El Salvador - Rio Lempa Hydroelectric Project

RESTRICTED No. P-1 IfTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATIONS of the PRESIDENT EXECUTIVE DIRECTORS on the RIO LEMPA HYDROELECTRIC PROJECT LOAN APPLICATION of the COMISION EJECUTIVA HIDROELECTRICA DEL RIO LEMPA Guaranteed by the REPUBLIC OF EL SALVADOR December 7, 1949 RETURN TO GNS$tPLIWS "AX ., EC  INTERNATIONAL BhNK FOR RECONSTRUCTION i`D D:ECttELOPFN_ENT REPORT AND RLCOJ0 iJ-WDATIONS OF THE PRESII:ENT TO THE I EXECUTIVrIF4 HRCON1 ,Hz PROPOSED LOAN TO "CONIS ION EECUT-h HIDEOELECTRICA rW0 IE0MPA 1. I submit herewith the following report and rerooendation5 with regard to an application from the Comision &jecutiva Hidroelectrica del Rio Lerapa of Ll Salvador (Comision) for a loan of kll2,5L5,000 for a hydroelectric project. PART I HISTORICAL 2. The Rio Lempa project was first brought to the Bank's attention dur- ing: Mr. MoCloy's visit to El Salvador at the end of 19418. Followin.g the Comiision's adoption of the Harza Engineering Company's survey of the project and the appointment of a new Board of Directors in TIarch 1949, the Bank was aprroached by the Comision with an informal request to consider the possibility of financing the project's foreign exchange cost, 3. At the invitation of the Govrernm,ent of' l Salvadcr and of the Comi- sicn, a Bank mission visited El Salvador from lay 16 to June 6, 19119, The mission included a specially retained engineering consultant, 4, Negotiations wvere opened on 1tugust 29, 1949. The authorized negoti- ators on behalf of the Comision were Mr. Jacinto Castellanos, Director, and Dr. Enrique Cordova, Govansel; and on behalf of the Government of al Salvador, Dr. Hector vavid Castro, ambassador for