreement on this ground. 7.1.2 The Bank should monitor the accounting procedures of its borrowers to ensure that Project costs are recorded in a manner that would allow comparison with the original estimates. Such manitoring would allow detecting deficiencies in time and would allow the borrower to correct them. 5/ 5/ OED NOTE: Energy Department staff state, however, that, "The routine development activity of a power utility as covered by the project description, is always flexible and recognizes only that a certain level of system growth is likely and will need to be served. Whilst it is reasonable to require the project executioning agency to keep auditable records of the materials procured using Bank funds, a- to demonstrate that they were applied to the system during the course of project execution, for projects such as this that are not based on detailed engineering and that involve the "bread and butter" activities of a utility over a long period of time, it is not practical nor reasonable to require that the Bank financed portion of the daily work be identified and recorded in special accounts. Of the many projects of this nature that the Bank has supported in the past it is not likely that any conformed to the objective that paragraph 7.1.2 describes. Furthermore, it would be exceedingly difficult to draw an-3 valid inferences from a comparison of the final costs with the original notional budget since only a very small part of the whole has been defined in measurable detail." "It is of concern that a finding such as this should lead to our insisting that our borrowers undertake an exceedingly complex task of dubious accuracy and of doubtful benefit to them or us."  - 13 - ANNEX 1 Page 1 of 2 PERU FIFTH POWER PROJECT - LOAN 12i5-PE ELECTROLIMA Summary of Bank Lending to the Power Sector Loan Loan Loan amount (in Project Principal Number Date MS$ millions) Name Project Component 260-PE 1960 24 Huinco Construction of the Huinco hydro station with two units of 60 MW each. 365-PE 1963 15 Huinco II Expansion of the Huinco station to install two additional units of 60 MW each to bring total installed capacity to 240 MW. 465-PE 1966 10 Power Dis- Expansion of the tribution transmission and distribution system 1966-68. 511-PE 1967 17.5 Matucana Construction of the Matucana hydro station, with two units of 60 MW each. 1215-PE 1976 36.0 Fifth Power Electrolima's 1975- Project 78 transmission and distribution expan- sion program. Tech- nical assistance to Government and training for State entities in the power sector. 2018-PE 1981 25.0 Power Engineering Engineering studies for Project Electroperu, Electrolima, Hidrandina, and Centromin.  -14- ANNEX I Page 2`of 2 Loan Loan Loan amount (in Project Principal Number Date US$ millions) Name Project Component 2179-PE 1982 81.2 Sixth Power Electrolima's 1982- Project 86 distribution program, construc- tion of Yuracmayo dam, expansion of Huinco plant, studies sad train- ing; Electroperu's8 Mantaro transfer scheme and train- ing, and Hidrandi- na's engineering studies of Mayush hydro project. 208.7  - 15 - ANNEX 2 FMW Pane I of 2 FIFIl 1PiI PRW=C (WAN 1215--FE) Pro!dct IpMLntat om Schedule A. Electrolir's 1975-78 DistribLtion Trawformr Cq)acity (MVA)/liaea Coaletion Date Epaon Progran legtb circuitt-k SL Actual SR Actual Tranavinison end subtranssiseion 1. Lines Ue (220 kv) lacluded in origial project San Jusn-alaea-Los 22 12/31/76 6/76 Entrada a Barai 4 9/30/77 2/80 Total 21.4 .ins t60 kv) Included in orignalg project San Juan-Villa El Salvador 23.6 2/28/76 12/75 San JUWn-Ato8.8 2/28/76 11/76 Zapallel-Ventanilla 8.6 2/28/76 6/75 lteynoeo-marai 3.2 2/28/76 3176 Chavarrie-Oquendo 7.8 6/30/77 12/77 Corretera-Central 8.0 6/30/77 7/80 Oquendo-la Paplla 6.5 6/30/77 12/76 Mgara-g&Santa Marina 10.0 12/31/77 4/84 Balneario-orge Ziaves 11.0 6/30/77 Peratdng-Pando 6.0 6/30/78 Pershirg-San Isidro 6.0 6/30/78 San Juan-Chorrios 16.0 6/30/79 Sta. Roae-Tacna 5.8 - 1'6/76 Sub-total 121.3T_ Added to the origial project Balnearios-Barranco 7/80 Cable Entrada Perahing 7/80 Cable Barsi-Paudo b/ heyopaapa-laica _ Sub-total Total T T. 2. Substations 2.1 Substations 220/60 kV InCle In the original. prc et San Juan - phese I 85 2/28/76 1/76 Q uavarria c/ 2/28/76 9/76 Be te 12/31/77 2/80 RafineriA de Zinc 75 12/31/77 9/80 San Juan - Phase II c/ 6/30179 12/82 Balnearios 2T) 6/30/79 12/82 Total _6 2.2 Substations 60/10 kv Incldd in the original project Vila Maria 25 2/28/76 6/75 Illla El Salvador 15 2128/76 11/75 Villa Chavarria c/ 2/28/76 3/76 Oqu-do cJ 6/30/76 3/76 Carretera Central 75 d/ 6/30/78 6/78 Puente 25 6/30/78 9/78 Maag 25 6/30/78 9/84 Jorge Qoavez 25 6/30/78 a/ Santa marina c/ 6/30/78 5781 Pando 75 12/31/78 b/ 25 12/31/78 7783 Orrillos 25 12/31/78 a/ San Isidro 25 6/30/79 Tacno 25 6/30/79 )irones 25 6/30/79 Sub-total Added to the original project Berramn 3/80 oasica b/ Sub-total Total e/  - 16 - AIM4X 2 NWI-f 2 Transformr Capacity (MYA)/Iines Cnpletion Date lengh circuit-km At Actu Units 9R Actiial 3. Distribution works Included in the ortzinal proJect Traiisformers (lUU0762M2T Y)Unts 2,335 2,356 12/M thderground cable (10 kV) km 775 773 12/81 Overhead lines (10 kV) km 228 233 12/81 Lou voltage lines (220 kM) 1Um 20 255 1V76 House connections units 175,000 191,241 12a/) Meters acquisition units 200,000 202,677 6/30/79 12/80 4. Auiliar Senr(ces Expansion lncluded in the oriinal project Coeaateation an control work 6/30/79 9183 Conputing and Microfilming equipnent work 12/82 Offtce, tr:isportation and shop equipment work 12/52 5. Consultants Included in the original project Comanication and control: - Contract signing with consultants 12/31/76 7/77 Planning standard and hot-line maintenance for overhead lines f/ - Sign contract with cansclltant 11/14/78 4/6/79 - Discuss reports and implenentation achedule 12/31/78 3/82 Added to the oriinal project Consultant for the study of prccuretesnt practices: - lig contract with consultant 12/28/78 - Sibmit draft final report 10/26/79 / 6. Trai4ng Included In the original project Training in bot-line maintenance of overhead lines 3/30/79 N.A. B. Technical Assistance to the Government Included in the original project Power market study: - Sign contract with consultant 3/30/77 10/78 - Subit draft final report 3/30/79 8/81 Hydropower assessment study: - Sign contract with consultant 3/30/77 4/77 - Submit draft final report 3/30/79 6/79 Organization studies: - Sign contract with consultant 3/30/77 10/78 - Submit draft final report 3/30/79 N.A. MasteT plan, Thermal station catalogue - - Sign contract with consultant 3/30/77 10/78 - Submit draft final report 3/30/79 2/80 Optimization - - Sign contract with consultant 3/30/77 11/78 - Sulbit draft final report 3/30/79 9/80 Other components - - Sign contract with consultant 3/3(i/77 6/78 - Sigp draft final report 3/30/79 VA. Tariff studies: Sign contract with consultant 1/31/77 7/81 Submit draft final report 12/31/77 1/83 Training of sector personnel 3/30/79 N.A. a/ Excluded from the project. E/ It hald not been completed by the tius Electrolm prepared its PCR. / Substazion expansion without addirg transforwr capacity. d/ This substation was not included in the detailed list of project conponents, at the sase tie BarsS substation does not appear in the Isplesentation Schedule. herefore, it was assuamd that Carretera Central should appear Instead of Barsi. e/ Electrolima did not provide information on the actual transformer capacity by substations and the lergth of individual lines. fT The scope of the study expanded to include planning, 4esi8n, operation and smintenance of the distribution system. g/ End of first phase. Electrolima decided to cancel second phase.  _ 17 - ANNEX 3 PERU-- FIFTH POWER PROJECT (LOAN 1215-PE) Project Cost Estimates (US$ million) Appraisal Estimate Current Estimate Local Foreign Total Local Foreign Total Part A Transmission (220/60 kY) 17.3 10.5 27.8 12.7 11.5 24.2 Distribution (10 kV and below) 49.2 8.5 57.7 48.5 7.8 56.3 Auxiliary services 7.8 7.4 15.2 9.8 12.1 21.9 Consulting services and training - 0.3 0.3 - 1.4 1.4 Estimate for work under construction - - - 1.5 - 1.5 Total direct costs 74.3 26.7 --101.0 72.5 32.8 105.3 Physical contingencies 4.8 1.7 6.5 - - - Price contingencies 22.8 5.0 27.8 - - - Total Part A 101.9 33.4 135.3 72.5 32.8 105.3 Part B Studies 0.1 1.4 1.5 -a/ 2.6 b/ 2.6 Physical contingencies - 0.2 0.2 - - - Price contingencies - 0.3 0.3 - - Total Part B 0.1 1.9 2.0 - 2.6 2.6 Total Project Cost 102,0 35.3c/ 137.3 72.5d/ 35.4e/ 107.9 Interest during construction Part A 6.1 3.5 9.S - - - Part B - 0.2 0.2 - - - Total financing requirements 108.1 39.0 147.1 72.5 35.4 107.9 a/ Not available. E/ It does not include the part of the cost of the optimization study financed by GTZ. c/ The appraisal estimates includes indirect foreign exchange costs. It was not possible to estimate these indirect foreign cost for the current estimates. d/ This cost is underestimated due t. -he method of inventory valuation - employed by Electrolima (para. 3.lC,. e/ Figures supplied by Electrolina were ijusted using bank's disbursement data. This figure includes US$3.7 m_ 'on of IDC financed from the loan proceeds.  -18- ANNEX 4 PERU FIFTH POWER PROJECT (LOAN 1215-PE) -Actual and Forecast Loan Allocation (in current USM) Category Original Actual 1. Imported equipment and materials 27,100,000 27,639,123.42 2. Consultant's services for Part A.4 and 5 of the project 300,000 1,478,393.70 3. Consultant's services for Part B of the project 1,900,000 2,551,373.24 4. Interest and other charges on the loan accrued on or before April 4, 1979 3,700,000 3,700,000.00 5. Unallocated 3,000,000 36,000,000 35,368,890.36 t  -19 - ANNEX 5 PERU FIFTH POWER PROJECT (LOAN 1215-PE) Actual and Forecast Disbursements (in millions of current US$) IBRD Flscal Actual Appraisal Actual Disbursements Year and Total Forecast as a percentage of Semester Disbursements Appraisal Forecast 1977 1st. 0.4 3.4 12 2nd. 3.4 8.2 41 1978 1st. 6.4 14.1 45 2nd. 9.5 21.0 45 1979 ;ffi. 12.4 27.4 45 2nd. 15.3 32.0 48 1980 1st. 17.7 36.0 49 2nd. 21.0 - 58 1981 1st. 23.8 - 66 2nd. 26.8 - 74 1982 1st. 28.7 - 80 2nd. 31.0 - 86 1983 1st. 32.9 - 91 2nd. 35.4 - 98  - 20 - ANNEX 6 PERU FIFTH POIER PROJECT (LOAN 1215-PEI RATE OF RETURN (Actuall Investsent Increuental Incre ental Revenues Connection BenefitsM+) Rate of 1/ Purchased 0 & N fron Fees 5/ Costs I-) Return Power 2/ 3/ tariffs 4/ 1 1975 759 0 0 0 0 -759 0.034 2 1976 917 234 0 256 241 -654 3 1977 1004 302 0 398 307 -601 4 1978 905 604 0 582 310 -617 5 1979 603 627 0 756 301 -173 6 1980 700 770 136 1089 378 -139 7 1981 867 1349 220 1915 419 -102 8 1982 2183 1721 263 2385 397 -1385 9 1983 1721 263 2385 401 10 1984 1721 263 2385 401 11 1985 1721 263 2385 401 12 1986 1721 263 2385 401 13 1987 1721 263 2385 401 14 1988 1721 263 2385 401 15 1989 1721 263 2385 401 16 1990 1721 263 2385 401 17 1991 1721 263 2385 401 18 1992 1721 263 2385 401 19 1993 1721 263 2385 401 20 1994 1721 263 2385 401 21 1995 1721 263 2385 401 22 1996 1721 263 2385 401 23 1997 1721 263 2385 401 24 1998 1721 263 2385 401 25 1999 1721 263 2385 401 1/ Annual construction expenditures at end 1975 prices. (Annual inilation rates used for 1975-82 are, respectively: 24?, 44.7Z, 32.4?, 73.7%, 66.7?, 60.8X, 72.7X and 729Z%. 2/ Equal to increuental sales (ONhI over 1975 level adjusted for losses(l10) times the annual average tariff at end 1975 prices. 31 Incresental costs over 1975 level at end 1975 prices. 4/ Incremantal sales times the annual average tat.f at end 1975 prices. 51 Value of connection fees at end 1975 prices.  ELECTROLIMA FITH PONER PROJECT (LOAN 1215-PE) Performance Indicatorss (1975-1902) a/ ----197----197 --19 -- - 78 - ---19------ ---- 19 ----- ---19t------ ---1982---- SAR Actual SAR ktual SAR Actual SAR Actual SAR Actual SAR kttual SAR kctal SAR Atual iarket Penetration Indicators Total number of custogers EEA concession zone Ithousands) 590 575 e20 61B 680 627 720 654 770 680 704 731 762 Pueblos ,ovenfes 74 94 100 98 135 117 182 131 220 148 1&* 172 190 Percent of oonulation served in EEA concession zone 82 N.A 83 l.A 84 82 85 0 86 I.A N.A I.A N.A Efficiencv indicators Muaber oi enulovees 2500 2413 2550 2733 2625 2775 2700 2867 2800 2921 2M3 3076 3113 Custosers/emelovee 232 22t 243 226 259 226 267 228 275 233 235 238 245 Sales (6ob) 269b.0 2663.4 2922.0 2858.5 3165.0 2962.3 342B.0 3000.9 3714.0 3147.5 4024.0 3392.7 3819.9 4047.0 68* soldiesplovee 1.08 1.02 1.15 1.05 1.2t 1.07 1.27 1.05 1.33 1.08 1.13 1.24 1.30 Svstee losses in percent 9.0 10.3 9.0 9.5 9.0 10.1 9.0 10.5 9.0 10.1 10.5 10.3 10.6 Financial mndicators Contrlbution to expansion ratio bt 0.30 t.A 0.32 0.11 0.45 0.49 0.44 0.26 0.41 -0.02 0.65 -0.71 0.27 0.20 Rate of return (excluding oublic domain assets from the rate base) cl 0.078 0.092 0.077 0.121 0.091 0.077 0.091 0.088 0.083 0.120 0.071 0.067 0.048 0.032 Debt'eguitv ratio dl 0.47 0.61 0.43 0.68 0.38 0.54 0.34 0.63 0.30 0.55 0.25 0.40 0.22 0.35 Debt service coverace 1.5 1.5 1.6 1.1 2.1 1.2 2.2 0.9 2.1 1.2 2.3 0.9 1.9 2.4 Receivables fors customers at vear-end as a percent of the vear s sales. 16.5 18.4 16.7 20.0 16.7 17.2 1.7 14.9 16.7 15.7 20.0 21.1 22.5 al Drl4inal BAR's lioures differ slaohtiv irom the ones presented here due to some chadnaes introduced in toe financial stateents $see footnote on Annex 10i. bi Ratio of oross internal cash generation less variation of workhna capital other than cash to the averaoe construction expenditures fo the Previous. current and followina Year. c, Ratio Ot income before interest to averaae revalue net fixed assets in operation. di Ratto oi tong-tera debt to e4uitv Plus debt.  ELECTROLIMA FITH POIER PROJECT (LON 1215-PE) ktual and Estimated Income Statewt (1975-t"821 (millions of current soles) ---1975 ---- --- 1976---- ---1917---- --- 197 ---- --1979----- ----1J910----- ---19911------ ---- 19812--- SAP Actual SR ktual SAR Actual 9SR Actual SAR ktual SAP Actual SAR Actual BAR Actual Energy salesl6wh) 2696.0 2663.4 2922.0 295.5 3165.0 2962.3 3429.0 3000.9 3714.0 3147.5 4024.0 3392.7 3819.9 4047.0 Average Revenue per kNh Icents of soles) 123.5 121.4 137.5 158.0 159.9 222.0 175.8 435.6 197.6 725.1 195.1 1049.9 1941.1 3492.8 Sales revenues 3329.6 3233.2 4019.0 4515.8 5060.0 6577.5 6028.0 13071.0 6968.2 22823.2 7851.6 35618.3 74146.9 141353.9 Other revenues -36.6 51.0 0.0 68.4 0.0 116.2 0.0 457.7 0.0 751.9 0.0 720.5 2090.7 2663.2 Total operating revenues 3293.0 3284.2 4019.0 4584.2 5060.0 6693.7 6028.0 13529.5 6968.2 23575.1 7051.6 36330.8 76237.6 144017.1 Operating Costs Operations and aaintenance 1452.0 1539.0 1744.9 1950.7 2024.0 2567.9 2347.8 3961.4 2676.5 7060.2 2977.1 1306.4 2739.5 4839.4 Purchased power 602.0 538.8 739.5 1204.7 991.7 1819.6 1294.3 5011.4 1622.5 7471.1 2031.1 11434.3 2759.9 623328.8 Tariff compensation funds 286.0 1056.8 2096.2 5=2.0 9A41.9 Depreciation of company plant 333.0 340.8 418.0 422.6 540.0 725.9 633.0 1133.0 741.0 2297.2 95.0 4025.3 6673.6 11739.1 DeprKiation of public domain plant 103.0 167.4 239.0 206.1 332.0 359.6 410.0 587.2 502.0 1045.2 609.0 1069.2 252.3 5012.0 Contribution to expans,on 100.0 100.0 100.0 70.0 100.0 70.0 100.0 100.0 120.0 150.0 120.0 m.0 338.0 507.0 other 32.2 32.2 Total operating costs 2670.0 269.0 3241.4 3754.1 3987.7 5542.9 4775.1 11085.8 S662.0 19070.5 6593.0 32456.4 704".5 137941.4 Net income before interest and taxes 623.0 598.2 M.6 930.1 1072.3 1150.0 1252.9 2443.7 1306.2 4504.6 1257.8 3692.4 5739.1 6075.7 Taxes 26.0 33.0 23.0 Net income before interest 623.0 598.2 777.6 830.1 1O46.3 1150.8 1219.9 2443.7 1203.2 4504.6 1257.9 3682.4 5739.1 6075.7 Interest payments 443.0 472.7 485.0 755.7 517.4 1139.7 552.7 2470.0 579.5 3520.9 591.0 3579.4 4274.8 3245.9 Lns: Interest charged to construction 0.0 0.0 -9.0 0.0 -10.0 0.0 -12.0 -42.9 -14.0 -35.2 -16.0 -23.3 -03.3 -454.0 Aortization of financing espenses 15.2 15.2 0.0 12.2 15.0 9.3 15.0 9.3 11.0 0.0 0.0 0.0 0.0 4.0 lonetary losses 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 347.9 0.0 107-. 4.4 282.2 total non-operating expenses 458.2 487.9 477.0 767.9 522.4 IIU.0 555.7 2434.4 576.5 3833.6 565.0 363.9 419S.9 3074.1 Net Income 164.8 110.3 300.6 62.2 523.9 2.0 664.2 7.3 706.7 671.0 692.0 10.5 1543.2 3001.6 _ ___ ____ _ __ _ ___ __ _ ___ ___ ___ ____ __ ___ ___ __.  ELECTOC LI1A PITH PIPER P80EC3 (LOU8 1221541 Actual and Estimated Saucen and Applications of Fatl,51ds 192 (offlions of cwrrent soles) ----73- -976---- ----977 e -----7--- 5979--- ---2980- - --8---- -29 --- 8 Actual 80 ActuoS BA Atual 86 Actual SAO Actual So Acrttul SO0 Actual SA Actual ltternal cash qenm,ttnn bRt lnuco, beorc 3aterant and tiane 623.0 598.2 77' 6 930.2 1072.3 1150.0 1252.9 2443.? 5306.2 4504.6 1257.6 368.4 5739.' 6075.7 Depreciation - Coray 333.0 340.8 418.0 422.6 540.0 72.8 633.0 it $0 782.0 229. 2 856.0 40253 663.6 51738.1 PO pI I dunin 183. 167.4 239.0 206.2 332.0 359.6 450.0 587.2 502.0 1045.2 609.0 5869.2 295. 3 5012.0 Contribution to emspuion 500.0 100.0 100.0 70.0 500.0 70.0 100.0 200.0 120.0 150.0 120.0 22.0i 33. 07.0 Total 6259. 5T206.4 15-4. 05-22.8. -20-44-.3 2306. 2395-,9 -4,262,3.9- 26.2 . 1987.0 282. 901905105. 23332.8 Len: awiaelatton 3M.8 358.4 485.4 608.0 457.2 829.2 547.5 2074.3 682.7 328.8 671.3 7943.7 4059.1 6772,5 Internt choequd to operation A43. 9 472.7 477.0 75.7 307.4 2238.7 540,7 2427.2 J 565.5 348. 7 565,0 356. 4191.5 2791.q ToteS debt nwrice 4, 83. 6.4 13.7 946 17. 2082 40.4 528. 6755 233 12499.8 8249.6 9564.4 RiMedesd 0.8 0.0 338.6 0.0 442.0 0.0 529.0 0.6 640.0 0.0 742.0 0.0 0.0 0.0 Tuna, 0.0 0.0 26,0 33.0 23.0 Total financial cOape 04a 83.5 10.0 J363.7 1432,6 2967.9 1660,2 4500.4 2901.2 6775. 2978.3~ 2499.8 0249.6 9564.4 Not ant. ca9b genationasmcl.Cnn.Fmns 397.2 37.3 233,6 505.1 612.7 338.2 735.7 -237.5 758.0 12221.5 864,5 -167.9 7453.4 23768.4 Conuntion fens 242.0 257.4 280.0 290.0 320.0 522.7 360.0 78.9 420.0 1291.9 460.0 2658t.2 4900.9 8079.4 Net internal camk gunuat:.n 63, .7 513.6 455.1 932.7 85.0 509. 7 541.4 5268.0 2503.4 1324 5 960.4 12360. 3 e1047.8 Isrrmauq 2068 1".u 12254PE 0.0 0.0 206,0 0.0 477.0 527.3 675.0 1242.2 212.0 1473,4 0.0 1565.6 1840.7 203.2 log8 Luau 20t8-ft 0,0 0.0 0.0 0.0 0.0 0.6 0.4 0.0 0.0 0.0 0.0 0.0 0.0 359.9 880I80 Loa 298.0 500.0 N0.,0 200.0 200.0 200.0 550.0 500.0 2900 0.0 400.0 0.0 0.0 0.0 Deutsche Oink 6.5. 0,0 0.0 0,0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 54.62. 0.0 0.0 Bonds M0L. 227415 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.9 0.0 0.0 0,0 457.9 527.2 0.0 Santa Ro. Thereat Plant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.01 0.0 0.0 0.0 0.0 12463.7 Total 200.0 500.0 906. 0 300.0 677.0 717.3 825.0 1342.2 472.0 2473.4 400.0 7446.1 2387.9 5566.8 Cuaptal coutr:bationsn Bovarnet contrmbustossa 50.3 28. 65.0 65.0 287.5 94.2 407.5 672.8 282.5 790.0 39.b 927.2 52.3 59.5 8,vlowes cnntribntsons 200.0 0.0 250.0 0.0 300.0 0.0 360.0 0.0 420,0 0.0 520.0 0.0 0.0 0.0 8EUCTR2WA 0.0 0.0 0.0 0.0 0.0 0,0 0.0 ,0 0.0 0.0 0.6 0.0 1297.2 2141.0 Cap2i2rtsunO cnto duies0.0 0.0 0.0 0.0 0.9 00 0.0 6.0 0.0 0.0 0.9 605.5 826.358. tontal 22. 8.3 35. 0 65.0 587.5 94.2 767.1 672.8 172.5 790.1 9t2.6 1532.o 2176,? 7980.6 total Souce, 957.5 755.0 1734.6 Z20. 2196.2 1661.5 2187.8 2560.4 2352.5 4766.9 2637.2 "P3. : 16924.9 454892 Constrtctims npipdturn, FP th Powt Projuct I/ 906. 0 602.0 5027.6 5240.4 2563.1 2692.7 282.6 2289.5 76. 9 2593.i 0.0 4958.8 851.6 23159.0 Santa tun Tbero2l Plant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5601.1 0.0 230.0 0.0 250. 7 25007.3 lntwrest charged to cuonstruction 2/ 0.0 0.0 0.0 0.0 10.0 0.0 22.0 0.0 14.0 0.0 56.0 0.0 0.0 0.0 Total constracticn - cmpanye 906.0 602.0 2035.6 1598.0 2573.7 1693,7 103.6 2289.5 2379. 0 2593.4 22516.0 4918.8 10562.3 44166.3 Construction by d.eelupemn 200.0 0,0 250.0 0.0 300.0 0.0 260.0 0.0 430.0 0.0 52.0 0.0 0.0 0.0 Total constroettuu ex,peditwes It6. 602.0 1283.6 2100.0 5873.7 56913.7 2197.6 2209.5 2809.0 2593.4 2836.0 4928.8 24102.3 44166.3 Other ean Pacraun lincreasl I inuswal sec. food. -203.0 '-60.0 -00.0 -60.0 -50.0 -50.0 Incream in 4on-talsh wekios capital t28.0 180.1 59.0 323.9 128.0 21.8 96.0 -34.4 101.0 255.5 167.0 323,. 0 6929.3 14679. 7 San Wil.;n (deficitl -173.5 84.0 450.0 -304.0 274.5 -25.1 454.2* -845.0 -507.5 2l7.0 -M5.9 258.9 2393.0 -9602.9 Others I/ 0,0 5195.3 0.0 -299.8 0.0 -28.9 0.0 1155.5 0.0 -66.8a 0.0 -2697.7 -239.7 -37539 Total othr aw -00. 690 490 -279.9 322.5S -32.2 490.2 270.9 -456.5 2173.3 -5"98, 5020.3 6762.6 t,22.9 Total uia of fondas 957.5 752.0 2734.6 820.1 2196.2 2661.5 2687.8 256. 4 2352.5 4766.9 2627.0 "9439, 30924.9 45089.2 na. a. . :ftxStltatn *at;s*,Scxs. -at,; t...9- I-an ... nhai.. t." I/ Actual figur"s inlude expenaditusres in other 41strib,utiosa works. 1 ~/The ectuni figure. of IDC are 1includedl in the proj