POWER MODERNIZATION

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The project aims to ensure suitable electricity service at least cost and to modernize UTE's management to improve efficiency. Project objectives include : a) improving the reliability of meeting short to medium term electricity demand; and b) improving sector efficiency by improving UTE's managerial capability and reducing losses. As part of UTE's investment program for 1990-97, the project will include the following components : 1) installation of a new thermal plant (powered by two gas turbines of 113.5 MW each), including spare parts, control house, substation, interconnection to the existing transmission system, fuel pipeline and tanks; 2) improvements in the Montevideo power distribution network consisting of rehabilitation of the medium and low voltage system to increase the reliability of service to customers, as well as reduce the actual level of technical losses; and 3) implementation of an Institutional Development Program (IDP) consisting of : i) technical assistance for developing adequate procedures, management training and software transfer through a corporate twinning arrangement; ii) purchasing and setting up equipment to support the above; and iii) a training program including the rehabilitation of UTE's training center for technicians and skilled workers.