EXPANSION PROJECT II

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The Second Bogota Power Expansion Project for Colombia will provide a loan of US $50 million to the Empresa de Energia Electrica de Bogota to finance the expansion of its power facilities. The Empresa is an autonomous municipally owned public utility that serves the capital city of Bogota. It is the only electric utility in the Bogota area. Currently, the Empresa does not have enough capacity to supply the power needs of consumers in the area. The project will resolve this problem by continuing the development of the Bogota River's hydropower potential. Its components are: 1) construction of the Colegio hydroelectric power plant with a capacity of 150 MW; 2) addition of a second 33 MW thermal unit at the Zipaquira thermal station; 3) completion of the Guatavita dam and storage reservoir to its final height; 4) installation of the Muna pump storage station; and 5) additions to the transmission and distribution facilities. These improvements will increase the power supply of the Empresa in order to meet consumer needs in the Bogota area.