INTERCONNECTION

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The San Carlos Hydropower Project forms part of ISA's 1978-82 expansion program and will provide part of the additional power capacity required in the early eighties. It includes (a) construction of a 70 meter high earth dam on the Guatape River, inlet and discharge tunnels, and an underground power station with four generating units, as well as related transmission facilities; (b) consultant services for engineering, civil works and supervision; and (c) a study of power losses to ascertain their nature, size and occurrence as a basis for recommending a program to minimize them. Once completed, the San Carlos I station will be the largest power generating facility within the integrated system, with an installed capacity of 620 MW. The second phase, to be constructed at a future date, will permit installation of an additional 930 MW. The project will continue the Bank's institution building efforts in the sector started in 1950. In particular, it will strengthen centralized planning, as well as the management and operations of two of ISA's shareholders. The 500KV Interconnection Project will achieve the long-standing objective of interconnecting the country's major power systems. It includes (a) a 523 km, single circuit 500 kV transmission line between the Central and Atlantic regions, two terminal and two intermediate substations, and (b) consultant services for engineering, civilworks and supervision. Once completed, the interconnection line will ease projected energy deficits under adverse hydrological conditions by providing thermal backup to the Central system. It will also contribute to substantial fuel savings (amounting to over US$1.3 billion in end-1976 prices over the life of the project, or about US$160 million at present value) which will result from the Atlantic system's having access to hydro-electricity during periods of normal hydrology. The project is subject to risks normally associated with construction of high voltage lines in mountainous terrain, but adequate safeguards have been taken to minimize them.