Announcement of Fifteen Million US Dollars Electric Power Loan in Guatemala on March 13, 1967

~7/;.J_ • 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 67/13 Subject: $1S million electric power March 13, 1967 loan in Guatemala The World Bank has made a loan equivalent to $15 million for the expansion of electric power generating and transmission facilities in Guatemala. The project will provide 80,000 kilowatts of new generating capacity, more than doubling the supply of power in the Central Region which accounts for over two-thirds of the country's total electricity consumption. Girard Truat·Bank, Philadelphia,has agreed to participate in the loan for an amount of $50,000, representing part of the first maturity which falls due in July • 1971 • The loan was made to the lnstituto Nacional de Electrificacion (INDE), an autonomous government agency responsible for the development of electric power in Guatemala. At present Guatemala's total installed generating capacity is about 115,000 kilowatts, of which IND£ accounts for about 37,500 kilowatts, the privately- owned Empresa Electrica de Guatemala, 65,000, and other private com~anies and muni- cipalities, the remainder. For the purpose of electricity supply, Guatemala is divided into four regions, each of which has generating facilities designed to meet its own requirements; the systems are not interconnected. The Cent,;G..\ Region includes the capital, Guatemala City, and has the heaviest concentration of·people and most of the country's indus- try. Although Guatemala is mainly an agricultural country, with coffee as the main- stay of the economy, it is likely that there will be a gradual increase in indus- • trialization. The Government is ~cti vely encouraging new industries to de·velop in  - 2 - areas away from Guatemala City, but it is likely that for some time to come, the greater part of Guatemalan industry will be concentrated in and around the capital • city. Power demand in the Cedtral Region has been growing at the rate of 131 annually in recent years, and is expected to-grow at a rate of at least 12l annually until 1972. Based on this growth rate, generating capacity will have to be increased to about 180,000 kilowatts by 1972. The project being .assisted by the Bank loan will provide a large part of the additional power required. The project c.onsists of the construction of the 60,000-kilowatt Jurun-Marinala hydroelectric station about 30 miles south of Guatemala City; the addition of a lS,000-kilowatt gas turbine generator at INDE's power plant at Escuintla, in close prcximity to the hydroelectric station now to be built;• transmission line and sub- station equipment to bring power from both plants to Guatemala City; the construc- tion of a S,000-kilowatt diesel plant to augment present generating capacity at the port of Matias de Galvez, where handling facilities are now being expanded; • and the services of' consultants to assist in the design and supervision of con- struction and also to advise INDE on organization ~nd DM!.nagement. The project is scheduled for completion by the end of 1969, although some of the units will ,be in operation before that time. The total cost is estimated at the equivalent of $23.S million. The Bank loan will cover the foreign exchange requirements, a·m1d the remaining costs will be met by INDE from its own resources and by Governme'1t contributions. The Bank loan is for a term of 2S years and bears interest at the rate of 61 per annum. Amortization will begin in July 1971. The loan is guaranteed by the Republic of Guatemala. •