Announcement of China Ertan Hydroelectric Project on July 5, 1991

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. *Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 92/1 Contact: Pastor B. Sison Tel: (202) 458-0344 CHINA: ERTAN HYDROELECTRIC PROJECT The following is information on a-project approved by the World Bank's Board. DATE: July 5, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $380 million; The loan is for 20 years, including five years of grace, with a vari- able interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $1.885 billion OTHER FINANCING: Government of China (through the State Energy Investment Corporation), $795.4 million; Sichuan Province (through the Energy and Transport Investment Corporation), $795.4 million; United States Export-Import Bank, $30 million; Norwegian grant, $5 million IMPLEMENTING AGENCY: Ertan Hydroelectric Development Corporation (EHDC) ESTIMATED COMPLETION DATE: 1995 PROJECT DESCRIPTION: The objectives of the Ertan Hydroelectric Project are to: (a) provide additional generating capacity to the power system in Sichuan Province (3,300 Megawatt and 13 Terawatt hour per year) to alleviate acute electricity shortages; (b) assist the transfer to modern technology and introduce efficient construction methods to reduce the cost and long generation periods of large hydroelectric projects in China; (c) further improve the analysis of the environmental effects of hydroelectric resource development and the design of related mitigation measures; (d) enhance the institutional development of the Ertan Hydroelectric Development Corporation (EHDC) through a modern management training program and introduction of economic efficiency and pricing principles; and (e) provide technical assistance for project design and implementation and to promote (more) -2- optimal operation of the power system, prudent financial management, and manpower development. The project includes: (a) preparatory works, including construction of access roads and bridges, water and electricity supply, communication links, and various construction plant and site facilities; (b) construction of a parabolic, double curvature arch dam (240 meters high with a crest 775 meters long) across the Yalong River, along with an underground powerhouse complex, log conveyance system, and appurtenant works and structures; (c) provision and installation of six 550-Megawatt generating units-and associated electrical equipment, including a 500-kilovolt step-up substation; (d) resettlement of about 30,000 people affected by the project; (e) an environmental management program and the creation of a science station for environmental monitoring and studies; (f) consulting services for engineering, procurement, management of construction, and preparation of future power projects; (g) studies of power pricing for Sichuan Province and optimal operation-of the power plant and reservoir and investigations and tests related to safety of structures, monitoring of energy dissipation facilities, and powerhouse ventilation; and (h) management and staff training, computers and application software, and accessories. FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 M IGA NEWS RELEASE NO. 92/1 Contact: Leigh P. Hollywood Tel: (202)-473-6168 MULTILATERAL INVESTMENT GUARANTEE AGENCY RELEASES FY91 OPERATIONAL RESULTS WASHINGTON, July 5, 1991 -- The Multilateral Investment Guarantee Agency (MIGA)--the World Bank affiliate that insures investments in developing countries, received 173 applications for investment guarantees in fiscal 1991, which ended June 30. The total marks a 44 percent increase over the previous fiscal year. MIGA was set up to encourage foreign investment in develop- ing countries by providing political risk insurance in the form of investment guarantees against the risks of currency transfer, expropriation, war and civil disturbance, and breach of contract by the host government. MIGA also provides advisory services to developing member countries on attracting foreign investment. Projects insured by MIGA during fiscal 1991 will facilitate direct investments totaling $922 million in developing countries. These projects are expected to generate more than 3,500 jobs in host countries and about $710 million in foreign exchange earnings over a five-year period. During fiscal 1991, MIGA executed 11 guarantee contracts providing a total of $58.9 million in new guarantee coverage. To date, MIGA has issued a total of 15 contracts providing $191.2 million in coverage. Applications for investment guarantees must be registered with MIGA when a project is conceived. However, guarantee contracts are not issued until the investment is ready for implementation. MIGA has executed contracts with investors from Canada, Denmark, France, Japan, Luxembourg, the Netherlands, and the United States. Insured investments were made in a variety of sectors, including services, mining, tourism, restaurants, aquaculture, telecommunications, agriculture and manufacturing. The host countries that have benefited from MIGA guarantees are Bangladesh, Chile, Hungary, Indonesia, Madagascar, Poland and Turkey. Several of the projects in which MIGA participated involve privatizations of state enterprises. Since MIGA was established in April 1988, the agency has received a total of 397 guarantee applications from investors in 22 countries for investments in 56 developing countries. 痲 弟浮 ！·“_&f 討二之 磚，騙）卜’，·C二‘ j，·參＇、 個 2 billion, Mr. Qureshi said. Combined IBRD and IDA lending in FY91 to Europe, Middle East and North Africa--the World Bank region which includes Eastern Europe--totaled $6.56 billion compared with $4.41 billion the previous 12 months. New commitments from IBRD and IDA lending to Africa in FY91 were $3.39 billion compared with $3.93 billion a year earlier. The FY91 combined total for Asia was $7.49 billion compared with $6.40 billion in FY90. Latin America and the Caribbean obtained $5.24 billion in new IBRD and IDA commitments in FY91.compared with $5.96 billion a year ago.