RIO TUMA HYDROELECTR

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The Rio Tuma Hydroelectric Project will provide a loan to the Empresa Nacional de Luz y Fuerza, corporation wholly owned by the Government of Nicaragua. The Empresa has at present a total generating capacity of 38 MW and sells energy at retail in Managua and the surrounding area through its own distribution system. It also owns and operates the only transmisson system in Nicaragua and sells power on a wholesale basis to 14 municipal and private power companies in major urban centers of the country. A new power source will be necessary by mid-1965 to meet expected increases in power demand within the service area. The project consists of a rock fill dam on the Tuma River some 120 km north-east of Managua, and a power station providing additional 50 MW of generating capacity. The project is technically sound and adequate arrangements have been made for its execution. The new generating capacity to be provided by the Rio Tuma hydro plant is required to meet the increasing demand for power in the area served by Empresa. The cost of the project is reasonable. The present rates charged by Empresa for sale of power should be sufficient to yield reasonable earnings during the next few years.