PWR VII EL CAJON HYD

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The project comprises the construction of the 292 MW El Cajon hydroelectric plant. The principal objectives of the project are to meet Honduran power load requirements for 1986-90 from national energy sources and to reduce fuel consumption in thermal plants. The project also would: (1) help develop ENEE's capacity to manage and operate a major expension of its interconnected system, and (2) contribute to flood control in the Sula Valley. The project involves the normal risks of large civil works. Because of the large size of the project in the context of the Honduran economy, special precautions have been taken to reduce the risk of substantial cost overruns and to secure financing on appropriate terms.