FEN POWER - A LOAN

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The project aims at assisting Colombia during 1984-85 to maintain the construction rhythm of ongoing electricity development projects, which will supply the electric energy needed to facilitate growth of industrial and commercial activities, as well as help supply electricity to a larger segment of the country's population. The proposed project also seeks to support the development of Fen, the recently-established financial arm of the power sector, created to tap domestic and external capital markets on its behalf. Support is provided under the project to assist FEN in its role of strengthening power sector financial management. The project consists of subprojects representing a two-year time slice of priority ongoing electricity development investments, several of which are already partly financed with Bank loans. A group of subprojects has been selected on a primary basis, with final selection and sub-loan amounts to be based upon detailed proposals in each case. Subprojects will consist of a portion of the civil works, goods and services associated with the investments and the proposed subloans to be made by FEN to the utilities would finance foreign exchange costs not covered by other sources.