a program for colombian public...

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RESTRICTED RETURN TO REPORTS DESK REPORT NO. Z-6 WITHfN - fJRCULATING (OPY --. ANNEX I ONE WEEK TO BE RETURNED TO ARCHI1!S DtmON .. A PROGRAM FOR COLOMBIAN PUBLIC INVESTMENT AND EXTERNAL BORROWING Annex I: A PROGRAM OF ELECTRIC POWER DEVELOPMENT FOR COLOMBIA INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. February 1956 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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RESTRICTEDRETURN TO REPORTS DESK REPORT NO Z-6

WITHfN - fJRCULATING (OPY -- ANNEX I

ONE WEEK TO BE RETURNED TO ARCHI1S DtmON

A PROGRAM

FOR COLOMBIAN PUBLIC INVESTMENT

AND EXTERNAL BORROWING

Annex I A PROGRAM OF ELECTRIC POWER DEVELOPMENT

FOR COLOMBIA

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Washington DC

February 1956

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T~ble of Contents

I Introduction 1

A The Power Situation in Colombia 1 B Existing Proposals 2 c The International Iviissions Approach 3 D ileconrnended National Power Corrunission 3

II The National Governments Program 4

Ao Group I Projects 5 B Group Projects 11 C Group III Pro~ects 30

III Summary of Recomnendations 32

I INTRODUCTION

The purpose of this Annex to the lJission s Report is to describe

and assess a program for development of electric power facilities in Colombia

in the next few years This work was greatly facilitated by the existence of

a recently completed National Electrification Plan for Colombia II (N EP)

prepared for the Colombian Government by a Technical Nission composed of

Electricite de France and Gibbs and Iiill Inc bull

A The Power Situation in Colombia

Colombia is well endowed Ii th energy resources High plateaus

deep valleys and abundant rainfall combine to produce many fine hydro power

sites There are also abundant coal resources and important supplies of

petroleum Many excellent hydro sites are located near existing load centers

Furthermore many of these are capable of being developed to produce relashy

tively firm power by the construction of large storage reservoirs to suppleshy

ment low periods of stream flow The rational planning of the best use of

these resources is hindered however by the lack of basic information on

stream flow and geology and hence progra~s of construction are limited by

the lag in necessary engineering studies

In many localities thermal plants are needed to firm up hydro

systems and in areas where there are no easily developed hydro sites as

the sole source of pOiller The potential development of thermal plants is

limited both by the prevalence of excellent hydro sites and the fact that

large scale mining of coal is developed in only a few areas Generally

petroleum is not competitive vIith coal as a fuel for thermal plants but

Y Report (1+ volumes) Republic of Colombia National Electrification Plan November 1954

- 2 shy

does have important use as fuel for diesel plants for outlying areas and as

an interim source of power for areas that wjll later be supplied by transshy

mission lines from large hydro or thermal installations

Electric power is mainly produced in the principal cities of the

country--mostly from hydro plants Outside the main centers are many small

plants serving towns and villages There is no interconnection between local

systems

The rapid growth in the eCOnOIIlY as a whole has been accompanied by

a very rapid increase in electric power consumption But in spite of this

rapid growth estimated by the Technical Mission to have been at an average

annual rate of 11 between 1935 and 1953 considerably more power could be

sold today with existing rates and methods of distribution than it is posshy

sible to produce The rationing of power in one way or another is prevalent

in many areas

B Existing Proposals

A list of projects being considered by official entities was subshy

mitted to the International Bank Nission for appraisal A discussion of

these projects forms the main body of this report

Estimates of the extent of the present power shortage and of the

probable future demand have been made in the NEP The Technical Mission

incorporated in its report proposals for an exprulsion of existing investshy

ment plans and accompanying institutional changes designed to meet the counshy

try I S power requirements over the next 15 years The Bank mission I s recomshy

mendations accord closely tlitn those of the Technical Ilission on technical

points but call for a rate of expansion wnich in the missions opinion

would be more feasible in the light of limitations on engineering plans and

financial resources

- 3 shy

c The International Bank Ivission I s Appro~

The principles underlying the missions approach may be stated

quite simply The present systems should be extended in the most economical

and efficient manner considering the expected rapid increase in power demand

Wherever possible investment resources administrative organization and techshy

nical skills should be economized by taking advantage of the economies of

large capacity generating plants as well as the economies of interconnected

systems In general effort should be concentrated on increasing capacity

in the main centers and transmitting power from them to smaller communities

with plans for interconnection of systems wherever feasible In cases where

the local demand is small and it is not feasible or economical to build transshy

mission facilities to serve them and for areas which could be connected with

a system in the near future the temporary installation of diesel plants

should be considered preferable to a larger investment in a hydro or a thermal

plant unless such plants are evaluated to be important elements in the system

as a whole and desirable and economic for long run service

D Recommended National Power Commission

The mission considers that in order to carr out an efficient proshy

gram of power development along the general principles just stated it will

be necessary to concentrate responsibility for the nations power development

to a considerably greater degree than before This is not a field that can

be handled effectively on a piecemeal basis IrJhat is needed is a coordinated

plan of development which treats the nations power production in terms of

systems rather than isolated small plants In addition to the efficient

extension of capacity a more efficient use of existing and future capacity

can be achieved through adjustment of rate structures and conditions under

which power is sold

- 4 shy

The mission therefore welcomes the National Governmentts decision

to establish a national power agency along the lines of the recommendations

made on this subject in the National Electrification Plan It is approshy

priate to quote this recommendation as follows

liThe functions of a National Power Commission would include issuance of licenses collection of statistical information preparation of inventory of power resources consideration of possible uses of special large projects coordination of required fuel supply with the mining industry rate studies collection of information useful to the electric power inshydustry standardization of charges and accounting methods and making available to the Government all the elements necessary for formulating a sound policy with regard to electric power supply The subject is broad and worthy of study by a Government committee It

II bull THE NATIUNAL GOVERNHENT S PROGRAM

The tentative program compiled by the Instituto Nacional de

Aprovechamp~~ento de Aguas y Fomento Electrico (Electraguas) includes projects

sponsored by the agencies of the National Government and by Departments and

Ivlunicipalities

As described belmv the program submitted to the mission includes

projects involving a total cost of 828 million pesos and would add about

831000 kw to the present electric generating capacity in the country which

exclusive of private industrial installations amounts to about 390000 kw

Of the total cost foreign exchange in the equivalent of about 440 million

pesos (~176 million) would be required

I NEP Vol 1 Page 39 and Vol 3 Page 72

- 5 shy

The mission found that the projects ~ncluded in the Governments

program could be divided into three groups as follOlfs

GROUP I Projects in advanced stage of engineering and financial

planning

GROUP II Projects on which engineering and financial planning is

in progress and on which if approved iTork could be

started in 1956

GROUP III - Projects which are in an early stage of planning

A Group I Projects

This group is composed of five projects in advanced stage of

engineering and financial planning for expansion of electrical generation

transmission and distribution facilities in the Bogota Cali Manizales and

hedellin areas They are shown below in Table 1 without reference to their

individual priority within the list

- 6 shy

Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

T~ble of Contents

I Introduction 1

A The Power Situation in Colombia 1 B Existing Proposals 2 c The International Iviissions Approach 3 D ileconrnended National Power Corrunission 3

II The National Governments Program 4

Ao Group I Projects 5 B Group Projects 11 C Group III Pro~ects 30

III Summary of Recomnendations 32

I INTRODUCTION

The purpose of this Annex to the lJission s Report is to describe

and assess a program for development of electric power facilities in Colombia

in the next few years This work was greatly facilitated by the existence of

a recently completed National Electrification Plan for Colombia II (N EP)

prepared for the Colombian Government by a Technical Nission composed of

Electricite de France and Gibbs and Iiill Inc bull

A The Power Situation in Colombia

Colombia is well endowed Ii th energy resources High plateaus

deep valleys and abundant rainfall combine to produce many fine hydro power

sites There are also abundant coal resources and important supplies of

petroleum Many excellent hydro sites are located near existing load centers

Furthermore many of these are capable of being developed to produce relashy

tively firm power by the construction of large storage reservoirs to suppleshy

ment low periods of stream flow The rational planning of the best use of

these resources is hindered however by the lack of basic information on

stream flow and geology and hence progra~s of construction are limited by

the lag in necessary engineering studies

In many localities thermal plants are needed to firm up hydro

systems and in areas where there are no easily developed hydro sites as

the sole source of pOiller The potential development of thermal plants is

limited both by the prevalence of excellent hydro sites and the fact that

large scale mining of coal is developed in only a few areas Generally

petroleum is not competitive vIith coal as a fuel for thermal plants but

Y Report (1+ volumes) Republic of Colombia National Electrification Plan November 1954

- 2 shy

does have important use as fuel for diesel plants for outlying areas and as

an interim source of power for areas that wjll later be supplied by transshy

mission lines from large hydro or thermal installations

Electric power is mainly produced in the principal cities of the

country--mostly from hydro plants Outside the main centers are many small

plants serving towns and villages There is no interconnection between local

systems

The rapid growth in the eCOnOIIlY as a whole has been accompanied by

a very rapid increase in electric power consumption But in spite of this

rapid growth estimated by the Technical Mission to have been at an average

annual rate of 11 between 1935 and 1953 considerably more power could be

sold today with existing rates and methods of distribution than it is posshy

sible to produce The rationing of power in one way or another is prevalent

in many areas

B Existing Proposals

A list of projects being considered by official entities was subshy

mitted to the International Bank Nission for appraisal A discussion of

these projects forms the main body of this report

Estimates of the extent of the present power shortage and of the

probable future demand have been made in the NEP The Technical Mission

incorporated in its report proposals for an exprulsion of existing investshy

ment plans and accompanying institutional changes designed to meet the counshy

try I S power requirements over the next 15 years The Bank mission I s recomshy

mendations accord closely tlitn those of the Technical Ilission on technical

points but call for a rate of expansion wnich in the missions opinion

would be more feasible in the light of limitations on engineering plans and

financial resources

- 3 shy

c The International Bank Ivission I s Appro~

The principles underlying the missions approach may be stated

quite simply The present systems should be extended in the most economical

and efficient manner considering the expected rapid increase in power demand

Wherever possible investment resources administrative organization and techshy

nical skills should be economized by taking advantage of the economies of

large capacity generating plants as well as the economies of interconnected

systems In general effort should be concentrated on increasing capacity

in the main centers and transmitting power from them to smaller communities

with plans for interconnection of systems wherever feasible In cases where

the local demand is small and it is not feasible or economical to build transshy

mission facilities to serve them and for areas which could be connected with

a system in the near future the temporary installation of diesel plants

should be considered preferable to a larger investment in a hydro or a thermal

plant unless such plants are evaluated to be important elements in the system

as a whole and desirable and economic for long run service

D Recommended National Power Commission

The mission considers that in order to carr out an efficient proshy

gram of power development along the general principles just stated it will

be necessary to concentrate responsibility for the nations power development

to a considerably greater degree than before This is not a field that can

be handled effectively on a piecemeal basis IrJhat is needed is a coordinated

plan of development which treats the nations power production in terms of

systems rather than isolated small plants In addition to the efficient

extension of capacity a more efficient use of existing and future capacity

can be achieved through adjustment of rate structures and conditions under

which power is sold

- 4 shy

The mission therefore welcomes the National Governmentts decision

to establish a national power agency along the lines of the recommendations

made on this subject in the National Electrification Plan It is approshy

priate to quote this recommendation as follows

liThe functions of a National Power Commission would include issuance of licenses collection of statistical information preparation of inventory of power resources consideration of possible uses of special large projects coordination of required fuel supply with the mining industry rate studies collection of information useful to the electric power inshydustry standardization of charges and accounting methods and making available to the Government all the elements necessary for formulating a sound policy with regard to electric power supply The subject is broad and worthy of study by a Government committee It

II bull THE NATIUNAL GOVERNHENT S PROGRAM

The tentative program compiled by the Instituto Nacional de

Aprovechamp~~ento de Aguas y Fomento Electrico (Electraguas) includes projects

sponsored by the agencies of the National Government and by Departments and

Ivlunicipalities

As described belmv the program submitted to the mission includes

projects involving a total cost of 828 million pesos and would add about

831000 kw to the present electric generating capacity in the country which

exclusive of private industrial installations amounts to about 390000 kw

Of the total cost foreign exchange in the equivalent of about 440 million

pesos (~176 million) would be required

I NEP Vol 1 Page 39 and Vol 3 Page 72

- 5 shy

The mission found that the projects ~ncluded in the Governments

program could be divided into three groups as follOlfs

GROUP I Projects in advanced stage of engineering and financial

planning

GROUP II Projects on which engineering and financial planning is

in progress and on which if approved iTork could be

started in 1956

GROUP III - Projects which are in an early stage of planning

A Group I Projects

This group is composed of five projects in advanced stage of

engineering and financial planning for expansion of electrical generation

transmission and distribution facilities in the Bogota Cali Manizales and

hedellin areas They are shown below in Table 1 without reference to their

individual priority within the list

- 6 shy

Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

I INTRODUCTION

The purpose of this Annex to the lJission s Report is to describe

and assess a program for development of electric power facilities in Colombia

in the next few years This work was greatly facilitated by the existence of

a recently completed National Electrification Plan for Colombia II (N EP)

prepared for the Colombian Government by a Technical Nission composed of

Electricite de France and Gibbs and Iiill Inc bull

A The Power Situation in Colombia

Colombia is well endowed Ii th energy resources High plateaus

deep valleys and abundant rainfall combine to produce many fine hydro power

sites There are also abundant coal resources and important supplies of

petroleum Many excellent hydro sites are located near existing load centers

Furthermore many of these are capable of being developed to produce relashy

tively firm power by the construction of large storage reservoirs to suppleshy

ment low periods of stream flow The rational planning of the best use of

these resources is hindered however by the lack of basic information on

stream flow and geology and hence progra~s of construction are limited by

the lag in necessary engineering studies

In many localities thermal plants are needed to firm up hydro

systems and in areas where there are no easily developed hydro sites as

the sole source of pOiller The potential development of thermal plants is

limited both by the prevalence of excellent hydro sites and the fact that

large scale mining of coal is developed in only a few areas Generally

petroleum is not competitive vIith coal as a fuel for thermal plants but

Y Report (1+ volumes) Republic of Colombia National Electrification Plan November 1954

- 2 shy

does have important use as fuel for diesel plants for outlying areas and as

an interim source of power for areas that wjll later be supplied by transshy

mission lines from large hydro or thermal installations

Electric power is mainly produced in the principal cities of the

country--mostly from hydro plants Outside the main centers are many small

plants serving towns and villages There is no interconnection between local

systems

The rapid growth in the eCOnOIIlY as a whole has been accompanied by

a very rapid increase in electric power consumption But in spite of this

rapid growth estimated by the Technical Mission to have been at an average

annual rate of 11 between 1935 and 1953 considerably more power could be

sold today with existing rates and methods of distribution than it is posshy

sible to produce The rationing of power in one way or another is prevalent

in many areas

B Existing Proposals

A list of projects being considered by official entities was subshy

mitted to the International Bank Nission for appraisal A discussion of

these projects forms the main body of this report

Estimates of the extent of the present power shortage and of the

probable future demand have been made in the NEP The Technical Mission

incorporated in its report proposals for an exprulsion of existing investshy

ment plans and accompanying institutional changes designed to meet the counshy

try I S power requirements over the next 15 years The Bank mission I s recomshy

mendations accord closely tlitn those of the Technical Ilission on technical

points but call for a rate of expansion wnich in the missions opinion

would be more feasible in the light of limitations on engineering plans and

financial resources

- 3 shy

c The International Bank Ivission I s Appro~

The principles underlying the missions approach may be stated

quite simply The present systems should be extended in the most economical

and efficient manner considering the expected rapid increase in power demand

Wherever possible investment resources administrative organization and techshy

nical skills should be economized by taking advantage of the economies of

large capacity generating plants as well as the economies of interconnected

systems In general effort should be concentrated on increasing capacity

in the main centers and transmitting power from them to smaller communities

with plans for interconnection of systems wherever feasible In cases where

the local demand is small and it is not feasible or economical to build transshy

mission facilities to serve them and for areas which could be connected with

a system in the near future the temporary installation of diesel plants

should be considered preferable to a larger investment in a hydro or a thermal

plant unless such plants are evaluated to be important elements in the system

as a whole and desirable and economic for long run service

D Recommended National Power Commission

The mission considers that in order to carr out an efficient proshy

gram of power development along the general principles just stated it will

be necessary to concentrate responsibility for the nations power development

to a considerably greater degree than before This is not a field that can

be handled effectively on a piecemeal basis IrJhat is needed is a coordinated

plan of development which treats the nations power production in terms of

systems rather than isolated small plants In addition to the efficient

extension of capacity a more efficient use of existing and future capacity

can be achieved through adjustment of rate structures and conditions under

which power is sold

- 4 shy

The mission therefore welcomes the National Governmentts decision

to establish a national power agency along the lines of the recommendations

made on this subject in the National Electrification Plan It is approshy

priate to quote this recommendation as follows

liThe functions of a National Power Commission would include issuance of licenses collection of statistical information preparation of inventory of power resources consideration of possible uses of special large projects coordination of required fuel supply with the mining industry rate studies collection of information useful to the electric power inshydustry standardization of charges and accounting methods and making available to the Government all the elements necessary for formulating a sound policy with regard to electric power supply The subject is broad and worthy of study by a Government committee It

II bull THE NATIUNAL GOVERNHENT S PROGRAM

The tentative program compiled by the Instituto Nacional de

Aprovechamp~~ento de Aguas y Fomento Electrico (Electraguas) includes projects

sponsored by the agencies of the National Government and by Departments and

Ivlunicipalities

As described belmv the program submitted to the mission includes

projects involving a total cost of 828 million pesos and would add about

831000 kw to the present electric generating capacity in the country which

exclusive of private industrial installations amounts to about 390000 kw

Of the total cost foreign exchange in the equivalent of about 440 million

pesos (~176 million) would be required

I NEP Vol 1 Page 39 and Vol 3 Page 72

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The mission found that the projects ~ncluded in the Governments

program could be divided into three groups as follOlfs

GROUP I Projects in advanced stage of engineering and financial

planning

GROUP II Projects on which engineering and financial planning is

in progress and on which if approved iTork could be

started in 1956

GROUP III - Projects which are in an early stage of planning

A Group I Projects

This group is composed of five projects in advanced stage of

engineering and financial planning for expansion of electrical generation

transmission and distribution facilities in the Bogota Cali Manizales and

hedellin areas They are shown below in Table 1 without reference to their

individual priority within the list

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Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

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A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

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Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

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In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

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Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

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PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

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II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

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II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

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The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

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Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

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best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

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nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

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oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

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The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

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The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

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The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 2 shy

does have important use as fuel for diesel plants for outlying areas and as

an interim source of power for areas that wjll later be supplied by transshy

mission lines from large hydro or thermal installations

Electric power is mainly produced in the principal cities of the

country--mostly from hydro plants Outside the main centers are many small

plants serving towns and villages There is no interconnection between local

systems

The rapid growth in the eCOnOIIlY as a whole has been accompanied by

a very rapid increase in electric power consumption But in spite of this

rapid growth estimated by the Technical Mission to have been at an average

annual rate of 11 between 1935 and 1953 considerably more power could be

sold today with existing rates and methods of distribution than it is posshy

sible to produce The rationing of power in one way or another is prevalent

in many areas

B Existing Proposals

A list of projects being considered by official entities was subshy

mitted to the International Bank Nission for appraisal A discussion of

these projects forms the main body of this report

Estimates of the extent of the present power shortage and of the

probable future demand have been made in the NEP The Technical Mission

incorporated in its report proposals for an exprulsion of existing investshy

ment plans and accompanying institutional changes designed to meet the counshy

try I S power requirements over the next 15 years The Bank mission I s recomshy

mendations accord closely tlitn those of the Technical Ilission on technical

points but call for a rate of expansion wnich in the missions opinion

would be more feasible in the light of limitations on engineering plans and

financial resources

- 3 shy

c The International Bank Ivission I s Appro~

The principles underlying the missions approach may be stated

quite simply The present systems should be extended in the most economical

and efficient manner considering the expected rapid increase in power demand

Wherever possible investment resources administrative organization and techshy

nical skills should be economized by taking advantage of the economies of

large capacity generating plants as well as the economies of interconnected

systems In general effort should be concentrated on increasing capacity

in the main centers and transmitting power from them to smaller communities

with plans for interconnection of systems wherever feasible In cases where

the local demand is small and it is not feasible or economical to build transshy

mission facilities to serve them and for areas which could be connected with

a system in the near future the temporary installation of diesel plants

should be considered preferable to a larger investment in a hydro or a thermal

plant unless such plants are evaluated to be important elements in the system

as a whole and desirable and economic for long run service

D Recommended National Power Commission

The mission considers that in order to carr out an efficient proshy

gram of power development along the general principles just stated it will

be necessary to concentrate responsibility for the nations power development

to a considerably greater degree than before This is not a field that can

be handled effectively on a piecemeal basis IrJhat is needed is a coordinated

plan of development which treats the nations power production in terms of

systems rather than isolated small plants In addition to the efficient

extension of capacity a more efficient use of existing and future capacity

can be achieved through adjustment of rate structures and conditions under

which power is sold

- 4 shy

The mission therefore welcomes the National Governmentts decision

to establish a national power agency along the lines of the recommendations

made on this subject in the National Electrification Plan It is approshy

priate to quote this recommendation as follows

liThe functions of a National Power Commission would include issuance of licenses collection of statistical information preparation of inventory of power resources consideration of possible uses of special large projects coordination of required fuel supply with the mining industry rate studies collection of information useful to the electric power inshydustry standardization of charges and accounting methods and making available to the Government all the elements necessary for formulating a sound policy with regard to electric power supply The subject is broad and worthy of study by a Government committee It

II bull THE NATIUNAL GOVERNHENT S PROGRAM

The tentative program compiled by the Instituto Nacional de

Aprovechamp~~ento de Aguas y Fomento Electrico (Electraguas) includes projects

sponsored by the agencies of the National Government and by Departments and

Ivlunicipalities

As described belmv the program submitted to the mission includes

projects involving a total cost of 828 million pesos and would add about

831000 kw to the present electric generating capacity in the country which

exclusive of private industrial installations amounts to about 390000 kw

Of the total cost foreign exchange in the equivalent of about 440 million

pesos (~176 million) would be required

I NEP Vol 1 Page 39 and Vol 3 Page 72

- 5 shy

The mission found that the projects ~ncluded in the Governments

program could be divided into three groups as follOlfs

GROUP I Projects in advanced stage of engineering and financial

planning

GROUP II Projects on which engineering and financial planning is

in progress and on which if approved iTork could be

started in 1956

GROUP III - Projects which are in an early stage of planning

A Group I Projects

This group is composed of five projects in advanced stage of

engineering and financial planning for expansion of electrical generation

transmission and distribution facilities in the Bogota Cali Manizales and

hedellin areas They are shown below in Table 1 without reference to their

individual priority within the list

- 6 shy

Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 3 shy

c The International Bank Ivission I s Appro~

The principles underlying the missions approach may be stated

quite simply The present systems should be extended in the most economical

and efficient manner considering the expected rapid increase in power demand

Wherever possible investment resources administrative organization and techshy

nical skills should be economized by taking advantage of the economies of

large capacity generating plants as well as the economies of interconnected

systems In general effort should be concentrated on increasing capacity

in the main centers and transmitting power from them to smaller communities

with plans for interconnection of systems wherever feasible In cases where

the local demand is small and it is not feasible or economical to build transshy

mission facilities to serve them and for areas which could be connected with

a system in the near future the temporary installation of diesel plants

should be considered preferable to a larger investment in a hydro or a thermal

plant unless such plants are evaluated to be important elements in the system

as a whole and desirable and economic for long run service

D Recommended National Power Commission

The mission considers that in order to carr out an efficient proshy

gram of power development along the general principles just stated it will

be necessary to concentrate responsibility for the nations power development

to a considerably greater degree than before This is not a field that can

be handled effectively on a piecemeal basis IrJhat is needed is a coordinated

plan of development which treats the nations power production in terms of

systems rather than isolated small plants In addition to the efficient

extension of capacity a more efficient use of existing and future capacity

can be achieved through adjustment of rate structures and conditions under

which power is sold

- 4 shy

The mission therefore welcomes the National Governmentts decision

to establish a national power agency along the lines of the recommendations

made on this subject in the National Electrification Plan It is approshy

priate to quote this recommendation as follows

liThe functions of a National Power Commission would include issuance of licenses collection of statistical information preparation of inventory of power resources consideration of possible uses of special large projects coordination of required fuel supply with the mining industry rate studies collection of information useful to the electric power inshydustry standardization of charges and accounting methods and making available to the Government all the elements necessary for formulating a sound policy with regard to electric power supply The subject is broad and worthy of study by a Government committee It

II bull THE NATIUNAL GOVERNHENT S PROGRAM

The tentative program compiled by the Instituto Nacional de

Aprovechamp~~ento de Aguas y Fomento Electrico (Electraguas) includes projects

sponsored by the agencies of the National Government and by Departments and

Ivlunicipalities

As described belmv the program submitted to the mission includes

projects involving a total cost of 828 million pesos and would add about

831000 kw to the present electric generating capacity in the country which

exclusive of private industrial installations amounts to about 390000 kw

Of the total cost foreign exchange in the equivalent of about 440 million

pesos (~176 million) would be required

I NEP Vol 1 Page 39 and Vol 3 Page 72

- 5 shy

The mission found that the projects ~ncluded in the Governments

program could be divided into three groups as follOlfs

GROUP I Projects in advanced stage of engineering and financial

planning

GROUP II Projects on which engineering and financial planning is

in progress and on which if approved iTork could be

started in 1956

GROUP III - Projects which are in an early stage of planning

A Group I Projects

This group is composed of five projects in advanced stage of

engineering and financial planning for expansion of electrical generation

transmission and distribution facilities in the Bogota Cali Manizales and

hedellin areas They are shown below in Table 1 without reference to their

individual priority within the list

- 6 shy

Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 4 shy

The mission therefore welcomes the National Governmentts decision

to establish a national power agency along the lines of the recommendations

made on this subject in the National Electrification Plan It is approshy

priate to quote this recommendation as follows

liThe functions of a National Power Commission would include issuance of licenses collection of statistical information preparation of inventory of power resources consideration of possible uses of special large projects coordination of required fuel supply with the mining industry rate studies collection of information useful to the electric power inshydustry standardization of charges and accounting methods and making available to the Government all the elements necessary for formulating a sound policy with regard to electric power supply The subject is broad and worthy of study by a Government committee It

II bull THE NATIUNAL GOVERNHENT S PROGRAM

The tentative program compiled by the Instituto Nacional de

Aprovechamp~~ento de Aguas y Fomento Electrico (Electraguas) includes projects

sponsored by the agencies of the National Government and by Departments and

Ivlunicipalities

As described belmv the program submitted to the mission includes

projects involving a total cost of 828 million pesos and would add about

831000 kw to the present electric generating capacity in the country which

exclusive of private industrial installations amounts to about 390000 kw

Of the total cost foreign exchange in the equivalent of about 440 million

pesos (~176 million) would be required

I NEP Vol 1 Page 39 and Vol 3 Page 72

- 5 shy

The mission found that the projects ~ncluded in the Governments

program could be divided into three groups as follOlfs

GROUP I Projects in advanced stage of engineering and financial

planning

GROUP II Projects on which engineering and financial planning is

in progress and on which if approved iTork could be

started in 1956

GROUP III - Projects which are in an early stage of planning

A Group I Projects

This group is composed of five projects in advanced stage of

engineering and financial planning for expansion of electrical generation

transmission and distribution facilities in the Bogota Cali Manizales and

hedellin areas They are shown below in Table 1 without reference to their

individual priority within the list

- 6 shy

Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 5 shy

The mission found that the projects ~ncluded in the Governments

program could be divided into three groups as follOlfs

GROUP I Projects in advanced stage of engineering and financial

planning

GROUP II Projects on which engineering and financial planning is

in progress and on which if approved iTork could be

started in 1956

GROUP III - Projects which are in an early stage of planning

A Group I Projects

This group is composed of five projects in advanced stage of

engineering and financial planning for expansion of electrical generation

transmission and distribution facilities in the Bogota Cali Manizales and

hedellin areas They are shown below in Table 1 without reference to their

individual priority within the list

- 6 shy

Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 6 shy

Table No1

Projects Submitted to the lelission -vhich Are in an Advanced stage of Engineering wId Financial Planning

Project Designation

1-1

1-2

1-3

I - 4

1-5

Responsible Type of Project Agency and Capacity

Emp unidas Hydro and de Energia thermal Elec de 161300 kw Bogota

Corporacion Autonoma Regional del Cauca Calima Hydro

120000 kw Transmission lines

Sub-totals 1 - 2

Central Hydro Hidro- 26200 kw electrica de Caldas

Emp de Hydro Energia 78000 kw E1ectrica de Nedellin

Central Hidroelecshytrica del Rio Anchicaya 1ll1chicaya 3rd ooit dydro 20000 kw )

Yumbo ) 1st unit Thermal 12500 kW)

Anchicaya 4th unit Hydro 20000 nmiddotJ

Yumbo ~nd unit Thermal 12500 kw

Sub-Iotal I - 5 (Dgt 000 kvl) Totals 450500 kw

Total Cost Pesos ~l Hillions

1011

615

395 (1010)

408

394

171

58

38 (2(57) 3090

Portion Foreign Exchange

Pesos Hillions

260) ) )

293) (553)

213

184

113

35

28 (17(5) 1800

Construction Period

1954 - 1958

1956 - 1959

1955 - 1957

1955 - 1958

(Now under (construction-shy(to be comshy(pleted in l1958

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-7shy

A brief description of each of the above projects follows together

with the comments of the Mission

Project I-I Bogota (Empresas Unidas de Energia Electrica de Bogota)

rThe program includes the 60000 b first stage of a hydro plant at

LJguneta the construction of which was begun in June 1954 a thermal plant of

40000 kw at Zipaquira a hydroelectric plant (SaIto II) of 50000 kw and

additions at the Charquito Plant of 17000 kw The total capacity of the two

latter developments utilizing the flow of the Bogota River is 67000 kw which

is somewhat less than that contemplated for the same period in the NEP The

total cost of these works is estimated at 101 million pesos which includes

074 million pesos (US$ l70 million) for imported equipment and services

It is most important in the whole scheme of the Bogota River development

that additional regulatior be obtained by the creation of new upstream resershy

voirs vdthout which neither SaIto II nor Charquito II can be firmed up for the

full use of their design flow A program for the construction and operation of

such reservoirs should be agreed upon as prudent long-range planning between the

Empresas and the official agencies responsible for flood control irrigation and

urban water supply The matter requires early action on the part of the Empresas

in full cooperation with those agencies

In addition to the program of expansion of generating facilities the

program of the Empresas includes expansion of their transmission lines and disshy

tribution facilities The Bogota system should form the core of the8ventu~l lntershy

connected power grid for the so-called Central and Northeastern power regions

with interconnections to the north to Bucaramanga and Cucuta and to the southwest

to include Ibaque and Honda The part of the project to provide the Laguneta and

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-8shy

Zipaquira plants and the transmission and distribution system should therefore

be expedited Priority for the other projects is also recommended bearing in

mind that steps should be taken at an early date for regulation of stream flow

in the Bogota River above the present developments

Pro j ect I - 2 rhe Cauca Corporation (CVC) Program

The CVC program only a part of which is included in this group of

projects contemplates a large storage project at Calima with a power station

of 120000 kw the construction of a proposed hydroelectric development at

Timba with the first unit of 25QOO kw installed within the 1955-1960 period

and the commencement of construction in 1959 of a project at Salvajina Also inshy

cluded are transmission lines as follows Cali-Buga-Cartago Calima-Buga

Cali-Timba and Timba-Popayan rhese transmiEsion lines will provide a system

to cover the entire Departamento del Valle the principal centers in Cauca and

provide a link ~~th the system of the Central Hidroelectrica de Caldas Ltda

(CHEC) bull

An engineering program for the projects is actively under way by CVC and

a plan for financing the program is in process of development ihe eve contemshy

plates working out these preliminary steps by early 1956

isre1iminary planning by CVC for an --overall program has resulted in

the selection of the Calima project for first priority among alternative dams

and detail engineering will start on this project early in 1956 Detail enshy

gineering on the part of the transmission system in the northern Valle is already

under way Additional preliminary studies are required for the Timba project before

its features and cost can be reliably determined CVC contemplates the earliest

that work can be scheduled on Salvajina is 1959

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 9 shy

In view of the advanced status of the engineering and financial

planning the Calima project and the transmission lines from Cartago to Cali

Calima to Buga and Cali to Popayan have been included in the list of projects

recommended by the mission for im~ediate execution A preliminary estimate

of the cost of this phase of the CVC program is 101 million pesos of which

553 million pesos (US ~22Ll million) is for imported equipment and services

Further study and planning ~ needed on the Timba project The mission beshy

lieves that Salvajina probably will not need to be started lvithin the 1955shy

1960 period being considered

Project I - 3 Caldas (CREC)

The project consists of the construction of the 30000 kw La Esmeshy

ralda hydro plant which is a part of the La Esmeralda-San Francisco developshy

ment recommended in the i~ EP together with expansion of transmission and

distribution It will develop a 167 meters head downstream from the existing

La Insula plant which was financed by an international Bank loan of US ~26

million made in 1950 The total investment amounts to 406 million pesos

which includes 213 million pesos (US ~85 million) for imported equipment

and services

Density of population and forecast of demand amply justify the

program Engineering design work is satisfacto~ as well as prelimina~

financial arrangements

The project should receive high priority The CHEC system will be

able to supply power to nearby towns and rural areas where transmission intershy

connections are economical Thus other proposals for generation plants in

the CHEC area should be coordinateiwith the CdEC program and eliminated

where conflict exists This comment particularly applicable to the proposed

generating plant at Pereira referred to later In a like manner the CHEC

system should establish service in new areas with due regard for the more domishy

nant potentialities of the CVC system with which it will be interconnected

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-10shy

Project I - 4 Medellin (Empresa de Energia Electrica de Medellin)

The prcgram includes expansion of the Rio Grande nydro plant (with the

addition of the Quebradona dam) and a new Piedras Blancas plant active planning

on both of which is in progress Their combined capacity is to be 76500 kw

which will eventualJyen be increased to 78COO kw as a result of rehabilitation

of the old 1500 kw Piedras Blancas plant

The program also includes the construction of the first 40COQ kw

stage of a new development on Rio Guadalupe using the diverted flow of the Conshy

cepcion and Tenche Rivers This is a part of a large new development which ~~ll

be firmed up by upstream reservoirs studies of vhich are in progress

Transmission lines and expansion of distribution facilities are also

included in the program Expansion of the service territory towards the north

and south is contemplated in the program It is expected that the Empresa will

eventually expand its service area and become regional in character

The total cost of the program is estimated at 394 million pesos inshy

cluding 185 million pesos (US$ 74 million) for imported equipment and services

The service area has been for some time the most advanced in Colombia

with regard to per capita consumption

The project deserves high priority On~ one of the four 40000 kw

units is contemplated at present at the Rio Guadalupe plant but for reasons of

construction econo~ and because of the apparent demand which would result from exshy

tending transmission lines to serve additional communities it seems desirable

to construct two of the Guadalupe units initially This additional unit has been

added to the program as submitted to the Mission Engineering of further stages

of development should be mas t activeJyen continued in order to keep abreast with the

demand

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-11shy

PrOject I - 5 the CHIDRAL Program

All of the program included in the estimate is actual~ under way with

financing arranged except for the proposed second unit of 12 500 kw at the

thermal plant at Yumbo CHIDRAL expects to make financing arrangements for this

unit to enable its construction to be initiated by early 1956 Plans for the

addition of this unit have been fully ccordinated with CVC whose projections of

power supply for the region assume the completion of the Yumbo plant with two

units of 12500 lew each The cost of the unit is included in the recommended

program

B GROUP II PROJECIS

This group comprises projects on which the engineering work is at

such a stage that general planning and specifications for equipment could be comshy

pleted within the ear~ part of 1956 The estimated costs and time schedules

are necessari~ tentative

Table No2 Projects Submitted to the IVlission

on VJhich iihg1neermg and Flnanc1aI PUnning is in Progress

Project Responsible Agency Trpe of Project Total Cost Portion Foreign Constructiol Designation and Name of Project and Capacity (pesos m) Exchange (pesos Period

millions)

II - I Corporacion Autoshy HYdro 25000 1050 390 noma Regional del (1st Stage)

1957-1960middotCauca Tinioa

II - 2 Electraguas Hydro 13000 264 100 1957-1961 Rio Fonce (1st Stage)

II - 3 E1ectraguas Thenna1 250 150 1955-1951 bull 1Faipa 25000 kw

II - 4 Electraguas Transmission 224 161 1954-196- Paipa-Zipaquira and distribution

System Boyaca

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-12 shy

II - 5 Elee trifieadora Thermal 198 123 1955-1959 shyBolivar 22500 hvv

II - 6 Elee traguas Itrdro 197 7 1 19561958 Rio Sumapaz 20000 kw

II - 7 Eleetraguas Transmission 58 43 1958 Melgar Bogope and Distribution System

II - 8 Empresa Municipal Distribution 166 111 de Cali Distribution

Network for Cali

II - 9 E1eetragaus 7540 94 60 1955-1959 Small stations at Sincelejo Zembrano San Andres Fundacion and Valledupar

II - 10 Centrales del N 1herma1 95 63 1956-1951 Santander Cueuta 12000 kw

II - 11 Central HidrPuente Itrdro 92 31 1956-195 Guican Rio Nevado 2750 kw

(1st Stage)

II - 12 Central Hidrdel Itrdro 82 25 1956-1959 Rio Piedras 4500 kVIr (Jerico) (1st Stage)

II - 13 Central Hidr Hydro 80 40 1956-1959 la Cabrera 4470 kw

II - 14 Central Hidrde1 Hydro 65 20 1956-1959 Rio Negro 4800 kw

(1st Stage)

II - 15 Central Hidrdel Itrdro 63 30 1956-1959 Rio Sonson 5000 kw

(1st Stage)

II - 16 E1eetraguas Iransmission 50 22 1956-1957 Bucaramanga to line Cucuta transshymission line

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-13shy

II - 17 Departamento del Huila

Hidrde Rio Iquira (units Nos 2 amp 2)

Hydro 6000 kw

50 25

II - 18 Central Hidr Lebrija

Hydro 9000 lew

46 20 1955-1957

Lebrija expansion

II - 19 Empresa Municipales de Pereira Distribution 45 30 Distribution

system in Pereira

II - 20 CentHdel Rio Hydro 38 20 19S6-l957 CoelloRio Coello 3000 lew

II - 21 Electraguas Hydro 35 20 1956-1957 Rio Recio 4800 kw

II - 22 Departamento de CaIdas

Distribution Distribution 15 03 systems in southwest area including Salamina and Filashydelfia

II - 23 Municipales de Palmira

Electrification Transmission 07 06 of adjacent communi ties Rozo etc

Totals 170360 lew 3264 1564 (or ~626 million)

A description of the projects in Group II ydth the comments of the

Mission follows

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

Project II - 1 Timba Project CVC

Description and co~~ents regarding this project have been given under

Project I - 2 above

Project II - 2 Rio Fonce (San Gil)

Ibis project which will either be incorporated in the Lebrija system

or assigned to a new agency is at present the responsibility of Electraguas

It consists of the construction in two stages of a 26000 kw hydroelectric

plant on the hio FUnce together with transmission and distribution facilities

to enable the plant to supply the Bucararranga and San Gil districts with

possible later extension to the Malaga district

The total cost of the project estimated at 264 million pesos of

which 10 million pesos (USP 40 million) corresponds to imported equipment

and s ervic es bull

In the NEP power was expected to be supplied to the San Gil area

by transmission from BucaramangalI By building a transmission line from

Bucaramanga (Lebrija plant Item II - 18 below) and interconnecting Bucaramanga

with pamplona and Cucuta the surplus capacity at Lebrija in the early period

and at the thermal plant in Cucuta after 1957-58 could be economically absorbed

in the four districts Cucuta Pamplona Bucaramanga and San Gil

A re-examination of the figures of demand submitted by Electraguas at

present confirms this view Consequently further steps for the installation

of the proposed 13000 kw first stage development on Rio Fonce should depend

on the results of a thorough economic study as suggested in the NSP and

as reiterated in the co~~ents regarding the Rio Nevado Project (Item II -11 below

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- J4middot (a) shy

The Rio Fonce project can be economically utilized only by transshy

mitting a substantial part of its energy to Bucaramanga so that a transmission

line between San Gil and Bucaramanga rewains an essential feature of any possible

layout Priority should therefore be given to developing distribution and transshy

mission as described in the project The location of the main transmission line

should be flexibly designed so as to permit connection with any of the alternate

projects

Project II - 3 Paipa Steam Plant

This project to be operated by the Central Termoelectrica de Raipa

SA consists of the construction at Paipa (Departamento de Boyaca) of 25000 kw

stearn plant to serve the Belencito-Sogamoso-Santa Rosa de Viterbo-Paipa-Tunja

area The total cost of the project is estimated at 250 million pesos of which

150 million pesos (US$ 640 million) c0rresponds to imported equipment and

services

The purpose of the project is to supply power to prospective industrial

enterprises which may locate in the Boyaca area to utilize the raw material from

the Belencito steel mill The proposed generating plant ~~uld supply its power

to the Boyaca transmission system which is discussed in Item II - 4 Studies for

such a steam plant of 25000 kw capacity were initiated in the latter part of

1953 and some engineering has been done through several engineering organizations

Proposals for equipment were received several months ago

Preparatory work on the San Jose site near Paipa has been started

principally for site preparation and construction of shop buildings~ warehouses

and living cparters The Mission reviewed the engineering studies thus far made

and found them inadequate to show the existence of a satisfactory water supply

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-15shy

Neither is it certain that a local fuel supply despite the obvious presence of

coal deposits near Paipa is the most economic obtainable and final determinashy

tion of the character and source of fuel may influence the location of the plant

Furthermore operating conditions including cost and personnel bousing would

be more favorable if the new capaci~ were added to the Belencito power plant

The engineering studies thus far made have been to appraise the feasishy

bility of Paipa ~s a location for a thermal plant of this size t~ther than an

assessment of the broader question of what is the best power supp~ for an intenshy

sified agricultural and industrial development in Boyaca and for proposed inshy

creased needs at the Paz de Rio steel plant The supply in order to attract

industry should be the most economic obtainable The mission believes this would

not result from the proposed additinal thermal plant under discussion for Paipa

The most economical power supply obtainable for the region in all likelihood

would be supplied through a transmission system fed by a combination of hydro and

thermal plants so that advantage could be taken of large scale hydro developshy

ments Essential~ the entire power supp~ of the Boyaca area is produced in

thermal plants The additim of still another thermal plant at Paipa would deshy

prive this area of the advantage of more economical power obtainable from a ratioshy

nal thermal-hydrO balance A study should be made of the feasibility of supplying

the Boyaca area with pmer by completion of the remaining sections cr the Bogotashy

Zipaquira-Tunja-Paipa-Belencito transmission line which could be completed

promptly and which comld provide the area with a dependable and economic supply

of power from the calanced Bogota system the capacity of which is being greatly

increased This arrangement would allow time for studying the feasibility of a

large hydro development in the northern area such as the Candelas or Bata

projects In the long run power from such large hydro projects as these offer the

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-16shy

best opportunity for plentiful and cheap power in Colombia

~lectraguas should engage independent consulting engineers experienced

in electric power planning to recow~end the best long run solution for a power

supply to the Boyaca area Any delay due to this appraisal should not cause

inconvenience to the Paipa area as surlJlus power mea1while is available at

Belendto for transmission over the Belendto-Paipa transmission line now under

construction

Project II - 4 Transmission and Distribution System in Boyaca and Interconnection Paipa-~ipaquira

The basic concept of this program is the progressive extension of

electric service to a large number of communities the majority of which at the

present tDne receive little service or none at all The system will also be

available to the new industries developed or planned in the area as a consequence

of the start of operation of the Paz del llio steel mill A certain amount of

rural electrification is also considered

~lectraguas contemplates that power will be supplied to the system

from several plants the principal of which will be the Paipa steam plant In

the initial stages certain portions of the system will be fed from the Belencito

steam plant olrmed by the Paz del Rio steel mill 1fJhich has tenporarily an exshy

cess capacity (about 10000 kw) over and above plant requirements The system

will also be connected with other stations such as the existing steam plant at

Samaca (1000 kw) the Tunja steall plant (2500 kw) now under constr1lction and

a hydroelectric plant in Chiq1~nquira (1200 kw) also under construction

Besides the local lines spreading principally over the center of

Boyaca the system will expand towards and beyond the borders of the Jepartment

reaching Barbosa in the lest and Lipaquira in the Southwest The latter conshy

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-17shy

nection will permit interregional exchange of energy with the Bogota area

The cost of this program is esti~ted at 224 million pesos of which

161 million pesos (US$ 64 million) corresponds to imported equipment and

services

The various transmission lines and distribution systems v~th subshy

stations correspond in general to the recommendations of the NEP This

layout includes in particular the Paipa-Tunja-Zipaquira 110 kv trunk line

which vlfill play an essential part in exchanges of energy with the Bogota area

Besides these t~gh voltage lines the project includes a considerable extension

of 138 kv secondary lines and distribution systemsa Before proceeding with

actual construction of the longer 138 kv transmission lines included in the

project are-study Ehould be made of this group to determine whether some small

local diesels would not permit supplying energy more economically at the end of

the lines This seems to be also the case with certain portions of 34 kv lines

for example those south of Tunja These lines reach certain areas which in

the NEP were classified as non-connectable that is where power supply by

transmission would be leeS economical than supply from small local stations

The Mission recommends that the project particularly the higher

voltage portion should be given high priority Even if the Paipa steam plant

should be eliminated from the program or its location eventually be shifted

(see Item II -3) the layout of the high voltage lines may remain approximately

the same subject to adjustment of details

Pr)ject II - 5 Cartagena (Electrificadora Bolivar)

Cospique Thermal Plant (called Isla Grande in the NEP)

The recently formed corporation Electrificadora Bolivar owned 46 by

Electraguas and 54 by Cartagena is building the 10000 kw two-unit Cospique

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-18shy

oil-burning steam plant The service area includes besides the city of

Cartagena to which block power viII be supplied from Cospique through the Emshy

presas Publicas of that city several sizable coro~unities in the interior Transshy

mission lines to these communities and distribution systems are included in the

program Considerable portions of generating and transmission-distribution

equipment have been delivered l1ngineering has generally been done by the supplishy

ers of equipment

Obsolescence of a considerable part of the existing facilities which

results in interruptions of service makes it necessary to speed up erection of

the equipment The forecast of demand and construction program correspond to

the reco~nendations of the NEoP ~

It is also important for the utility to speed up construction in order

to start receiving income which will facilitate the reimbursement of short term

manufactuers I loans which requires immediate a vailability of tunds This part

of the project deserves high priority The total cost of this stage is estimated

at 76 million pesos of ~mich 5 million pesos (US$ 20 million) would correspond

to imported equipment and services

Further EA~ansi0n - the utility considers it necessary to proceed with

a next step of expansion and contemplates an additional 12500 kw steam unit No

engineering has been done as yet in connection with this unit which is included

in the program merely as an investment figure at an estimated cost of 110 million

pesos of which 67 million pesos (US$ 27 million) would correspond to imported

equipment and services

Although growth of demand would seem to justify the investment at once

this part of the project should be delayed until necessary engineering work for

li Vol2 Page VI-N-17

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-19shy

it has been done Immediate steps in this respect are recommended Moreover

study of a transmission line between Cartagena and Barranquilla in accordance

with the NEP should be undertaken in cooperation with the Cia Colombiana de

Electricidad

Projects II - 6 and II - 7 Sumapaz Hydro Plant _and Bogota-Melgar-Girardot Transmission Line

These projects comprise (a) the 20000 ~r San Bartolo ~droelectric

plant on the Rio Sumapaz The plant would supply power to an area southwest of

Bogota of which the principal centers are Girardot and Fusagasuga (b) A 110

kv transmission line to connect the Laguneta hydroelectric plant now being

built in the Bogota system with Fusagasuga Pandi (where it will connect With the

outgoing line from the San Bartolo plant) Melgar and eventually Girardot

Secondary transmission lines at 33 kv and lower voltage will also be constructed

and (c) Corresponding expansion and rehabilitation of lo~ distribution systems

The cost of these projects is estimated as follows

Total Cost (Pesos)

Imported Equipmen and Services

San Bartolo Plant 1ransmission Line Distribution Systems

Total

19700000 40001 000 I 800000

25500000

7100)000 2900000 1350000

11350000 or

(l45 million)The project in its present form is on a much larger scale than the

hydroelectric plant of 8 - 10s000 kw and the 33 kv transmissi6n line which NEP

recommends for this area ZI

ZI Vol 2 Table VI-c-6 page VI-c-56

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

__ __

- 20 shy

The reason for the increase in scale is the construction of a camp at Melgar

which is expected to house military personnel and their dependents to the number

of 25000 The 1954 population of the service area was estimated at 65400

The Mission considers that it is premature to proceed with a 20000 kw

hydroelectric plant on the Rio Sumapaz In the first place the interconnectiono

with the Bogota system to be provided by the transmission line may render a

plant of this size unnecessary Secondly engineering studies are required to

establish the availability of water for a 20000 kvr planta lhe possibility of a

reservoir in the upper Sumapaz basin to regulate flow should be studied

The Mission recommends that the transmission phase of this project be

given high priority

Project II _-__~D_l_middots_t_r~i~b~u_t~i~o~n~N_et_w~o_r~k~f~or C_a_li~middot

The Cali zone is one of the most highly developed and prosperous areas

of Colombia both in agriculture and industry The distributi~n facilities are

inadequate to handle the increased power supply already available from the

recently completed units at Anchicaya and scon to become available from the

Yumbo thermal plant rtehabilitation of the Cali distribution system is current~

in progress and its completion deserves a high priority~

Project II - 9 Small Stations in Isolated Communities

This project consists of six small diesel electric plants to be located

at Zambrano Sincelejo San Andres y Providencia Valledupar and Fundacion Th~

have been designated by the Electragua~ the sponsoring agency as social projectsl

inasmuch as it is not contemplated that the several plants will be self-liquidashy

ting and will need some subsidy for the foreseeable future

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-21shy

The location of the several plants and the capacities are as follows

Sincelejo 1500 kw Fundacion 3(00 kw Zembrano 1000 kw Valledupar 1000 kw San Andres y ~kw

Providencia 200 kw Total 7540 kw

As the con~unities to be served by these projects at present have the

use of only about 20000 kw effective capacity for a population of 2350000

the proposed new capacity is ver1 small One apparent reason for this is because

organization and studies required for this part of Colombias power development

are lagging behind In accordance with information collected locally additional

plants are also urgently needed in isolated areas of Cundinamarca Cordoba Caldas

Choco and Magdalena

The Mission believes that while these projects may not be se1fshy

liquidating from a short-run point of view th~ may in the long run open the

door to more extensive and profitable power development in the areas concerned

The ~lission therefore recommends that these projects be carried out as soon as the

necessary stUdies are completed and also recommends that Electraguas give inshy

creased attention L~ the future to engineering studies of the requirements of such

isolated communities

Projects II - 10 Tibu~s lbrbine Plant (Cucuta)

This project will be carried out by the recently formed Centra1es

Electricas del NOrte de Santander and will consist of (a) the installation

of tv~ 6000 kw gas turbine generators at Tibu in the Banco oilfields north of

Cucuta (b) the construction of a single circuit 98 kill 66 kv transmission line

from Tibu to Cucuta and (c) corresponding expansion of distribution facilities

The total cost of these works is estimated at 95 million pesos of

which 6275 million pesos (US$ 25 million) corresponds to imported equipment and

services

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 22 shy

The service area Jill include the city of Cucuta and neighboring cornmushy

nities The forecast of demard submitted by the Government is somewhat more conshy

servative than the forecasts of the Technical yenussion In any event further

expansion after 1960 by the addition of two more 6000 1W units and an additional

transmission circuit is contemplated Detail engineering is at present in proshy

gress Expansion of the distribution system is also in progress The project as

proposed is justified Furthermore with the Cucuta-Bucarallanga transmission line

(Item II - 16) it will be possible to economically supply power to other areas in

the Northeast (This ties in also w~th Items II - 2 and II - 18)

Project II - 11 Rio Nevado (Puente Guican)

This project to be constructed by E1ectraguas pending the establishshy

ment of a local agency consists of the construction of a 5500 kw hydroelectric

plant on the Rio Hevado together uith transmission lines and distribution facilishy

ties to serve the Cocuy district Hhich has a high density of population but

where population centers are small and present service is extreIllely deficient The

total cost is estimated at about 92 million pesos of which 3middot1 million pesos

(US$ 124 million) corresponds to imported equipment and services

While in the NEPsect it was contemplated that service would be limited

to the Cocuy district alone the present plan contemplates extension of service to

Malaga to the northwest Economics of transmission to the latter area should be

carefully balanced against providing service from local diesel plants which could

serve while load development is in progress

The water porer potentialities of this basin and of the Rio Fonce basin

should be studied jointly to determine the storage possibilities for a larger type

power development in conjunction with a transmission scheme for inter-connecting

proposed hydro plants on the Rio Nevado or Rio Fonce ~~th the Paz del Rio and

sect( Vol 2 Page VI-NE-22

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 23 -

Belencito areas so as to permit development of larger blocks of power on the Rio

Nevado at some later date The mission therefore recommends that development of in

the proposed Rio Nevado plant should be heldabeyance until a thorough study has

been made of the economics of transmission from the point of view of service to the

area of influence from the best power scheme available

Project II - 12 Jerico

This project consists of the first stage of 4500 kw of a 9000 kw

hydroelectric plant on the Rio Piedras together with transmission and distribution

facilities to supply a prosperous agricultural area around Jerico about 55 km

southrest from Hedellin The total cost of this first stage is estimated at 82

million pesos of which 25 million pesos (US$ 10 million) corresponds to imshy

ported equipment and services

Although the site is attractiVe for a hydro development the forecast of

demand shoHs a peak of about 2500 kw by 1960 vJhich is insufficient to justify a

plant of this size As in the case of the Sonson project (see Item II - 15) this

area should be served from Medellin and the Empresa de Energia Electrica de

l1edellin is already planning to supply pO~Ter service to some of the communities

included in tee project Therefore negotiations should be started with Medellin

in order to arrange power service for the entire area A practical solution of

the present shortage if interconnection with Hedellin cannot be promptly worked

out could be found by installing local diesels Improvement of distribution

should also be a part of the intermediate program

Project II - 13 La Cabrera

This project comprises the first stage (hJO 2235 kw units) of a hydroshy

electric plant in the upper Rio Cauca to which one or hJO further units may be

added later together 1Uth transllission and distribution f acilities to supply the

city of Popayan and the surrounding area The total cost of the first stage is

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 24 shyestimated at 80 million pesos of ~Jhich 4 0 mil2ion pesos (US$ 16 million) correshy

sponds to imported equipment and services

This project is not now justified in view of the present plans of the

eve (see Item I - 2) to build tranamp~ission lines to Popayan to be completed by the

end of 1958

In order to relieve the present shortage in Popayan it is suggested

that several small projects now in progress such as La Florida expansion and

Sajandi could be used in the intermediate period Improvement of distribution

during that period should be carried out

Project II - 14 Rio Negro

This project consists of the first stage (two units each of 2400 kw)

of a hydroelectric plant on the Rio Negro north of Cundinamarca together with

transmission lines and distribution systei11S to enable it to serve an area of which

the principal load centers are La Dorada and Honda It planned eventually to

increase the capacity to 9600 kw by installing two additional units The total

cost of the first stage is estimated at about 65 million pesos of which 20

million pesos (US$ 800000) corresponds to imported equipment and services~

This project has been examined in the NEP report 11 and lJaS favorably

coneidered not only for power supply but also for irrigation The present plan of

pOl-Jer development which consists of 4800 ~J as the first stage tdth ultimate exshy

pansion up to 9600 kw shortly after 1960 is Em~ler th~~ has been suggested in

the NEPsect( which anticipated 10000 lew initially and an ultimate development at

this site of 15000 kw stream flow data are however not very complete and

further basin wide studies should be carried out for possible reservoir sites

before final decisions are made vith respect to future expansion of the project

17 Vol 2 Page VI-C-16 sect( Vol 2 Table VI-C-6 Page VI-c-56

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 25 shy

The project should be favorably considered because of its strategic

location with regard to an attractive service area The area includes Villeta

Dorada and Honda and is promising from the agricultural and industrial points of

view The area is traversed by the Bogota-Puerta Salgar railroad and by the

Bogota-Honda-La Dorada highway which is being actively improved and ~rill eventually

become part of the modern Bogota-Medellin highway La Dorada is a transportation

center served by Magdalena River navigation and all important point of petroleum

traffic The project involves transmission lines vlhich will gradually become part

of a system connected Jith Armero (Rio Recio project Item II - 21) and eventually

with Bogota to the southeast

Having future nevelopment in view the Rio Negro project should be

stacted promptly subject to the completion of the detail engineering because

sL~ilarly to the Rio Coello and Rio Recio projects (see Items II - 20 and II - 21)

it will carry power service to prosperous areas now lacking such service and capshy

able of becoming a link in an integrated system

Project II - 15 Sonson

This project consists of the first stage of 5000 kw of a 10000 kw

hydroelectric plant on tile Rio Sonson together with transmission and distribution

facilities to serve the Sonson area southeast of Medellin The total cost of the

first stage is estimated at 625 million pesos of which about 30 million pesos

(US$ 12 million) corresponds to imported equipment and services

This 5000 kw first stage hydro project is intended for supplying power

to a small but prosperous agricultural area 75 km southeast from Medellin on the

highway to La Dorada studies made to date on this site are sommihat sketchy and

should be continued before final action is taken Furthermore the demand in the

service area could not be expected to result in a peak ~oad larger than about

21 Hap VI-c-4 Vol 2 of NEP Page VI-c-60

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-26shy

1500 ktv by 1960 since service n0W liJj~ed to the capacity of the small

diesel plants in the area This will have unfavorable economic results for the

project in its initial operating period Host importantly this area is within

the logical service area of lledellin and its system now branches out in that

direction The feasibility of serving the area from IJledellin should therefore

be investigated before proceeding further with the Sonson project Pending a

decision local diesels should be installed and distribution systems improved

Project II - 16 Bucaramanga-Gucuta Transmission Line

This project consists of the construction of a 140 km 110 kv transshy

mission line between Bucaramanga and Cucuta to enable the surplus capacity at

Lebrija in the immediate future and at the thermal plant at Cucuta after 1957-58

to be absorbed in the Cucuta Pamplona Bucaramanga and San Gil areas The total

cost of the project including substantions at Bucara1larga Cucuta and Pamplona

is estimated at about 50 million pesos of which ~2 million pesos 1(US ~876000)

corresponds to imported equipment and services

As stated in some detail in the preceding analysis of Item II - 2

pmier supply to the Bucaramanga and San Gil areas may be more advantageously

provided by means of a transmission line than by the Rio Fonce hydro plant A

study of the demand for CuclAta shows that a sizeable surplus capacity to be

available from that source Furthermore the construction of the Rio Fonce

plant cannot be completed as early as the transmission line The investment for

the Bucaramanga-Cucuta line is of the order of 6 million pesos as compared with

262 million pesos for the Rio Fonce project

Consequently it recommended that a study be made of an integrated

power supply from a transmission system interconnecting vuth the Bogota-Belencito

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 27 shy

tranSMission ~Jstem at Belencito Such a study should determine the most economishy

cal sources for generating power to serve the requirements of the areas thus

interconnected

Project II - 17 Additions to the Iquira aydroelectric Plant Departamento del Hulla

The first pOi-vel development on this river consisting of two units of

1400 ~i each is essentially completed as is also the transmission line from the

Iquira station to Nieva From information at present available the adverse geoshy

logical conditions in the area where the reservoir is located make the expansion

proposed in this project inadvisable In the NEP a recorr~nendation was also inshy

cluded that further studies be carried out before proceeding vuth further power

developments on this riverplusmnpound(

Project II - 18 Lebrija Exp~~sion

The agency responsible for this project is the Central Hidroelectrica

del Rio Lebrija Ltda to which the International Bank for Reconstruction and

Development granted a loan of uS il24 million

The first stage of the project of 9000 kW Nas completed early in 1954

and is now in operation The present project provides for its expansion to 18000

kw The expansion program ca~ be concluded in 1957

This plant supplies at present the city of Bucaramanga which is the

principal load center of the district The communities of Floridablanca Piedshy

cuesta Giron Lebrija and Rionegro irill be suplied in 1956 and 1957 The

necessary tranampnission lines and distribution systems will be constructed for this

purpose

The total cost of the project is estimated at 46 million pesos which

includes 20 million pesos (US$ 800000) for imported equipment and services

21 Vol 2 Page VI-S-2S Neiva Zone

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 28 shy

shy

The early exansiol1 0 tlle Leodja hyuroelectric plant (two additional

4500 lui units) was recommended in the JEP It corresponds to the growth of

demand in the city of Bucaramanga and the several comllurities which are J or v1ill

be connected shortly to the Lebrija plant

The mission recoIllillends that high priority should e given to this proshy

jectJ which requires very little additional engineering or civil works Further

reference is made to this project under Items II - 21 - 10 and II - 16 which

are interdependent with Lebrija

Project II - 19 Distributio~ System in Pereira

This project is for the Jurpose of mode~~izing and extending the distrishy

bution system of Pereira to enable it to more adequately serve its market area

The mission concurs in the proposed program

Project II - 20 Rio C~~

This project consists of -the construction of a 3000 kl hydroelectric

11plant to tale advntage of exsting irriltion facUities on the Rio Coello-

and is intended to surly pCJer to the citr a1d district of Ibague The total cost

is estimated at 375 lilllion pesosgt of llich 20 million pesos (US$ 800000) correshy

sponds to linported equi~ment and services

The euro~onomi contribution of this part of the l1agdalena Valley rhere

agricultural production is significant and highvmys are improved including the

main trunk line Jvut0 Bogocamiddot-Girarc0t-Tu3gue-Armenia-Cali ~mu1d seem to justify

the forecast of demand

In the NEP it was contemplated that bGsides the Coello-Ibague transshy

mission line to deliver pOvler from the project a tralsmission line i-Tould also be

12bullt before 1960 from Coello to Girardot-- Even though it is planned now to

supply additional povrer to Girardot from the Sumapaz project or alternatively

11 Vol 2 Page VI-C-12 y Vol 2 IIlap VI-c-4J Page VI-c-60

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 29 shy

from the Bogota transmission SJsterl the contruction of the Coello-Girardot

transmission line would be advisable Further study may actually justify the conshy

struction of a continuous 110 kv line (viith possible initial operation at 66 kv)

connecting Laguneta-Pandi (S1lr1apaz)-Helgar-Girardot-Coello-Ibague This line at

some later date might become a part of an intercolli~ection grid offering the

possibility of future connection to the west ie from Ibague to the CrtEC or CVC

system

Some study should be given to the scheduling of construction and to

planning joint operation of the various stretches of this extensive transmission

line the northern end of which (Laguneta) rJill be cOlmected to the Zipaquira

steaTl plant and also to the Boyaca system

Proj~ct II - 21 Rio Recio

This project~ to be managed and operated by the Centrales del Tolilna

S~A consists of the construction of a 4800 kw hydroelectric plru1t on the Rio

Recio to take advantage of the existing h7draulic lltiorks (diversion dam and concreteshy

lined canal) of the Lerida-pnbalema irrigation system Transrrdssion and distribushy

tion facilities will ta provided to enable the plant to serve the progressive

agricultural districts of Ambalema and Armero in northern Tolimao

The total cost of the project including trans~ission and distribution

systems is estimated at about 35 million pesos of iNhich 20 millio pesos

(US$ 800000) corresponds to imported equipment and services

The demand forecast in the NEP for both the Ambalema and Armero

districts is higher than available capacity e~~pected at the first stage of Rio

Recio Later expansion of this pla1t is possible hOHevero It is also desirable

to later establish an intercoru1ection with the area served by Rio Negro (see

Item II - 14) to the north and east~

This project is reco~~ended because it will serve a prosperous area

rrhere service is at present rather unsatisfactory POlTer development in such an

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 30 shy

area will immediately create at a distance of about 120 km from Bogota a growing

load center capable of becoming a part of an integrated sYstem13

Project II - 22 Distribution Systems in Departamento de Caldas

Provision for needed additional transmission lines in the Depar~~ent is

made urgent by the planned early completion of additional generation capacity by

CHEC (see Item I - 3) and the mission recommends that the program go forward

Project II - 23 Palmira Tr~lission System Extensions

Proposed extension of this transmission system should be fully coordishy

nated with the program of the CVC and oP~y carried out to the extent it is compatshy

ible with the over-all plans and schedules for producing and delivering power in

the CVC region

C Group III Proiect

Table No 3 gives the projects in an early stage of planning which were

submitted to the mission

TfJ3LE NO 3

Projects Submitted ~ the llission vfrlich Are Still in the Planning Stage

Portion Total Foreign

Type of Cost Exchange Project

Designation Responsible Agency and Name of Proj ect

Project and Capacity

Pesos Millions

Pesos Millions

III - 1 Corporacion Autonoma del Cauca Salvajina

Hydro 100000 kw

685 27 3

III - 2 Departamento del Huila Betania Hydroelectric Plant

Hydro 50000 kw

400 200

III - 3 Departamento Norte de Santander F~ectrification Program (generation transmission and distribution)

12000 lew (estimated)

250 200

III - 4 Ivlunicipales de Pereira (Caldas) Planta de Senegal

14000 kw (first unit)

210 126

13 See lvIap vI-a-ti Vol 2 of NEP Page VI-c-60

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

- 31 shy

III - 5 Empresa de Pasto (lrarinc) Pasto 10000 kw 100 60 Hydroelectric station

III - 6 Depart~aento del Choco Hydro de 10000 kw 80 60 la Soledad

III - 7 Cooperativa de l1unicipalidadee de 3000 kw Antioquia Ltda Small hydroelectric plants

III - 8 Departamento de Caldas Hidro- 3500 kw 40 electrica Buenavista (connected with El Bosque)

III - 9 Departamento del hagdalena 2500 ktf 20 Small plants to serve 20 towns

III - 10 Departamento del Atlantico Transmission 18 Electrification of the Depart~~nt and

Distribution

III - 11 Departamento del Valle 1500 kw~~ 20 14 Electric facilities to serve Tulua

III - 12 Departamento de Cordoba 1000 kw~r 12 0 9 Small plants to serve 13 towns

III 13 I1unicipales de Barrancabermeja 1000 kw~V~ 12 007 Zlectric Gen3rating facilities

III - 14 Departamento del Chaco 500 kw-l- 06 04 Plants to serve various small towns (projects at Carmen Quibdo etc)

III - 15 Departrunento de Cundinamarca 02 Small plants to serve rural communities

III 16 Empresa de Pasto (Narino) 1200 kw 02 00 Completion of existing worlce at Rio Sapuyes

Totals ~0600 kw 1927-w4l7 milllon Estimated

Hith minor exceptions the projects listed in fable No 3 above are in

a very preliminary stage of planning at the present time a~d should have further

study before being included in the program for government sponsorship or financial

participation The engineering work should proceed on such of these projects as

or

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-32shy

were recommended for consideration by the Technical rUssion and upon

corrpletion of these preliminary studies 61ectraguas should indicate which

of the projects justify further consideration and the budget that should

be established for execution of such selected projects In the mission r s

recommendations a contingency fund is set apart for power development

lith which such selected projects could be financed

III Sm1rvIARY OF RECOijIENDATIONS

Cn the basis of the foregoing considerations the following recommendashy

tions are submitted

1 That to the extent that they are not already financed and

under constr~ction the Government give first priority to the projects

surrnnarized and listed in Table No 4 below Although for the most part

these projects are well advanced in engineering and financial planning

construction should be authorized on each project only after engineering

plans and specifications are sufficiently advanced to provide the basis

for competitive bidding and firm contracts The estimates are tentative

of course and ~~11 necessarily be modified as engineering plans are preshy

pared in greater detail

TABLE NO4

Projects Recommended by the mission for Immediate Authorizati()Qfor Electric Power Development

in Colombia

- Portion For-Project Capacity Estimated Cost eign Exchange Remarks

(Im) (Pesos IvIi11ions) (Pesos Ni11ions)

I - 1 Bogota 161300 1011 674

I - 2 evc 120000 1010 553 Ca1ilna and Transmission

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-33shy

I - 3 Caldas

I - 4 Hedellin

I - 5 Anchicaya

II - 4 Boyaca System-Zipaquira transmission line

II - 5 1301ivar

II - 7 Bogota-Melgartransmission line

II - 8 Cali distribution

II - 9 Small rojects (Sincelejo etc)

II - 10 Cucuta

- 14 Rio Negro

II - 16 Bucar~~nga-Cucuta transmission

II - 18 Lebrija

II - 19 Pereira distribution

II - 20 Coello

II - 21 Rio Recio

- 22 Caldas transmission

Totals

26200

118000

65000

12500

7540

12000

4800

9000

3000

4800

544140

40 0 8

440

267

224

88

58

166

905

65

50

46

38

35

15

4155

213

211

176

161

62

43

111

60

63

20

2 2

20

33

20

0 3

2465

Includes 2nd unit of 40000 kw at Guadalupe additional to the proshyject as subrnitted

Part of V-2 under conshystruction

Cospique plant and diesels

or $986 million

2 Projects not listed in Table no 4 are recomnended for further study

of the engineering aspects and of their economic soundness Those which

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

bullbull

-34shy

such study establishes as sound should be incorporated in the programs for

subsequent years for execution as finances permit

3 In order for the National Goverrunent to accumulate the basic hydroshy

logic geologic and topographic data it requires for sound planning of elecshy

tric power development in Colombia the mission recommends that the National

Government provide a sum of three million pesos annually for the next five

years to the Departmento de Fomento ~lectrico of the Corporacion de Servicios

Publicos the successor to Electraguas for making hydrologic geologic and

topographic studies

4 The projects listed in Table No4 which the mission recommends

for prompt eYecution provide for an increase in the total generating capacity

in Colombia of 544 140 kw 1lihich added to the present 390000 kw of public

utility power would provide a total of approximately 934000 kw qy 1960

This compares with the total of 1150000 kw recommended for that year in

the NEP

The total estimated cost of the projects in Table No4 and the

expenditure required per year is shown in Table No bull 5 bull

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

--

--

-35shy

Table No 5

Total Project Cost 1955 1956 1957 1958 1959 1960

I - 1 Bogota 1011 ~34 235 201 124 124 99 I - 2 CVC 1010 167 408 385 50 I - 3 Caldas 408 91 180 113 24 I - 4 Ledellin 440 32 239 150 19 I - 5 Anchicaya 267 90 94 57 26

II - 4 Boyaca System 224 16 31 62 57 43 15 II - 5 Bolivar 88 68 20 II - 7 Bogota System-Melgar S8 40 18 II - 8 Cali 166 LO 34 51 44 27 II - 9 Small projects 94 06 73 14 01

(Sincelejo etc) II -10 Cucuta 95 20 50 21 04 II -14 Negro 60S 02 05 23 23 12 II -16 Bucaramanga-Cucuta 50 20 30 II -18 Lebrija 46 05 22 19 II -19 Pereira 45 LS 15 15

-20 Coello 38 38 II -21 Rio Receio 35 20 15 II -22 Caldas 15 06 ~

Total 4155 56uo 126 2 1226 73~9 260 108-_shy

This tapering pattern of investment would not of course suffice

to meet all the needs of an expanding economy for which it would be necessary

to maintain and even to increase somewhat the 1956 rate of investment The

NEP for example estimated that over the period 1955-1960 a total investshy

ment of 958 million pesos or an average of approximately 160 million pesos

a year would be necessary to make good the existing deficiency of generating

capacity and to keep pace with increasing needs14

141 Vol 1 page 36--

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-36shy

Any target rate of progress of this kind however is realistic

only insofar as it can be translated into terms of well-prepared specific

projects of demonstrated need and insofar as adequate financing can be made

available taking into account the urgent needs of other sectors of the

economy Neither of these conditions is likely to be fulfilled in Colombia

in the near future sufficiently to permit a rate of expansion as rapid as

that recommended by N P It should however prove possible to maintain

investment in power at a level at least as high as and it may be hoped a

little higher than that now scheduled for 1956-1957

5 Nuch delay and unnecessary expense has been encountered in the past

in carrying ct electric power projects simply because the basic engineering

has not been completed before steps are taken to buy eq~pment or begin conshy

struction At the outset competent professional engineers should be called

in to plan the most economic source of power supply to meet the requirements

of any particular service area Once the type character and location of

the power station are decided the next step is to have the engineers preshy

pare plans ~~d specifications as the basis for inviting international comshy

petitive bids from suppliers of the desired equipment and from experienced

contractors capable of completing the project within a satisfactory period

By following such a procedure the Government or responsible agency obtains

the savings in costs made possible by free competition among private manushy

facturers and contractors each bidding on an equal basis for comparable

items or performance

The mission strongly recommends that in the planning financing

and execution of power projects Colombian agencies avoid entering into conshy

tracts whereby all these functions are placed in the hands of a single firm

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment

-37shy

primarily engaged in the manufacture of electrical equipment These contracts

are attractive because they apparently relieve the client of trouble and

responsibility and provide a solution of the financing problem This appearshy

ance is usually illusory ~ihen the firm which is to supply the equipment

also designs tne plant other considerations besides the most economical and

efficient way of meeting the clients needs are bound to influence the designs

Lack of competition also increases the price the client has to pay Financing

provided or negotiated by a supplier is usually for a shorte r term than is

appropriate to a power project and at a higher rate of interest than might

be obtained in other directions

It is much more efficient and economical to employ consulting

engineers to prepare designs and supervise construction and to award conshy

tracts for constr~ction and the sl~ply of equipment through competitive

bidding This the accepted procedure for public works const~uction in all

industrialized countries gives the best assurance of adequate design and

sOlmd construction In these circumstances the fees paid to the consulting

engineers are an amply justified investment