REVISED QUITA POWER

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The Revised Quito Power Expansion Project for Ecuador will improve the current power expansion project being financed by the Bank. The original project was to expand the power capacity of Quito's system to 18,980 kilowatts. The new project will increase it even further to 40,000 kilowatts in order to better meet the growing demands for power. Its components are: 1) extension of the original 6.2 kilometer tunnel by 2.5 kilometers in order to obtain an additional head of 60 meters which would permit the development ultimately of 40,000 kilowatts; 2) initial installation of 20,000 kilowatts in a large power house; 3) expansion of the transmission line from the new hydro plant to Quito from 22 kv to 46 kv; 4) reconstruction of the existing 22 kv transmission line from Guangopolo hydro plant to 46 kv and a new 46 kv transmission line be constructed from the plant to Quito; and 5) expansion of the scope of the distribution system in Quito to accommodate the proposed increase in generating capacity. These new improvements will increase the power capacity and supply in order to better meet greater demands for power in Quito.