- Type of Industry:
- Thermal and hydro power plant construction rehabilitation
- Subsidized Project:
- Armenia power rehabilitation
- Location:
- Armenia
- G-7 TNC Involvement:
- Hill International (U.S.) is construction manager of
the Hrazdan power plant.
- World Bank Agency:
- IDA
- Amount of Financing (estimated total cost):
- $13.7 million of $14.5 million
Year of Approval: FY1995 (December 8, 1994)
- World Bank Descriptions:
- "The deterioration of selected power-generation
units will be arrested and reversed, and electricity-dispatch
communications and distribution systems will be strengthened and
maintained." (World Bank Annual Report FY1995) "The project consists of (a)
maintenance of two existing 200 MW thermal units at the Hrazdan power
plant, one 150 MW thermal unit at Yerevan power plant, one 100 MW and one
44 MW plant on the Sevan-Hrazdan hydro-power cascade, and one 170 MW plant
on the Vorotan hydro-powercascade; (b) strengthening and maintenance of
the electricity dispatch communications and distribution system; and (c)
technical assistance for project implementation and upgrading the
electricity dispatch system." (AID/WATCH)
- Notes:
- According to Hill International, the Hrazdan power project involves
the construction of a 300-megawatt gas-fired power plant. (PR Newswire,
Feb. 17, 1995)
China is adding more coal-fired power capacity than any other country in
the world. The World Bank is a major financier of this rush to burn coal.
Since 1992, the World Bank has issued $1.37 billion in loans and
guarantees for the installation of new coal and diesel power plants
totalling 4,395-megawatts at five locations. The Bank is considering an
additional $800 million in loans to catalyze investments in two separate
massive power projects which, when fully completed, will generate a
combined 8,800 MW of coal-fired power for Beijing and Shanghai.
"China is inefficiently using huge amounts of coal," said She Jinming,
China's deputy director of the state planning commission last December.
(South China Morning Post, December 8, 1996)
China and India now account for 14 per cent of global greenhouse emissions.
According to the Paris-based International Energy Agency, they will
account for a quarter of carbon dioxide emissions in 15 years. (South
China Morning Post, September 22, 1995)
"China must add 100,000 megawatts of power-generating capacity by 2000 and
invest approximately $ 100 billion to finance those projects, according to
one expert. "This is the biggest power market in the world," said Lorenzo
Lamadrid, China managing director of the Houston-based Wing Group, Ltd., a
company involved in a variety of power-plant projects." (Washington Post,
Feb. 21, 1995)
Most of the increased capacity is expected to come from coal, which
accounted for 83% of all electricity generated in China in 1994. (South
China Morning Post, October 14, 1994)
G-7 transnational corporations, particularly those based in the U.S. and
Japan, have been major beneficiaries of the World Bank's financial backing
of coal-fired power projects in China. U.S. corporate owners or
equipment suppliers for the plants receiving World Bank backing include
Enron, Westinghouse, McDermott International, Raytheon and Coastal Corp.
Japan-based corporate equipment suppliers include Mitsui, Toshiba and
Ishikawajima-Harima Heavy Industries.
Approved financing includes:
- Tuoketuo, Inner Mongolia: In May 1997, the IBRD approved a $400 million
loan toward the development of a huge new coal mine-mouth power plant in
Tuoketuo county in China's Inner Mongolia Autonomous Region. The first
phase is a $1.3 billion project. The first two 600 megawatt burners may
become operational in the year 2001, with eventual capacity expanding to
3600 MW (six units). This would make the power complex the largest in
Asia. Most of the power from this plant would flow to Beijing. China
opened international bidding for equipment supply contracts this year.
- Hainan Island: In FY1996, MIGA issued a $16.7 million guarantee for Enron
Corporation's (U.S.) investment in a new 155-megawatt diesel oil power
plant on Hainan Island. The plant, completed in January 1996, is operated
by the Hainan Meinan Power Company joint venture. In 1996, Enron sold
50% of its interest in the plant to Singapore Power PTE. "There's a
tremendous amount of opportunity in energy and other infrastructure with
deregulation and privatization of the energy business around the world,"
Rebecca Mark, Enron Development's chairman and chief executive, told the
Journal of Commerce in 1994.. "U.S. companies are really in the lead in
technology and know- how." (Houston Chronicle, Feb. 11 and 18, 1997; PR
Newswire, Jan. 16, 1996; Journal of Commerce, Sept. 16, 1994; Oct. 30,
1995)
- Henan Province: In February 1996, the IBRD approved a $440 million loan
toward the construction of a new 1,200-megawatt coal-fired power plant
called the Henan (Qinbei) Thermal Power Plant, and related transmission
lines. The project includes two 600-megawatt units. Henan is one of
China's largest coal-producing provinces. (Xinhua News Agency, Jan. 4,
1996; Jan. 29, 1996)
- Jiangsu Province (Yangzhou No. 2 Power Project):: In FY1994, the IBRD
approved a $350 million loan toward a new 1,200 megawatt coal-fired power
plant and related transmission lines in Yangzhou City and Jiangsu Province.
The primary beneficiaries of this loan were two U.S. corporations:
McDermott International and Westinghouse, which are supplying the bulk of
the plant's equipment. According to the Journal of Commerce, the Yangzhou
project "is the first to be undertaken wholly by U.S. companies in all
construction processes." (Reuters, December 8, 1994; Reuters, December 20,
1994; Journal of Commerce, December 22, 1994)
- Jiangsu Province (Wuxi Huada Gas Turbine Electric Power Co.): In FY1997,
MIGA extended $13.5 million in risk insurance to Coastal Corp. (U.S.) for
its interest in a joint venture that built a 40-megawatt diesel/natural
gas combined cycle power plant in Jiangsu Province. This plant began
producing power in November 1995.
- Zhejiang Province: In FY1995, the IBRD approved a $400 million loan and a
$150 million guarantee toward a massive coal-fired power project in
Zhejiang Province. The project includes the addition of three 600-megawatt
coal-fired power units at the Beilungang Power Station. Equipment is to be
supplied by three Japan-based corporations, Mitsui, Toshiba and
Ishikawajima-Harima Heavy Industries. This plant had previously received a
World Bank loan in the 1980s, which financed the import of a boiler which
exploded in 1992. The tragedy killed 23 workers.
Pending loans include:
- Shanghai: The IBRD is considering investing $400 million toward a $2.144
billion development at the Waigaoqiao Power Plant, in the Pudong industrial
zone, 18 kilometers from Shanghai's city center. Four 300 MW units are
expected to open in 1997. The Bank is considering financing the next
phase: two "supercritical units" of 900 to 1000 MW each. The third and
final phase would add another 1,800 to 2,000 MW of capacity.
- Type of Industry:
- 150-megawatt diesel power plant
- Subsidized Project:
- Hainan/Enron
- Location:
- Hainan Island, China
- Owner of Project:
- Hainan Meinan Power Company CJV
- G-7 TNC Involvement:
- Enron Corp. (U.S.) (Owner)
- World Bank Agency:
- MIGA
- Amount of Financing (estimated total cost):
- $16.7 million guarantee
- Year of Approval:
- FY1996
- World Bank Description:
- "MIGA issued a $16.7 million to Atlantic Commercial
Finance, B.V., of the Netherlands, a wholly owned subsidiary of Enron
Corporation of the United States, for its equity investment in a
150-megawatt combined cycle diesel power plant on the east coast of Hainan
Island, China. MIGA's guarantee covers the risks of currency transfer,
expropriation, and war and civil disturbance. The project enterprise,
Hainan Meinan Power Company CJV (HMPC), is an intermediate load plant,
designed specifically to overcome some of the province's power problems...
The project will represent about 13% of Hainan's current installed power
capacity and contribute significantly to the growth prospects of the local
economy.... Measures have been taken to ensure that thermal discharges and
emissions of sulphur dioxide and nitrogen oxide conform to relevant World
Bank guidelines. The plant also has a comprehensive oil spill contingency
plan and has put in place noise abatement measures." (MIGA Annual Report
FY1996)
- Type of Industry
- 1,200-megawatt coal-fired power plant, transmission lines
- Subsidized Project
- Henan (Qinbei) Thermal Power Plant
- Location
- Henan Province, China
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $440 million of $1.161
billion. Loan is guaranteed by the government of Henan.
- Year of Approval
- FY1996 (February 27, 1996)
- World Bank Description
- "Acute power shortages will be reduced and
integrated development of the power system in Henan province will be fostere
d through a program of investments, power-sector reforms, and institutional
development." AID/WATCH: "The project components will include the
construction of new coal-fired thermal power units and an online
performance monitoring system to increase plant performance, the erection
of transmission lines to connect the power plant to the existing power
transmission network; a technical assistance package to support the
implementation of a power sector reform action plan; an electricity
conservation component; and training to build capabilities in power system
operation and management practices."
- Sources
- WBAR 1996, AID/WATCH, BBC, March 19, 1996
- Type of Industry
- 1,200-megawatt coal-fired power plant
- Subsidized Project
- Yangzhou Power Plant
- Location
- Jiangsu province, China
- G-7 TNC Involvement
- Westinghouse, McDermott/Babcock-Wilcox (U.S.)
(Equipment supply) Raytheon/Ebasco (U.S.) (Engineering Services)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $350 million of $1.081 billion,
with $120 million cofinancing by commercial banks and Japanese insurers.
- Year of Approval
- FY1994
- World Bank Description
- "Through the construction of a coal-fired thermal
power plant, the erection of new transmission lines, and the reinforcement
of the existing power-transmission network, the critically needed
power-generation capability of Jiangsu province and the East China power
grid as a whole will be greatly increased. Technical assistance and
training are included." (World Bank Annual Report FY1994)
- Notes
- Babcock & Wilcox, a unit of McDermott, received a $155 million
contract in December 1994 to supply two 600-megawatt coal-fired boilers and
auxiliary equipment for the Yangzhou No. 2 power project. The equipment
was to be produced at the company's plants in North America and China.
Babcock & Wilcox supplied China with more than 10,000-megawatts of boiler
capacity from 1986 to 1994. At the same time, Westinghouse received a $150
million contract to supply two 600 megawatt steam turbine-generators, four
boiler feed pump turbines and other equipment to the Yangzhou power plant
in Jiangsu Province, with financing provided by the World Bank. The
equipment is to be produced in the U.S. and Canada. The plant is due to
start operations in 1998. According to the Journal of Commerce, the
Yangzhou project "is the first to be undertaken wholly by U.S. companies in
all construction processes." (Reuters, December 8, 1994; Reuters, December
20, 1994; Journal of Commerce, December 22, 1994; PR Newswire, June 1,
1994)
- Type of Industry
- 40 MW diesel power plant
- Subsidized Project
- Wuxi Huada Gas Turbine Electric Power Co.
- Location
- Jiangsu Province, China
- G-7 TNC Involvement
- Coastal Corp. (U.S.) via Cayman Islands subsidiary,
Coastal Wuxi Power Ltd. (Ownership)
- World Bank Agency
- MIGA
- Amount of Financing (estimated total cost)
- $13.5 million in risk insurance
- Year of Approval
- FY1997
- World Bank Description
- "Coastal Wuxi Power Ltd. of the Cayman Islands, a
wholly-owned subsidiary of Coastal Corporation of the United States, has
invested in a joint venture with two Chinese state-owned companies to
develop, construct, and operate a 40-megawatt diesel power gas turbine in
the Jiangsu Province of China. Two MIGA insurance contracts, totaling
US$13.5 million, cover Coastal Wuxi's equity and loan investments against
the risks of transfer restriction, expropriation, and war and civil
disturbance. The project enterprise, Wuxi Huada Gas Turbine Electric Power
Company, is created to alleviate shortage of peak-hour electrical supply
in Wuxi City. Coastal will provide technical and managerial expertise to
the project, and will employ and train local staff in power plant
operation and maintenance." (MIGA News, Spring 1997)
- Notes
- The Wuxi power plant began operation in November 1995. Coastal Corp.
said this plant might expand to more than double its current 40-megawatt
capacity. (Business Wire, Dec. 12, 1995) (PR Newswire, March 14, 1996)
- Type of Industry
- Power generation expansion (incl. three 600 MW coal-fired power plants)
- Subsidized Project
- Zhejiang (Beilungang) Power Development Project
- Location
- Zhejiang province, China
- G-7 TNC Involvement
- Mitsui and Co., Toshiba, Ishikawajima-Harima Heavy
Industries Co. (Japan): Provisional award to build two units at Beilungang.
Raytheon (U.S.) Raytheon's subsidiary, Ebasco, awarded engineering
contracts for Beilungang Units 3 and 4. (PR Newswire, June 1, 1994;
Business Wire, Dec. 20, 1994)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $400 million of $1.789.3 billion
- Year of Approval
- 1995
- World Bank Descriptions
- "Rapidly expanding power demand in Zhejiang
province will be met through large generation additions and associated
transmission and power-sector reforms will be promoted." (World Bank Annual
Report FY1995) "The project will include power sector reform, investment
and institutional development components as follows: 1) a time-bound
implementation plan for power sector reform, including commercialization
and incorporation of the power company; 2) Beilungang Phase 2 consisting of
the addition of three 600 MW coal-fired units at the Beilungang Power
Station;" ... transmission lines, distribution, management and other
technical assistance." (AID/WATCH)
- Notes
- In 1988, the World Bank extended a $165 million loan for the first
phase of the Beilungang power plant. On March 10, 1993, shortly after the
plant opened, an imported boiler exploded, killing 23 people and injuring
24. According to the Bank, built-up coal slag caused the explosion. It is
not clear which foreign company sold the boiler unit, but in 1988, the
Xinhua News Service reported that bids were cast by "eight corporations
from Britain, Sweden, France and the United States." The second phase of
the project will burn about 5.7 million tons of coal annually, and force
645 households to relocate. (UPI, March 3, 1995; Journal of Commerce, June
21, 1988; Japan Economic Newswire, April 28, 1995; Xinhua, April 27, 1988)
- Type of Industry
- China boilers
- World Bank Agency
- GEF
- Amount of Financing (estimated total cost)
- $32.8 million grant Date of
- Approval
- December 23, 1996 (FY1997)
- World Bank Description
- "A $32.8 million grant from the Global Environment
Facility was approved on December 23 to install new combustion systems and
equipment needed to upgrade heating and power boilers in China; introduce
modern manufacturing techniques and new boiler designs; and support
technical assistance and project management." (World Bank News, Jan. 8,
1997)
- Type of Industry
- 3,600-megawatt coal-fired power plant
- Subsidized Project
- Tuoketuo Power Plant
- Location
- Tuoketuo, Inner Mongolia Region, China
- Owner of Project
- People's Republic of China (borrower); Tuoketuo Electric
Power Generating Co.; shareholders in Tuoketuo: North China Electric Power
Group Co., Beijing Energy Management Co. (to be confirmed)
- G-7 TNC Involvement
- Foreign bids are currently being sought.
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $400 million of $1.3 billion
- Date of Approval
- none - project under development
- World Bank Descriptions
- "The proposed project is intended to: (a)
increase electricity supply and electricity trade in north China through
creation of an independent power company to develop a mine-mouth power
plant in Inner Mongolia Autonomous Region that will supply the
Beijing-Tianjin-Tangshan (Jing-Jin-Tang) grid through long term contractual
arrangements; (b) improve the efficiency of energy supply and use in the
region by: (i) introducing modern technologies and implementing effective
operations and maintenance practices and procedures in power generation,
and (ii) reducing losses in the transmission and distribution systems of
Beijing; (c) advance the power sector reform process in China by: (i)
promoting the development of electricity supplies in North China through
market oriented commercial arrangements; and (ii) encouraging non utility
and private sector investment in existing and new power sector enterprises;
(d) diversify financing sources and improve the access of power entities to
international financial markets; and (e) increase economic activity and
also improve soil conservation and desertification control in Tuoketuo
county.... The major investment components will be in (a) power station
construction, (b) loss reduction measures on the Beijing transmission and
distribution systems; and (c) a soil conservation and desertification
control component to be implemented within the same time frame as the
Tuoketuo project. A coal-burning thermal power station will be built in
Tuoketuo county in the Inner Mongolia Autonomous Region, about 70 km from
the capital city Hohhot.... The initial capacity of the station is to be
1200 MW (2x600 MW) but plans are for an eventual capacity of 3600 MW (6x600
MW). The schedule is for the first unit to begin commercial operation in
July of 2001 and the second in September of the following year. The
station will be the first Bank-supported mine-mouth power station in
China....The first two units will consume about 4 million tons of coal per
year. All power generated by the plant... is intended primarily for supply
to Beijing.... The commercial operation of the first generating unit is
expected in July 2001 and the second unit in September 2002." (World Bank
Project Information Document, Project ID CNPA3650, undated, processed by
World Bank Public Information Center in November 1996)
- Notes
- In April and May 1997, China opened international bidding for power
plant and transmission equipment for the Tuoketuo Thermal Power Project.
The government of the Inner Mongolia Autonomous Region is seeking foreign
ownership for the Tuoketuo power plant. According to UPI, when completed
Tuoketuo would be "Asia's biggest power plant complex." (UPI, August 20,
1996; Asia Pulse, April 29, May 2 and May 12, 1997)
- Type of Industry
- 1,800 to 2,000-megawatt coal fired power plant
- Subsidized Project
- Waigaoqiao Power Station (second phase)
- Location
- near Shanghai, China
- Owner of Project
- People's Republic of China; Shanghai Municipal Electric
Power Co.
- G-7 TNC Involvement
- Likely from Japan, U.S., or Germany. Foreign
procurement consultants currently being sought.
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $400 million of $2.144 billion.
Cofinancing from Japan Export-Import Bank (up to $50 million loan) is
expected. Date of Approval: none - project under development
- World Bank Description
- "The primary objectives of the project are to: (a)
increase electricity supply to reduce the acute power shortages in Shanghai
through development of two very large coal-fired thermal units; (b) develop
a program to apply for the first time in China the 'bubble concept' for
cost effective air quality management within Shanghai Municipality; (c)
support the ongoing power sector reform by restructuring SMEPC in line with
the power sector reform strategy; encouraging private sector involvement
through listing of the generation company; and rationalizing the tariff
structure as well as adjusting the tariff level to accommodate the stricter
sulfur dioxide emission standards; and (d) promote an innovative and
diversified financing model for a large infrastructure project and improve
the access of power entities to international financial markets.... The
major investment components will be in:
(a) the power station and
associated transmission line construction; (b) application of the most
suitable desulfurization technologies in the existing priority (more
polluting) power plants; and (c) technical assistance to support reform and
institutional strengthening.... The Waigaoqiao Power Plant is located in
the Pudong New Area of Shanghai at the mouth of the Yangtze river, which is
about 18 km away from the city center. Following the completion of the
first phase of the Waigaoqiao power plant (4X300MW) in 1997, SMEPC plans to
initiate the second phase of development of the site through the
construction of two coal-fired supercritical units of 900-1000 MW each,
followed by a third and final phase of installation of another 1,800-2,000
MW. The station will be the first two supercritical coal- fired units of
900-1000 MW in China. This very large thermal unit is a new technology in
China. There are only 27 coal- fired thermal power plants of this size
currently under operation and another 11 under construction, all in the US,
Japan, and Germany.... SMPG is currently the size of a typical medium sized
utility in the US and by the year 2000, it will be the size of a typical
large utility in the US. The project requires: (a) acquisition of about
1,272 mu of land, (b) demolition of about 41,000 square meters of floor
space; (c) relocation of 273 households and 17 town or village enterprises.
Overall, about 1,298 people will be affected by the project." (World Bank
Project Information Document, Project ID CNPE44485, undated, processed by
World Bank Public Information Center in March 1997)
- Notes
- In May 1997, the SMEPC encouraged international companies to apply
for procurement consulting services in anticipation of receiving an IBRD
loan for the second phase of the Waigaoqiao Thermal Power Plant Project.
The first two units (Phase One) of the Waigaoqiao plant opened by November
1995. (Xinhua, Nov. 19, 1995; Asia Pulse, May 12, 1997)
- Type of Industry
- Natural gas-fired power plant expansion (100 megawatts)
- Subsidized Project
- Vridi II power plant
- Location
- Cote d'Ivoire
- Owner of Project
- Compagnie Ivoirienne de Production d'Electricite (CIPREL)
- G-7 TNC Involvement
- Ownership: Electricite de France/Saur (France, 75%);
Plant construction: Alsthom (France); Gas field operator: Apache (U.S.);
Gas refiner: United Meridian Corp. (U.S.)
- World Bank Agencies
- IDA, IFC
- Amount of Financing (estimated total cost)
- IDA provided $79.7 million
credit; IFC provided $16.9 million loan, $0.9 million equity
- Year of Approval
- FY1995 (Both IDA and IFC)
- World Bank Descriptions
- The IDA is providing finance "in support of
power-sector reform, power-generation expansion through a private power
producer and power-system reinforcement works." (World Bank Annual Report
FY1995). The IFC is providing finance to "construct a 100 megawatt
gas-fired power plant under a 19-year concession agreement with the
government." (IFC Annual Report FY1995)
- Notes
- Vridi II is Africa's first private power plant. The new facility,
which opened in 1995, uses gas from the Apache-operated natural gas field
in Cote d'Ivoire. Energy and Mines Minister, Lamine Fadika, said the new
plant would help turn his country into an energy exporter. "All the
countries in the sub-region -- Ghana, Togo, Benin, Burkina Faso, Mali, even
Guinea, will be supplied by Ivory Coast, " he predicted. Two of the
turbines are dedicated for export to Ghana and Togo. The first state (3 x
33-megawatt turbines) opened in April 1995, with much of the financing
coming from Electricite de France, part-owner of CIPREL. The second stage
(100-megawatts), funded by the World Bank, was to open by mid-1996. If Cote
d'Ivoire becomes the target of additional mining projects, there may be a
third phase of plant expansion. (Financial Times, Oct. 16, 1996; Reuter
European Business Report, April 26, 27 and 30, 1995)
- Type of Industry
- Gas-fired Power Plant rehab and expansion
- Location
- Zagreb, Croatia
- Owner of Project
- Croatian National Electricity (Hrvatska Elektroprivreda - HEP)
- G-7 TNC Involvement
- Possibly Enron (U.S.), which is negotiating to build a
180-megawatt gas-fired power plant in Zagreb. (Financial Times, May 1,
1997)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- Expected to be $80 million of
$100 million. Date of Approval: Had projected Board date of January 1996,
but no approval was announced.
- World Bank Description
- "The proposed project includes: (i) reconstruction
and extension of existing aging power and heat generation units (2 x 32 MW)
at the Zagreb East Power Station into a gas-fired combined-cycle
cogeneration plant with a total capacity of 152 MW; (ii) reconstruction and
expansion of the 110 kV switchyard; (iii) connection and integration of the
new combined-cycle cogeneration plant to the existing power and heat supply
system; (iv) consultancy services for design and engineering; and (v)
technical assistance for restructuring, privatization and tariff reform."
(World Bank Project Information Document, Project ID HRPA8333, October
1994)
- Type of Industry
- coal-fired power plant expansion (332-megawatts)
- Subsidized Project
- Kladno power plant
- Location
- Czech Republic
- Owner of Project
- ECK Generating
- G-7 TNC Involvement
- Ownership: NRG Energy and Northern States Power(U.S.)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $125 million Date of Approval:
July 1996 (FY1997)
- World Bank Description
- "The International Finance Corporation (IFC) has
approved an investment of US$125 million for the environmental upgrading
and expansion of Energy Center Kladno Generating (ECK Generating), an
electric power plant in Kladno, near Prague, the Czech capital. The
expansion will increase the plant's output from 28 megawatts of
electricity to 332 megawatts (sic) and will provide clean energy at
competitive rates, IFC said. This is IFC's first investment in the power
sector in Eastern Europe and one of the first new private power projects in
the region. IFC's financing consists of a loan on its own account of US$45
million, a syndicated loan of US$65 million and convertible subordinated
debt of US$15 million. The total cost of the project is estimated at
US$375 million, with Czech banks expected to provide most of the financing
balance." (World Bank News, 7/25/96)
- Notes
- . ECK Generating is consortium of Independent Power, a subsidiary of
ACT (U.S.), NRG Energy, part of Northern States Power (U.S.), and
Stredoceska Energeticka, a Czech electricity distribution company. The
IFC-financed expansion involves the addition of two coal-fired and one
gas-fired units at the Energy Centrum Kladno facility in Kladno, Czech
Republic. Capacity will increase from 28-megawatts to 365-megawatts. The
biggest local power consumer (45 megawatts) is the Poldi steel company.
(Reuter, July 19, 1996; Financial Times, July 23, 1996)
- Type of Industry
- 185 megawatt barge-mounted oil-fired power plant
- Subsidized Project
- Puerto Plata power project
- Location
- Dominican Republic
- Owner of Project
- Smith-Enron Cogeneration Limited Partnership
- G-7 TNC Involvement
- Owners: Smith Cogeneration Group; Enron (U.S.);
Investor: Thermo Ecotek (U.S.)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $1.5 risk management of $1.5
million
- Year of Approval
- FY1996
- World Bank Description
- IFC financing will "support a 185 megawatt
combined-cycle power facility mounted on a barge at Puerto Plata through a
currency swap." (IFC Annual Report FY1996)
- Notes
- This barge-mounted power plant started up in 1995. "The power
project is expected to be immediately additive to earnings, cash flow and
earnings per share in 1996," said Rodney Gray, chairman of Enron's 59%
subsidiary, Enron Global Power & Pipelines, which acquired the parent
company's 50% share in the barge power plant last year. The Bank is
currently considering extending a further $75 million to "implement a legal
and regulatory framework for the energy subsector [in the Dominican
Republic] and help expand the installed capacity through the private
sector." This would include establishing a new private company to operate a
250 megawatt power plant. (PR Newswire, July 27, 1995, June 19, 1996;
Journal of Commerce, April 18, 1997; World Bank Project Information
Document, PID D0PA07011, 1994.)
- Type of Industry
- power generation expansion (type unclear)
- Subsidized Project
- Power Distribution
- Location
- Ethiopia
- World Bank Agency
- IDA
- Amount of Financing (estimated total cost)
- $200 million Date of Approval:
"Appraisal mission scheduled for December 1996."
- Notes
- AID/WATCH: "Project will help supply energy, both for domestic use
and export, by expanding both T&D and generation capacity."
- Sources
- IIEC database summary by AID/WATCH
- Type of Industry
- electricity sector privatization (type of energy unclear)
- Location
- Gabon
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- none
- Year of Approval
- 1996
- Notes
- "Advised the government on the design, preparation, negotiation and
implementation of a privatization strategy for the country's water and
electricity services." (IFC Annual Report, FY1996)
- Type of Industry
- Thermal and hydro power rehabilitation
- Subsidized Project
- Power Rehabilitation
- Location
- Georgia
- Amount of Financing (estimated total cost)
- $30 million Date of Approval:
"Project preparation is in progress" as of 1996.
- Notes
- AID/WATCH: "Will assist in the rehabilitation of thermal & hydro
power plants as well as the associated transmission and distribution
networks."
- Sources
- AID/WATCH summary of IIEC database.
- Type of Industry
- new 300 MW oil and gas combined-cycle power plant,
transmission lines
- Subsidized Project
- Takoradi Thermal Power Project
- Location
- Aboadze village, Ghana
- Owner of Project
- CMS Energy, Republic of Ghana (Volta River Authority)
- G-7 TNC Involvement
- CMS Energy (U.S.) (partner in joint venture)
- World Bank Agency
- IDA
- Amount of Financing (estimated total cost)
- $175.6 million of $414.3 million
- Year of Approval
- FY1995 (February 16, 1995)
- World Bank Descriptions
- "The generating capacity required to meet
electricity demand will be constructed, and improvements will be made to
transmission and generation systems." (World Bank Annual Report FY1995)
"The project consists of the construction at Takoradi of 300 MW
combined-cycle generation capacity, consisting of two combustion turbine
generator sets of 100 MW each, a heat recovery boiler and a steam turbine
generator to produce an additional 100 MW"... transmission lines,
sub-stations, and other technical services." (AID/WATCH)
- Notes
- According to CMS, the Takoradi plant will open in the third quarter
of 1997. CMS is planning a number of other energy ventures with the Volta
River Authority in Ghana and throughout West Africa. The plant may upgrade
to 600-megawatts in the future, according to a World Bank environmental
assessment, which concluded "that the plant will have modest, but
mitigable, environmental impacts. The key potential issues include: 1) the
effect of the cooling water on marine life and the consequent effects on
the thriving fishing industry of Aboadze and neighboring villages; 2) the
effects that the loss of site land will have on nearby families who
currently practice predominantly subsistence level agriculture on that
site; 3) air quality impacts; and 4) potential spillage and/or leakages of
oil." (PR Newswire, Nov. 13, 1996; World Bank Environmental Assessment,
Credit No. 2682, Jan. 1, 1994)
- Type of Industry
- 100-megawatt diesel-fired power plant
- Subsidized Project
- power project
- Location
- Puerto Quetzal, Guatemala
- Owner of Project
- Puerto Quetzal Power Corp. (Created by Enron)
- G-7 TNC Involvement
- Part-owner and operator: Enron (U.S.), 50% investor:
King Ranch Inc. (U.S.), Barge construction: McDermott (U.S.)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $0.7 million risk management
facility.
- Year of Approval
- FY1996
- World Bank Description
- The IFC financing will "improve the capacity of a
100 megawatt electricity generation plant through an interest rate swap."
(IFC Annual Report FY1996) Notes: The two barge-mounted burners began
operation in 1993. It was the first privately-financed power project in
Central America. The IFC extended a $20 million loan to this project prior
to 1993. Enron has partially funded a grade school in Puerto Quetzal.
(Journal of Commerce, May 20, 1993; Arkansas Democrat-Gazette, March 16,
1997)
- Type of Industry
- 60-megawatt diesel power plant
- Subsidized Project
- Puerto Cortes
- Location
- Puerto Cortes, Honduras
- Owner of Project
- Electricidad de Cortes S.A. de R.L. de C.V. (ELCOSA).
Investors in ELCOSA include: Wartsilla Diesel DevelopmentCorp. (10%),
Honduran Electric Corporation S.A. HECO, Illinova Generating Co., Scudder
Latin American Trust for Independent Power.
- G-7 TNC Involvement
- Wartsila, Illinova, Scudder (U.S.);
- World Bank Agency
- IFC, MIGA
- Amount of Financing
- IFC: $10.5 million loan, $2.6 million equity, $3.5
million quasi-equity, $36.6 million syndications; MIGA: $50 million in
guarantees.
- Year of Approval
- IFC and MIGA: FY1995
- World Bank Descriptions
- IFC financing will help "Build, own and operate a
diesel power plant to supply electricity to the government-owned electric
utility and industrial customers." (IFC Annual Report FY1995) "MIGA issued
its first guarantees in Honduras (totaling US$27 million in maximum
liability) to Wartsila Diesel Development Corporation, Inc., for a 60MW
diesel electric power plant near the Atlantic port of Puerto Cortes....
The ELCOSA project will have a very significant developmental impact on
the Honduran power system. The project enterprise will upgrade the existing
local power network and provide an urgently-needed increase in capacity to
relieve chronic power shortage problems in Honduras, where most of the
country receives only 12-16 hours of electricity per day. Ninety percent
of the electrical output is to be sold to Empresa Nacional de Energia
Electrica, a local government-owned utility, with the remaining 10 percent
sold to HECO companies." (MIGA News, Fall 1994)
- Notes
- This is the first privately-owned power plant in Honduras linked to
the national grid. (Journal of Commerce, Apr. 28, 1995)
- Type of Industry
- new 137-megawatt gas-fired power plant
- Subsidized Project
- Kelenfold Power Plant
- Location
- Hungary Ownership: Budapest Power Co.
- G-7 TNC Involvement
- Gas turbine supplier: General Electric (U.S.); Control
and instrumentation system: Honeywell (U.S.)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $100 million of $242.5 million.
- Year of Approval
- FY1994
- World Bank Description
- "The next investment (construction of a gas-fired
combined-cycle cogeneration unit) in the national least-cost power
generation-investment program, designed to improve energy efficiency and
environmental conditions at one of the country's most important power
stations and reduce dependence on fuel imports, will be supported.
Institution-building assistance and training are included." (World Bank
Annual Report FY1994)
- Notes
- This plant opened in 1996. ELIN of Vienna, Austria, was the main
contractor for the plant construction. Austrian company Energy and
Environment supplied the furnace and associated equipment. In January 1997,
the GE-built gas turbine was shut down partially because of "technical
difficulties," stalling plans to sell Budapest Power to the IVO/Tomen
Corp., a Finnish-Japanese consortium. In 1995, residents in the
neighborhood of the Kelenfold Power Station protested the placement of the
natural gas pipeline to the plant through their neighborhood. "They first
laid the pipeline and they wanted the people to accept it as a fact.It is
high time for monopolies to realize that we now live in a democracy and
they, too, have to play by the rules," said local politician Janos Janzso.
(MTI Econews, March 1, 1994, Feb. 8, 1996 and June 26, 1996; Montreal
Gazette, May 6, 1995; Budapest Business Journal, Sept. 1, 1995 and Feb. 3,
1997)
(Pending)
- Type of Industry
- Two 120-megawatt quick start diesel-fired power
plants
- Subsidized Project
- Quick Start Gas Turbine Power Plants
- Location
- Liter and Sajoszoged, Hungary
- Owner of Project
- (borrower) Magyar Villamos Muvek Rt. (Budapest)
- G-7 TNC Involvement
- companies not yet chosen
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- Projected loan of $100 million
of total cost of $140 million. Date of Approval: Projected Board Date of
November 1996 (no approval announced)
- World Bank Description
- "The objective of the Project is... to assist
Hungary in meeting its secondary reserve requirements by providing
approximately 200 MW of simple cycle (quick start) gas turbines.... The
gas turbines will operate on diesel oil, as detailed studies concluded that
natural gas would be too costly because of the low rates of utilization (up
to 20 times per annum, for periods up to two hours each). The project will
thus consist of 200 MW (20%) of simple- cycle (quick start) gas turbines to
be installed in two major substations located in Eastern and Western
Hungary, selected on the basis of network studies. The power plants will
not be manned - operation and maintenance will be conducted by nearby power
generation companies which MVM will contract for that purpose.... The Bank
has made so far two operations in Hungary's power sector, the Power Project
(Loan 2697-HU of May 20, 1986, a US$64 million loan, largely aimed at
rehabilitating power plants and other electrical facilities), and the
Energy and Environment Project (Loan 3705-HU of February 17, 1995, a US$100
million loan comprising a combined cycle power plant, the upgrading of the
dispatch center, and technical assistance aimed at upgrading human
resources).... Although the Project is not strictly speaking a
conventional power plant, it is proposed to be rated category A. The two
gas turbines will be located within the compounds of existing substations,
at a distance of about 4 km from nearby villages. The main environmental
consideration relates to noise levels, but this is minor given that the
units will operate sporadically. No resettlement issues are anticipated
with respect to the Project." (World Bank Project Information Document,
PID HUPA45251, April 26, 1996)
- Notes
- In 1997, Hungarian officials said the backup power plants would be
built by 1999. Six bidders have offered to build the power plants. In
1997, the configuration of the plants was changed to 120-megawatts from
100-megawatts. (MTI Econews, Aug. 12, 1996 and March 18, 1997)
- Type of Industry
- 420-megawatt coal-fired power plant
- Subsidized Project
- Ib Valley
- Location
- Ib Valley, Orissa, India
- Owner of Project
- Ib Valley Power Private Ltd.
- G-7 TNC Involvement
- Public Service Electric and Gas Co. (U.S., in
negotiations for ownership joint venture via subsidiary, Community Energy
Alternatives); Stein Industrie (France) supplied boilers with grant
provided by French government.
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $50 million loan, $20 million
equity, $80 million syndications of $720.6 million
- Year of Approval
- FY 1995
- World Bank Description
- "Build a 420-megawatt coal-fired power plant under
a 30-year build/own/operate agreement with the state electricity board of
Andhra Pradesh."
- Notes
- The first two units of the massive Ib Valley Power Project roared to
life in the Indian state of Orissa in 1995. The government of Orissa has
entered negotiations for a joint venture with Community Energy Alternatives
for the operation of Ib Valley Units 1 and 2. The second two units of Ib
Valley may come on line before the year 2000. AES of the U.S. is
negotiating with the Orissa government to own and operate Units 3 and 4,
which would total 500-megawatts in output. (For further information, see
report by the Sustainable Energy and Economy Network/Institute for Policy
Studies (Washington, D.C.), et al., "The World Bank's Juggernaut: The
Coal-Fired Industrial Colonization of India's State of Orissa," 1996.)
- Type of Industry
- 500 megawatt coal-fired power plant
- Subsidized Project
- Balagarh Power Plant
- Location
- Balagarh, West Bengal, India
- Owner of Project
- Balagarh Power Co. Ltd.
- G-7 TNC Involvement
- Contractor: Parsons Turbine Generators (U.K., via
Rolls-Royce Power Generation Systems subsidiary)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $37 million syndication.
- Year of Approval
- FY1996
- World Bank Description
- "Finance the construction of a 500 megawatt power
plant and transmission line by increasing a loan syndication."
- Notes
- In 1993, Rolls-Royce won a contract to build two 250-megawatt power
generators for CESC Ltd. on an island in the Hoogley River in West Bengal.
(PR Newswire, Nov. 19, 1993) CESC has concludeda power purchase agreement
with the Balagarh Power Co. Ltd., in which BPCL will build, own and operate
the power plant. The Asian Development Bank has also extended considerable
equity toward this project. The IFC also extended loans to the plant prior
to FY1993. (Asia Pulse, March 6, 1997)
- Type of Industry
- calcined petroleum coke facility and 49-megawatt power plant
- Subsidized Project
- Rain Calcining coke and power plant
- Location
- Visakhapatnam, Andhra Pradesh, India
- Owner of Project
- Rain Calcining Limited
- G-7 TNC Involvement
- Houston Industries Energy (U.S.) (Owns 20% of project
and provides technical services for the power plant); Applied Industrial
Materials Corp. (U.S., investor)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $18.3 million loan, $5.4
million equity, $1 million standby loan of $94.2 million Date of Approval:
August 28, 1995 (FY1996)
- World Bank Description
- "Produce calcined petroleum coke for the aluminum
industry and co-generate 45 (sic) megawatts of power for sale to third
parties." (IFC Annual Report FY1995)
- Notes
- Rain Calcining is setting up a calcined petroleum coke
manufacturing plant which will supply foreign markets and the Indian
aluminum industry. It planned to produce 250,000 tons of coke a year for
India and other Asian countries. An associated 49-megawatt power plant
will be fueled with gases from the coking process and petroleum coke, and
electricity will be sold to industrial consumers in Andhra Pradesh, said
Houston Industries. (The Hindu (India), Feb. 25, 1997, Deutsche
Press-Agentur, Aug. 28, 1995; Ogrin Universal News Services Ltd., Aug. 28,
1995)
- Type of Industry
- general financing for coal and gas-fired power plants
- Subsidized Project
- NTPC five year investment program
- Location
- India
- Owner of Project
- National Thermal Power Corporation
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $400 million of $4.96 billion
- Year of Approval
- FY1993
- World Bank Description
- "Funds will be provided to help the National
Thermal Power Corporation finance a five-year time slice of its least-cost
investment program of new coal and gas-based power stations, and the
corporation will be assisted in meeting its targets for capacity additions
through increased mobilization of funds from internal resources, domestic
and foreign capital markets, and through joint operations with the private
sector. In addition, the NTPC's environmental and resettlement and
rehabilitation-management capability will be strengthened." (World Bank
Annual Report FY1993)
- Type of Industry
- Transmission lines
- Subsidized Project
- Orissa State Power Sector Restructuring Project
- Location
- Orissa, India
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $350 million of $997.2 million
- Year of Approval
- FY1996
- World Bank Description
- "Orissa state will be assisted in implementing a
program of regulatory, institutional, and tariff reforms in its power
sector." (World Bank Annual Report FY1996)
- Note
- This project funds the construction of three transmission lines which
are tied to a network of coal-fired power plants. (World Bank
Environmental Assessment, "Orissa State Power Sector Restructuring
Project," Loan No. 4014, February 1, 1995)
- Type of Industry
- 15-megawatt power plant (type unclear) and cement plant
- Subsidized Project
- DLF Cement complex
- Location
- Rajasthan, India
- Owner of Project
- DLF Cement Ltd.
- G-7 TNC Involvement
- Nihon Cement Corp. (Japan, collaborator)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $11 million loan, $17 million
syndications, and $8.5 million quasi-equity of $130.4 million
- Year of Approval
- FY1994
- World Bank Description
- "DLF Cement Ltd will establish a greenfield cement
plant with a capacity of 1.4 million tons per year in the Pali district of
Rajasthan. The project includes the construction of a 15-megawatt power
plant.... IFC advised DLF Cement Ltd. on the feasibility of establishing a
greenfield cement plant near Ras in Rajasthan." (IFC Annual Report FY1994)
- Additional Source
- Business Line, April 26, 1997
- Type of Industry
- 235-megawatt gas/naphtha-fired combined cycle power plant
- Subsidized Project
- GVK power plant
- Location
- Jegurupadu, Andhra Pradesh, India
- Owner of Project
- GVK Industries Ltd.
- G-7 TNC Involvement
- CMS Energy (U.S., 18.75% owner, operator); ABB (builder)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $40 million loan, $70 million
syndications, and $8.3 million equity of $290.7 million
- Year of Approval
- FY1994
- World Bank Description
- "GVK Industries Ltd. will build a 235-megawatt
gas/naphtha-fired combined cycle power plant in Andhra Pradesh, and own and
operate it for 30 years, selling the output to the Andhra Pradesh State
Electricity Board." (IFC Annual Report FY1994) Notes: This is the first
foreign-owned power plant operating in India and started operating in July
1996. There are plans to double production at the new power plant to
470-megawatts by 1999. (Business Line, April 20, 1997; International
Herald Tribune, Sept. 11, 1996; Reuters Financial Service, Sept. 4, 1996;
AFX News, Aug. 13, 1996)
- Type of Industry
- 250-megawatt lignite-fired power plant
- Subsidized Project
- Tamil Nadu power plant
- Location
- Tamil Nadu, India
- Owner of Project
- ST-CMS Electric Power Company
- G-7 TNC Involvement
- CMS (part-owner), ABB (equipment supply)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $30 million loan, $150 million
syndications, $18 million equity of $450 million
- Year of Approval
- FY1994
- World Bank Description
- "ST-CMS Electric Power Co. will build a
250-megawatt lignite-fired thermal power plant in Tamil Nadu, and own and
operate it for 30 years, selling the output to the state electricity
board... Through its Technical Assistance Trust Funds Program, IFC
supported an assessment of the environmental impacts of a proposed
250-megawatt lignite-based power plant." (IFC Annual Report FY1994)
- Notes
- In 1995, CMS said that it had to reopen negotiations with the Indian
government over the Tamil Nadu power plant. (Financial Times, June 23,
1995; Business Times, Sept. 20, 1994)
- Type of Industry
- power project (type unclear)
- Subsidized Project
- Haryana Power Sector Restructuring
- Location
- India
- Amount of Financing (estimated total cost)
- $300 million Date of Approval:
"Project preparation under way."
- Notes
- "The project will support the
process of reforming the Haryana power sector with the goal of (a)
supplying electric power under the most efficient conditions in terms of
quality and cost; and (b) generating financing resources." (AID/WATCH
summary of IIEC database).
- Type of Industry
- 400-megawatt combined-cycle power plant
- Subsidized Project
- Kayamkulam Combined Cycle Power Plant Project
- Location
- India
- Owner of Project
- National Thermal Power Corp.
- Amount of Financing
- unclear, project is under review
- World Bank Description
- In September 1996, the World Bank released an
environmental assessment "concerned with the NTPC which will construct and
operate a Combined Cycle Power Plant of 400 mw capacity. The project will
also include the construction of a transmission system consisting of lines
and extension of substations as well as the transfer and storage of
Naphtha." (World Bank Environmental Assessment, Report No. 153, Sept. 1,
1996)
- Type of Industry
- two 615-megawatt coal-fired power plants
- Subsidized Project
- Paiton Units 7 and 8
- Location
- East Java, Indonesia
- Owner of Project
- Paiton Generating Complex
- G-7 TNC Involvement
- (investors) General Electric (U.S., 12.5%), Edison
Mission Energy (unit of Edison International Corp., U.S., 40%), Mitsui &
Co. (32.5%, Japan). The other owner is Indonesian coal supplier P.T. Batu
Hitam Perkasa (15%). Duke Power Co. (U.S.), Fluor Daniel (U.S.), and Toyo
Engineering Co. (Japan) are providing construction management and
engineering services. Thermo Sentron (U.S.) is providing coal-weighing and
verification equipment. ABB (Switz) is supplying $300 million boiler
islands.
- World Bank Agency
- MIGA
- Amount of Financing (estimated total cost)
- $50 million guarantee
- Year of Approval
- FY1996
- World Bank Description
- "MIGA issued a $50 million guarantee to Capital
Indonesia Power I C.V., an affiliate of General Electric Capital Corp. of
the U.S. (GE), for its $61.2 million equity investment in the construction
and operation of two 615 megawatt coal-fired electricity-generating plants
in Indonesia... The plants will be located at the Paiton Power Generating
Complex, and the power output will be sold to the government-owned
electricity corporation... [This project] will further develop the coal
industry and allow the country to maintain its oil export levels." (MIGA
Annual Report FY1996)
- Notes
- The huge power project is scheduled to start in late 1998. The
U.S. Export-Import Bank is helping to finance U.S. equipment and services
exports to Paiton worth more than $500 million. Other government financing
for the $1.8 billion project include the Export-Import Bank of Japan ($900
million) and the U.S. Overseas Private Investment Corp. Indonesia is moving
from crude oil to coal for its electric power. President Suharto said in
1994, "We have a coal reserve of about 36 billion tons. That reserve will
last hundreds of years." (Journal of Commerce, Sept. 12, 1995; Legal Times,
May 8, 1995; UPI, March 23, 1994; Los Angeles Times, Jan. 31, 1996; PR
Newswire, May 2, 1995 and Jan. 30, 1996, Aug. 7, 1996; Business Wire, May
4, 1995; Orange County Register, May 3, 1995)
- Type of Industry
- electricity generation
- Subsidized Project
- power sector privatization
- Location
- Indonesia
- Owner of Project
- PLN
- G-7 TNC Involvement
- not clear, possibly Electricite de France
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $260.5 million of $688.9
million, with cofinancing from Austria and Australia ($23.7 million) and
export credits ($92 million).
- Year of Approval
- FY1994
- World Bank Description
- "Efforts to increase private sector participation
in electricity generation and to restructure the state electricity company
(PLN) and establish it as a commercial entity will be supported. In
addition, environmentally sustainable expansion of PLN's
electricity-generation and transmission capacity will be financed."
- Notes
- In 1994, the PLN floated bonds to finance transmission networks and
power stations. These included construction of coal-fired power plants in
Surabaya, West Java and Ombilin, West Sumatra, and continued operation of
three units of a coal-fired power plant in Muara Karang, North Jakarta.
Indonesia is planning to double its power plant capacity between 1994 and
1999 to about 9,500-megawatts. French concern Electricite de France is
looking to invest in a privatized PLN. (Business Times, Sept. 19, 1994;
Reuters, June 8, 1994; Reuter European Business Report, Oct. 20, 1995)
- Type of Industry
- 300-megawatt combined-cycle power plant expansion
- Subsidized Project
- Qom Power Plant
- Location
- Iran
- Owner of Project
- Government of Iran
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $165 million of $414 million.
Cofinancing in the form of suppliers' or export credits ($48 million) is
expected. Date of Approval: March 1993 (FY1993)
- World Bank Description
- "Through the addition of generating capacity, the
financing of distribution equipment, and provision of technical assistance,
the supply/demand gap in the power sector should be reduced and efficiency
enhancements achieved." (World Bank Annual Report FY1993)
- Notes
- The U.S. government strongly objected to the Bank loan for the Qom
power plant. "Iran does not deserve the support of the World Bank, " said
U.S. Secretary of State Warren Christopher. "Their determination to
acquire weapons of mass destruction leaves Iran as an international
outlaw." U.S. State Department spokesman Richard Boucher said, "We've
actively opposed the resumption of World Bank business-as-usual lending to
iran. We think it's inappropriate, given Iran's record of terrorism, its
building of weapons of mass destruction, and in addition, its mounting debt
arrears." Iran's official Tehran Radio replied that "Washington's baseless
claims cannot hinder the national determination for economic
reconstruction." The refurbished Qom plant -- with some older gas-fired
units converted and two new 100-megawatt combined-cycle units added, for a
net gain of 300-megawatts -- is due to come on line by early 1998. Asea
Brown Boveri of Switzerland won the contract to convert and expand the
plant. (Xinhua, April 3, 1993; Reuters, March 30, 1993, December 23,
1996; Financial Times, April 7, 1997)
- Type of Industry
- 74-megawatt diesel power plant
- Subsidized Project
- Old Harbour Power Station
- Location
- Old Harbour, Jamaica
- Owner of Project
- Jamaica Energy Partners (JEP)
- G-7 TNC Involvement
- Illinova Generating Co. Scudder Latin America Power,
McDonnell Douglas Finance Corp. (U.S., investors)
- World Bank Agency
- IFC, MIGA
- Amount of Financing (estimated total cost)
- IFC: $22 million loan and $2
million equity of $100 million; MIGA: $30 million in risk insurance (1996);
$14.4 million in guarantees (1997) Years of Approval: IFC FY1995; MIGA
FY1996, FY1997
- World Bank Description
- The IFC's financing is designed to "Build, own and
operate a barge-mounted diesel power plant to sell power to the state-owned
utility under a 20-year contract." (IFC Annual Report FY1995) "MIGA issued
$30 million in coverage to a group of equity and debt investors for the
construction and operation of a 74-megawatt barge-mounted diesel power
plant, JEP.... The enterprise, located at Old Harbour, Jamaica, is the
country's second privately financed power plant supplying the national
grid. MIGA insured the first foreign power facility, at Rockfort, in 1995.
Wartsila Power Development initially received a MIGA guarantee for its
equity investment in the project enterprise, with the option to transfer
coverage to future equity investors and lenders. In separate contracts
MIGA then insured equity investments made by Wartsila (for $5.2 million in
coverage); Illinova Generating Co. ($3.0 mil.); and two Cayaman Islands
investors, Barge Energy LLC ($3 mil) and Scudder Latin American Power (in
two contracts totaling $6.2 million). MIGA also issued a $12.6 million in
guarantees to JEP for a loan made by Wartsila's parent company, Metra
Finance Oy AB of Finland." (MIGA Annual Report FY1996) "In Jamaica, MIGA
further expanded its involvement in the power sector by insuring McDonnell
Douglas Finance Corporation of the United States for its loan to Jamaica
Energy Partners" (MIGA News, Spring 1997) "The Jamaica Public Service
Company (JPS) had an explosion at the Old Harbour Power Station on June 3,
1994, which destroyed the Unit 4 boiler and damaged Unit 3. The
restoration of the power station to its original capacity will occur at the
same time that a new 72 MW medium speed diesel barge facility is to be
installed at the Old Harbour Plant." (World Bank Environmental Assessment,
Report No. 3944, Loan No. 3944, December 1, 1994.)
- Type of Industry
- 60 MW diesel power plant
- Subsidized Project
- Jamaican Private Power Co.
- Location
- Rockfort, near Kingston, Jamaica
- Owner of Project
- JPP
- G-7 TNC Involvement
- CMS Energy (U.S., bought out Niagara Mohawk Power,
previous owner of JPP) (Reuters, Oct. 21, 1994)
- World Bank Agency
- MIGA
- Amount of Financing (estimated total cost)
- $43.2 million in equity insurance
- Year of Approval
- FY 1995
- World Bank Description
- "MIGA facilitated the limited-recourse financing
for power projects in Jamaica and Honduras. In Jamaica, MIGA concluded
contracts with five investors to insure a major portion of the equity
investment in the construction and operation of a US$144 million, 60 MW
slow-speed diesel power plant. The equity accounts for US$43.2 million;
the remaining will be financed by long- term debt provided by the Private
Sector Energy Fund (PSEF), which is partly funded by the World Bank and
the Inter-American Development Bank. MIGA will insure the equity
contributions (US$35.7 million) of Hydra-Co Enterprises Inc.,
International Energy Partners, USEC-Precursor Inc., Rockfort Power
Association (Utilco), and Energy Investment Funds II, L.P. MIGA's
guarantee of US$50 million covers expropriation, currency transfer, and
war and civil disturbance risks. The enterprise, Jamaican Private Power
Company, will be located in Rockfort, near the Kingston harbor. It is the
largest private infrastructure investment ever undertaken in Jamaica and
is the first build-own-operate project in the country. The IBRD supported
the project in several ways during its long gestation period, including
assistance in restructuring of the power sector by the Jamaican government
and the establishment of a new regulatory system. A Bank loan of US$40.5
million was critical to the project's financing." (MIGA News, Winter
1994/95)
- Type of Industry
- power generation expansion
- Subsidized Project
- Jamaica privatization/expansion
- Location
- Jamaica
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $60 million. Cofinancing ($56
million) is expected from the Inter-American Development Bank.
- Year of Approval
- FY1993
- World Bank Description
- "Urgently required power-generation capacity will
be provided, the enabling environment needed to attract private investments
in the power sector will be established, and the government's deregulation
and privatization program in the energy sector will be supported." (World
Bank Annual Report FY1993)
- Type of Industry
- power sector
- Location
- Jamaica
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $21 million of $76.5 million
- Year of Approval
- FY1996
- World Bank Description
- "Lost generating capacity will be replaced,
generation costs reduced through upgrading existing facilities, system
reliability enhanced, electricity tariff reforms supported, and
environmental damage reduced and controlled." (World Bank Annual Report
FY1996)
- Type of Industry
- Diesel, geothermal and hydro power plants
- Subsidized Project
- First Energy Project
- Location
- Kenya
- Owner of Project
- (Implementing Agencies) Ministry of Energy, Kenya Power
and Lighting Co., Kenya Power Co., Kenya Pipeline Co., National Oil Corp of
Kenya
- World Bank Agency
- IDA
- Amount of Financing (estimated total cost)
- $100 million credit of $1
billion. OECF, CDC, and EIB "are considering cofinancing for the project."
- Projected Board Date
- March 11, 1997 (no decision was announced)
- World Bank Description
- "The proposed project would include six components:
(i) Sector Restructuring and Reform comprising consultancy services to
assist GOK in restructuring the power sub-sector, instituting a legal and
regulatory framework, and promoting private sector participation.... (iv)
Power Expansion and Rehabilitation at least-cost, including two 75MW
[diesel] power plants in Mombasa, two 32MW [geothermal] power plants at
Olkaria, a 60MW Hydropower plant on the Sondu River; Mombasa-Nairobi and
Nairobi-Kiambere 220 kV transmission lines, rehabilitation of the Nairobi
and Coastal area distribution systems, and expansion of other distribution
facilities.... The Kipevu diesel unit will be designed to meet western air
emission standards and liquid wastes will be treated on site. A new waste
water treatment plant is expected to provide for the facility's limited
water requirements." (World Bank Project Information Document, Project ID
KEPA1344, November 21, 1994; World Bank Environmental Assessment, Report
E64, January 1, 1995)
- Type of Industry
- 90-megawatt coal-fired power plant expansion, rehabilitation
- Subsidized Project
- Power and District Heating Rehabilitation Project
- Location
- Kyrgyz Republic
- Owner of Project
- Kyrgyzenergoholding
- World Bank Agency
- IDA
- Amount of Financing (estimated total cost)
- $20 million of $87.5 million
- Date of Approval
- FY1996 (May 23, 1996)
- World Bank Description
- "Economic growth will be supported by
rehabilitating and upgrading the country's electricity and heat-supply
infrastructure." (World Bank Annual Report FY1996) "The project consists
of: (a) Rehabilitation of the Bishkek combined-heat-and-power (CHP) plant -
TES-1. The proposed Project will provide for the refurbishment of seven
most recent boilers; installation of Turbogenerator-11 (90 MW boiler);
upgrading of the plant instrumentation and control systems and retrofitting
of the essential auxiliary system (coal supply; water make up, compressed
air, ash storage); installation of monitoring devices for emissions; and
provision for a metal testing laboratory and vibration monitoring
equipment." (AID/WATCH)
- Note
- The Kyrgyz Republic is planning to privatize Kyrgyzenergoholding, the
state power company, in 1997. (ITAR-TASS news agency, April 11, 1997)
(Pending)
- Type of Industry
- 660-megawatt coal-fired power plant expansion
- Subsidized Project
- Jorf Lasfar Power Plant
- Location
- Morocco O
- Owner of Project
- Jorf Lasfar Energy Co. (Joint venture between CMS of the
U.S. and ABB of Switzerland
- G-7 TNC Involvement
- (50% owner) CMS Generation (U.S.)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- not clear Projected Board Date:
June 1997
- World Bank Description
- "Following the new policy on private participation,
the Government of Morocco (GOM) issued competitive bidding for the
concession (lease) of the two existing 330 MW coal-fired/steam-based
turbo-generators (units 1 and 2) at Jorf Lasfar and for the construction
and transfer of ownership to ONE (Office National de l'Electricite) of
units 3 and 4, in exchange for the right to operate the four units for a
period of thirty years. The contracts, for which negotiations and
financial closure are progressing satisfactorily, were awarded to the
consortium ABB Energy Ventures B.V. (ABB) of Switzerland and CMS
Generation Co. (CMS) of USA. The power plant is located along the coast
near the port of Jorf Lasfar, 100 km. south of Casablanca. The existing
power plant consists of 2x330 MW coal-fired/steam-based turbo-generators
(units 1 and 2) which were commissioned respectively at the end of 1994
and during early 1995. The project provides for expansion of the power
plant through the addition of two 330 MW turbo-generators (units 3 and 4)
of similar characteristics as the existing generators, to be developed by
the project Sponsors. The Sponsors of the project are ABB Energy Ventures
B.V. (ABB) and CMS Generation Co. (CMS). A special purpose company, Jorf
Lasfar Energy Co. (JLEC), has been established by the sponsors under the
laws of Morocco. Each sponsor will own 50 percent of the shares of JLEC...
Financial closure for the project is expected to take place shortly. The
transfer of units 1 and 2 and the start of construction of units 3 and 4
should follow after financial closure. Commissioning of the latter units
is scheduled 33 and 39 months after closure (March and September 2000
respectively)." (World Bank Project Information Document, Project ID
MA-GU-45615, February 1997)
- Notes
- The U.S. government-run Overseas Private Investment Corporation has
extended $200 million in political risk insurance for the project. This
will be the first foreign-owned power plant in Morocco.. With an ultimate
production capacity of 1,320-megawatts, this will be the largest
independent power plant in Africa. (Journal of Commerce, Oct. 29, 1996;
Reuters, Aug. 13, 1995; PR Newswire, March 13, 1996)
- Type of Industry
- new 100-megawatt natural gas-fired power plant
- Subsidized Project
- Al-Manah Power Plant
- Location
- Oman
- Owner of Project
- United Power Corp. (Consortium including Belgian
companies Tractabel and Powerfin and Omani companies National Trading Co.,
Tawoos, W.J. Towell, and Zubair Enterprise)
- G-7 TNC Involvement
- European Gas Turbines (France, gas turbines); Amec
Power Ltd. (U.K., transformer stations and power lines)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $15 million loan, $57 million
syndications, and $4 million equity of $204.5 million
- Year of Approval
- FY1994
- World Bank Description
- "United Power Corp. will build own, and operate, on
a BOT basis, a 90 megawatt thermal power facility at Manah, and 186
kilometers of transmission lines andassociated substations. The company
will sell electricity to the Government electricity monopoly." (IFC Annual
Report FY1994)
- Notes
- This is the first private power plant in the Gulf-Near East region.
It opened in April 1996 and consists of three gas turbines of 33-megawatts
each. A Powerfin statement said, "This project reflects the Sultanate's
desire to encourage privatization in the energy field." (UPI, June 29, 1994
and Nov. 25, 1996; Moneyclips, Nov. 25, 1996)
- Type of Industry
- new 1,469-megawatt oil-fired power plant
- Subsidized Project
- Hub River power station
- Location
- Pakistan
- Owner of Project
- Consortium of National Power (UK, 40%) and Xenel
Industries (Saudi Arabia, 40%); lesser shareholders include Mitsui and IHI
(Japan), K&M and Entergy Corp. (U.S.), Pakistan Power. Other
- G-7 TNC Involvement
- Ansaldo Energia (Italy, supplying four 323-megawatt
turbines); Mitsui and Ishikawajima-Harima Heavy Industries (Japan,
contractors); Campenon Bernard SGE (France, contractor)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $250 million of $2.390 billion
- Year of Approval
- FY 1995
- World Bank Description
- "The private sector's role in the development,
ownership, and operation of power and related infrastructure facilities
will increase through the financing of selected subprojects." (World Bank
Annual Report FY1995)
Although it is impossible to decipher from the World Bank's annual report,
this financing scheme supports, in the words of the Financial Times,
"Asia's most controversial power project."
When fully completed in 1997, this massive plant -- Pakistan's first
thermal power project -- will supply about 15% of the country's
electricity. The first two 323-megawatt units began generating power in
July 1996.
Hubco's chief executive, D.M. Woodroffe boasted, "This project is one of
the most significant developments in Pakistan and... the model for the
government's very successful private power generation policy of 1995. There
are few financial institutions which fund power projects and even fewer who
were willing to fund these projects in Pakistan. This problem was taken
care of when the World Bank stepped in and decided to cover Pakistan's
risk."
When the first boilers roared to life near the Hub River estuary,
Pakistan's Prime Minister Benazir Bhutto said, "Pakistan is heading towards
an energy revolution. We will add 5,000 megawatts of new generation
capacity by the 21st century. This is a great day for Pakistan. Hubco is
a clear manifestation of the cycle of economic rebirth in Pakistan."
A much different view of Hub River and other power plants is emerging in
the new government of Prime Minister Nawaz Sharif and some economists.
In 1996, researchers at an investment firm estimated that the plants will
increase the cost of fuel imports into Pakistan from $1.5 billion to $4
billion. A senior Finance Ministry official said the government had no
plan for the increasing price of power. "There is still no strategy under
which we will be operating," the official told Asia Times in May 1996.
Earlier this year, security firm Credit Lyonnais advised its clients to
sell off Hubco stock. "The government is finding it difficult to meet its
financial obligations towards independent power plants," the company said,
which estimated that the government is having to pay "a staggering $1.275
billion (a year)" and might have to raise power rates by 33 percent.
Last month (May 1997), shortly after the plant went into full operation,
Pakistan's state-run Water and Power Development Authority threatened to
terminate its agreement to purchase power from the Hub River plant because
a seal broke on one of two meters used to measure power flowing to the
national grid.
The threat followed repeated expressions of fear by the government of new
Prime Minister Nawaz Sharif over the costs of the new power plants and the
potential for an over-supply of power in Pakistan.
In March 1997, Finance Minister Sartaj Aziz said, "We do not know if it was deliberate or not, but the damage done by the energy policy of the last government was an unforgivable crime."
Woodroffe dismissed the government's worries. "I don't think that the
government would like to run down HUBCO," he said in May. "We are a
flagship company not just for Pakistan but for the whole region."
Sources: Financial Times, Sept. 26, 1995 and Dec. 12, 1996; Reuter, Nov.
30, 1994, July 4 and Oct. 10, 1996, May 13, 1997; Asia Times, May 3, 1996;
Deutsche Presse-Agentur, Apr. 18, 1996, May 16, 1997; Japan Economic
Newswire, March 29, 1997.
- Type of Industry
- new 586 megawatt gas-fired combined-cycle power plant
- Subsidized Project
- Uch Power Project
- Location
- Baluchistan province, Pakistan
- Owner of Project
- Uch Power Limited (consortium of Midlands Electricity
(UK, 40% stake), Tenaska Inc. (USA), General Electric (USA), Hawkins Oil &
Gas Inc. (US), Hasan Associates (Pakistan), and the IFC (8% stake))
Additional
- G-7 TNC Involvement
- GE ($340 million construction and equipment supply
contract, in which GE is subcontracting with Harbin, a Chinese construction
company); Raytheon (US, overall project manager)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $40 million loan, $16 million
risk management facility, and $75 million syndications of $630 million.
Bilateral financing has been arranged by the Chinese government and the
U.S. Export-Import Bank (Xinhua, Aug. 7, 1996, Financial Times, July 17,
1996) Date of Approval: May 20, 1996 (FY1996)
- World Bank Description
- The IFC financing will help to "build own and
operate a 586 megawatt gas-fired combined-cycle power plant." (IFC Annual
Report FY1996) Since the mid-1980's, the Government of Pakistan has been
implementing a broad-based structural adjustment program supported by the
Bank and the Fund. The reforms were extended to the energy sector with
Bank support in the form of two Energy Sector Loans and several investment
operations. In February 1994, [Pakistan] began the implementation of a
three-pronged strategy in the power sector: (i) restructuring and
privatization of power sector entities and unbundling of their activities,
including gradual divestiture of the Water and Power Development
Authority's thermal generating plants and distribution system and
privatization of the Karachi Electricity Supply Corporation; (ii)
encouragement of the construction of new thermal power plants and
transmission lines by the private sector on a Build-Own- Operate (BOO)
basis; and (iii) establishment of a regulatory body, the National Electric
Power Regulatory Authority. The Bank has supported Pakistan's efforts
during this period through several operations.... The proposed project
promotes private sector participation in the power sector, and helps
alleviate electricity shortages through the efficient use of domestic
resources. (World Bank Project Information Document, Pakistan-Uch Power
Project Guarantee, Project ID PKPA40547, October 30, 1995)
- Notes
- This project involves the construction of three gas turbine units
that can burn medium-Btu gas, distillate or high speed diesel for a
combined capacity of 586-megawatts. A pipeline will carry fuel from the
nearby Uch gas fields, which are controlled by Pakistan's soon-to-be
privatized Oil and Gas Development Corp. Construction on the plant began
in late 1995. At a ground-breaking ceremony, Midland's chairman, Bryan
Townsend, said Uch would help Pakistan achieve "energy independence."
Prime Minister Benazir Bhutto proclaimed, "political and economic stability
have attracted huge foreign investments." She earlier exclaimed, "Pakistan
enjoys the confidence of the IMF, the World Bank and... the confidence of
its own people." Baluchistan province is the homeland of
traditionally-independent Baluch tribal peoples. The deal was brokered in
part by Robert "Bud" McFarlane, a former national security advisor to
then-President Ronald Reagan. McFarland attempted suicide in 1987 after he
acknowledged withholding information from Congress about secret arms sales
to Iran. (Asia Times, Jan. 12, 1996; Reuters, April 26, 1995, Nov. 20,
1995; Daily Telegraph (UK), Dec. 1, 1994; PR Newswire, June 26, 1996; UPI,
May 21, 1996; Washington Post, July 23, 1995)
- Type of Industry
- 337-megawatt coal-fired power
- Subsidized Project
- Lal Pir Power Plant
- Location
- Muzaffagarh, Punjab Province, Pakistan
- Owner of Project
- AES Lal Pir Limited
- G-7 TNC Involvement
- AES (U.S., owner); Mistubishi (supplier of furnaces)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $40 million loan, $9.5 million
equity of $343.7 million. Date of Approval: April 7, 1995 (FY1995)
- World Bank Description
- "Build and operate a 362-megawatt thermal power
plant to sell power to the national power utility under a 30-year
contract." (IFC Annual Report FY1995
- Note
- Construction on the plant began in 1995, with completion scheduled by
December 1997. (Washington Times, May 23, 1995; Journal of Commerce, April
10 and 11, 1995)
- Type of Industry
- 337-megawatt fuel oil-fired power plant
- Subsidized Project
- Pak Gen power plant
- Location
- Muzaffargarh, Punjab Province, Pakistan
- Owner of Project
- AES Pak Gen
- G-7 TNC Involvement
- AES (U.S., ownership), Mitsubishi Heavy Industries and
Nichimen Corp. (Japan, equipment supply)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $20 million loan, $9.5 million
equity, $50 million syndications of $349 million. Japan's Export-Import
Bank is also providing financing (18.2 billion yen loan).
- Year of Approval
- December 20, 1996 (FY1997)
- World Bank Description
- "Build, own and operate a power plant with a
capacity of 337 megawatts adjacent to the AES Lal Pir power project near
Multan." (IFC Annual Report FY1996)
- Notes
- This is the second World Bank financing for the AES power plant
complex in Muzaffargarh, Pakistan. Construction is due to be completed by
the end of 1997. The plant will be powered by fuel oil from the Pakistan
state oil company. According to AES's chief executive officer, Dennis
Bakke, this will be AES' largest power project, and "close to the largest
private investment in Pakistan, to date." (Washington Post, May 17, 1995
and Jan. 9, 1996; UPI, Dec. 21, 1995; Chattanooga Free Press, April 8,
1995; Asia Times, Jan. 8, 1996; Japan Economic Newswire, Jan. 5, 1996;
Xinhua, Dec. 20, 1995)
- Type of Industry
- 125 megawatt oil-fired power plant
- Subsidized Project
- Saba Power Co. power plant
- Location
- Sheikhupura, Punjab province, Pakistan
- Owner of Project
- consortium of Coastal Corp. (U.S., 90% owner); Cogen
(U.S.); McDermott (U.S.); and Nissho Iwai Corp. (Japan, 10%). Capco
ReSources (Canada) has also been described as a partner in the project.
Other
- G-7 TNC Involvement
- McDermott, via Babcock & Wilcox subsidiary, is
supplying $90 million boilers made in Canada and is the engineering,
procurement and construction contractor. Toshiba (Japan) is supplying the
turbine-generator.
- World Bank Agency
- MIGA
- Amount of Financing (estimated total cost)
- $5 million in coverage to Cogen
for its investment. Total project cost estimated at $154 million. The
U.S. Export-Import Bank is also providing $50 million in financing.
- Year of Approval
- FY1997
- World Bank Description
- "MIGA issued coverage to Cogen Technologies Saba
Power, L.P., of the United States for its investment in the construction
and operation of a 115 (sic)-megawatt power plant in Pakistan. Saba Power
Company Limited, located near Farouqabad, will contribute to a much-needed
increase in electricity generation and will diversify the country's power
generating base by reducing the current dependence on hydropower." (MIGA
News)
- Notes
- The Saba Power Plant is scheduled to open in April 1999.
According to Coastal Corp. and other Sources, the plant will produce
125-megawatts, not 115-megawatts as reported by MIGA. The plant will burn
residual fuel oil. (Reuters, April 15, 1997; Jiji Press Ticker Service,
March 13, 1997; Canada NewsWire Ltd., Jan. 24, 1996; PR Newswire, April 15,
1997; U.S. Export-Import Bank press release, Jan. 29, 1996)
- Type of Industry
- 125 megawatt diesel oil-fueled power plant
- Subsidized Project
- Gul Ahmed power plant
- Location
- Karachi, Pakistan
- Owner of Project
- Gul Ahmed Energy Ltd.
- G-7 TNC Involvement
- (Investor) Tomen Corp (Japan)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $27 million loan, $4.1 million
equity, $3 million risk management facility, and $35 million syndications
of $138 million Date of Approval: July 24, 1995 (FY1996)
- World Bank Description
- "Build own and operate a 125-megawatt oil-based
diesel power plant." (IFC Annual Report FY1996) Notes: The plant is
scheduled to open by the end of 1997. Oil will be supplied by the Pakistan
State Oil company and the state-run Karachi Electric Supply Corp. will buy
the power. (UPI and Reuters, July 24, 1995)
- Type of Industry
- 120-megawatt diesel power plant
- Subsidized Project
- Kohinoor power plant
- Location
- Lahore, Punjab province, Pakistan
- Owner of Project
- Kohinoor Energy Ltd. (Joint venture of Tomen of Japan
(20%); Wartsila (2%), IFC (15%) and Saigol business group of Pakistan
(48%))
- G-7 TNC Involvement
- see ownership.
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $25 million loan, $6.3 million
equity, and $36.6 million syndications of $138.6 million
- Year of Approval
- FY1995
- World Bank Description
- "Build, own and operate a 120-megawatt diesel power
plant to sell power to the national electric utility under a 25-year
contract." (IFC Annual Report FY1995) Notes: The plant was scheduled to
open in March 1997. Wartsila Diesel of Finland will supply the diesel
engine. "Since diesel plants can be built in less than two years, they
present an economic solution to alleviate the present power shortage
problem," said IFC Chief Executive Jannik Lindbaek. (Agence France Presse,
Jan. 24, 1995; Nikkei Weekly, Nov. 14, 1994; AFX News, Nov. 7, 1994;
Deutsche Presse-Agentur, Jan. 24, 1995)
- Type of Industry
- new 1,200-megawatt coal-fired power plant
- Subsidized Project
- Sual Thermal Power Plant
- Location
- Pangasaman, Philippines
- Owner of Project
- Pangasinan Electric Corp., a subsidiary of Consolidated
Electric Power Asia (CEPA is the former subsidiary of Hopewell Holdings of
Hong Kong, now controlled by Southern Co. of U.S.)
- G-7 TNC Involvement
- GEC-Alsthom (UK/France, turbines and boilers
supplier); Southern Co. (U.S., owner)
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $30 million loan, $17.5 million
equity, and $200 million syndications of $1.4 billion. The U.S.
Export-Import Bank has extended $220 million in financing for the plant.
The Asian Development Bank has also provided loans for the project.
- Year of Approval
- FY1995
- World Bank Description
- "Build and operate a 1,200 megawatt coal-fired
power plant north of Manila to sell power to the National Power Corporation
under a 25-year agreement." (IFC Annual Report FY1995) Notes: 87 financial
institutions have loaned money for this power plant, which is due to open
in 1999. (Businessworld (Manila), Jan. 9, 1997; South China Morning Post,
Dec. 3, 1996; Reuters, June 30, 1995; Monthly Report on Europe, April 25,
1995)
- Type of Industry
- 225-megawatt oil-fired thermal plant rehabilitation
- Subsidized Project
- Bataan power plant
- Location
- Philippines
- Owner of Project
- National Power Corp.
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $110 million of $159.8 million.
Cofinancing ($500,000) is being provided by Japan.
- Year of Approval
- FY1993
- World Bank Description
- "Power shortages in Luzon will be alleviated by
expanding the transmission system in the Bataan/Batangas areas west of
Manila to connect several private-sector build-operate-and-transfer
projects and by rehabilitating two units of the Bataan oil-fired thermal
power plant. Technical assistance to strengthen the capacity of the
National Power Corp. is included." (World Bank Annual Report FY1993)
- Notes
- (Reuters and Xinhua, June 24, 1993)
- Type of Industry
- 1,600-megawatt coal power plant rehabilitation and
life-span extension
- Subsidized Project
- Dolna Odra Power Generation Rehabilitation Project
- Location
- Poland, near German border
- Owner of Project
- (implementing agency) Dolna Odra Group of Power Plants
- G-7 TNC Involvement
- Westinghouse (U.S.). Westinghouse entered into a
joint venture with seven Polish power stations in 1992 for modernization
services. The company is called Modelpol. (PAP News Wire, March 5, 1992;
PR Newswire, May 29, 1996)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- According to the Bank, "the
estimated cost of the proposed project is about US$215 million.... A
preliminary financing plan for the project would consist of a combination
of a direct Bank loan and a partial credit guarantee of US$110 million, the
Borrower's internal cash generation of US$65 million and a concessional
loan from the National Fund of US$40 million for the environmental
component." (WB PID) Projected Board Date: May 1997
- World Bank Description
- "Specifically, the project would: (a) extend the
life of existing coal-fired plant asset and improve its performance through
rehabilitation and the introduction of modern technologies; (b) enhance
energy conservation and efficiency through investments in energy-efficient
equipment and systems, [etc.]... The project would focus on the Dolna Odra
power plant, located about 30 km away from the city of Szczecin and about 2
km from Germany. The plant is part of the Dolna Odra Group of Power Plants
which covers also CHP Szczecin and CHP Pomorzany, both located in Szczecin.
Dolna Odra power plant ranks among the priority candidates for
rehabilitation and environmental upgrade. It has an installed capacity of
1,600 MWe consisting of eight 200 MWe units, burns hard-coal and plays a
major role in Poland's electricity exports to Germany." (World Bank Public
Information Document, Project ID PLPA40816, March 19, 1996)
- Type of Industry
- 1,600-megawatt coal power plant rehabilitation and life
span extension
- Subsidized Project
- Rybnik Power Generation Rehabilitation Project
- Location
- Poland
- Owner of Project
- (Borrower) Rybnik Power Generating Company
- G-7 TNC Involvement
- Westinghouse (see Dolna Odra, Poland, above)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- According to the World Bank,
"the estimated cost of the proposed project is about US$300 million... A
preliminary financing plan for the project would consist of a combination
of a direct Bank loan and a partial credit guarantee of US$140 million, the
Borrower's internal cash generation of US$90 million and a concessional
loan from the National Fund of US$70 million for the environmental
component." Projected Board Date: May 1997
- World Bank Description
- " Specifically, the project would: (a) extend the
life of existing coal-fired plant asset and improve its performance through
rehabilitation and the introduction of modern technologies; (b) enhance
energy conservation and efficiency. [etc.]... The project would focus on
the Rybnik power plant, which is located in the city of Rybnik in Upper
Silesia. Rybnik power plant ranks among the priority candidates for
rehabilitation and environmental upgrade. It has an installed capacity of
1,600 MWe consisting of eight 200 MWe units and burns hard-coal." (World
Bank Project Information Document, Project ID PLPA45201
- Type of Industry
- 1,445-megawatt coal-fired power plant rehabilitation
- Subsidized Project
-
- Location
- Romania
- Owner of Project
- Renel R.A. (Romania's electricity authority)
- G-7 TNC Involvement
- GEC/Alsthom (UK/France, upgrading thermal plants in
Romania) (Reuter, Sept. 6, 1995)
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $110 million of $363.9 million.
Additional financing is expected from the European Investment Bank, the
European Bank for Reconstruction and Development, U.S. Agency for
International Development and the European Union's PHARE program. (Reuters,
Oct. 31, 1995) Date of Approval: August 29, 1995 (FY1996)
- World Bank Description
- "The government's power sector-reform program will
be supported, and about 1,445 mw of existing thermal generating capacity
will be rehabilitated." (World Bank Annual Report FY1996) The project
includes power sector reform, corporate restructuring and "a thermal plant
rehabilitation program which includes equipment, services and technical
assistance to be provided to the Romanian Electricity Authority to a)
rehabilitate part of its existing thermal generation capacity; b) convert
part of its existing lignite-based thermal capacity to coal use; and c)
reduce the pollution impact of thermal plants." (AID/WATCH)
- Notes
- GEC-Alsthom is rehabilitating 330-megawatt turbo-generators at the
Turceni, Rovinari, Isalnita, and Braila power plants through a joint
venture with Romania's General Turbo. The joint venture is called GEC
Alsthom General Turbo S.A. Under the power sector rehabilitation program,
16 thermal power stations in Romania will be rehabilitated and converted.
ABB is competing with GEC-Alsthom for bids at the other plants.(Reuters,
Aug. 30 and Sept. 6, 1995)
(Pending)
- Type of Industry
- new 900-megawatt natural gas fired power plant
- Subsidized Project
- Krasnador Power Generation Project
- Location
- Krasnador Krai, North Caucasus Region, Russia
- Owner of Project
- (implementing agency) Kuban GRES; According to the World
Bank, "the founding shareholders and their (tentative) equity stakes would
be: RAO EES Rossii (30%), Gazprom (20%), Kubanenergo (15%), Integrated
Power Complex (8%) and Power Machine Building Complex (7%). The remaining
equity participation [(20%)] is expected to be financed through foreign
investment. The related gas pipeline would be financed by Gazprom and the
transmission line by RAO EES Rossii."
- G-7 TNC Involvement
- not clear yet
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $510 million of $818 million
- Projected Board Date
- June 19, 1997
- World Bank Description
- "The need for new capacity [in the North Caucasus
Region] was identified over 10 years ago, and construction was started on a
nuclear plant at Rostov. While two 1,000 MW units were partially
completed, the plant was not commissioned, due to public opposition.... The
goal of the project would be to eliminate blackouts due to generation
constraints by 2000.... The project would also support the initial steps
toward establishing competition among generating plants, as the project
would be independent, and privately owned. The proposed project would
involve construction of a new power generating station in Krasnodar Krai,
at a site near Mostovskoy, to meet current and projected electricity supply
requirements of the region. The new plant is proposed to consist of two
450 MW blocks of combined cycle generating capacity that would be fueled by
natural gas. Each block would consist of two 150 MW gas turbines, two heat
recovery steam generators (HRSGs) and one 150 MW turbo-generator set. The
project would also include construction of a 60 km gas pipeline to supply
the plant, ancillary control systems, and switchyard and transmission
facilities to connect the plant to the grid. ... The project would be
implemented by Kuban GRES, a newly formed corporate entity whose sole
responsibility would be the construction and operation of this project....
The proposed project technology represents one of the most efficient
technologies available to convert fossil fuels to electrical energy.
Compared with other conventional thermal technologies, it will minimize
greenhouse gas (GHG) and particulate emissions associated with increased
electricity production." (World Bank Project Information Document, Project
ID RUPA40162, March 28, 1996; World Bank Environmental Assessment Report
No. E142, March 1, 1996.)
- Type of Industry
- 150-megawatt natural gas power plant; hydro power plant
- Subsidized Project
- Tanzania power sector
- Location
- Tanzania
- Owner of Project
- Ocelot/TransCanada Pipelines
- G-7 TNC Involvement
- Ocelot and TransCanada (Canada)
- World Bank Agency
- IDA
- Amount of Financing (estimated total cost)
- $200 million of $440.4 million.
Cofinancing is expected from the ODA ($3.1 million) and, possibly, others
(Belgium, DANIDA, the EIB, and NORAD) in the amount of $128.8 million.
- Year of Approval
- FY1993
- World Bank Description
- "A sixth power project aims at meeting the growing
demand for electricity at least cost through the construction of the Lower
Kihansi hydroelectric scheme, helping the government restructure the power
sector, improving energy efficiency, and promoting the development and
operation of natural gas-fueled generation by private investors. Training
and institution-building assistance are included." (World Bank Annual
Report FY1993)
- Notes
- In 1996, the Canadian International Development Agency provided $2.1
million for training staff at the Ubongo Power Station, which received
World Bank financing through the 1993 credit. The Ubongo plant, owned and
operated by two Canadian companies, will burn natural gas from the nearby
Songo Songo field. The Calgary-based firms, Ocelot and TransCanada, also
own and operate the gas field. TransCanada sees developing countries as
essential to its corporate growth. "In terms of the kind of growth you
have to have to sustain the equity, you have to have growth beyond the
(North American) share," said the Jake Epp, the company's vice president
for international business, who is also the former Energy Minister of
Canada. "We are looking at profitable growth and believe that profitable
growth is there in the countries we have identified." The power plant is
expected to open in 1998. Some of the plant's power may be exported to
Kenya. (Xinhua, May 21, 1993 and Dec. 7, 1996; Financial Times, Nov. 5,
1996; Canada NewsWire, Oct. 20, 1995 and May 28, 1996; Reuters, May 24,
1994)
- Type of Industry
- cogeneration power plant; wastewater plants
- Location
- Turkey
- Owner of Project
- Koc Group
- G-7 TNC Involvement
- not clear
- World Bank Agency
- IFC
- Amount of Financing (estimated total cost)
- $35 million loan, $55 million
syndications of $152.4 million
- Year of Approval
- FY1995
- World Bank Description
- "Install co-generation and construct wastewater
plants conforming to EU environmental standards to meet future demand for
power and steam by the largest privately owned conglomerate." (IFC Annual
Report FY1995)
- Note
- The IFC-financed cogeneration unit to be built by Koc has an
estimated cost of $40 million. (Financial Times, June 12, 1995)
- Type of Industry
- 900-megawatt coal-fired power plant rehabilitation
- Subsidized Project
- Krivoy Rog Power Plant Rehabilitation
- Location
- Zelenodolsk, Ukraine
- Owner of Project
- (borrower) Government of Ukraine (implementing agency)
Joint Stock Company "Dniproenergo"
- G-7 TNC Involvement
- not clear yet.
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $166 million of $278.4 million
- Projected Board Date
- March 13, 1997. No decision was announced.
- World Bank Description
- "Krivoy Rog GRES is a coal-fired power station with
3,000 MW installed capacity (10x300MW), located in Zelenodolsk
(Dnipropetrovsk region) and operated by Dniproenergo Joint Stock power
company, based in Zaporozhye. Because of derating, the current operating
capacity is only 2,600 MW. A number of Krivoy Rog units are nearing their
design lives and vital components are at the end of their safe
metallurgical life. The Station's environmental performance is inadequate.
Serious deterioration in reliability of equipment has adversely affecting
unit generating capacity, availability and efficiency. Rebuilding or
replacement of some of these components is necessary for the continued
economical, reliable and environmentally sustainable operation of this
plant.... The main development objectives of the proposed project include
support for... and (iv) rehabilitating a total of 900 MW generating
capacity at Krivoy Rog GRES. Specific technical objectives include: (i)
extending the life of three 300 MW power units by at least 15 years; (ii)
increasing power output through improved unit availability and thermal
efficiency [etc.].... Six thermal power plants have been identified by the
Ministry of Power and Electrification (Minenergo) as possible investment
targets. Of these six plants, detailed rehabilitation feasibility studies
were carried out for Krivoy Rog GRES.... The proposed rehabilitation
extends the life of three 300 MW units by at least 15 years. It is expected
to increase: (i) generating capacity for the total plant from 2,600 MW in
1998 to 2,993 MW in 2001 and thereafter...." (World Bank Project
Information Document, Project ID UAPA9109, November 14, 1996)
- Note
- The power plant is located in the Krivoy Rog mining area which,
according to the country's environment minister, poses "a constant threat
of ecological emergencies." In early 1996, only two of ten units at the
plant were operating. Bulgaria has some economic interests in the power
plant. (Infobank news agency, Feb. 5, 1997; BBC, Dec. 1, 1996 and Feb. 15,
1996)
- Type of Industry
- 80-megawatt gas-fired power plant expansion
- Subsidized Project
- Ba Ria Power Station
- Location
- Vietnam
- G-7 TNC Involvement
- British Gas (U.K, partner), Mitsui and Co. (Japan,
partner).
- World Bank Agency
- IDA
- Amount of Financing (estimated total cost)
- $165 million of $247.9 million
- Year of Approval
- FY1995
- World Bank Description
- "The government will be assisted in its efforts to
rehabilitate and expand the country's power system." (World Bank Annual
Report FY1995) This is a "project to expand the power generating capacity
at Ba Ria Power Station in South Vietnam. The project has major
environmental benefits in the provision of an extra 80 MW generation
capacity without the consumption of extra fuel or additional emissions to
the atmosphere...." (World Bank Environmental Assessment, Credit No. 2724,
Report No. E78, March 1, 1995.)
- Notes
- Hyundai of South Korea has built a gas pipeline to the plant.
Vietnam is poised to become the World Bank's second largest borrower after
India. The plant opened in May 1995. (Agence France Presse, April 26,
1995 and May 9, 1996; Asia Times, Dec. 14, 1995)
- Type of Industry
- new 450-megawatt gas-fired power plant
- Subsidized Project
- Phu My Power Station (Power Sector Rehabilitation and
Expansion Project)
- Location
- Vietnam
- Owner of Project
- Electricity of Vietnam (government-run)
- G-7 TNC Involvement
- Marubeni (Japan, construction); K&N Engineering (U.S.,
consultant). ABB of Switzerland supplied the gas turbines.
- World Bank Agency
- IDA
- Amount of Financing (estimated total cost)
- $180 million of $242 million
- Date of Approval
- February 23, 1996 (FY1996)
- World Bank Description
- "Help will be provided in meeting the rapid growth
in electricity demand in the south of the country." (World Bank Annual
Report FY1996)
- Note
- This is a soft loan for the first phase of a gas-fired power plant
called the Phu My 2 project, which was completed in 1997. Eventually, the
plant will have an output capacity of 900-megawatts. Gas for both the Phu
My and Ba Ria power stations comes from the Bach Ho oil field. (Asia
Pulse, Feb. 24, 1997 and May 5, 1997; Financial Times, July 23, 1996;
Business Times, March 13, 1996; Xinhua, Feb. 27, 1996; Japan Economic
Newswire, Dec. 25, 1995; Agence France Presse, Dec. 17, 1995)
- Type of Industry
- coal-fired power plant rehabiliation and expansion
- Subsidized Project
- Hwange coal power plant
- Location
- Hwange, Zimbabwe
- Owner of Project
- Africa Power (51% stake granted to YTL of Malaysia in 1996)
- G-7 TNC Involvement
- none
- World Bank Agency
- IBRD
- Amount of Financing (estimated total cost)
- $90 million of $200.3 million.
- Year of Approval
- FY1994
- World Bank Description
- "The performance and reliability of the Hwange
coal-fired power station, the country's largest generating station, will be
increased, thereby minimizing the severity of the power shortage -- caused
by the recent drought -- and facilitating economic recovery. Technical
assistance and training are included." (World Bank Annual Report FY1994)
- Note
- Recent developments at the Hwange coal-fired power station
demonstrate the degree to which G-7 corporations and their host governments
expect to benefit from World Bank-financed power projects. In late 1996,
Zimbabwe President Robert Mugabe decided to award a contract to expand and
privatize the Hwange power station to YTL Corporation of Malaysia. A U.S.
company (Houston Energy Industries) and four European companies (National
Power - UK, Electricite de France, Tractabel - Belgium, and Nordic Power
Corp. - Sweden) lost their bids to own 51% of the plant and expand the
plant's capacity from 920 to 1,590-megawatts.
The reaction by Western governments was furious. Zimbabwean ambassadors in
Western capitals, according to President Mugabe, were summoned to explain
the decision but he said, "I told them to go to hell, because Hwange
thermal plant is ours and we do what we want with it."
In Washington, Under Secretary of State for Commerce and retired U.S.
diplomat Chester Crocker said that "warped" contract awards would do
"irreparable damage" to Zimbabwe's business relations with the U.S. "We
are glad that the Zimbabwean government, despite the recriminations, has
awarded us all that we've asked for," said Francis Yeoh Sock Ping, YTL's
managing director. The Hwange power plant makes more than half of
Zimbabwe's electricity.
-
-
(Deutsche Press-Agentur, Nov. 7, 1996; BBC, October 4, 1996; Agence France
Presse, Oct. 2, 1996; Business Times (Malaysia), Oct. 2, 1996)
Last modified: Sun Jun 22 00:54:07 MET DST 1997
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