R E S T R I C T E DR2TUR * 11 T-0

REPORTS DESK FI canY Report No. TO-219a

WITHIN FILE uYONE WEEK

This report was prepared for use within the Bank. In making itavailable to others, the Bank assumes no responsibility to them forthe accuracy or completeness of the information contained herein.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

APPRAISAL OF THE EXPANSION PROGRAM OF

EMPRESA DE ENERGIA ELECTRICA DE BOGOTA

COLOMBIA

lanuary 11, 1960

Department of Technical Operations

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CURRENCY EQUIVALENTS

U.S. $1 - Colombian (Pesos) Ps 8

Ps 1 - U.S. $0.125

Ps 1,000,000 - U.S. $125,000

Ps 8,000,000 - U.S. $1,000,000

The exchange rate of the Colombian peso was Ps 8 to

U.S. $1 in June 1959 when the field appraisal was made.

Although the exchange rate is now about Ps 7 to U.S. $1,

the more conservative rate of Ps 8 to U.S. $1 has been

used throughout this report.

APPRAISAL OF THE EXPANSION PROGWi., OF

NP RE5A S AT. RG7I3 ETCrTR D-F _ETC

COLOMBIA

TABLE OF CONTENTS

Page

SUMMARY i

I INTRODUCTION 1

II ThE BORROWER 1Management 2Present installations 2

III THE POWER MARKET 3Past Sales and Load 3Forecast of Future Sales and Load 3

IV THE PROJECT 4The Laguneta Addition 5The Tomine Dam and Reservoir 5The New Salto Hydro Plant 6The 33 MW Thermal Addition 6Improvement in the Distribution andTransmission System 7

Engineering for Future Development of the System 7Estimated Cost of the Project 7Engineering and Supervision of Construction 8Schedule of Construction 9Rate of Expenditures and Method of Financing 9

V FUTURE CAPACITY REQUIREMENTS 9The Paipa Thermal Plant 9The Future Expansion Program 10

VI COMPARISON 1ITH A THERIAL ALTERNATIVE 11

VII FINANCIAL ASPECTS 11Rates 11Internal Audits 11Present Financial Position 11Past Earnings Record 13Financial Plan 13Estimated Future Earnings 14Debt Service Coverage 15Debt/Equity Ratio 15

VIII JUSTIFICATION OF THE PROJECT 15

IX CONCLUSION 15

TABLE OF CCH17TENTS (Cont'd)

LIST OF ANbMXES

Annex 1 - Summary of Past Energy Consumption2 - Forecast of Sales and Generation

i 3 - Load and Capacity Development Curvreit 4 - Technical Features of the Project" 5 - Estimated Cost of the Project" 6 - Bar Chart Construction ScheduleIf 7 - Actual and Forecast Balance Sheets 1953-1968

8 - Actual and Forecast Income Statements 1954-1968" 9 - Forecast Sources and Applications of Funds 1959-1968

Map

APPRPISAL OF TIE EXPANSION PROGRAI; OF

EMPRESA DE, E,:ERGIA =ECTRICA DE 5OGCTA

COLOMBIA

SUMMARY

i. The Bank has been asked to make a loan of $17.6 million to coverthe foreign exchange cost of a project consisting of new hydro and thermal-electric generating facilities, additions and improvements to the trans-mission and distribution system and part of the engineering cost of a futureexpansion program for the power system of Bogota, Colombia. The project isestimated to cost the equivalent of $30.4 million, including interest duringconstruction, of which $17.6 million would be in foreign currencies.

ii. The Empresa de Energia Electrica de Bogota (EEEB), which wouldbe the borrower, is an autonomous organization owned by the Municipalityof Bogota.

iii. The management and the technical staff of EDEB are adequate tocarry on both the day-to-day activities of the company and the expansionwork under the project.

iv. The project has been planned and designed by competent engineeringconsultants who would, in conjunction with EEEB personnel, continue thesupervision of construction.

v. The project is estimated to be completed by mid-1962. Thisschedule of construction is realistic.

vi. The project is needed to meet the growing demand for power in theBogota area. Power has been in short supply in this area for many years.The forecast of demand justifies the installation of the proposed facilities.The project would add 84 megawatts of hydro capacity and 33 megawatts ofthermal capacity to the generation plant of EEEB. The cost of the hydroaddition would be approximately $154 per installed KW and of the thermaladdition, approximately $207 per installed RI. These are very economicalcosts for new generation. Extensive additions and improvements to thetransmission and distribution system would also be included.

vii. EEEB's capitalization at December 31, 1958 amounted to Ps 130.3million, of which debt totaled Ps 40.7 million and equity amounted toPs 89.6 million. The debt/equity ratio was 31:69.

viii, The present rates will be raised about 16% as a condition of theproposed loan. This increase should provide revenues adequate to enableEEEB to maintain a satisfactory financial position through 1961. The fore-cast of EEEB Is future earnings indicate that a further rate increase willbe necessary in 1962 to insure a satisfactory return on investment and tocarry out additional planned expansions after completion of the presentproject.

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ix. Both a satisfactory debt service covenant and a rate covenant wereagreed upon during negotiations.

x. The estimates of the cost of the project are reasonable. The pro-ject would be suitable as a basis for a Bank loan in an amount equivalent to$17.6 million for a period of 25 years, including a grace period of 3 ycarson amortization payments.

APPRAISAL OF TIE EXPANSION PROGRAM OF

B 2LS' DE E NERGIA At' ' 1TRCA DE 32'3Tk

COLOMBIk

Io INTRODUCTION

1. This report covers the appraisal of the expansion program of theEmpresa de Energia Electrica de Bogota (EEEB). The project consists ofthe addition of 84 MP of hydro and 33 Mi of thermal generating capacityplus associated transmission, distribution and other facilities. The esti-mated cost is equivalent to $30.4 million. The Bank has been requested tomake a loan to cover the foreign exchange cost of this project, estimatedto be equivalent to $17.6 million, including interest during construction.

2. The original design and planning for the hydro portion of the pro-ject were started in 1955 by the combined engineering consultants Olarte,Ospina, Arias y Payan Ltda. of Bogota (OLAP) and Tippett-Abbett-McCarthy-Stratton of New York. OLAP has continued the detailed engineering worksince 1958e Engineering responsibility for the thermal addition, which ispart of the project, has been assigned to the J.GQ Wnite Corporation ofNew York. This report is based on data furnished by EEEB and by theGovernment to a Bank mission which visited Bogota in June 1959.

3. The Borrower would be the Empresa de Energia Electrica de Bogota(BEEB), an autonomous municipal owned public utility which serves the capitalcity of Bogota and vicinity.

4. The project would be executed by EEEB with the engineering assist-ance of OLAP,

II. TTHE BORROWER

5. The Borrower, EBEB, is the only utility supplying power in Bogota,a city of about 1 million.

6. Prior to 1946, the Municipality of Bogota owned 51% of the sharesof a private corporation known as Empresas Unidas de Energia Electrica, S.A.which was the successor to two electric utility companies operating inBogota. In 1946, the Municipality obtained an option to acquire the balanceof the shares of the corporation and in 1951 exercised its option, liqui-dated the corporation and thereby acquired and became the owner of allelectric utility properties in Bogota. To finance this purchase, theMunicipality obtained a loan of Ps 12.5 million from four local banks. Inconnection with this loan, the Municipality entered into a trust agreement("fideicomiso"), which will expire wnen the bank loan matures in 1968, pur-suant to which agreement the banks have the right to and in fact had electeda majority of three out of five members of the Board of Directors of thesuccessor enterprise known as the Empresas Unidas de Energia Electrica deBogota. The result of this arrangement was that the administration of theenterprise was autonomous and that its management was in private hands.

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7. In June 1959, the 1.unicipal Council of Bogota adopted a resolutioncreatirng, pursuant to law, an autonomous entity called Empresa de EnergiaElectrica de Bogota with a duration of 99 years, which will continue to beadministered until 1968 according to the terms of the trust agreementmentioned above. By another resolution, the Municipal Council authorizedan increase in the membership of the Board of Directors of Empresa from fiveto seven members and by agreement between the Yunicipal Council and the banksthe Board of Directors has been increased to seven meinbers, of whom four arechosen by the banks and three by the Municipal Council.

8. The present Empresa, also referred to as EEEB, is a juridical entitywith legal capacity, among others, to conclude agreements with the Bank. Inaddition, it has, or can obtain by existing legal procedures, various rights,including the right to acquire land, necessary for the execution of the pro-ject. It is an autonomous enterprise under the direction of a Board ofDirectors who choose a manager responsible for the operations. Its managercan represent it in dealings with third persons. The actual organizationof the enterprise is regulated by the stipulations of the previously mentionedtrust agreement, and the enterprise has been administered in a strictly com-mercial way.

9. As a condition of effectiveness of the proposed loan, the Bank willreceive appropriate assurance that the Municipality, after expiration ofthe present trust agreement, will select the Board in a manner calculatedto continue the autonomous nature of the enterprise.

Management

10. The Board of Directors is responsible for all policy matters. Theoperational head of the enterprise is its manager. On the basis of itspast performance EEEB is judged to be capable of carrying out the con-struction of the proposed project and of operating it after completion.

Present Installations

11. The existing generating facilities consist of 113.5 MW of hydrocapacity in three plants and 14.5 Mi of thermal capacity in one plant. Twoof the three hydro plants are relatively new and account for 108 Md. Thesmall thermal station is not continuously used but is well maintained andreliable. All of these plants are located along the Bogota River about 25to 35 kilometers downstream from Bogota. The hydro facilities have thebenefit of some regulation of the flow of the Bogota River achieved by twostorage reservoirs (Neusa and Sisga) on tributaries and a regulating reser-voir (Muna). Only the regulating reservoir is owned by EEEB, but co-operative arrangements have been established with the public agenciesconcerned for the operation of the storage reservoirs so that optimumregulation of the streams might be obtained.

12. The transmission system consists of three double circuit steeltower transmission lines which connect the plants with seven substations

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in Bogota which have, in total, a combined capacity of 185.5 YTVA. All areoperated at 57.5 kv0 One line is insulated for 115 kv operation which willbe the future operating voltage. BEEB also owns a modern steel tower trans-mission line that extends north about 45 km toward Zipaquira. This line isinsulated for 115 kv and will be used to tie in the 33 Y9 thermal plantwhich will be located in the Zipaquira area.

13. The Emoresa oino distAibution facilities in Bogota and thesurrounding area as well as facilities for supplying wholesale power toseveral small neighboriig towns. See Map.

14. The system is isolated and operated as an entity. Due to distanceand topography involved, it will probably be many years before interconnectionwith other networks in Colombia would be feasible.

III. THF. P,E]R MAeRKET

Past Sales anid Load

15. EEEB's sales increased from 158 million kwh in 1949 to 456 millionkwh in 1958, an average annual rate of growth of 12.5%. Division betweenthe three major sales categories remained approximately constant during thisperiod at around 26% residential, 28% commercial and 324 industrial; the re-maining 14% is accounted for by street lighting, traction and other govern-ment uses.

16. The system's peak load increased at practically the same averagerate as sales during the ten year period, The peak load increased from38.7 IrW to 113.5 IW between 1949 and 1958. The system load factor remainedstable at 54%.

17. The yearly growth in system load has varied substantially resultingfrom the fact that expansion in generating facilities did not keep pace withgrowth in demand. Restrictions had to be imposed on certain types and sizesof load that could be connected. Some restrictions are still in effect, forinstance, at present the use of power for domestic water heating, cookingand space heating is restricted, although there are indications that a largedeferred demand exists in this field in Bogota.

18. A breakdown of past consumption by category of consumer is givenin Annex 1.

Forecast of Future Sales and Load

19. E.EEB and its consultants have prepared a forecast of the expectedgrowth in power consumption in Bogota through the year 1968. This forecastwas primarily based on the assumption that per capita consumption in Bogota,by the year 1968, would equal that presently experienced in Medellin. Suchan assumption may be reasonable but would result in a somewhat higher rateof growth, after allowing for the transitional effects of deferred demand,than can be prudently adopted in this report. The forecast of future salesand load, which is used in this report, takes into account the fact that the

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system will necessarily continue to operate with restrictions to normaldemand until the end of 1961. From 1963 on, it is forecast that kwh saleswill increase at an average annual rate of 13% and that load or demandwill correspondingly increase at a rate of 10%, It is further forecastthat restrictions which will be severe in 1961, w-ill cause the load factorto increase by then to 53Y%. The availability of adequate generating Ca-pacity at the beginning of 1962 will, conversely, result in a decreasedload factor to 50% for 1962 and 1963, after which an annual improvementof 1% per year is expected as consumption levels grow.

20. The main features of the expected future load on the EEEB systemare as follows:

Estimated Future Annual Sales and Load Characteristics

Year Gross Sales in Rate of Peak Load LoadGeneration in million kwh increase in KW Factormillion kwh in Sales in I

1959 604 513 12.6 127 541960 677 577 12.7 141 551961 762 649 12,5 150 581962 900 765 17.9 205 501963 1044 887 15.9 236 501964 1174 1010 13.0 263 511965 1330 1140 13,O 291 521966 1480 1275 13,0 318 531967 1650 1425 13.0 348 541968 1834 1580 13.0 380 55

21. The use of energy by EEEB and the system's losses are expectedto decline from 1501% in 1959 to 13,8% in 1968. These rather large per-centages are due to the fact that substantial use of energy by the companyfor pumped water storage is anticipated. One pump installation is in pre-sent use and another is included in the proposed project.

22. The existence of excellent hydro resources, close to Bogota andfeasible for development in small increments as needed and with relativelyshort construction periods, lessens the need for detailed long range loadsurveys for the Bogota area. The forecast used is realistic and permits areasonably conservative approach to the analysis of the present project.

23. Arinex 2 shoTws in more detail than the above table the estimateof future load arowth charact'eristics.

IV. THE PROJECT

24. The project provides for an expansion of the hydro developmentscarried out 'oy EEEB in the reach of the Bogota River just after it traversesthe plateau of 3ogota, a wide flat pre-historic lake bed situated at anelevation of 2,250 meters above sea level and having a drainage area of4,270 square kilometers. The river meanders across this plateau and begins

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its precipitous drop toward the Magdalena River valley near the village ofAlicachin about 20 kilometers west of the city of Bogota. In its first 24kilometers after leaving the plateau, the river drops 1,800 meters, and inthe next 90 kilometers it drops an additional 420 meters, thus provIding anextremely favorable situation for hydro power development. The project takesadvantage of this situation, In addit'ion, the project provides for instal-lation of a relatively small amount of thermal capacity which is necessaryto provide a reasonable hydro-thermal balance to the system, The technicalfeatures of the project are more fully described in Annex 4 and on the ac-companying map,

25. The project consists of:

(a) The addition of a fourth 18 Mr unit to the existing Lagunetahydro plant on the Bogota River.

(b) The construction of an earthfill (Tomine) dam and regulatingreservoir on the Siecha River, a tributary of the Bogota River.

{c) The construction of a new 66 IYU hydro station (Salto II) onthe Bogota River.

(d) The installation of a 33 I4W thermal plant near Zipaquira.

(e) The improvements and expansion of EZEB's transmission anddistribution system.

(f) Engineering and investigation for further hydroelectricexpansion.

(a) The Laguneta Addition

26. The Laguneta plant which was completed in 1957 includes threegenerating units, each of 18 W.M Provisions were made during the con-struction of this plant for the addition of a fourth unit. The installationof the fourth unit, which is provided for in the project, will require amodest arqount of civil work at the plant and will include extension of thepowerhouse. Orders for the equipment for this additional unlt have beenplaced. Awards were made after international bidding and were in accordwith recommendations of EEEB's consulting enginieers. EEEB has already paidout about $100,000 on the equipment.

(b) The Tomine Dam and Reservoir

27. The project includes the first stage construction of the Tomineearthfill dam and reservoir on the Siecha River, some 190 river kilometersupstream from Alicachin, the point below which -EB's hydro developmentsbegin, Successful operation of the series of hydro developments plannedwill depend to a great extent on this upstream storage on the Bogota River.The three existing reservoirs on tributaries of the Bogota have storagecapacity to regulate the flow at Alicachin to about 12,1 cubic meters persecond based on the driest 5-year period in the last 90 years and to 14,0cUbDic meters per second on the basis of the second driest 5-year perlod,

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The Tomlne reservoir Will, in its initial stage, increase the regulatedflow at Alicachin by approximately 4.3 cubic meters per second.

28. The initial stage included in the project provides for constructionof the dam to a height of 38 meters, It would be so constructed as to allowfor future heightening by 11 meters. The dam would impoumd a reservoir of299 million cubic meters in the initial stage and 639 million cubic metersafter the 11 meter heigl-htening. The initial stage also includes a controlstructure on the Bogota River and a pumping plan:t with one 3,000 horsepowerelectric powered pump which will be used to transfer the surplus, non-regulated flow of the Bogota River to the reservoir. The pumping facilitywould be designed for an ultimate installation of four pumps.

29. Designs are sufficiently advanced to allow reasonably firm costestimates to be compiled.

(c) The New Salto Hydro Plant

30. The Salto site has been used for electric power production formany years. The first 4 lid station was developed in 1923. Between theyears 1939 and 1941 the generating facilities were expanded by 50 M$4. TheSalto plant utilizing a gross head of 419 meters along only 2.4 kilometersof the Bogota River is an excellent hydroelectric development.

31. The various regulation works that have been completed on thetributaries of the Bogota since 1941 plus the Tomine reservoir, which isincluded in the current project, will increase the minimum flow of the riversufficiently to permit the development of an additional 66 1Wil at the Saltosite. A completely new plant, however, will be required. Details of thisplant are given in Annex 4.

32. Plans have been prepared by the consultants and are well advanced.Internationally competitive bids have been received for the equipment andaward recommendations made by the consultants. The cost estimates are there-fore realistic. It is expected that EEEP will soon award contracts for majorequipment.

(d) The 33 NJ Thermal Addition

33. The Government, in 1956, had contracted with a group of Frenchsuppliers for the supply and erection of a two unit (2 x 33 MhN) thermal plantwhich was to be located near Belencito. For various reasons this plant hasnot been put into commission by the Government. The EBEB has theref.ore con-cluded a contract with the Government for the sale of one of the 33 FM unitsand will install it near Zipaquira. The foreign exchange cost of modifyingthe equipment and of additional equipment necessary to adapt the plant tosingle unit operation is included in the proposed loan and this installation,in total, is therefore a feature of the project.

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(e) Imrrovement in the DMstribution and Transm-ission System

34. The proposed project will add 117 ENT to 'EEB's system, or anincrease of about 90N to its generating capac-ty. This will necessitateextensive improvement and rehabilitation in the transmission and distri-bution facilities for the full utilization of new nower. There will bean increase in voltage of the main transmission lines from 57.5 kv to 115 kvwhich will necessitate improvement in existing facilities as well as somenew lines, There will also be an expansion in the existing substations aswell as the construction of new substations to serve the expanded generatingfacilities. The expansion and rehabilitation of the distribution systemincludes increasing the number of transformation points in the secondaryas well as in the primary networks which is expected to reduce the lengthof distribution and lessen the voltage drops. The secondary system will berehabilitated and additional capacitors and regulators will be introducedto improve the voltage conditions.

35. Detailed studies of the transmission and distribution work thatwould be carried out as part of the project are being made.

(f) Engineering for Future Development of the System

36. EEB intends to develop future hydro installations downstreamfrom existing plants as new capacity is required. Detailed engineeringinvestigations are to be started in 1960 to assure optimum development ofthe remaining nearby hydro sites. For that purpose, the proposed loan in-cludes an amount to purchase geological investigation equipment and to fin-ance in part engineering studies which will ultimately form the basis ofEEEB's further expansion program.

Estimated Cost of the Project

37. The project is estimated to cost the equivalent of $30.4 million,including interest during construction, of which $17.6 million would be inforeign currency. Deducting interest during construction,the cost ofimprovements to the distribution system in Bogota, and the allowance forengineering work for futiure developments, results in an overall costof $196 per KJ installed, which is very lowT. Work in progress of the equiva-lent of $100,000 would not be included in a loan. The foreign exchange andthe local currency cost of the items included in the project are shown inthe following table (a detailed breakdown is shown in Annex 5):

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Estimated Cost of the Project

Foreign LocalItem Exchang Costs Total

tin thousands of dollars)

Laguneta addition 623 249 872Salto II 3,156 1,661 4,817Thermal muat 2-835 4,001 6,836Tomine dam 1,725 5,438 7,163Transmission 3,185 207 3,392Distribution 3,858 882 4,740Engineering for future 210 250 460development

Total 15,592 12,688 28,280

Less work in progress 100 - 10015, 492 12,688 28,180

Interest during construction 2,108 - 2,108Proposed loan amount 17,600 12,688 30,288

38. The equipment estimates for Laguneta, Salto and the thermaladdition are based on firm bids. The estimated cost of the project in-cludes contingencies amounting to more than 16% on the remaining partsof the project which are realistic and sufficient to cover price increases.These contingencies should be adequate for the construction of the project.

Engineering and Supervision of Construction

39, The firm of OLAP, a well-known Colombian engineering firm, inassociation with other consultants have been advising 'EEB on this project.The engineering is substantially complete for the addition to the Lagunetaplant and for construction of the new Salto II plant. Equipment bids havebeen evaluated for both and awarded. OLAP is presently preparing detailedstudies on the Tomine dam and reservoir. A well-known U.S. consultant(Preston T. Bennett) has been retained by OLAP to assist with the foundationand stability studies. Documents and drawings necessary for bid invitationsare expected to be completed in early 19600 The engineering of the trans-mission and distribution network is now being carried out by EZEB's ownstaff with the assistance of OLAP, and J,G. TThite is preparing the engineer-ing studies for the thermal plant, These arrangements are satisfactory.

40. Construction of the various components which comprise the projectwill present no new problems or procedures to EEE3. The work will be letfor contract in the same manner as had EEEB's other plant expansions in thepast. There are well-qualified contractors in Colombia able to carry outthe work. All contracts will be submitted for competitive bidding. Theengineering supervision of construction will be the responsibility of EEEBforces in association with OLAP.

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Schedule of Construction

41. The execution of the project is scheduled over a period of twoand a half years through the middle of 1962, as indicated in bar chart formin Annex 6. The Laguneta addition is to be completed in July 1960, Salto IIat the end of 1961 and the thermal plant by the middle of 1962. This sched-ule is reasonable.

Rate of Expenditures and Method of Financing

42. It is proposed that the foreign exchange cost of the project whichaggregates about $17.6 million equivalent, including interest during con-struction, be financed by a loan from the Bank. Local currency costs whichtotal about 40% of project cost will be met from the internal resources ofthe Borrower plus a Ps 13.6 million 5-year Government credit for a thermalplant equipment, as mentioned in paragraphs 46 and 65.

43. The rate of expenditures on the project are estimated as follows:

Foreign-V Local2JYear Exchange Currency Total

(in thousands of dollars)

1959 _ 660 66o1960 8,000 3,470 11,4701961 7,310 4,280 11,5901962 2,290 2,710 5,0001963 _ 1,570 1,570

Total 17,600 12,690 30,290

V. FUTURE CAPACITY REQUIREBENTS

The Paipa Thermal Plant

44. EEEB's programing of its future capacity requirements has beencomplicated by the commitment made by the Government to purchase a two-unit66 MJ thermal plant to be located at Paipa and from which a large portionof the energy was expected to be delivered to EEEB's system at Zipaquiraover a transmission line of 140 km in length. This was notwithstanding thatengineering studies had concluded that the Paipa plant would be a very un-economic source of energy for the Bogota area since it would inevitably costmuch more than the EEEB system's hydro. At the time the Bank's missionvisited Bogota, the arrangements for ETEB to utilize the Paipa plant's outputhad progressed to the point that EEEB had agreed to contribute some Ps 20million toward the cost of erecting the plant and thereafter to purchase

J Includes interest during construction./ Includes in 1959 costs incurred in 1958 and in 1963 costs of 1964.

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power from it at a rate to be negotiated which presumably would cover theportion of the capital charges and operating costs of the Paipa plant re-presented by the energy taken by EZEB's system.

45. For the future hydro-thermal balance of EEEB's system and forpeaking purposes it is desirable that by some time in the mid-1960's EEEB'ssystem should have some additional thermal capacity, probably in the orderof 30-40 NW. Because of this situation, J. G. Thite made an engineeringstudy for Electraguas which concluded that it is feasible to split the Paipaplant into two 33 MNW stations. Because of this feasibility the Bank recom-mended in a letter dated July 24, 1959 to the Minister of Fomento that thiscourse of action be adopted and one of the 33 I-W units be sold to EEEB andlocated at a point within EEEB's system. A feasible location for a thermalplant to serve EEEB's system had already been determined to be Zipaquirawhere a local coal supply and adequate cooling water are available. TheZipaquira location would eliminate substantial transmission costs which,under the original scheme, would have been encountered.

46. Arrangemerts have now been concluded between E =B and the Govern-ment to cover purchase of basic equipment for one 33 IW unit. The price isfirm at Ps 16 million plus Ps 2.622 million in-terest and will be paid in 5annual installments. Other costs of completing the installation are esti-mated to be Ps 12.0 million plus $2.835 million. The total cost of theplant is therefore estimated to be equivalent to $6.835 million, or about$207 per installed Kw.

The F-uture Expansion Program

47. By the end of 1961 the proposed project, which is described above,would add 117 MS to the capacity of the system. Based on the load forecastoutlined, it appears that this capacity would be fully utilized by the endof 1963. Additional capacity would have to be made available shortlythereafter.

48. Following the execution of the proposed project, it is estimatedthat future generation capacity would be added to the system by a seriesof hydro developments as follows:

Plant Completion Date

Canoas (40 N) End 1963Neusa (25 W) Mid 1964Tena I-1 (62 N) End 1965Tena I-2 (62 M) End 1967El Colegio (105 MW) End 1969

Construction costs of this program have been included in the financial fore-casts outlined in Section VIIe The schedule of construction would, of course,be adjusted in light of actual load growth. The program, related to the ex-pected growth in demand, is shown graphically in Annex 3. The map at the endof this report shows the physical location of the above plants as well asthose existing and those included in the project,

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VLI. COFARISOH I'TH A THi'iRAL ALTE[RNATIVE

49. The cost of the hydro portion of the project less the cost ofthe proposed additions to the transmission and distribution facilities,which would be common to either thermal or hydro generation sources, andless the cost of engineering for future development is estimated to beequivalent to about $12,9 million. This includes the total cost of theTomine reservoir9 all of which is not strictly chargeable to the presentproject because the regulation provided will make possible future hydroadditions as well as some additional generation from existing plants.Even on this conservative basis, the cost per hydro kilowatt added isonly about $154. The project is a more economic source of power than anyalternative thermal plant of equivalent capacity.

VII. FINA!CIAL ASPECTS

Rates

50. The charge for electricity in Bogota has been and still isextremely low. Prior to the rate increase described below, the averagerevenue per kwh sold in 1959 (converted to U.S. dollars at 8:1) was only5.35 centavos (6.7 U.S. mills), one of the lowest in the world.

51. A rate increase which became effective December 1, 1959, willincrease this average to about 6.8 centavos (8.5 U.S mills). This in-crease was based on a forecast of capital requirements made in early 1958for a considerably smaller program than the present one. As a consequencea further rate increase to 8 centavos (10 U.S. mills) is necessary andwill be a condition of effectiveness of the proposed loan.

52. It appears that another rate increase will be necessary in 1962to provide revenues adequate to enable 3EEB to proceed with the next stageof its expansion program.

Internal Audits

53. EEEBts financial statements are prepared by an auditor appointedby the Board of Directors. Although the auditor technically reports onlyto the Board, his assignment is full time and he is on EEEB's payroll. Toconform with sound financial practice EEEB has agreed to have its annualfinancial statements certified by an independent accounting firm satis-factory to the Bank.

Present Financial Position

54. Condersed balance sheets for the years 1953 through 1958 areshown in Annex 7. Fixed assets are carried at original cost. As ofDecember 31, 1958, net fixed assets in operation amounted to Ps 108.0million ($13.2 million). Reserve for depreciation totaled Ps 23.8 million($3.0 million) and work in progress Ps 16,0 million ($2.0 million). Asubstantial part of book value represents recent plant additions. Grossfixed assets plus work in progress almost doubled between 1955 and 1958,increasing from Ps 79.1 million ($9.9 million) to Ps 147.9 million ($18.5million).

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55. The capitalization at the end of 1958 consisted of Ps 40.7million ($5.1 million) of debt and Ps 89.6 million ($11.2 rrillion) ofequity. The debt/equity ratio was 31/69. About 90% of the debt at thattime, however, was either short term or scheduled to mature by the end of1961.

56. The debt consisted of the following:

Peso Obli7ations In Millions

Municipalization Debt Ps 8.25 $1.0Short Term Bank Loans 15.08 1.9Long Term Mortgage Loan 5.08 6Other Debt 2.22 .3

Total 30.63 3.8Foreign Suppliers' Credits 10.08 1.3

Total Debt Ps 40,71 $5l

57. The Ps 8.25 million municipalization debt was the balance due ona Ps 12.5 million long term bank loan incurred in 1951 by the Municipalityof Bogota to exercise an option to purchase the then outstanding 49%minority interest in EEEB. Annual maturities of Ps 0,375 million arescheduled for 1959 through 1962; annual maturities of Ps 1.5 million andPs 3.75 million are scheduled for 1963 and 1964 respectively, and there-after annual maturities of Ps 0.375 million are scheduled through 1968.Under an agreement reached last June with the Municipality, EEEB hasformally assumed this debt and adjusted its financial statements accordingly.

58. It was agreed during negotiations that short term bank loans,which at the end of 1959 totaled approximately Ps 17.75 million, will beextended so that Ps 5 million matures in 1962, Ps 6,375 million in 1963and Ps 6.375 million in 1964. Evidence has been received from the localbanks which satisfactorily substantiate this. The Ps 5.08 million longterm mortgage loan maturing through 1962 is secured by the Salto I hydroplant. The relatively small size of this loan and its early maturity donot appear to require that the proposed Bank loan be secured. Foreignsuppliers' credits are mostly U.S. dollar obligations.

59. Additional debt incurred in 1959 includes a Ps 13.6 millionobligation to the Government, repayable over the next five years, in-curred to finance in part the purchase of the basic equipment of the33 MW thermal unit. EEEB also purchased through suppliers' creditsPs 7el million of equipment, principally for the fourth unit at Laguneta.

60. In addition to its debt obligations, EEEB is required to creditannually as a dividend to the Municipality 10% of net profit to be usedexclusively to cover future billings for street lighting and improvementof the municipal street lighting system. Although it can be argued in

- 13 -

this connection that the principle of the Municipality's paying its billsfor services received would indeed be sound, it is felt that in view of'this established practice it would be unrealistic for the Bank to insiston this point.

61. Total equity has increased from Ps 29.2 million ($3.7 million)in 1953 to Ps 89.6 million ($11.2 million) in 1958. Capitalized interestaccounted for Ps 4.7 million ($0.6 million) or 8y6 of this increase, whereasthe balance of Ps 55.7 million ($6.9 million) is attributable to retainedearnings. As previously mentioned, the Municipality is the sole owner ofEEEB.

Past Earnings Record

62. Earnings in recent years are shown in Annex 8. Gross income in-creased from Ps 8.8 million ($1.1 million) in 1954 to Ps 18.4 million($2.3 million) in 1958, producing a return on net fixed assets, includingwork in progress, varying between 19.7% in 1954 and 13.8% in 1957. Thereturn in 1958 was 14.8%.

Financial Plan

63. A ten year forecast (1959-1968) of Sources and Applications ofFunds is given as Annex 9. As previ-ously discussed, the forecast demandfor power in the Bogota area involves a long range program of sizable plantadditions and considerable capital expenditures. During the four-yearperiod ending 1962, plant additions and working capital requirements areestimated to aggregate Ps 334 million ($41.8 million) as follows:

a) Ps 226 million ($28&3 million) - The proposed Bank projectand minor current additions.

b) Ps 7 million ($0.9 million) - Provision for additional workingcapital requirements.

c) Ps 101 million ($12.6 million) - Provision for initial ex-penditures in 1961 and 1962 for future expansion.

64. At the time the Bank appraised the project, EEEB was faced withmajor problems in financing these requirements. Its rates were inadequateto generate sufficient funds both to service its rapidly maturing debt andto provide a reasonable portion of the cost of the proposed initial projectand the overall expansion program. However, during and prior to negotiations,a satisfactory financial plan was evolved to improve EEEB's financialposition and to provide the forecast Ps 334 million capital requirementsfor the period ending 1962. In summary EEEB has:

a) agreed to increase internal cash generating by obtainingfurther rate increases to be effective not later than April 1,1960, which will produce average revenues per kwh sold of8 centavos;

- 14 -

b) arranged to extend the short term bank loans so that theybecome due in 1962 through 1964;

C) arranged to reschedule the maturities of the Ps 8.25 millionmunicipalization debt so that Ps 4.5 million due in 1959 and1960 is now due in 1963 and 1964.

65. A summary of the forecast of funds available under this financialplan for the four years ending 1962 follows:

In M4illions _____

Interrnal cash generation Ps 176.3 $22.0Less: Debt service and dividends

to Municipality 82.6 2tl93.7 11.7 27.5

Increase in reserve for employeebenefits 11.2 1.4 3.3

Borrowings:Proposed IBRD loan 140.6 17.6 41.3Thermal unit loan 13.6 1.7 4.0Future foreign loans 70.8 8.8 20.8Other 10.4 103 -l2a

Ps 235.4 $z9,4 69.2

Total Funds Ps 340.3 $42.5 100.0

The above summary is based on the rate increase resulting in averagerevenues per kwh sold of 8 centavos to be effective as of April 1, 1960and a further rate increase resulting in average revenues per kwh sold of10 centavos to be effective January 1, 1962.

66. Based on the forecasts used herein, there would be a cumulativecash surplus of about Ps 6.5 million at the end of 1962 to be appliedagainst forecast deficits for 1963 and 1964. Without the assumed averagerate increase to 10 centavos per kwh sold on January 1, 1962, there wouldbe a cumulative cash deficit at the end of 1962 of about Ps 13 million.EEEB's power requirements and financial resources must, of course, beappraised continuously. Around mid-1961 a revised financial plan must bedeveloped on the basis of the data then available to carry out the nextstage of expansion. The amount and timing of rate increases (beyond the8 centavos average revenues per kwh sold to be obtained immediately) wouldbe determined definitively at that time.

Estimated Future Earnings

67. Forecast income statements for the ten years ending 1968 areshown in Annex 8. Gross income is estimated to increase from Ps 1808million ($2.4 million) in 1959 to Ps 33.6 million ($4.2 million) in 1960,

- 15 -

Ps 38.7 million ($4.8 million) in 1961 and Ps 57.2 million ($7.2 million)in 1962, mairly reflecting the previously mentioned rate increases.

68. Over the ten year period (1959-1968) the return on net fixedassets in operation would average about 14o and the return on total netfixed assets, including work in progress, would average about 11 %.

Debt Service Coverage

69. Based on the rate increases cited in this report it is forecastthat debt service, which would be covered about 1.5 times in 1959, wouldbe covered 2.4 times in 1960 and 2.9 times in 1961. Thereafter through 1968debt service would be covered 2.4 or more times.. These coverages are yearend ratios. Inasmuch as some additional interim financing is forecast asbeing necessary in 1963 and 1964, the debt service coverages from 1963 onmight be modestly lower. The proposed Loan Agreement contains a debtservice covenant which would operate to limit excessive borrowings in theabsence of adequate earnings or adequate rate increases.

Debt/Equity Ratio

70. The sizable expansion program proposed will materially changeEEB's capital structure, The debt/equity ratio is forecast to increasefrom 31/69 in 1958 to about 50/50 in 1962 and to remain at about that levelthereafter as shown in Annex 7.

VIII. JUSTIFICATION OF THE PROJECT

71. The project is needed to meet the growing power demand in theBogota area. The market for power in this area justifies the installationof the proposed facilities which are expected to be fully utilized shortlyafter the completion of the project. The project should play an importantpart in eliminating the power shortages which have plagued the Bogota areafor many years.

IX. CONCLUSION

72. The proposed project to be executed by the Empresa de EnergiaElectrica de Bogota is technically sound and the estimated cost isreasonable.

73. The project is necessary to meet the expected load growth re-quirements of the system. There is no alternative method of meeting theserequirements that would compare favorably on an economic basis,

74, The management of EEEB is qualified to execute the project andto operate the expanded power system.

75. EEEB's present and projected financial condition is satisfactory.lUhen the loan becomes effective rates will be adequate to generate fundssufficient to service debt and to contribute in a satisfactory ratio tothe cost of expansion. EEEB and the Government have agreed to maintain a

- 16 -

rate level that will cover full costs of operation, debt service or de-preciation, whichever is greater, dividends, if any, and a reasonablesurplus to fir;ance new investrient. The definition of "a reasonablesurpluss" has been satisfactorily agreed upon.

76. The project would be suitable for a Bank loan of $L7.6 millionequivalent for a term of 25 years, including a 3 year grace period onamortization.

EIIRESA DE ENERGIA ELECTRICA DE BOGOTA

Summary of Past Energy Consumption by Category and Peak Load

(in kwh millicns and megawatts)

Category cf 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958Consumer _

Residential'i/ 40.4 46.5 51.3 55v0 62.1 70.8 80o9 91.8 106.1 131,7Ccmmercial 34.5 41.9 49.8 56,5 71.4 85,3 96,3 106.9 114.9 123.9

Industrial 52.1 61,3 68.4 66.7 81,3 9310 10321 110.1 119.2 138.8All Other 30.8 32.3 30o6 32.2 3435 38.0 41,4 44.5 53.9 61.7

Total 157.8 182.0 200.1 210.4 249,3 287.1 321,7 353.3 394.1 456.1

Anrual SalesIncrease % - 15.5 10.0 5.0 18.5 15,0 12.0 10.D 11.5 15.5

(average 12.5%)

Peak Load 38.? 44.1 45,8 54.7 61.4 68.6 70.4 76o0 1ioo6 113,5

Annual LoadIncrease % - 14.0 4.0 19.5 12.0 12.0 3.0 8.D 32.5 13,0

(average 12,75%)

/ Includes the category of wholesale sales as EEEB

considers that practically all are for residential

consumption

EMPRESA DE ENERGIA ELECTRICA DE BOGOTA

Method of Developing Residential Sales Forecast

Population irr/ Residential Population Sales per ResidentialService Area Accounts per Account Account Sales(thousands) (thousands) (kwh) (millions kwh)

(a c t u a 1)

1950 703.1 47,9 14,7 973 46c51951 739.1 50e3 14,7 1,020 51.31952 761.5 53.0 14.4 1,039 55.01953 815.6 55-0 14,8 1,130 62.11954 870.9 58.8 14.8 1,200 70,81955 939.5 64.0 14e7 1,262 80o91956 1,013.8 67.9 14,9 1,350 91.81957 1,083.5 73.6 14,7 1,442 106,11958 1,187.7 81.5 14.6 1,615 131,7

(f o r e c a s t)

1959 1,278.0 86.9 14.7 1,780 154.31960 1,373.0 93.0 14@8 1,925 178.91961 1,473.5 97.3 15S0 2,120 206.01962 1,569.0 105,0 14.8 2,360 248,01963 1,660.0 114.0 14.6 2,590 295.0

1/ Estimated, based on actual population of Bogota

EMPRESA DE ENERGIA ELECTRICA DE BOGOTA

Method of Developing Commercial Sales Forecast

Residential Commercial Ratio of Sales per CommercialAccounts Accounts Residential Commercial Sales

to Commercial Account(thousands) (thousands) (thousands kwh) _(millions kwh)

(a c t u a 1)

1950 47.9 19.5 2.46 2,15 41,91951 50.3 21.9 2.30 2,28 49.81952 53,0 23.7 2.24 2.38 56,51953 55.0 25.7 2.14 2,78 71.41954 58.8 26.9 2,18 3.17 85.31955 64.0 28,5 2.24 3.38 96e31956 67,9 29.9 2.27 3,58 106,91957 73.6 30.0 2,56 3.83 114.91958 81.5 30.4 2.68 4.07 123M9

o r e c a s t)

1959 86.9 31.0 2.80 4.33 134,01960 93.0 32.0 2.90 4.61 147.51961 97,3 33.8 2.88 4.93 166.5 z1962 105,0 36.8 2,86 5.33 196.o1963 114,0 40,2 2,84 5,76 232.0

H3

EMPRESA DE ENERGIA ELECTRICA DE BOGOTA

Method of Developing Industrial Sales Forecast

Industrial Sales per IndustrialAccounts Account Sales(thousands) (thousands kwh) (millions kwh)

(a c t u a 1)

1950 2,57 23.9 61.31951 2.29 29.9 68.41952 2.39 27.9 66.71953 2.44 33.3 81,31954 2.50 37.2 93.01955 2.61 39.5 103.11956 2.54 43.4 110.01957 2.61 45.7 119.21958 2.91 47.7 138.8

o r e c a s t)

1959 3.23 50.0 161.11960 3.50 52.6 184.01961 3.70 55.2 204.01962 3.93 62.0 244.01963 4.13 67.o 277.0

EMPRESA DE ENERGIA ELECTRICA DE BOGOTA

Recapitulation of Sales and Generation Forecast

Sales millions kwh) Generation jirllions kwh)

Residential/ Commercial Industrial Other Total CCmpany Use Losses Gross

1959 154.3 134.0 161.1 63.6 513.0 7.0 84.0 604.01960 178G9 147.5 184.0 66.6 577.0 7.0 93.0 677 ,01961 2060o 166.5 204.0 72.5 6490o 7.0 106,0 762.01962 248,0 196cO 244,0 77.0 765.0 20.0 115cO 900.01963 295.0 232.0 277.0 83,0 887.0 23.5 13395 1i044.01964 1,010.0 24.0 140,0 1174.01965 Total sales beyond 1963 are forecast to 1,140.0 29,5 160.5 1,330M01966 increase at an average rate of 1,275.0 30,0 175.0 1,480,01967 approximately 12% per annum 1,425.0 30,0 195.0 1,650,01968 1,580.0 34.0 220,0 1,834.0

1/ Includes wholesale sales

CD

El ColegioNvF I05 MW

500 (. -(End 1969)N

-Q IS434

/IR' PROJECT H400 __ 0 o

o300 k *.X<~~~~~~~~ ~ ~ ~~ 2 0 CS 12f 1 -

L /NT4LE zr (277

1200 w ___

w z~~~~~~~~~~~

PA~ ~ 4PAT LES COLOMBIA

- 0~~~~~~~~10

4 00

LAR6ESrUN/TfMWJ LOAD ak CAPACITY DEVEL.OPMEN1 IEmpresca de Energia Electrica de Bogota

0 -j~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r

1958 1959 192_0 1961 1962 1963 1964 1965 1966 1967 1968 1969 m

DECEMBER 1959 YEARS IDRD-603R (

ANNTEX 4

TECHNICAL FEATPUTES OF THE PROJECT

The Bog-ta Piv,er

1. The Bogota River, a tributary of the Mlagdalena River, flows south-westerly approximately 370 kilometers from its origin, at an altitude of2590 meters, ten kilometers northwest of the town of VTillapinzon, to itsconfluence with the Magdalena River, near the city of Girardot. It hasa drainage area of about 5730 square kilometers. The first 256 km (7Mof its total length) traverse the Sabana cie Bogota, a plateau situated atan elevation of 2,550 meters above sea level with a drainage area of4,270 square kilometers. The average slope of the river from the con-fluence of the Siecha River to the Muna River at Alicachin, a distance of200 kilometers is only .012%. At Alicachin where the river leaves the Sabana,it falls rapidly aescending in the next 114 kilometers about 2,220 metersuntil it reaches the Miagdalena River. The fall in the first 24 kilometersas it leaves the plateau is about 1,800 meters,

Existing Reservoirs

2. Three reservoirs which affect the flow available for hydro plants inEEEB's system have been constructed in the Bogota River basin during thepast 13 years. Only one, the Muna Reservoir, was constructed exclusivelyfor power regulation. The Muna Reservoir, completed in 1950, dams the Muna Rivejust upstream from where it enters the Bogota at Alicachin. It is an earth-dam of about 20 meters maximum height and has a capacity of 42 million cubicmeters. An adjacent pumping plant with a capacity of about 4 cubic metersper second allows storage of Bogota River surplus for short term regulation.

3. The first dam for the regulation of the Bogota River, for irrigationand flood control, was the Sisga dam, on the Sisga River. This dam com-pleted in 1951, is an earthdam of about 54 meters maximum height with acapacity of 94 million cubic meters. It is regulated for hydroelectricbenefit. This dam was built and is owned by the "Caja de Credito AgrarioIndustrial y Minero".

4. A year later a second dam, the Neusa dam, was completed on the NeusaRiver, a tributary of the Bogota. It is an earthdam with a maximum heightof about 45 meters, forming a reservoir with a capacity of about 110 millioncubic meters. The normal reservoir level, at an elevation of 2,975 meters,will be utilized in the future by a 345 meter head, 25 DU peaking Dlant.The dam ivas built by the "Banco de la Republica" for the benefit of the"Acueducto de Bogota"., and for irrigation and flood control. The reservoiris also operated for river regulation for hydroelectric benefit,

5. The Acueducto ?ivunicipal de Bogota built the La Regadera dam in 1942to supply water to the city of Bogota. The reservoir located at theheadwaters of the Tunjuelo River, tributary of the Bogota, has a capacityof h.5 million cubic meters. In 1950, the sane company finished theChicaca dam on the Chisaca River, tributary of the Tunjuelo River. Its

ANNEX 4 - Page 2

capacity is 5 million cubic meters. These two reservoirs are operatedexclusively for Bogota's water supply. Their operation does notmaterially affect the regime of the Logota River.

Tomine Reservoir

6. The Tomine dam which would be includied in the proposed project,would be located on the Siecha River 2,500 meters upstream from the con-fluence of the Siecha and Bogota, about 5O km from the city of Bogota.The control weir on the Bogota would be located just downstream from themouth of the Siecha River. The reservoir would control the Siecha Riverbasin, an area of about 350 square kilometers, and by means of the BogotaRiver control weir and initial pump station of 3,000 hp capacity, wouldpermit storage of the Bogota River's surplus flow. The area, which wouldbe controlled from the pump station, includes the Siecha River basin, andwould cover 920 square kilometers or 21.61a of the total Bogota River basin.

3am

7. This would be an earthfill dam with inclined impervious clay coreand a concrete cut-off membrane in the upstream toe of the dam, extendingto rock. The upstream face is protected by riprap and the downstreamprotected by sod. The designi of the initial construction would permit afuture 11 meter heightening of the dam. Principal characteristics of thedam are as follows:

Dimensions Stage 1 Stage 2

Dam

Height above ground 30.2 m 41.0 mHeight above excavation 38.0 m 49,0 mCrest length 325 m 350 mCrest elevation 2,594.2 m 2,605.0 mVolume of fill 1,020,000 m3 820,000 m3

Slopes (upstream & down) 2.5:1Mlaximum depth to cut-off 60 m

SpilIway

Crest length 25.0 m 25.0 mCrest elevation 2590.6 m 2602.0 mCapacity

At R.L. 2592.7 185 m3/sAt R.L. 2594.2 470 m3 /sAt R.L. 2603.5 100 m3/sAt R.L. 2605.0 325 m3/s

The spillway would consist of an unlined open channel cut into the rightabutment with an initial concrete crest which would be raised by an archdam for Stage 2.

A1,71EX 4 - Pag-e I

Foundations

8. Foundation studies have, and are, being made by OIAP with the helpof a well qualified consultant. Extensive drillings have been completedand the decision has been made to excavate the top 6-8 meters which con-sist of organic clays. Then, without dewatering, the excavation wouldbe filled with clean, pervious material. The foundation will be builtup over sand and gravel strata, 10 to 50 m thick, that overlie sandstoneand shale. The depth of the excavation, the high permeability of the sandgravel strata, the size of the area and artesian head combine to preventeconomical dewatering. Foundation conditions are difficult, but in theopinion of the consultants, the soft clays and silts can be replaced bywet excavation and fill to provide a foundation at least equal to thenatural conditions which have been found acceptable under many of theexisting earth dams.

Saddle Dam

9. A lateral saddle beyond the main dam! right abutment will beclosed by a simple earthfill impervious core damr. It will contain about500,000 cubic meters of fill in the first stage and require another190,000 cubic meters for the stage 2 extension. It will have the sameslopes and face protection as the main dam. The foundation should pre-sent no problem.

Outlet

10. The hill, or "island", that will remain between the main andsaddle dams will contain the outlet tunnel. This tunnel will also serveas an inlet conduit for pumping from the Bogota. The tunnel will be 2.5 min diameter, concrete and steel lined, 140 m in length controlled by abutterfly valve. Intake capacity will be 24 cubic meters per second.

Reservoir

11. The reservoir characteristics are as follows:

Stage 1 Stage 2

Normal level 2590.6 m 2602.0 mMaximuim level 2592.7 m 2603.5 mNormal area 2352 ha 3340 ha1-1aximurm area 2531 ha 3443 haNormal capacity 299 Om3 639 hm3

Useable storage 279 ym3 619 yn3

Dead storage (at 20 Nm3

elevation 2573.0 m)

Investigations indicate that the reservoir area is well blanketed withimpervious deposits. Potential seepage paths are extremely long as com-pared to the head difference and, therefore, the dam will be structurallysound.

AM\IEX 4 - Page 4

Sedimrentation

12. The reservoir will be capable of storing two axnd a half times thenormal Siecha River floTw. All incominig sediment will therefore be trappedin the reservoir. The Siecha carries a considerable amount of' suspendedsolids as evidenced by visual inspection and by the pattern of depositionof alluvial material still in process at the site. The present alluviumis due to a long period of aggradation which still continues.

13. Reliable sedimentation studies are not available for either theSiecha or the Bogota River. However, the voluime of sediment that theymight carry is conservatively compared to that of the Colorado River aboveLake ibad for the Siecha and to the 1iissouri River at Omaha for tile bogota.On this basis, and assuming that 12 cubic meters per second (50,of ultimate panping capacity) were continuously piiroed from the Bogotaand future diversions, the reservoir life in the first stage would be55 years and in the second, 126 years. Actually, even for the conservativeassun-ptions made, the reservoir life in the first stage would be muchgreater as continuously pumping as much as 12 culbic L-Eti,rs por secondwill not be nossible until after the second stage of thc reservoir andafter the future diversions to the Bogota.

Hydrology

14. The basic data available for analysis of the regime of the bogotaRiver are flow-i records from Tocancipa (30 years) and Salto (25 years)and rainfall records from Bogota (94> years). Flow records are availablefrom 19 other stations (tributaries and main streara) for varying lengthsof timae and rainfall data from 26 other observation points in the basin.Good correlation between rainfall in Looota and stream flow at Salto havebeen establishled. Based on the correlation, it appears that the mosteritical 5-year dry period occurred between 1945-49 and the second mostcritical between 1939-43. Plant capacity has been planned on regulationrelated to the second most critical period.

15. The folloiwing two tables sw-iarize the results of hydrologicalstudies by OLAP on which long range power planning lhas been based. Table1 indicates that progressively, -wTith the upstream developnient contemplatedin the long range developm-ient plan of EERB, the net flow of Alicachin canbe increased from the present 14.1 cubic meters per second to 32.0.Table 2 indicates that, with the rerulation indicated in Table 1, theestirimated hydro potential of the Bogota River to be a total of 945 A1,6.The hydro developments plannned for execution through 1968 are showngraphically on Annexes 3 and 6.

ANNEX 4 .. Pa,

Table 1

Yinimum Useable Stream Flows

Bogota River at Alicachin

(m3/s)

1 Present Gross Losse,3 Yet

A. First critical period 14 6 0.5 14.1B. Second critical period 16,5 0X5 16.0

2. liith Stage 1 Tomine (no pumpping)

A. First critical period 190 1.0 18.0B. Second critical period 20.8 1.0 19.3

3. With 6 m3/s PuLE -ap2cLty

A. First critical period 20.0 1.5 18.5B. Second critical period 21.8 1.5 20,3

4, 'ith Stage 2 Tomine & 16 _m3 /sPump Capacity

A. First critical period 21.1 2X5 18,6B. Second critical period 23.5 2,5 21.0

5. With Future Diversion toBogota Basin

A. First critical period 31.8 305 23.3B. Second critical period 35.5 3.5 32.0

ANMBX 4 P P^g 6

Table 2

3ogota River Power Pro;,ects

Plant Capacity (iiw) '

F1oTwS Charquito Bogota Bogota(n 3 /s) II Canoas Salto Laguna'ta L oa 5 o.6

1A 14.0 21.2 93.8 64el 85.0 149.4B 15.9 24.1 106.5 72.7 95.7 168.02A 17.9 27.1 119.8 81.8 107.0 185.6B 19.6 29.8 131.8 90,0 117.1 202.33A 18.4 27.8 123.1 84.1 109.8 190.23 20.1 30.5 135.1 92.2 120.0 206.94A 18.5 28.0 123.8 84.5 110.4 191.23 20.8 31,6 139.8 95.4 123,9 213.45A 28.1 42e6 188.4 128.6 165,0 281,23 31.7 48.1 213.0 145.4 185.9 315.5

Head (m) 62 94 416 284 352 580Present Capacity - - 54 54 - -

Added by Project _ _ 66 18 - -

Sub-total 3/ - - 120 72 - -

Future AdditionsInitial 16 24 - - 124 211Final 16 24 99 72 62 105Total 4/ 32 48 219 144 186 316

Size of Future (2x16) (2x:4) (3x33) (4x18) (3x62) (6x52.7)Units

J For 50% capacity factorgI Refer to Table 1

3/ Total system hydro including present project, 192 Ixlvi4/ Total hydro potential of Bogota river projects, 945 MW

ANNEX 4 - Page 7

Features of the Salto Addition

16. An existing concrete, gated weir will be used to control the new(and existing) Salto intake. The weir backs up a pond of 50,000 cubicmeters capacity which allows hourly pondage. Trash racks will feed two6.4 x 6.4 x 39.0 m sand traps.

17. iWater will be conveyed through a lined pressure tunnel, 2.65 min diameter and 1,625 m in length to a concrete lined surge tank, 148 mhigh and 6.2 m in diameter and to a single wolded steel penstock 715 min length. Powerhouse and switchyard will be adjacent and aownstream fromthe Salto I plant. Salto II will use part of the eaisting Salto I tail-race. Both plants will discharge direct to the Laguneta intake to preventsand pickup.

Features of the Laguneta Addition

18. The existing plant was planned for the fourth unit addition.The addition will consist mainly of expanding the powerhouse structure,foundations and equipment assembly. The existing switchyard has alreadybeen laid out for the addition.

Features of Transmission and Distribution Improvements

19. The proposed transmission lines from the TLaguneta substation tothe Bogota junction and switching station will be 33 km long. The lineswill be carried as twin circuits on steel towers of standard design, withapproximately 10 towers per mile. Conductors will be ACSR, 26/7, 605%000CM; separate static wires of copperweld steel conductor will be providedfor each circuit. Installation will be for 115 kv at 9,500 feet elevationand will consist of ten 10" disc standard type (Locke, or equivalent)insulators spaced 5-3/4 inches.

20. The general location of the transmission circuits are indicatedon the Appendix Map. Precise locations have not been determined, but asthe result of a study of topographic maps and a general inspection of thearea the consultants indicate that the lines can be iinstalled withoutundue construction difficulties.

21. The present distribution system in Bogota operates at nominalprimary potential of 6,600 volts, with secondary voltage of 260/150. Achange in tne distribution of primary voltage to a voltage of 11,400 hasbeen underway and requires adciitional installations. New lines will haveto be added and cables for operation at the higher voltage. The utiliza-tion voltage in the area is 150 volts. betailed studies are being madefor conversion of the system to the 208/120 volt standard.

LAUTEX 5

ESTIIMATED COST OF TEE PROJECT

(in dollar thousands)

Cost

Forein Local Tot;a'

A. La a AdditionEquipment 62 ,.o 620X0Structure - 62.5 62.5

Laguneta PondExcavation - 75.0 75,0Dike 51e2 51.2Concrete Works _ lOo0 10.0

Sub-total 620.0 198.? 818,7Contingencies 26.3 26.3Enginleering 0 2 _ 26

Total 623.0 246&? 87. 7

B. Salto IILand _ 12.5 12.5Site Work - 25,6 25,6Intakes 15.0 137.5 152,5Tunrel & Surge Tank 55.0 49o,4 545.4Valve Chamber 50.0 30.0 0OPenstock 571.0 1b5.1 736.1Equipment & Structure 1,810.0 285,0 2,095.0Tailrace 14.0 124.5 133.5Switchyard Su-tta40 3o8 a 28*

Sub-tot al T12g755o0 1,309.4 4,064.4Contingencies 276.o 202.0 478,0Engineering 125.0 149.9 2

Total 31156O 1,661.3 4,817.3

C. ThermalPurchase of Government- 2,500.0 2,500,0

owned equipmentModifications to above 100,G - 10OOAdditional equipment 1,200.0 - 1,200.0Transportation 15500 62,5 212.5Erection 270.0 506,3 776.3Structures & Site Work 180.0 576.o 756.oLand - - 30cQ

Sub-total 1,900"O 3.674,8 5,574.8Contingencles 285,0 176r2 461L2Engineering 62o.o 150.0 800.0

Total 2, 835 0 4)001.0 66836.0

ANEX 5 -PageZ

Cost

ForeLrgn Local Total

D. Tomine ReservoirLard _ 1,500M0 1,500.0Road Relocation - 100.0 1O0M0Dam & Dikes-Foundations 10OO 437.5 537.5Earthlwork 580,0 1,762,5 2,342.5Spillway 50.0 75°0 125.0Outlet 150.0 02Z5 212.5

Pump Station:Control Wdeir 75,0 100.0 175.0Pump & Structure 250,0 375,0 625.0Transmission 190.0 22..5 2.5

Sub-total 1,395.0 4,435 .0 5,830.0Contingencies 200.0 677.5 877,5Engineering 1 0 32.50 455.0

Total 1,72500 5,437.5 7,162.5

E9 TransmissionExpansion:Lines 425.0 33.7 458.7Equipment 19570.0 97.5 1,667.5

Intertie 200.0 12,5 212.5Modernization 210.0 6. 216,3

Sub-total 2,405.0 150.0 2,555.0Contingencies 480.0 30,0 510.0Engineering J0 _0

Total 3,1 85.0 207,5 3,392^5

F. Distributi.onExpansion:

Primary 850.0 132.5 982.5Secondary 1,450o0 187,5 1,637.5

Modernization-Primary 250.0 48.7 298.7Secondary 2 O .2758950

Sub-total 3470,0 643.7 3,813 .7Contingencies 63010 123.8 753.8Engineering _20O 115*0_ 173.0

Total 3s 8580 882,5 4,740,5

G. Engineering for Future ProspectsDrilling Equipment 90.0 - 90.0Consulting Services 120.0 125.0 245.0Local Engineering - l?GO12C 0

Total 210.G 250e0 460.0

ANNEX 5 - Page 3

Cost

Forei_r-n Local Total

RecapitulationConstruct!.on 12,245eO lo,4i116 22,656.6Contingencies 1 8'79O0 1,360.8 .,239.8Engineering J7?6.o 91 601 2.32

Sub-total 15,600.0 12,688,5 23,288.5Estimated Irterest During 2,l1O0 - 29100.0Construction

Total 17>70O-0 129, 635 30o388.5

Not Included in Project forIBRD LoanForeign exchange costs of work 100.0 - 100.0in progress _

IBRD Project 17,600o0 12,688.5 30,288.5

COLOMBIA

SCHEDULE OF CONSTRUCTIONEmpresa de Energia Electrica de Bogota

I TEM 1959 1960 1961 1962 1963 LEGEND

Laguneto, 18MW GEOLOGICAL INVESTIGATIONS

1___ _ENGINEERING

w SoItoN, 66MW ___ R 1 BIDDING & PROCUREMENT

O _ _ CONSTRUCTION

a.. Tomine Reservoir 1964 1965 1966 1967 1968

co Tomine Pumping Station

- - __

Zipaquira Thermal _ _

Canoas, 40 MW r_,,,

Neuso,25MW

0

(- Tena-I1,62 MW

_ Tena I-2,62 MW_I-. ~~~~~~~~~~~~~~~~~~~~~~~~z

xEl Colegio, 105 MW _ _ ___x

DECEMBER 1959 IBRD-604R

L'tP iESAS DC ONEDTIA 10CT 0 (A DE BOGOTA

AC UAL AND FORF;C0ST 9A.ANCE SH0 F3 1953-1968

ACTUAL FQRECCA3T

Years Ended or Ending Decsober 31 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968

------------------------------------------------------------------------------ In Thousands of Pesos --------------------------------------------------------------

ASSETS

Fixed Assets 45,661 47,920 51,767 53,241 65,246 131,851 158,356 156,035 270,318 433,581 555,268 637,583 912,416 972,563 1i,34,563 1,077,753Less: DePreciation 13,682 15,104 16,729 18 291 20.316 23,806 28,176 33,315 50,060 31,°51 65.696 83,579 105,009 129,765 155.482 185,259

Net Fixed Assets in Operation 31,979 32,916 35,038 34,9_0 43,930 108,055 120,180 122,720 230,258 381,630 489,572 554,004 807,407 852,798 879,081 892,495

Work in Progress 2,525 11,981 27,372 15,178 65,227 16,035 34,133 119,200 111,135 87,941 129,998 183,895 13,429 25,173 125,177 246,547

Tatal Net Fixed Assets 35,504 44,797 62,510 79,128 109,157 124,080 154,313 282,120 341,393 469,571 619,570 752,899 820,836 867,971 1,004,256 1,138,541

Current Assets (1) 11,788 13,551 16,191 2,56 18,653 15, 9,l39 10,010 fl,783 18,639 10,132 4,1lo 19,898 80,428 112,242 145,206

46,292 58,348 78,601 103,692 127,800 139,591 163,752 252,130 353,176 485,210 630,002 747,009 839,734 9548,399 1,116,500 1,293,747

LISBILITIES

Capitaland Surplus 29,222 37,149 48,859 60,534 74,288 89,626 105,395 136,823 178,720 235,221 298,616 359,864 426,628 491,050 566,lo 649,807

Reserve for EmslsyeBenefits 1,687 2,024 2,507 2,991 3,918 5,084 7,584 10,285 13,185 16,285 19,634 23,284 27,184 31,834 36,034 o0,934

Debt:

E.istingMunicipalization Debt 9,000 9,000 9,000 9,000 8,625 8,250 7,875 7,530 7,125 6,750 5,250 1,500 1,125 750 375Funded Debt 2,957 1,769 2,949 1,554 7,152 5,084 3,715 2,251 659Local Bank Loans 4,900 18,556 16,840 15,080 17,750 17,750 17,750 12,750 6,375Suppliersl Credits 1,076 6,355 7,474 7,304 11,434 10,081 7,721 1,975 348Other 617 646 783 i,oi6 1,802 2,221 1,113 678 _ 493 300 _150

13,650 17,770 25,106 37,330 45,853 4o,716 38,173 30,153 26,375 19,800 11,765 1,5 0 1,125 750 375

Future:Thersal Unit Loan - 13,600 lo,8po 8,16o 5,5h40 2,720Proposed IBiD Loan 63,990 122,497 140,617 137,511 134,0W9 130,400 126,571 122,509 128,200Future Foreign Loans 4,240 70,858 159,856 228,352 254,397 298.594 391,41,2 474,806

13,60O 75,870 134,897 216,905 299,987 362,361 385,797 525,165 513,951 593,3l06

Total Debt 13,650 17,770 25,106 37,330 45,853 50,716 51,773 105,023 161,272 236,705 311,752 363,861 385,922 -- 55,315 5,326 593,006

Current Liabilities 1,733 1,405 2,229 2,837 3,275 4,065 __

46,292 58,348 78,601 103,692 127,800 139,101 163,752 252,130 353,176 V0,210 630,002 747,009 839,734 958,399 1,116,5M0 1,283,757

Debt/Eruity Rhtio 32/68 32/68 34/66 38/62 38/62 31/69 33/67 43/57 /153 53/V3 51/49 50/13 8/57 .6/54 48/52 48/52

Notes;

The rate increase resulting in en average revenue per kwh sold of 8 centavos too beenassumed to be effective as of April 1, 1960. For t e p-ures-s of the fintncir. f.ore-casts a forter rate increase resulting in an aeesge revvr,ue par kwh sold of 10 centavsebus been assumed to be effective as of Jasuary 1, 1962.

(1) Constnictios invermtouis are included t)rough 1958. In 1959 Ps 6 million have beentransferred free inventories to crbk in progre-s. Free 1959 on the itee Current Assetsrepresents wodkieg coapital.

-1P13ASk DE NlES;IA IF.C7lUICA DE BOGOIA

AC7T4P AND FORECAST INCOME S7TTEl!JTS 1954-1968

ACTUAL FORECAST

Years Ended or Ending Decerber 31 1954 1955 1956 1957 1958 1959 1960 1961 196? 1963 1964 1965 1966 1967 1968

Sales (Millions of kwh) 287.15 321.75 353435 3945.16 456.06 513 577 659! 765 887 1,017 1,140 1,275 1,425 1,580Average Revences per kceh sold (Co.1 4) .42 4.84. 4.96 5.16 5.17 5.51 7.7 8.0 10.0 10.0 10.0 9.9 9.9 9.9 9.8

________________________________________________________In Thousands of Pesos

Poiera SeVaies 12,696 15 580 17,552 20,363 23,588 27 753 44 5,29 51,920 76,500 88,700 101,000 112,80 126,225 141,075 154,80Other 51al'e4s I11.107 00Other 511 1,0~~ ~ ~~~~~~ ~~~~~~~~~~69 1,0 3,71 4,1 ,800 5,300 5,700 6,000 6 00 600 6,006,00 6.000 6.000

Total Operating Revenues 13,207 16,8649 19,512 24,000 28,005 32,553 49,729 57620 82,000 5 177,000 60 132,225 1b7,075 160,840

Operating ExpensesCost of Operations 3,777 4,525 6,170 7,552 7,724 10,754 11,750 12,950 14,300 15,800 18,150 20,300 22,450 23,700 25,500Depreciation 1,468 1,643 1,757 2,052 3.524 4,370 5,039 6,745 11,79 ,13,845 17,883 21 430 24,756 25.717 29,777

Total Operating Expenaes 5,2q5 6,168 7 927 9 604 11,248 15,124 16,889 19,695 26,091 29,655 36,033 11730 47,156 49417 55,277

Operating Income 7,962 10,681 11,585 14,476 17,157 17,429 32,840 37,925 56,409 65,055 70,967 77,130 85,069 97,658 105,563Other Income 884 1,364 _ 39 601 1,228 1,400 750 750 750 750 750 750 750 750 750

Gross Income 8.846 12,045 12,024 15,077 ,5 18,829 33,590 38,675 57,159 65,805 71,717 77,880 85,819 98,408 6b,313

Inwme DeductionsInterest Pld 1,011 1,097 1,674 2,457 2,270 2,575 5,690 9,136 14,140 10,206 21,561 24,6o2 26,155 29,556 33,750Write Offs 46 18 195 78 88 50 10 _____

Total Income Deductions 1,057 1,115 1,869 2,535 2,358 2,525 5,730 9,136 1J140 18,244 1,1 24,602 26,155 29, 56 33,750

Net Profit 7,789 10,930 101552 12,552 16,027 16,204 27,860 29,539 p 5,606 ,278 59,664 68,962 3

Dividend to Municipelity(l) 162 301 157 259 827 1,620 2,7E6 2,954 1,302 , 756 5,016 5,328 5,966 6,996 7,256Intereot Charged to Construction - Credit 300 1.081 i.677 1,471 138 185 7354 1.7 i3784 20.590 I6 108 18..51L 10272, 1t.0PI 18. 360

Retained Earings 7,927 11,710 01,675 13,854 15,338 14,769 32,428 bl,897 56,501 63,395 61,21. 66,764 64,422 75,090 83,667

Return on Net Fixed Assets in Operation 26.9% 35.45 27.4% 34.3% 17.0% 15.7% 27.L1% 16.8% L5.0% 13.1% 12.9% 9.6% 10.2% 11.2% 11.9%

Return on Total Net Fixed Assets, IncludingWork in Progress 19.7% 19.3% 15.2% 13.8% 14.8% 1202% 13.9% 11.3% 1 ,2% 12.6% 9.7% 9.5% 9.9% 9.8% 9.3%

Notes:

The rate increase resulting in an average revenue per kueh sold of 8 centavos has beenassumed to be effective as of April 1, 1960. For the purposes of the financial fore-casts a further rate increase resulting in an average revenue per kwh sold of 10 centavoshas been assumed to be effective as of Jaouary 1, 1962.

(1) Through 1958 this ite= represents the uncollected billings to the Municipality i:cludedin Operating Revenues. Thereafter, according to an agreement concluded vith theMuniocipality in 1959, a a,dmusm of 109 of Net Profit would be available annually toprovide the Municipality with free street lighting service.

EtlPdE3AS DC D0E 4 EtIA :EL 0T04CA DF BOGOTA ANNEX 9

FO^F.CAST SJURC-S A0:D APFLICATIJNS OF FF/IS 1959-1968

CunILativeTen Years

Years Ending Decemter 31 1959 1963 1961 1962 1963 1564 1965 1966 1967 1968 (1959-1968)

___________-----------------------------------In Thousands of Peoos---------------------_______-___-__________________ -------------

SJC C}S CF F£8DSIntemal Cast Generation

Gross Income 18,629 33,590 38,675 57,159 65,805 71,717 77,880 85,919 98,408 106,31 6541,19Depreciation 4,370 5,139 6,745 11,791 13,845 17,883 21.430 24,756 25,717 29,777 1619 53

Total 23,199 38,7?9 45,420 68,950 79,650 89,600 99,310 110,575 124,125 136,090 815,648

Increase in Reserves forBemloysBenefits 2,500 2,700 2,900 3,100 3,350 3,650 3,90) 4,250 l ,6oo 4,900 35,850

BoroowirgsLocal Bank Loans 3,1250 3,250Thermal onit loen 13,600 13,610Suppliers' Credits 7,112 7,112Preposed IBRD Loon 63,990 58,507 18,120 140,617Future Foreign Loans 4,240 66,608 89,C08 68 96 31 936 50 118 99,480 90.400 500,616

Total 23,962 63,990 62,717 40,728 89,J08 t59 3 6 D 899t4i 90, 665,195

Total Sources of Foods 9 ,661 1 4 a n667 156778 o 61,716 135,14,6 _165,273 228,205 231,390 1,516,693

Add. tiao to FlantCompletion of Corrent Project 9,520 9,521

I1B Project: Foreign Exchange 55,144 3,552 2,560 101,256Local Currency 2,748 22,690 24 074 15,033 5,755 7, 3Jo

2,74ff 77,841 67,676 17,593 5,755 7

Thermaol, Foreign Fxchonge 6,080 8,961 7,64) 22,614Local Currency 16,200 1,718 6,780 3,310 28 J08

16,20d 7,790 15,740 10,950

Future Prograo: Foreign 5xc,ange 4,240 66,608 89,0D8 68,496 31,936 50 ,L6 99,430 90,400 501,616Local Currency 3,100 27,031 48,491 56,608 48,617 10,719 49,512 5530 _299,36o9

7,340 93,612 137,499 125,104 80,553 61,167 118,900 15.5,7 0 799,985

Total Additions to Plant 28,168 85,632 90,706 122,185 lL3,254 125,104 80,553 61,167 148,989 145,700 1,031,749

1185 otiaTlEInterest

unitoipaliaation Debt 670 630 6d0 571 540 285 120 90 60 30 3,595Einstin; Punded Debt 388 270 1Ll 22 821Local Bank Loans 1,517 1,510 1,420 1,420 1,021 511 7,387Eresmal Unit Loan 524 524 524 525 525 2,622I'Prosed TIBD Loon 2,766 5,995 7,920 9,390 9,194 7,987 ?,767 7,'34 7,287 63, LOFuture Foreign Loans 156 3,684 7,769 12,147 16,495 18,298 21.852 265L33 17,u03L

Total 2,575 5,690 9,136 14,140 18,244 21,561 25,602 26,155 29g, 6 33,750 185,299

Amcortization,unicipalization Debt 375 375 375 375 1,500 3,750 375 375 375 375 8,250Fxisn-ro Funded Debt 1,370 1,463 1,592 659 5,084Local Bank Loans 580 5,000 6,375 6,375 18,330Suppliers' Credits 9,172 5,717 1,626 348 17,193Other 1,108 1.35 185 193 160 140 2,221Th,rmal UJnit Loan 2,720 2,720 2,720 2,720 2,720 1360Pmrposed Ii D Loan 3,?0h 3,402 3.6C9 3,829 1,062 4,309 221417Fu'ure Fnreign Loans 5,891 6,251 6,632 7,036 25,olO

Total 12,905 10,74O 6,498 9,295 13,961 16,387 9,875 10,455 11,069 11,720 112,9J1

Total Debt Service 15,480 16,43o 15,634 23,L35 32,205 37,948 34,477 36,610 40,515 45,470 298,201

Additions to Welorkig Carital 1,093 800 900 1, 00 1,100 1,200 1,300 1,400 1 1,511 1,600 11,893

Dividends to Mtunicipality 1,620 2,786 2,955 4,302 4,756 5,o16 5,328 5,966 6,896 7,256 1,6,881

Total Applications of Funds 49,661 05 648 3,.194 150,922 181,315 169,268 121,6 8 105,143 197,891 200.026 1,391,726

Cash Sumlus or (Deficit) - (229) 873 5,856 (9,307) (7,522) 13,4m8 60,130 30,314 31,364C-unoltive Cash SurPlus or (Deficit) - (229) 654 6,510 (2,807) (10,329) 3,189 63,289 93,603 124,967

Times Debt Servioe Oevered by InternalCash Generation 1.5 2.4 2.9 2.9 2.5 2.4 2.9 3.0 3.1 3.o

Note:

The rote increase resulting in an average revenne per kwh sold of 8 centavos has beenassuoed tc be effective as of April 1, 1960. For the purposen of the financial fore-casts a f-rther rate inorease re--ltitg in an avorage revenue per huh sold of 10 ceotavoshas been assumed to be effective as of January 1, 1962.

Existing hydro installotions

FACATATIVA & Proposed hydro instaloltions

Existing trnnsnniss,on lines

==_ El C01G/ Pr oposed tronsmission lines

EL COLA/GIO B0mm Eoisting rese,noirs2//M7#W f Sro-.Z" Proposed reservoir Aer,o

T-EA/A 117 1]Proposed IBRD projects Rs-iIS4dmW 0 5 10 15 DOhn

[A LGU,i' TA MOdds Z(PAQUIRA0

~~ - PROPOSEFD.. ------SAL rO I,54 NOAS, 40MW Ch..

EX/STIYNO THERMALI .o'/4.5MW -

Moo A~ROUITO, le

Reservor, - MW ~ ~ ~~~~~~~~~~~~~~~~~~~v

_~~~~~~~~~~~ Osoqr. r- - "rE STAT/ON

Mub ATN,a,.,n fRerg rpoi, Reservoi,~~~~~~~~~~~~~~~~~~~~~~~esrv,

------- ---- - - < aogotd2500 gemS! 5bRs0vi

_ C50 GA _ _ ___ _500

A MEASURED ALONG RIVER BED

AUGUST 1959

1500 rEN/A __ -

COLOMBIA sno,ti ~~~~PROPOSED EXPANSION PROGRAM (ST

EL CO L EGIG fteCl rjc,o000

- EMPRESAS DE ENERGIA ELECTRICA DE BOGOTA .'-

PROFIL E P ERU

AUGUST1959 IBRD-606R