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Document of

The World Bank

FOIR OFFICIAL USE ONLY

Repoirt No. 488 9-HA

STAFF APPRAISAL REPORT

FOUJRTH POWER PROJECT

October 25 , 84

Projects DepartmentLatin America and the Caribbean Regional Office

This document has a restricted distribution and may be used by recipients only in the it -qrnnLice of|their official duties. Its contents may not otherwise be disclosed without World Baul a- bhoriil fi(. l

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CURRENCY EQUIVALENTS

Currency unit Gourde (G)G 1.00 = 100 centimes = US$0.20Million US dollars (MUS$) = US$1,000,000.00French Franc = FF

UNITS AND MEASURES

1 kilovolt (kV) = 1,000 volts (V)1 kilowatt (kW) - 1,000 watts (W)1 megawatt (MW) = 1,000 kilowatts (kW)1 kilowatt-hour (kWh) = 1,000 watt-hours (Wh)1 gigawatt-hour (GWh) = 1,000 megawatt-hours (MWh)I megavolt-ampere (MVA) = 1,000 kilovolt-ampere (kVA)1 kilometer (km) = 0.6214 mile (mi)1 square kilometer (km2) 0.386 square mile (sq. mi.)1 barrel (bbl) = 42 US gallons = 159 liters1 meter (m) = 3.281 feet (ft.)1 cubic meter (m3) = 35.32 cubic feet (ft3)1 kg - 2.206 pounds (lb)

ABBREVIATIONS AND ACRONYMS

EdH = Electricite d'HaitiTELECO = Telecommunications d'HaitiODVA = L'Organisme de Developpement

de la Vallee d'ArtiboniteCIDA = Canadian International Development Agency - CanadaCCCE Caisse Centrale de Cooperation Economique - FranceFAC = Fonds d'Aide et de Cooperation - FranceIDB = Inter-American Development BankKfW = Kreditanstalt fuer Wiederaufbau

(Federal Republic of Germany)UNDP = United Nations Development ProgramsHQI Hydro Quebec International - CanadaPW Price Waterhouse - CanadaSOFRELEC = Societe Francaise d'Etude et de Realisation

d'Equipements Electriques - France

EdH FISCAL YEAR (FY)

October 1 - September 30

FOR OFFICIAL USE ONLY

HAITI

ELECTRICITE D'HAITI

FOURTH POWER PROJECT

Table of Contents

Page No.

1. PROJECT SUMMARY ..................... .................... 1

2. THE POWER SECTOR ............* *.... , , , .**** **** 3

Energy Resources 3.... ... *.*..*.... ... ................ 3Power Sector and its Organization........................ 3Electricite d'Haiti ...... 4EdH's Financial Situation .............................,. 5Power Sector Strategy and Development ...... 6Sector Constraints .. ***** *** *0eS ** .0 ... ... **.. 7IDA Strategy and Participation in the Power Sector .... ** 7

3. THE PROJECT *..................... 9

Project Origin and Preparation .......................... 9Project Objectives and Description ...................... 9Project Execution .............................. * 12Project Cost and Financing .. 13.Procurement and Disbursement 14Economic Evaluation 15Project Risks .............................. .. 15

4. PROJECT IMPLEM4ENTATION DETAILS ....... 16

Cost Estimates ........... 16Implementation Schedule ..... *. 16Procurement Details ..... 17Disbursement Schedule ..... 18Environmental Aspects ..... - 18Project File . 18

5. AGREEMENTS REACHED AND RECOMMENDATION *. 18

This report is based on the findings of an appraisal mission which visitedHaiti during September-October 1983. The mission comprised Messrs. L. R.Luzuriaga (Power Engineer), C. Moreno-Pineda and J. Davis (FinancialAnalysts).

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Page No.ANNEXES

Annex 1: The Beneficiary ........... ............... 20

Attachment 1: Organization Chart *v**.e .................. 24Attachment 2: Performance Indicators ..................... 25

Annex 2: The Power Market .......................... 26

Attachment 1: Distribution of Electricity Consumption .... 31Attachment 2: ixisting and Proposed Generating Facilities 32Attachment 3: Capacity Balance for Port-au-Prince 33Attachment 4: Actual and Forecast Generation 34Attachment 5: Actual and Forecast Sales ................. 35

Annex Z: Financial Analysis ... .*. 36

Attachment 1: Actual and Forecast Income Statements 41Attachment 2: Estimated and Forecast Funds Statements .... 42Attachment 3: Actual and Forecast Balance Sheets ,.,.. 43Attachment 4: Investment Program for Period 1984-88 ...... 44Attachment 5: Actual and Forecast Rate Base 45Attachment 6: Statement of Changes in Work in Progress.... 46Attachment 7: Terms of Existing and Future Loans 47Attachment 8: Electricity Tariffs as of October 1983 48Attachment 9: Fuel Cost Forecast 49

Annex 4: Internal Rate of Return .................................. 50

Annex 5: Project Cost Estimates ...... 51

Annex 6: Project Implementation Schedule ........ 52

Annex 7: Credit Disbursement Schedule 53

Annex 8: Contents of Project File ........................ 54

MAP No. IBED 17956

H ITI

EL1;CTRICITE D'SLAITI - FdAl


l. PROJECT SUMARY

H vv Rep ib lic of Haiti

pitlv t Ll:lazrv: Electricite d'Iiaiti. (EdH) and the Ministry of Finance

SDIt 21.8 million from IDA, equivalent to US$22.1millIon

Standard

o-b.n4ing iTerms: T-e amount of SDR 21.3 million from proceeds of thee:redit would be on-lent by the Government to EdH for aperiod of 20 years, including four years grace, at anInterest rate of 9.89% per annum. Interest duringeon4tcructioii would be capitilized. EdH would assumethe foreign exchange risk.

PasralttS inasctng: Cais6e Centrale de Cooperation Economique (CCCE),FF 72.0 million, to be lent to the Government of 'haitifor on-lending to EdH.

t lŽio.eripLion: 'the project would help to further develop the energysector of Haiti through (i) the expansion of theexisting Carrefour diesel power station at Port-au-1'rince with two diesel-electric units (2 x 7.8 MW);(ii) the implementation of a program to improve thegeneration capacity of three existing power plants;(iii) the completion of the rehabilitation of thedistribution network at Port-au-Prince; (iv) thepreparation ot detailed engineering design for a hydro-electric project on the Artibonite river basin; (v) theprovision of consulting services for management andopcraittan of EdR, as well as project implementation andoperatton; (vi) the provision of a training programincluding fellowships; and (vii) the provision ofconsulting services for the municipal finance study oftlw Plort-au-Prince metropolitan area.

No LuiLusual risks are associated with the project. Inorder to provide required expertise, internationallyrveruited consultants would assist EdH in projectI nplEmrentation.

Estimated Cost: a! Local Foreign Total---- US$ million -

Carrefour diesel plant 0.9 7.5 8.4Generation improvement 0.1 7.8 7.9Distribution network 0.8 4.5 5.3Consulting services and

training 0.7 4.0 4.7Total base cost 2.5 23.8 26.3Physical contingency 0.2 2.4 2.6Price contingency 0.6 4.3 4.9Total EdH's project cost 3.3 30.5 33.8M?unicipal finances study 0.1 0.4 0.5Interest during construction 3.7 - 3.7Total financing required 7.1 30.9 38.0

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a/ Excludes taxes and duties from which this projectis exempt.

Financing Plan: Local Foreign Total…-----US$ million

IDA credit 0.1 22.0 22.1CCCE credit (equiv.) - 8.9 8.9Eda 3.3 - 3.3Government (IDC) 3.7 - 3.7

Total financing 7.1 30.9 38.0

Estimated IDA FY 1985 1986 1987 1988 1989…- US$ million -

IDA creditAnnual 1.3 11.7 5.6 2.6 0.9Cumulative 1.3 13.0 18.6 21.2 22.1

Rate of Return: 11.0 percent based on present and projected tariffs.

Map: IBRD 17956

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2. THE POWER SECTOR

Energy Resources

2.01 Haiti's indigenous energy resources are limited. The remainingundeveloped hydro-potential amounts to about 90 KW only (of which 90% areconcentrated in two sites in the Artibonite River) and petroleum deposits atthis moment are not known to exist. Small sub-economic lignite deposits havebeen identified but it is doubtful whether they can be used for powergeneratton. Imported fuel, therefore, is presently used for 50% of totalelectricity generation of 369 GWh (1983), and thermal power plants will haveto remain the mainstay of the Haitian power sector*

2.02 Imported refined petroleum products are the main Gource ofcommercial energy. Charcoal is extensively used for domestic and smallindustrial purposes. A Bank energy assessment mission estimated that in 1982wood accounted for 76 percent of Haiti's gross energy use, bagasse for 5percent, petroleum for 15 percent and hydropower for 4 percent. Due to thehigh use of wood, much of the country has been denuded of trees; erosion isprogressing rapidly and considerable areas of once fertile land have beenstripped of soil. Moreover, because of erosion-induced siltation, the usefulvolume of the reservoir of the Peligre hydropower scheme, the largest in thecountry, is declining rapidly and reducing the power capacity by 400 kW peryear during the dry season. At the present rate of siltation, the reservoirmay be completely filled by year 2016, eliminating present river regulationdone for purposes of power generation, irrigation and flood control.Impounding siltation in the incoming affluents to the reservoir mightmitigate the problem; the construction of the Guayamouc dam and hydroelectricproject, now being considered by EdH for development, is one of the proposedpartial solutions4 for containing about 40% of the sediments. Dredging of thePeligre reservoir is not an economical proposition.

2.03 Various public institutions in Haiti are at present engaged inevaluating solar energy technologies, windpower anu methanol production frcsisweet sorghum. Although some of these technologies may not be developedeconomically at the present time, they could constitute an important sourceof energy in the future.

Power Sector and its Organization

2.04 Electrification is limited in Haiti, reflecting the low economiclevel of the country and the poverty of its population. In 1983, only 9percent of the population had access to electricity; in Port-au-Prince 43percent of the people had electricity and in the provinces and rural sectoronly 3 percent. Power generation is highest in Port-au-Prince with about 410kWh per capita annually, which for the whole population averages only about70 kWh. Industries which are mainly in and around Port-au-Prince consumeabout 45 percent of sales, commerce 5 percent, public institutions 12percent, and residential consumption is about 38 percent. Since 1972,electricity consumption in Port-au-Prince grew at an average annual rate of

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13 percent and is projected to grow at an average annual rate of 9 percentthrough 1988, while in the rural areas it is expected to grow at a rate ol10.5 percent. Annex 2 presents detailed information on the power market inHaiti.

2.05 Electricite d'Haiti (EdH), an autonomous Government agency createdin 1971, is the sole entity responsible for power supply in Haiti. Powersector policies are set by the Preaident of its Board, the President of theRepublic, who delegates his authority to the Minister of Public Works,Communications and Transport. There is no separate regulatory body for thesector, and tariffs are approved by Edl's Board.

2.06 EdH's installed hydroelectric capacity is 54.8 MW and thermalcapacity amounts to 91.8 MW. Captive plant capaciy is 40,000 kW, all thermaltype.

Electricite d'Haiti

2.07 Annex 1 presents complete details on EdH. EdH employs about 1,250people of which 370 are stationed at locations outside Port-au-Prince. Only8% of EdH's staff have a university degree. Staff quality is not fullysatisfactory and there is a shortage of managerial, technical, andadministrative skills. Under the first IDA Power Project, a training unitwas created within EdH, initially responsible for only the coordination oftraining in-house and abroad. More recently, the training unit expanded intoa center with the assistance provided under the Second and Third PowerProjects, as well as by the Fonds d'Aide et de Cooperation (FAC) and theKreditanstalt fuer Wiederaufbau (KfW). With five full time instructors, theCenter provides courses and seminars on varied subjects such as linementechniques, metering, welding, diesel operation and nechanics, hydro-plantoperation, fitting, first aid, accounting, administrative and controltechniques, secretarial techniques, alphabetization, etc. In the last fouryears 300 employees received training at the center. In addition to thein-house training, the center sent 35 professionals to seminars and coursesabroad. Through the First and Second Power Projects, IDA helped to providetraining to approximately 50 percent of EdH professionals through fellowshipsabroad, and approximately 50 percent of EdH personnel through in-housetraining. Results were satisfactory in the financial and administrationareas where personnel were trained in modern organizational methods and datahandling equipment. In the technical area, improvements have been achievedin systems planning and technical studies, but a great deal remains to bedone in engineering and design, construction supervision and operations andmaintenance. Under the Third Power Project, an additional 10% of theengineers and technicians would receive training,

2.08 In general, EdH has performed reasonably well in the execution ofpreviously IDA-financed projects. In order to assure that the institutioncontinues having an adequate managemert, independence from undue governmentinterference, and that all projects, including the proposed Fourth PowerProject, would be executed in an efficient manner, during negotiations theGovernment and EdH accepted that the specific covenants from credit 1281 HA,

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related with the execution of the project, with financial performance andwith the management and operation of EdH, be repeated in the legal documentsfor the proposed credit.

2.09 In order to monitor the future operations of EdH, new performanceand financial indicators and loss reduction targets have been negotiated andincluded in the legal documents. At present there is a loss of water atEdH's Peligre dam because of a lack of coordination between EdH andL'Organisme de Developpement de la Vallee d'Artibonite (ODVA), an irrigationdevelopment organization. As a condition of effectiveness, EdH would sign anagreement with ODVA to regulate the use of the Artibonite River forirrigation, flood control, and power generation in a manner satisfactory tothe Association. EdH would carry out periodic inspection of the Peligre damand related structures in accordance with sound engineering practices inorder to determine whether there are any deficiencies in the condition ofsuch structures, or in the quality and adequacy of maintenance and methods ofoperation.

EdH's Financial Situation

2.10 Prior to 1975, EdH's financial performance had been very weak,mostly because of inadequate tariff levels, high energy losses, non-paymentof public electricity consumption and excessive reliance on short-term debtfinancing. However, starting in 1976, and particularly since 1978, EdHfinances improved gradually. Its average revenue increased by about 40percent between 1980 and 1982. In this period, the rates of return onrevalued assets were around 5.7 percent, lower than the targeted 8 percent,but adequate to meet EdH's cash requirements. Due to a severe drought thataffected the generation of hydropower, a constant increase in electricitylosses and lower demand because of the economic recession, earnings in 1983dropped severely, resulting in a rate of return of zero percent. The newfinancial forecast includes provisions to meet financial shortfalls in caseof drought.

2.11 EdH's financial situation is expected to be satisfactory throughFY88. The forecast rate of return on the average current net value of fixedassets in operation would not be less than 5 percent in FY85 and FY86, 7percent in FY87 and 8 percent in FY88. During the period, EdH would be ableto meet its financial obligations and generate internally approximately 27percent of the financing of its construction program and working capitalneeds. However, in order to maintain a sound financial performance duringthe execution of the project, the Government and EdH agreed duringnegotiations not to undertake any investments in the power sector whose totalcost would exceed the equivalent of one percent of the current net value ofEdH's fixed assets in operation, with the exception of those reviewed by theAssociation during appraisal. Also, they agreed on a commitment limiting theaggregate amount of unbudgeted village and rural electrification investmentsin any year to 0.2 percent of such net value. At the same time, EdH agreed(a) not to incur long-term debt without the Association's previous consentunless internal cash generation covers maximum future debt service by 1.5times; (b) not increase short-term debt exceeding one sixth of its annualcash operating, maintenance and administration expenses; and (c) maintain

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its liquid assets in an intere6t-bearing account or in interest-bearinginvestments. The ratio between the internal cash generation and debt serviceshall be calculated using a reasonable forecast for the internal cashgeneration instead of historical data.

2.12 EdH's tariff structure, designed with the assistance of consultantsunder previous projects, is based on the principle of marginal costing. Thetariff includes a monthly fuel surcharge, adjusted quarterly and incorporatedinto the basic tariff at the end of each fiscal year. The average tariff forFY83 was US cents 12.8 per kWh, and it has been projected to grow at 10percent per yea, during the period 1984-88, or the same rate assumed forlocal inflation and in line with what EdH achieved in recent years. Theprojected annual average tariffs are about equal to the long-run marginalcost. At the begirnning of FY84, after incorporation of the fuel surchargeinto the basic tariff, it reached US cents 14.0 per kWh, which ie close tothe average tariff assumed in the financial forecast for FY84 (US cents 14.3per kWh).

2.13 The collection of current electricity bills from governmentagencies and public institutions has always been a problem for EdH. As ofSeptember 1984, the Government's arrears amounted to US$ 6.10 million,equivalent to 15 months of billing. As a condition to begin negotiations ofthe proposed project, the Ministry of Finance signed an agreement with EdH,acceptable to the Association, under which (a) the arrears will be settledthrough lump sum payments of US$2.90 million in FY85, US$2.65 million inFY86 and the balance of approximately US$0.55 million in FY87; and (b) theGovernment will start to pay on time current electricity bills, from thebeginning of FY85. The Government would maintain the financial agreementuntil it is fully implemented. Finally, the Government would not permit EdHto use its financial resources for any purpose other than to pay the costs ofits operations and investments and to service its debts.

2.14 A detailed financial analysis for EdH's operations is presented inAnnex 3.

Power Sector Strategy and Development

2.15 As part of the policy of diversifying economic activities, the'encouragement of private sector investment in assembly industries and tourismhas become a cornerstone of Haiti's development strategy. In this context,the "Long-Term Pre-Investment Study of the Power Sector", the master plan inthe development of the sector, emphasizes the expansion of electric powergeneration in major urban areas, especially in Port-au-Prince. This studywas financed in 1978 by UNDP and has been endorsed by Government authoritiesand the main external agencies supporting the power sector (IDA, K'W, IDB,CIDA, UNDP, CCCE). The latest update of the study, prepared by HLdro QuebecInternational in September 1983, includes an expansion program which extendsinto the early years of the coming decade. In view of the limited hydro-potential left for development in Haiti, it prescribes an intermittentprogram of increasing hydroelectric and thermal capacity, in stepscommensurate with demand projections of Port-au-Prince and the main urban

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centers in the provinces. As far as rural electrification is concerned, EdHbases ita expansion program on small electric generating plants. EdlH andGerman consultants financed by KfW are carrying out feasibility studies ofhydro-plants, and small diesel generating groups are being installed atselected sites. A Rural Electrification Master Plan will be prepared in1985-86 by consultants to be financed by of a grant from CIDA.

2.1*6 EdH's proposed investment program for the period of 1984-88 totalsUS$264.7 million. Of this amotunt, about 11 percent would be invested inrural electrification. By the end of the period, the power generatingcapacity for Port-au-Prince would increase by 60 MW from its present level of120.4 MW and the provinices by 4 MW from a level of 26.2 MW.

Sector Constraints

2.17 The main constraint to the development of the Haitian power sectoris the high investment in hydroelectric systems due to the country'stopography, hydrology, and the lack of infrastructure. Variations in theregime of the rivers require the construction of reservoirs to regulate the.flow of water. However, because of the nature of the terrain, theconstruction of large reservoirs is very costly. The absence of adequateroads contributes to the high cost of civil works. The limited number ofqualified staff also affects EdH's capacity to develop and manage thesystem. This is currently being corrected through improvements in.organization and training. Nevertheless, the cost of power development andconsumer tariffs for electric service will remain relatively high in Haiti,and the Government will continue to require a substantial amount of foreignassistance to finance it, in order to accelerate the growth of industrialactivities.

IDA Strategy and Participation in the Power Sector

2.18 Since 1976, the Association has sought to assist Haiti in thedevelopment of its electric power sector through: (a) the formulation andimplementation of a least cost national power development plan that conformsto the development objectives of the country; and (b) the institutional andfinancial improvement of EdH. To achieve these objectives, IDA providedthree credits amounting to US$58.5 millioa and mobilized an additional amountof US$24.0 million in co-financing and parallel financing. The developmentof Haiti's power sector has cuntributed to the creation of a manufacturingsector that has become the most consistently dynamic economic activity inHaiti and is helping to absorb part of the unemployed labor force migratingfrom the countryside to the capital city. While EdH has become one of themost efficient public enterprises in Haiti, IDA will have to providetechnical, managerial and financial assistance, over a long period of time,to allow EdH to meet the institutional demands and large investmentrequirements of a rapidly growing sector.

2.19 The First Power Project (Credit 645-HA of Jtuly 1976 for US$16.0million) included the initial stage (1976-78) of a two-stage powerdevelopment program then covering the period 1976-83. The decision to carryoW'4 this program in two stages arose from constraints in the availability ofboth IDA and local counterpart funds and from the desire to strengthen EdH

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institutionally before it undertook a larger investment project. Thus, EdHwas reorganized, its autonomy strengthened, and its technical. competencesupported by technical assistance for engineering, project supervision andstaff training. The Project also addressed the urgent need to install 21 'AWof diesel generating capacity in Port-au-Prince at a new power station(Varreux) near the industrial and commercial center of the city, togetherwith transmission facilities, particularly to serve industry. This part ofthe project was completed about 20 months behind schedule. The delay arosebecause of a transport accident affecting the two small generators and alsobecause of a major breakdown of the two larger units, afterwards repaired bythe supplier. Transmission facilities were completed on schedule. A newtariff structure, coupled with improvements in operating efficiency, resultedin a substantial improvement of EdH's financial position. The ProjectPerformance Audit Report (Report No. 3265) was distributed to the ExecutiveDirectors on December 30, 19BQ.

2.20 The Second Power Project (Credit 895-HA for US$16.5 million and theEuropean Economic Communit:y special action credit 4-HA for US$6.0 million,both of May 1979) covered the second stage of the power development programfor the 1979-83 period. The project, which received parallel CIDA financingamounting to Can$17 million, added 23 MW capacity to the Varreux dieselstation, transmission lines and substations, renovation of Port-au-Princedistribution system, some diesel units and related distribution networks intb.e provinces and consulting services and training of EdH's staff. Theimplementation of the project suffered a setback in 1979 due to controversieswithin EdH concerning the IDA-financed contract for the Varreux dieselstation, resulting in the dismissal by the Government of the General Manager,the Technical Director and the consultants. By allowing overlappingconsultant services, the Association endeavored to minimize the effect of theincident which, nevertheless, resulted in a delay of 18 months in therenovation of th%t Port-au-Prince transmission network. The CIDA financed andadministered transmission component also suffered delays, as a result of lagsin the preparation of project designs, bid evaluation and contract award.The Second Power project is now scheduled to be completed in December 1984.

2.21 The Third Power Project (Credit 1281-HA for SDR 23.1 million, ofAugust 1982, and CCCE parallel financing of FF 30 million, November 1983)which cov(rs the investment needs of the 1984-85 period of the developmer,tprogram., is financing a new 23 MW diesel electric power station at Carrefourin Port-au-Prince, additional renovation of the Port-au-Prince distributionnetwork, construction of a new head office for EdH, repair of the civil worksat the Peligre hydroelectric power plant, a feasibility study for theGuayamouc hydroelectric project, consulting services and training of EdHstaff. The project is scheduled to be completed in June 1986.

Municipal Finance

2.22 Municipal government in Port-au-Prince is provided by the fourmunicipalities that make up the "Communaute Urbaine de Port-au-Prince", witha population of 900,000. The role of these municipalities is restricted atpresent to the administration of a few urban services, such as the collectionand disposal of garbage. Staff are insufficient in number and inadequatelytrained. Their financial position is precarious; more than half of their

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revenues come from earmarked taxes collected by the Ministry of Finance, suchas the property tax and the licence tax on enterprises. The remainderconsists essentially of grants from the central Government. In real terms,revenues from local taxes have been falling in recent years. The results areinsufficient funds to provide for adeqnldte urban services and maintenance ofinfrastructure, let alone capital investment. There are, however, severalimportant capital investments in Port-au-Prince which are being financed orprepared by international and bilateral agencies: drainage (IDB), urbandevelopment (KfW and IDA), transportation (France) and water supply (IDA andFrance). In order to operate and maintain adequately these investments andimprove the delive.-ry of basic services, it has become increasingly necessaryto strengthen urgently overall municipal management and finance. Anopportunity to improve municipal finances in Port-au-Prince has arisen duringthe preparation of proposed project due to a proposal under consideration byGovernment to link municipal tax collection with electricity tariffs. Thisproposal revealed the need for a thorough review of municipal finance andmanagement in order to improve local tax administration in Port-au-Prince andto assess other alternative measures for generating municipal revenueswithout linking them to electricity tariffs. Therefore, the proposed projectwould include a study of municipal finances in Port-au-Prince which shouldlead to reforms in the structure of local revenues in order to allow forimprovements in the provision of urban services.

3. THE PROJECT

Project Origin and Preparation

3.01 The proposed project, which is a part of EdHts expansion program,would cover the investment cost to increase the generation capacity forPort-au-Prince during the period 1986-87. The project was identified byIDA's supervision missions in 1982 and 1983, was prepared by EdH's Technicaland Planning Departments, with the assistance of consultants, and wasappraised in October 1983. Annex 2 presents full details on EdH's expansionprogram for the period 1984-1995.

Project Objectives and Description

3.02 The proposed project aims at expanding and improving generatingfacilities in order to meet growing demand of electricity, completing therenovation of the Port-au-Prince distribution network as a means to improveservice and decrease energy losses, and at strengthening Edl both in thetechnical and financial areas by means of training programs and theassistance given by consultants. It also includes the final design andpreparation of bidding documents for a new hydroelectric project on theArtibonite river b^cin and a review of the municipal finances ofPort-au-Prince.

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3.03 The Proposed project includes:

(a) Supply and installation of two medium-speed diesel groups, rated7.8 MW each, at the new Carrefour power plant. The groups would beinstalled in the space provided at the powerhouse constructed aspart of the Third Power Project. Once completed, the plant willhave a total of five diesel groups with a total capacity of 39 MW;

(b) Generation improvement of existing power plants, including: (i)installation of a new cooling tower at the Varreux diesel electricpower plant; (ii) installation of auxiliary equipment to improveperformance of selected plants; (iii) purchase of a stock of spareparts for up to four years of operation for the Varreux andCarrefour power plants, and for major maintenance of the threehydro turbine-generators at the Peligre hydroelectric plant;

(c) Completion of .the distribution network renovation for Port-au-Prince, started under the Second and Third Power Projects. Whencompleted, about 75% of the network would have been renewed, andtechnical losses and theft of electricity would be reduced from apresent 32% to less than 17% of total production in 1988;

Cd) Consulting services to cover: (i) engineering and supervision forparts (a) and (c) of the proposed project; (ii) general consultingto EdH in technical, financial and administrative matters andmonitoring of the loss reduction program; (iii) technicalassistance to be directly responsible for the operation,maintenance and on-the-job training under part (b) of the proposedproject; (iv) review of the feasibility studies for hydro-electricprojects in the Artibonite river basin, and final design andpreparation or bidding documents for the selected hydroelectricpower plant;

Ce) Training of EdH personnel and fellowships for studies abroad; and

*f) Consulting services to review the municipal finances ofPort-au-Prince.

3.04 The two additional diesel generating groups included in the projectwould enable EdH to meet the demand growth at Port-au-Prince until 1988, bywhich time new generation capacity would be needed. The system expansionstudy conducted by the consultants (para. 2.15) concluded that at the presentlevel of electricity productior., it is more economical to use low-pricedmedium speed diesel units at Carrefour instead of more efficient andreliable, but also more expensive low speed diesels. For these reasons, andfor a desirable standardization of equipment, EdH decided to continue withmedium speed diesels at this plant.

3.05 The operation of the seven medium speed diesel groups at Varreux(39 MW total) has not been as successful as expected, due partly to the lackof experienced personnel to operate and maintain the plant, and to the

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inadequate stock. of spare parts. In addition, there have been technicalproblems such as a deficiency in the cooling system oc the first four dies lgroups installed at Varreux (First Power Project) which does not permit fullloading of the generators, and some breakdowns in the last three groups(Second Power Project) which are beixig corrected by the manufacturer. Thegeneration improvement program under part (b) of this project would correctthe situation of the existing Varreux power plant and permit proper operationof the new Carrefout: plant. Together these plants would have a total of 78MW, equivalent to 54% of the total ins!.±led effective (rainy season)capacity serving Port-au-Prince by 1987.

3.06 The turbine-generators at the Peligre hydroelectric plant,responsible for 54% of EdH's generation for Port-au-Prince in 1983, are inurgent need of an already past due major ten-year maintenance overhaul. Theproposed project would provide the foreign funds required to import the spareparts. Since the repair of the civil works at the Peligre dam is also beingfinanced by IDA under the Third Power Project, after completion of theproposed project, the Peligre plant would have been totally overhauled withthe help of funds provided by the Association.

3.07 In order to 1iprove service, lower technical losses andeliminate theft of electricity through illegal connections, about 75 percentof the distribution network at Port-au-Prince needs to be replaced. Thiswork is being partly financed by the Association under the Second and ThirdPower Projects. The actual work on the renovation, however, started only in1983, a delay of three years, due to initial difficulties with theconsultants. The proposed project iould provide the funds to expand andcomplete the renovation of the network by 1987. EdH has formulated anelectricity loss reduction program which is satisfactory to IDA and hasstarted to implement it. The electricity production loss would be reduced toat least 26 percent by September 30, 1985, 22 percent by September 30, 1986,19 percent by September 30, 1987 and 17 percent by September 30, 1988 andthereafter. In order to regulate the common use of utility poles for thed.stribution networks, EdH has signed agreements satisfactory to theAssociation, with the telecommunication (TELECO) and television (TeleHaiti)companies.

3.08 Preliminary studies available on occasion of appraisal of the ThirdPower Project pointed out that two small dams could be developed in theGuayamouc river (Guayamouc I and II) with a combined capacity of about 9 MW.Based on this information, it was decided to finance as part of the ThirdPower Project the survey, feasibility study and bidding documents for theGuayamouc I project. However, the feasibility studies concluded that the twosites could be combined in a larger power plant with a capacity of 22 MW and85 GWh/year. Additional feasibility studies prepared with IDB and EdH fundsin 1982-83 defined better other hydroelectric power plants on the Artiboniteriver basin: La Chapelle with a maximum capacity of 56.6 MW and 281 GWh andMirabelais with a capacity of 30 MW and 147 GWh. Since the funds provided inthe Third Power Project were used entirely in the execution of the Guayamoucfeasibility study, the proposed project would finance consultants to reviewthe feasibility studies for hydroelectric plants on the Artibonite riverbasin and to prepare final design and bidding documents for the selectedproject.

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3.09 The project would cover the foreign cost of 1986-87 trainingprogram of EdH. The program includes fellowships abroad and short in-housecourses and seminars. While efforts will be continued in the financial andadministrative areas, the training will emphasize the technical area,particularly the engineering and design, construction supervision, andoperations and maintenance. The technical experts who would assist EdH tooperate the Varreux and Carrefour stations would provide also on-the-jobtraining to supervisors, operators, and maintenance personnel for the mediumspeed diesel groups. Under the Fourth Power Project about 75 percentage ofpersonnel and 15 perce-atage of professional staff will be recycled ortrained. The 1986-87 program and its implementation schedule have beendiscussed and agreed with EdH. The candidates for fellowships would beselected on the basis of criteria and under terms satisfactory to theAssociation. EdH would consult the Association concerning the proposedtraining institutions for these candidates and make arrangements satisfactoryto the Association for the placement of such fellowship be1leficiaries. Toensure adequate implementation of the training component, it will be closelymonitored by the Association's Central and Regional Training Units.

3.10 The review of municipal finances, to be carried out by consultants(36 man-months), would consist of an assessment of the existing financialposition and future prospects of municipal entities in Port-au-Prince. Thiswould involve a review of the adequacy of the present revenue level relativeto its function, pricing policies of basic services, revenue collectionsystem and mechanism of transfers from the central Government. It would alsoexamine the future revenue needs of the municipalities, particularly thoserelated to operation and maintenance of capital work investment undertaken byother public sector entities, identify additional revenue sources, andprovide concrete proposals to strengthen accounting and financial managementsystems. The Government agreed to (a) submit the study to the Associationfor its review and comments no later than June 30, 1986; (b) prepare a planof action based on the recouAmendations of such a study taking into accountcomments of the Association no later than September 30, 1986; and (c) carryout such plan of action no later than January 31, 1987.

Project Execution

3.11 EdH would be the beneficiary of 98% of the credit and would beresponsible for the implementation of the power components of the project.The municipal finances study would be carried out by the Department ofEconomy and Industry in the Ministry of Finance. Under existing creditagreements, EdH undertakes to assure that at all times the central managerialpositions would be filled by competent and experienced persons whosequalifications are satisfactory to the Association. As EdH still requirestechnical support, services of qualified consultants would be contracted (140man-months) to carry out detailed engineering, procurement and supervision ofthe Carrefour extension and the distribution renovation. In addition, threeforeign experts would provide technical assistance (108 man-months) in theoperation and maintenance of the Varreux and Carrefour power plants and theprocurement of spare parts and maintenance equipment. A managementconsultant (80 man-months) would continue to assist EdH in all financial and

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administrative matters related to the project and to EdH's daily operations,including the establishment of an energy data bank to monitor production,sales, losses and fuel consumption. Other consultants would execute thedetailed engineering and bidding documents for the selected power plant inthe Artibonite river basin (200 man-months). During the execution of theproposed project, the existing EdH Technical Coordinating Committee willcontinue its function of coordinating activities on the various projectsfinanced by IDA, IDB, CIDA, KfW and CCCE.

Project Cost and FLnancin

3.12 The total cost of the power project, excluding interest during"instruction, is estimated at US$33.8 million, of which US$30.5 (or 90%)would be foreign exchange costs. The municipal finances study cost estimateis US$0.5 million additional (85% foreign cost). With the exception of fuel,EdH is exempt from duties and taxes. Cost estimates are based on December1983 prices and were calculated on the basis of Edli's experience in similarprojects. Physical contingencies are 10%, and a price contingency has beenadded, assuming the following inflation rates: local costs 1944 onwards: 10%;foreign costs 1984: 3.5%; 1985: 8.0%; and 1986 onwards: 9.0%. Foreignconsulting services are estimated at US$10,rJO per man-month, and technicalassistance for power plant maintenance at US$9,200 per man-month, includingtravel and other expenses (1983 prices).

3.13 The proposed IDA credit of US$22.1 million would finance theforeign exchange cost of the following project components: (i) generationimprovement program, including spare parts, cooling and miscellaneousauxiliary equipment for the Varreux, Carrefour and Peligre power plants; (ii)distribution network renovation at Port-au-Prince; (iii) technical andadministrative consulting services for the execution of the project,including technical assistance for the operation and maintenance of powerplants and for the final design of a new hydroelectric project in theArtibonite river basin; and (iv) the total cost of the Port-au-Princemunicipal finances study. CCCE accepted to parallel finance FF 72.0 millionto import materials and services of French origin for the expansion of theCarrefour power plant, including two diesel-electric groups and the relatedstep-up substation; two credits will be provided by CCCE, one for FF 48.0million, for a period of 15 years including 5 years grace and 5% annualinterest, and another for FF 24.0 million for a period of 30 years including10 years grace and i.nterests of 1.5% per annum during the grace period and 2%for the rest of the period. EdH would finance from its funds the localcomponent of the project (US$3.3 million).

3.14 During negotiations the Government agreed that the amount of SDR20.8 million from proceeds of the credit would be on-lent by the Governmentunder a Subsidiary Loan Agreement to EdH for a period of 20 years, including4 years of grace, at an interest rate of 9.89 percent per annum. It has beenassumed that the interest during construction, estimated at US$3.7 million,would be capitalized and added to the subsidiary loan. The foreign exchangerisk would he assumed by EdH. The execution and ratification of theSubsidiary Loan Agreement on behalf of the Borrower and EdH will be acondition of effectiveness of the proposed project.

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3.15 Retroactive financing not exceeding US$0.8 million haB beenaccepted for consulting services for the preparation of bidding doeuments forthe expansion of the Carrefour diesel plant, initiated in January 1984, andfor the technical assistance services for Varreux and Carrefour power plants,to be initiated by January 1985.

Procurement an! Disbursement

3.16 Equipment and materials for the distribution network renovation andconsulting services for (a) the design of a new hydroelectric project in theArtibonite river basin, (b> technical assistance services for power plantoperation and maintenance, and (c) the Port-au-Prince municipal financesstudy, will be procured in accordance with the respective Bank GroupGuidelines of Procurement or for the Hiring of Consultants. EdH recentlyawarded a civil works contract for the construction of the entirePort-au-Prince distribution network renovation. However, the contract wasdivided into two parts and the validity of the second part was conditional onthe Haitian Government obtaining the IDA credit for the Fourth PowerProject. The work to be performed under the first part of the contractduring the period 1984-85, estimated at US$3.0 million, is being financedwith proceeds of credit 1281-HA. Since the contract was awarded underinternational competitive bidding with the approval of IDA, and consideringreasons of economy and efficient completion of the distribution renovation,it was accepted that this contract be considered advance contracting, and thework to be performed during the second period of the contract (period1986-87, approximately US3.0 million) be financed with IDA funds of theproposed credit.

3.17 Spare parts for the diesel-electric groups at Varreux, Carrefourand Peligre, the cooling tower for Varreux and miscellaneous auxiliaryequipment would be purchased directly from the original manufacturers of theequipment in Holland, Zrance and Italy. At the request of EdH, theconsulting services related to the Carrefour power plant expansion andnetwork rehabilitation may be provided by their present consultants,Hydro-Quebec International (HQI) of Canada. Also at the request of EdH, theservices of their present administrative and financial consultant, PriceWaterhouse of Canada, would be extended to cover the proposed projest.

3.18 CCCE would f4nance the materials, equipment and civil works ofFrench origin for the expansion of the Carrefour power plant. EdH decided,with the assistance of their consultant, HQI, and the approval of theGovernment, to purchase directly the two additional groups and step-upsubstation from Alsthom Atlantique of France, the same supplier for Units 1,2 and 3. Two reasons led EdH to this decision with which IDA and CCCEagreed: (i) Groups 1, 2 and 3 were purchased under ICB, and have been thebasis for negotiating Groups 4 and 5, resulting in reasonable prices, and(ii) standardization of equipment would facilitate operation and maintenanceof the power plant and would lower the investment in the stock of spareparts.

3.19 There are no local manufacturers in Haiti wbo would claim a bid-naluation preference in the procurement of equipment and materials.

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l3owever, local civil contractors would be given a preference of 7.5% for thepurpose of bid evaluation. All bidding packages over US$50,000 equivalentwould be subject to IDA's prior review of procurement documents. All1requests for disbursements of funds wuld be fully documented. Disbursementswould be made for 10O/ of the foreign exchange cost for IDA-financed civilworks, equipment, materials, consulting services and training includingfellowships. Disbursement for municipal finances study would be made for100% of total cost. Disbursements for contracts parallel finance4 by CCCEwould be made directly by that agency.

Economic Evaluation

3.20 The proposed project is an initegral part of Edli's least coBtexpansion program; it includes the required investment for the period 1986-87for the Port-au-Prince area. Since it is difficult to allocate benefits toeach component of the project, an economic evaluation of the proposed projectwas not done. Instead, the internal rate of return for EdHI's overallinvestment program for the slice 1984-88 was computed as the discount rateequalizing the present value of the stream of costs and benefits associatedwith it. The cost stream, in 1983 constant prices, comprises the capitalcost of the development program and the incremental operation and maintenancecosts related to the incremental sales associated with the program. As aproxy for benefits, the revenues derived from incremental sales were used,assuming that tariffs would be adjusted as necessary to neet the financialobjectives proposed in this report. No economic evaluation was madeutilizing shadow prices or to reflect other benefits to society and theeconomy of the country, such as those derived from improvement of quality ofservice to customers and availability of energy for new industries. Voattempt was made to assess consumer surplus as the willingness to pay mayexceed the existing tariffs. On these assumptions, the Internal rate ofreturn for the program is 11% (see Annex 4). This rate is equal. to theopportunity cost of capital in Haiti. A. sensitivity analysis shows the rateof return to be very sensitive to changes in electricity tariffs and salesand moderately sensitive to changes in capital costs and fuel costs.

Project Risks

3.21 Except for the possibility of delays in its implementation, theproject involves no unusual risks and has no adverse impact on theenvironment; the risk of delays would be diminished by the hiring ofconsultants to assist the limited number of EdH qualified engineers insupervising project execution.

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4. PROJECT IMPLEMENTATION DETAILS

Cost Es timates

4.01 Cost estimates are shown in detail in Annex 5 and summarised below:

Cost in US$ MillionLocal Foreign Total

1. Expansion of the Carrefour dieselplant with two units rated 7.8 MW each,including step-up substation 0.9 7.5 8.4

2. Generation improvement program 0.1 7.8 7.9

3. Completion of the distribution networkrenovation at Port-au-Prince 0.8 4.5 5.3

4. Consulting services and training 0.7 4.0 4.7

5. Total base cost (1983 prices) 2.5 23.8 26.3

6. Physical contingency (10% of base cost) 0.2 2.4 2.6

7. Price contingency a/ 0.6 4.3 4.9

8. Total EdH's project cost 3.3 30.5 33.8

9. Municipal finances study 0.1 0.4 0.5

10. Interest during construction 3.7 - 3.7

11. Total financial requirements 7.1 30.9 38.0

a/ Assumed indices for price escalation are as follows (in %):

1984 1985 1986 1987 1988

Local Cost 10.0 10.0 10.0 10.0 10.0Foreign Cost 3.5 8.0 9.0 9.0 9.0

Implementation Schedule

4.02 The appraisal mission agreed with EdH on the list of contracts andkey dates for implementing the project, which are shown in Annex 6. Thesedates would be used to monitor progress during the execution period of theproject, which is expected to be completed by June 30, 1987.

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Procurement Details

4.03 The following table summarizes procurement arrangements for theproject.

Procurement Method TotalICB Other Cost-------- US$ Million

IVA FinancinAg

Materials, equipment and civil works for 7.3 - 7.3the distribution network renovation (6.0) - (6.0)

Spare parts for Varreux, Carrefour andPeligre power plants, including miscel-laneous auxiliary equipment and a cool- - 8.8 8.8ing tower for Varreux - (8.7) (8.7)

Technical assistance services forpower plant operation and - 1.3 1.3maintenance - (1.2) (1.2)

Consulting services for the execution of - 2.0 2.0the project - (1.8) (1.8)

Administrative consultants - 1.0 1.0(1.0) (1.0)

Consulting services for the design 3.0 3.0of a new hydroelectric project - (2.8) (2.8)

Training and fellowships abroad - 0.3 0.3(0.2) (0.2)

Municipal finances study - 0.5 0.5(0.5) (0.5)

CCCE Financing

Two diesel groups and step-up - 10.1 10.1substation for the Carrefour - (8.9) (8.9)power plant expansion

Total 7.3 27.0 34.3(6.0) (25.1) (31.1)

Note: Figures in parenthesis are the respective amounts to be financed bythe Association and CCCE.

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Disbursement Schedule

4.04 The disbursement schedule shown in Annex 7 is based on a detailedconstruction and implementation program prepared by EdH and the appraisalmission, and is based on recent experience acquired from the execution of theFirst, Second and Third Power Projects; it has been assumed that there wouldbe a delay of six months between the completion of the various stages of acontract and the disbursement of funds, and that a period of twelve monthswould elapse between the time of completion of a contract and its finalliquidation. The estimated disbursement schedule is similar to Bank'sstandard profiles, with the exception that the disbursement period has beenshortened to 4.5 years to take into consideration existing experience in thepower sector in Haiti.Z/ Credit closing date is June 1989.

Environmental Aspects

4.05 As has been done in the past, the project would be executed withdue regard to the environment. Specifications for the power plant will limitgas emissions and noise to acceptable levels for generating facilities. Thenew distribution network will use the same right of way as the old one,improving its appearance.

Project File

4.06 Reference is made to Annex 8 for the contents of the project file.

5. AGREEMENTS REACHED AND RECOMMENDATION

5.01 During negotiations, agreements were reached on the following:

(i) EdHI signed agreements with TELECO and Tele-Haiti in termssatisfactory to the Association (para. 3.07).

(ii) EdH started to implement a program to reduce energy losses toacceptable levels (para. 3.07).

(iii) The Ministry of Finances agreed to settle the arrears forelectricity consumption by the public sector in terms satisfactoryto the Association and starring in FY 1984-85, to take all measuresnecessary or advisable to ensure that current electricity bills arepaid promptly when due (para.2.13).

2/ IDA's profiles for all Latin American and the Caribbean countries showtotal disbursement in 5.5 years, or 6 years for IDA-financed projects inHaiti. Disbursements for EdH's First Power Project were completed in 3years, and estiaates for the Third Power Project are 4.5 years. However,disbursements for the Second Power Project would be completed in only 5years due to project execution delays.

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(iv) CCCE has officially accepted to parallel finance the project in theamount of FF 72.0 million (para. 3.13);

(v) EdH would continue to set tariffs adequate to assure rates ofreturn on revalued fixed assets of not less than 5% in FY85 and 86,7% in FY87 and 8% in FY88. (para. 2.11);

(vi) EdH agreed to an acceptable set of financial and efficiency targetsto improve its operations (Annex 1, para. 1.12).

(vii) terms and conditions for the subsidiary loan agreement between theGovernment and. EdH (para. 3.14);

(viii) the Development Credit Agreement and Project Agreement for theproposed project will repeat the main covenants of the Third PowerProject agreements related to the execution of the project,management and operations of EdH and financial covenants (para.2.08).

Conditions of Effectiveness

5.02 The following events were agreed as conditions of effectiveness:

(i) the execution and delivery of a Subsidiary Loan Agreement betweenthe Government and EdH (para. 3.14);

(ii) EdH and ODVA have entered into an agreement satisfactory to theAssociation (para. 2.09).

5.03 With the above assurances, the proposed project would be suitablefor an IDA credit of SDR 21.8 million, equivalent to US$22.1 million to theRepublic of Haiti, from which the amount of SDR 21.3 million would be on-lentto EdH for a period of 20 years, including 4 years grace, at the annualinterest rate of standard Bank loans.

October 25, 1984

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ANNEX I

HAITI

J41ECTRICITE D'HAlTI - EdH

FOURTH POWER. P!tOJECT

THE BENEFICIARY

Institutional Framework

1.01 The beneficiary of the proposed IDA credit for the Fourth PowerProject would be EdH, an autonomous government-owned agency, established bypresidential decree in 1971 as the sole entity in charge of generation,transmission and distribution of electricity in the country. EdH began itsoperations in 1571 by taking over the Government-owned Peligre hydroplant andthe privately owneai Compagnie d'Eclairage Electrique of Port-au-Prince andCap Haitiea; since then it has gradualLy taken control of all electricservice in the country.

1.02 The President of EdH is the President of the Republic, whodelegates authority on a permanent basis to the Minister of Public Works,Communications and Transport who acts as the Chairman of the Board ofDirectors. Other nembers of the Board are the Minister of Finance andIndustry, the Minister of Commerce, the Minister of Planning, the Governor ofthe Central Bank and EdH's General Manager. Policy directives at EdH are setby its President; the Board regulates and approves major investment plans,tariffs, borrowings and broad policies. The General Manager has a reasoadbledegree of autonomy to direct the company.

Organization and Management

1.03 EdH's current organization (Attachment 1) was the result of anorganizational study conducted in 1981 by the consultant, Price Waterhouse(PW) of Canada, as part of IDA's Second Power Project and is consideredadequate for today's operation. EdH's General Manager is appointed by thePresident of the Republic; the Technical, Planning and AdministrativeDirectors are also appointed by the President on the recommendation of theBoard. The presence of the consultant, PW, has contributed to theimprovement of accounting and administrative procedures. In the technicaldepartments, however, improvements have been more modest, partly because thetechnical consultant, Hydro Quebec International (HQI), has not had the rightpeople to transfer technology, partly because of the lack of engineers andtechnical personnel at EdH to act as counterparts to the foreign experts.

Employment

1.04 By September 1983, EdH employed 1,246 persons (about one employeefor every 70 consumers), of which 370 are in the Provinces. In general, EdH

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continues tco lack enough qualified managerial, technical and adminiatrativepersonnel, ai.4 the dependency on costly foreign consultants will continue forseveral years until a number of young professionals graduated in Haiti havebeen trained and have acquired enough experience to take over technical andmanagerial responsibilities. EdH's search for Haitian professionals outsideof their own country has been unsuccessful. The total number of profession-als with university degrees is 96 (or 8% of the total employees), of which 55are engineers. Salaries are mDdest and average for the Haitian market.EdHIs hiring of new personnel is guided by a Manpower Forecast made by theconsultant, HQI, which predicts 1,490 employees by 1988, or one employee forevery 98 consumers.

Training

1.05 EdH has a well organized Centre de Formation et PerfectionnementProfessionnels" responsible for trainlng programs conducted in-house andabroad. The Center has a staff of five full time instructors and two secre-taries. EdH professionals also teach some courses and seminars, and special-ized instructors are hired from local sources and abroad. Part of the costof foreign training experts and facilities and overseas expenses of traineeshas been financed by IDA; other contributors are XfW and the Fonds d'Aide etde Cooperation (FAC) of France. In the last four years about 35professionals have attended courses and seminars abroad, anid about 300employees from the technical and administrative areas have attended localshort courses and seminars on varied subjects such as linemen techniques,metering, welding, diesel operation and mechanics, hydro-plant operation,fitting, first aid, accounting, administrative and control techniques, dataprocessing, secretarial techniques, alphabetization, etc.

1.06 Under the proposed Fourth Power Project, the Association wouldcontinue its support to EdH's training efforts. Specifically, the projectincludes the hiring of 108 man-months of expatriate technical experts tooperate and train on-the-job the supervisors, operators and maintenancepersonnel for the medium speed diesel groups installed at Varreux andCarrefour, and funds to cover the foreign cost of the 1986-87 trainingprogram of EdR and fellowships abroad.

Accountirg and Auditing

1.07 With the introduction of computerized systems, accounting proced-ures and reporting have improved substantially in 1983. As a result, monthlyfinancial statements are being issued within 60 days of closing dates. Anarea that still needs improvemunt is the accounting of construction in pro-gress; this will be addressed by the administrative consultant in the nearfuture. In accordance with covenants of Credit 1281-HA, EdH's assets arerevalued yearly using international indices approved by the Association.This provision has been maintained in the proposed credit.

1.08 Since 1976, EdH's accounts have been audited by Price WaterhouseCompany of Puerto Rico, an independent auditing firm acceptable to theAssociation. As in previous credits, EdH agreed to continue engaging

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qualified external auditors to review yearly its accounts, and to send to theAssociation audited financial statements, including the Auditor'srecommendations, within four months of the end of each fiscal year. Internalauditing of EdH is adequate aud is carried out by a unit attached to theGeneral Manager.

Billing and Collectiun

1.09 Within the context of the Second Power Project (Credit 895-HA),EdH, with the assistance of the consultant, PW, installed computer facilitiesand a modern data processing system for customner billing and accounting. EdHpersonnel adapted quickly to the new system which is working well. Billingis made in Port-au-Prince for customers for the entire country, and bills aredistributed by carriers and by mail. When the billing system wascomputerized, EdH discovered that about 6,000 customers, although beingbilled, were not accounted for in the total of customers. That explains thelarge increase in customers from 1982 to 1983 (1982: 75,000 consumers; 1983:87,000. See Attachment 2).

EdH's Relations with other Agencies

1.10 At the time wf appraisal of the proposed project, the Governmentdid not meet a covenant of Credit Agreement 895-HA, Section 4.04, whichstipulates that Telecommunications d'Haiti S.A.M. (TELECO) and the televisioncompany Tele-Haiti shall rehabilitate their respective networks at the sametime as EdH does its distribution system. During negotiations, evidence waspresented that this condition was met, as EdH signed agreements with bothinstitutions regulating the use of common elements such as distributionpoles; the agreements include provisions for the relocation of telephone andtelevision cables, payments due to EdH for the use of poles, engineeringstandards to be used, provisions for the rehabilitation, operation andmaintenance of the network, etc.

1.11 In order to optimize the use of the waters of the Artibonite Riverwhere Haiti's major power developments are or will be located, the Governmentaccepted the suggestion of IDA's previous supervision missions and of theappraisal mission, that an agreement should be signed between EdH andL'Organisme de Developpement de la Vallee d'Artibonite (ODVA), a regionalirrigation authority. As a condition of effectiveness of the proposedcredit, the Government would present a signed agreement between EdH and ODVA,regulating the use of the waters of the Artibonite River for irrigation,flood control and power purposes.

Performance Indicators and Reporting

1.12 The performance indicators shown in Attachment 2 have beenagreed with EdH as targets for improving its operational efficiency, andsubstitute the targets agreed under Credit 1281-HA, some of which have notbeen met. EdH also agreed to prepare and send to the Association quarterlyprogress reports and other such reports as the Association may reasonablyrequest, including a project completion report.

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Insurance

1.13 An external expert advised EdH in 1982 on the type of insurance andrisks coverage for their installations; as a result EdH updated their insur-ance to cover all main installations, including warehouses and buildings,against risks arising from fire, explosion, hurricanes, earthquakes, flood,lightning, civil liabilities, and motor vehicle claims

HAITIELECTRICITE D'HAITI

Organization Chart

PRESIDENT OFTHE REPUBLIC

BOARD OFDIRECTORS

GENERALMANAGER

.~~ _

INSPECTOR _ _ X _ ITRNALGENERAL A ADITOR

PLANNING PROVINCES TECHNiCAL ADMINISTRATIVEDIRECTOR COORDINATOR DIRECTOR DIRECT OR

_________ *. . I LEGAL

CTION AND I . COUNSELOR_ P LANN I NG l GENERATION O ATION PERSONNEL COMMERCIAL

DESiGNAND NETWORKS METERS COMPTROLLER PURCHASING

LOAD | DATA 1q DISPATCHING J G PROCESSING

CIVILENGINEERING >

World Bank - 23140 11

HAITI

ELECTRICITE DI HAITI (EdH)


Performance and Monitoring Indicators PY81-88

- - - Actual - ForecastFiscal Year FY 81 FY 82 FY 83 FY 84 PY 85 FY 86 FY 87 FY 88

1. Market Penetration

Sales in P.au.P. (GWh) 210 220 225 239 257 280 308 342Sales In Provinces (GWh) 23 28 32 36 40 44 48 53Number of customers, P.au.P. (1,000) 52 55 63 69 76 83 91 100Number of customers, Provinces (1,000) 19 20 24 28 32 36 41 46

2. Efficiency Indicators

Number of employees P.au.P. a/ 882 933 874 b/ 925 950 995 1,020 1,060Number of employees Provinces a/ 263 277 372 b/ 385 395 405 420 430System losses P.au.P. (2) h/ 29 31 32 29 27 23 20 17System losses Provinces (2) h/ 28 16 15 15 1) 15 15 15Customerlemployee (total EdHY 62 62 70 74 80 85 92 98MWh soldlemployee (total EdH) 203 205 206 210 221 231 247 265MWh sold/consumer - P.au.P. 4.0 4.0 3.6 3.5 3.4 3.4 3.4 3.4MWh sold/consumer - Provinces 1.2 1.4 1.3 1.3 1.3 1.2 1.2 1.2 1

3. Financial Indicators

Rate of return (M) 6.8 5.2 0 5.2 5.2 5.6 7.0 8.0Self-financing ratio (Z) ct 43 39 10 28 40 26 34 32Debt service coverage ratio (times) d/ 5.1 4.6 1.5 3.6 2.5 2.2 2.4 2.2Debt(equity ratio e/ 28-72 35:65 40t60 44:56 45:55 48:52 49:51 48:52Accounts receivable (days) 89 117 130 121 83 60 60 60Current ratio fl 3.3 4.7 2.1 2.3 3.9 3.5 2.7 2.2Average cost of borrowings (2 p.a.) If 6.7 6.5 6.7 7.1 7.4 7.4 7.4 7.4

a/ Includes regular and temporary employees.b/ In 1983, the operators for the Peligre power plant were administratively transferred from Port-au-Prince to the provinces.c/ Net Internal cash generation plus consumers' contribution/construction program.d/ Times that debt service (excluding IDC) is covered by gross internal cash generation.e/ Total long-term debt/total equity.T/ Current assets/current liabilities./ Total interest/average long-term debt (including current portion).h/ As compared to gross generation.

October 12, 1984 'Urt

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ANNEX 2

HAITI

ELECTRICITE D'HAITI - EdH


THE POWER MARKET

Historical Data and Existing Power Facilities

1.01 Since the Peligre hydro station was completed in 1972, sales in thePort-au-Prince area have grown at an average of 13% per year until 1983, butdecreased to 4.5% per year in the period 1980-83. This decrease isattributed to the stagnant economic situation of the country, increase intheft of electricity (para. 1.05) and in 1983, to power restrictions due toan exceptionally dry year that limited EdH's capacity to meet the demand, anda strong campaign displayed by EdH to recoup overdue electricity bills whichresulted in a disconnection of about 10% of EdE's customers. Sales in theprovinces, on the other hand, have grown steadily at the high average rate of18.7% per year. The following table shows EdH's sales in both areas:

EdH's Electricity Sales, Losses and Number of Customers

1972 1978 1979 1980 1981 1982 1983Port-au-Prince Area

Sales GWh 58.5 160.0 173.0 197.3 210.0 219.9 225.0Losses GWh 32.9 58.0 77.1 74.0 85.8 98.7 106.6Gross Generation GWh 91.4 218.0 250.1 271.3 295.8 318.6 331.6Losses in 7% 36.0 26.6 30.8 27.3 29.0 31.0 32.2Number cf Consumers (1,000) 27.7 43.4 46.8 48.3 52.0 55.0 63.0

Provinces

Sales GWh n.a. 13.6 16.0 19.5 23.0 28.0 32.0Losses GWh n.a. 4.9 6.0 7.8 8.9 5.3 5.7Gross Generation GWh n.a. 18.5 22.2 27.2 31.9 33.3 37.7Losses in % n.a. 26.4 27.1 28.5 28.0 15.9 15.1Number of Consumers (1000) n.a. 10.4 12.4 14.9 19.0 20.0 24.0

1.02 In October 1983, EdH had a total of 87,600 customers whichrepresent approximately 480,000 persons with electric service, or only 9percent of the total population. In Port-au-Prince 43% of the population haselectric service, in the provinces only 3%. Attachment 1 shows details ofthe distribution of electricity consumption among EdR's customers. Anindication of the poverty on the population is the high proportion of low

- 27 -

consumption customers: in October 1983, 31% of EdH's consumers wereclassified under the "social rate" and consumed less than 30 kWh per wnrth,and contributed to only 4% of the energy sales. These figures represent,however, an improvement with respect to the 1981 situation when 43% consumerswere classified as "social rate". Because the minimum monthly charge isUS$3.79, this group barely covers amortization of the capital cost investedto reach their neighborhoods (network, house connection and meter), Let alonethe cost of generating plants, fuel and maintenance costs. Therefore, alarge cross subsidy occurs from the larger consumers to the "social rate"consumers located in the suburbs of Port-au-Prince (approximately 26%) and inthe provinces (49%).

1.03 As of October 1983, EdH had 146.6 MW of installed capacity(Attachment 2), of which 120.4 MW serve the Port-au-Prince area, where themaximum demand reached 61.3 MW in 1983. Despite the apparent large margin ofreserve, EdR could not meet the demand during April and May 1983 because thePeligre hydro-plant (47 MW) was shut down as the reservoir was depleted dueto an exceptionally dry year, and because of initial difficulties experiencedwith newly installed diesel electric groups at Varreux. The distributin ofcapacity in the country and allocation of generation in FY83 are sbown below:

Summary of EdH's Installed Capacity and FY 1983 Generation

Installed Capacity Effective Dry Season FY 1983 GenerationPort-au-Prince NW 14 MW % GWh X

Hydro Plants 47.0 39 21.6 26 177.5 a/ 54Thermal Plants 73.4 61 62.1 74 154.1 46Sub-Total 120.4 100 83.7 100 331.6 100

Provinces

Hydro Plants 7.8 30 3.4 19 8.7 23Thermal Plants 18.4 70 14.4 81 29.0 77Sub-Total 26.2 100 17.8 100 37.7 100

Total EdH

Hydro Plants 54.8 37 25.0 25 186.2 50Thermal Plants 91.8 63 76.5 75 183.1 50Total 146.6 100 101.5 100 369.3 100

a/ In average hydrology years, hydro generation from Peligre is236 GWh/year.

- 28 -

Captive Plant

1.04 There are no detailed records on the captive plant capacityinstalled in the country which is estimated to be on the order of 40,000 kW,all thermal type. The largest plants are owned by Ciment d'Haiti (14,475kW), by Minoterie d'Haiti (5,575 kW), the lasco Sugar Mill (2,530 kW), UsineSucriere de Leogane (5,200 kW), LJsine Sucriere des Cayes and Usine Sucrieredu Nord. The rest are owned by isolated customers and by hotels, industriesand large homes who use them as emergency units in case of power cuts.

Energy Losses

1.05 Energy losses in the Port-au-Prince area have grown from 26.6% in1978 to 32.2% in 1983 (see table in para. 1.01), and are due to technicallosses (about 16.0% in 1983) and theft (16.2%). Since losses are affectingEdH's finances, IDA has continuously requested that EdH address the problemthrough a strong campaign of theft suppression and reduction of technicallosses through distribution network renovation and system operationsimprovement (i.e. power factor correction). To this effect, Edil establisheda "Theft Suppression Comnittee", chaired by the General Manager and advisedby EdH's consultants (Price Vaterhouse and Hydro-Quebec International), buttheir success has been limited because the poor condition of the distributionnetwork permits easy illegal connections; as work advances on the distribu-tion renovation being financed by the Association, losses will begingradually to decrease, i.e., losses for FY84 have already been reduced to.29%.

1.06 The renovation of the networks made by EdH in important towns inthe provinces (i.e. Cap Haitian, Gonaive) has helped to reduce losses from26.4% in 1978 to 15.1Y in 1983. EdH is confident that similar success willoccur in Port-au-Prince. The energy loss targets agreed with EdH under theThird Power Project have not been met 'in 1983 losses should have been 25% inPort-au-Prince); new targets agreed with EdH are 25% in FY 1985, 22% in FY1986, 19% in FY 1987 and 17% in FY 1988 as an average for the entire EdHsystem.

Forecasts

1.07 The general consultants to EdH (IIQI) forecasted future energy salesand requirements using a model that considers both econometric and macro-economic inputs related to historical and projected data for consumption andeconomic growth. Several scenarios were considered, and the one recommendedby the consultant assumes a GNP growth of 1.0% in 1983, 2.2% in 1984 and 3%thereafter, and that population growth and immigration to Port-au-Prince willbe 4.5% until 1985 and 4.1% thereafter. It also assumes that energytechnical losses and thefts will gradually decrease to 15% in 1990, and that75% of suppressed theft would be transfered to legal sales as the situationis corrected. The model shows that sales would grow in Port-au-Prince at arate of 12.1% from 1983 to 1988 and 10.2% from 1988 to 1993. The transfer ofthefts to sales accounts for about 0.6% of the rate of growth. If lossesdecrease as predicted, generation would grow at only 8.7% per year during the1983-93 period. For the provinces, sales and generation growth is forecastat 9.2% for the 1983-93 period.

- 29 -

1.08 Although the resulting rates of growth for energy sales in Port-au-Prince are higher than the historical rates achieved during the last threeyears (para. 1.01), the appraisal mission and EdH agreed to use theconsultant's forecast for equipment planning purposes (see Attachments 3 and4). However, for financial projection purposes, the mission and PdHdeveloped a more conservative sales forecast (see Attachment 5) whichconsiders an average growth of 9.0% for the 1983-88 period, starting with agrowth of 7% in 1984.

Generation LPnsion Program

1.09 The consultant HQI executed a detailed system expansion study andcompared several generation expansion alternatives in order to recommend theleast cot;t solution to meet the forecaseed e.ectricity demand for Port-au-Prince. A mathematical model was used to simulate EdH's system using thefollowing criteria:

(a) The average and firl energy from existing and proposedhydroelectric projects were determined based on 25-year recordedwiver flows, extrapolated to the end of the period beingconsidered.

(b) The capacity margin was determined to maintain the loss of loadprobability (LOLP) within two days per year in the critical month(April); the program takes into account equipment reliability andmaintenance, and hydroelectric generation constraints in seasonaland cyclical dry periods.

[c) Monthly simulations were made to evaluate the ability of the powerplants to meet the demand in average and dry year conditions.

(d) Sconomic comparisons were made for the altern.atives considered,determining their present worth of investment and operating costs.

1.10 A total of 12 basic alternatives were considered, combining invarious arrangements and tixming the following projects:

(a) Guayamouc Hydroelectric Project, 22 MW, 85 GWh;

(b) La Chapelle Hydroelectric Project, Alternative I with 34 MW, 166GWh and Alternative 1I with 56.6 MK and 281 GWh;

(c) Medium Speed Diesel Groups rated 2.2 MW, or 7.8 MW, or 15.0 MW;

(d) Low Speed Diesel Groups rated 7.8 MS, or 10.0 MS, or 15.0 MW;

(e) Steam Power Plants with 20.0 MW units, either coal fired orfuel-oil fired;

(f) Combined Cycle plants rated 20.0 MW.

- 30 -

1.11 Fuel costs were determined assuming the international 1983 price ofcrude oil of US$29.0 per barrel remaining constant in real terms during theperiod of the study, with sensitivity analysis for price increases of 2% and3% per year in real terms. The present value of the various alternativeswere compared using a discount rate of 12%, with sensitivity analysis forrates of 2% above and below that rate. The proposed expansion program forthe Port-au-Prince area is the following:

Total Year of OperationPlant and Type Capacity MW (Beginning of-year)

Carrefour Power Plant: DieselUnits Nos. 4 & 5, medium speed 15.6 1986

Slow Speed Diesel Plant.Units Nos. 1 & 2 20.0 1988-89

Guayamouc Hydroelectric Project 22.0 1990Coal Fired Steam Plant: Unit No. 1 20.0 1992Carrefour Plant:Unit No. 6, medium speed 7.8 1993

La Chapelle Hydro-electric Project 56.6 1994Coal Fired Steam Plant: Unit No. 2 20.0 1995

HAITI

ELECTRICITE D' HAITI (EdH)


Distribution of Electricity Consumption(Actual figuTes for October 1983)

Port-au-Prince Provinces TotalConnections 1l MUOh Revenue Connections 1 MNWh Revenue Connections l) MUh Revenue

USSx103

USsx103

USSx103

US cents/kWh

Residential

0-30 kWh 13077 181 67 10348 158 39 23425 339 106 3131-200 kth 27891 2737 387 9011 768 107 36902 3505 494 14201-500 kWh 7513 2210 334 1412 396 59 8925 2606 393 15501-1000 kWh 1508 1022 163 156 104 17 1664 1126 180 161001 kWh and up 64Z 1Z41 205 60 107 16 702 1348 221 11

Sub-total 50631 7391 1156 Z0987 1533 Z38 71618 69Z4 1394 16

Commercial

Light only 1702 549 89 170 21 3 1872 570 92 16Light and power 656 390 64 137 70 12 793 460 76 17

Sub-total 2358 939 153 307 91 15 2665 1030 168 16

Industry

Q-44i kW 646 1813 220 74 179 21 720 1992 241 1245-kV and up 360 7823 927 98 676 61 459 8499 989 12

Sub-total 1006 9636 1147 172 855 82 1178 10491 1229 12

Governrment

Street lighting 27 552 113 81 187 38 108 739 151 20Public organizations 458 735 124 424 217 32 882 952 156 16Autonomous organizations 211 1073 142 1 - - 212 1073 142 13

Sub-total 696 2360 379 506 404 70 1202 2764 449 16

TOrAL 54691 20326 2635 21972 2683 405 76663 23209 3240 14

_ II!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I1! Active customers connected to networks. Does not include customers disconnected by EdH due to non-pdyment of electricity bills (approximately 10,90

customers).

February 7, 1984

- 32 - AiJEX 2XttiaiMent 2

HA1IT

ELUCTUICITE D'lAtTI - EdH


Existinig (October 1983) And Propose heNw Gonerating9 FaLility (to 19942

Cas Pelty KWgtamPlats Ifacr,.ve Eflective

Location and Name Tpe Year __ _ Wet Sesaon DrY Scason

1. Exiseing Power Plants

Port-au-Prince Area

Janvier (old) PlantUnits 5, 6 Diesel-Oil 1942-56 2,000 1,400 1,400Unit 8 Diesel-Oil 1937 850 700 700Unit 9 Diesel-Oil 1937 790 700 700Unit 10 Diesel-Oil 1949 1.980 1,600 1.600Unite 11, Bl, 12 Diesel-Oil 1942-55 3,000 2,250 2.250Unit 84 Diesel-Oil 1970 2,500 2,000 2.000Four Emergency Groups Diesel-Oil 1977 8 000 6,400 6.400

Sub-Total Jarnvier 1,T11R 15,050 15,050

Deluas PlantUnite 1, 2, 3, 4 Dieuel-Oil 1977 10,000 8,000 8,00(i

Varreux PlantUnits 1, 2 Bunker C 1977 5 500 4,700 4,700Unite 3, 4 Bunker C 1977 15,400 13,300 13,300Unite 5, 6, 7 Bunker C 1982 23 400 21,000 21,000

Sub-Total Varreux 3090 00 39,000

Peligrenliie 1, 2, 3 Hlydro 1972-74 47,000 44,000 21,600

Sub-Total Port-au-Prtnce 120,420 106,050 83,650

Provinces

Cap Haaitian Diesel-Oil 1981 4,050 4,000 4,000Gonaives DLesel-Oll 1940-81 2, 900 1,775 1,775Saint earc Diesel-Oil 1960-74 1,150 900 900Urouet Hydro 1978 3,000 2,000 1,600Leas Cayes Hydro 1982 2,400 2,400 1,000Leas Cayes Diesel-Oil 1975-80 2,265 1,500 1,500Petit Goave Diesel-Oil 1974-81 1,400 840 840Port-de-Paix Diesel-Oil 1982 1,O00 1,000 1,000deanel Diesel-Oil 1977-81 1,350 850 850Jeremie Diesel-Oil n.a, 1,165 800 800Thonsonde Diesel-Oil 1976 30 30 30llinche Diesel-Oil 1977-80 490 490 490Areshaie Diesel-oil 1978 225 120 120Saut Hathurine Hydro 1983 2,400 2,400 600Other Tobns Diesel-Oil 1979-83 2,315 2,100 2,100

tib-Total Provinces 26,240 21,205 17.805

Total Existing Power Plants 146,660 127,255 101,455

2. Future Pover Plants

Port-au-Prince Area

Carrefour Plant(PMedium Speed)

Unite 1, 2, 3 Bunker C 1984 23,400 23,400 23,400Unite 4, 5 BLnker C 1986/87 15,600 15,600 15,600Unit 6 Bunker C 1993 7,800 7,800 7,800

Low Speed Dieael PlantUnite 1, 2 Banket C 1988/89 20,000 20,000 20,000

CuayaeoucUnite 1, 2 Hydro 1990 22,000 22,000 20,500

Coal Fired PlantUnite t, 2 Coal 1992/95 40,000 40,000 40,000

La Chapelle Hydro 1994 56,600 56,600 19,100

Slb-Total Port-au-Prince Area 185,400 185,400 146,400

Provinces

J,ccel Hydro 1985 500 500 250Ce racol Hydro 1985 750 750 400Deluge-Lauzac Hydro 1986 700 700 3SOVoldrogue Hydro 1987 120 120 6OSmall Diesel Units Diesel-Oil 1984-90 1,500 1,500 1,500

Sub-Total Provincea 3,5.u 3,570 2,5b0

Total Future Power Plants 188,970 188,970 148,98o(Inatalled during 1984-94)

-33 ANNEX 2Attachment 3

HAITI



Capacity Ba1ance for the Port-au-Prince System - MW

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

1. System Requirements

Required Gross Generation-GWh 331.6 352.8 382.8 411.3 444.3 483.8 530.6 582.4 634.6 691.9 760.0Load Factor (X) 61 61 61 61 61 61 61 61 61 61 61Maximum Demand - MW 62.1 66.0 71.6 77.0 82.9 90.5 99.3 109.0 120.7 131.6 142.2Demand During Dry Season MW 60.0 63.0 67.0 72.0 78.0 85.0 93.0 102.0 113.0 124.0 136.0

2. Available Capacity

2.1 Thermal PlantsJanvier 15.0 15.0 15.0 15.0 'q.0 15.0 15.0 15.0 15.0 15.0 15.0Delmas 8.0 8.0 8.0 8.- 8.0 8.0 8.0 8.0 8.0 8.0 8.0Varreux 39.0 39.0 39.0 39.0 39.0 39.0 39.0 39.0 39.0 39.0 39.0Carrefour 23.4 23.4 31.2 39.0 39.0 39.0 39.0 39.0 39.0 46.8Low Speed Diesels 10.0 20.0 20.0 20.0 20.0 20.0Coal Fired Plant 20.0 20.0

Sub-Total Thermal 62.0 85.4 85.4 93.2 101.0 111.0 121.0 121.0 121.0 141.0 148.8

2.2 HydroPlants (Dry season). -ell an 21.6 21.2 20.8 20.4 20.0 19.6 19.1 23.7 23.7 23.7 23.7Guayamouc 20.5 20.5 20.5 20.5

Sub-Total Hydro 21.6 21.2 20.8 20.4 20.0 19.6 19.1 44.2 44.2 44.2 44.2

2.3 Total Available Capacity 83.6 106.6 106.2 113.6 121.0 130.6 140.1 165.2 165.2 185.2 193.0Less Required Reserve b/ 32.0 38.0 40.0 40.5 42.0 44.5 45.5 51.5 51.5 56.0 58.0

3. Net Available Capacity 51.6 68.6 66.2 73.1 79.0 86.1 94.6 113.7 113.7 129.2 135.0

4. Capaclty Balance c/Surplas (or aeficit) (8.4) 5.6 (0.8) 1.1 1.0 1.1 1.6 11.7 0.7 5.2 (1.0)

Notes: a/ The decrease in capacity shown for Peligre is due to sedimentation of the reservoir. This effectwill be partially stopped in 1990 when the Guayamouc Reservoir is completed; the gain of 4.6 MW at Peligre inthat year is due to additional water regulation at Guayamouc.

b/ Required reserve determined with the help oE probabilistic methods, for a loss of load probability (LOLP) oftwo days per year during the critical period of the year (dry season).

c/ Capacity balance with respect to demand during the dry season.

January 4, 1984

- 34 -

ANNEX 2Attachment 4

HAITI

BLECTRICIT U' HAITI - Eda

POURTH POWER PROJECT

Actual and Forecast Generation for EdHts Power Plante - GWh

1982 a/ 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

i. Port-au-PrinrLce Area

1.1 Sales b/ 219.9 225.0 249.5 280.4 315.2 354.6 398.2 "'44.1 495.0 539.4 588.1 646.0Losses 98.7 106.6 103.3 102,4 96.1 88.7 85.6 86.5 87.4 95.2 103.8 114.0Required Groso Generation 318.6 331.6 352.8 382.8 411.3 443.3 483.8 530.6 582.4 634.6 691.9 760.0

1.2 Generation DispatchThermal GenerationJoeoph-Janvier 3.0 17.0 t/ 2.5 2.5 2.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5Delmas 6.3 15.4 T/ 2.5 2.5 2.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5Varreux 62.8 121.7 31.8 32.2 20.4 21.6 17.8 15.0 16.0 18.0 15.0 23.0Carrefour - - 80.0 110.0 150.0 185.0 180.0 170.0 150.0 180.0 160.0 180.0Low Speed Diesel - - - - - - 50.0 110.0 120.0 120.0 120.0 140.0Coal Fired Plant - - - - - - - - - - 80.0 100.0Sub-Total - 154.1 116.8 147.2 175.4 207.6 248.8 296.0 287.0 319.0 376.0 484.0

Hydroelectric GenerationPeligre 246.5 177.5 236.0 235.8 235.6 235.4 235.z 235.0 231.0 231.0 231.0 231.0Guayazouc 64.0 85.0 85.0 85.0Sub-Total 177.5 236.0 235.8 235.6 235.4 235.2 235.0 295.0 316.0 316.0 316.0

1.3 Total Generation Port-au-Prince 318.6 331.6 352.8 383.0 411.0 443.0 484.0 531.0 582.0 635.0 692.0 760.0

2. Provincea

2.1 Sales b/ 28.0 32.0 35.9 39.8 44.0 48.3 52.7 56.9 61.2 65.5 70.9 76.8Losses 5.3 5.7 6.3 7.0 7.8 8.5 9.3 10.0 10.8 11.6 12.5 13.6Required Groas Generation 33.3 37.7 42.2 46.8 51.8 56.8 62.0 66.9 72.0 77.1 83.4 90.4

2.2 Generation DispatchTheraal (Diesel-Oil) 23.9 29.0 18.2 14.8 19.8 21.8 25.0 29.9 35.0 40.1 46.4 53.4lydro 9.4 8.7 24.0 32.0 32.0 35.0 37.0 37.0 37.0 37.0 37.0 37.0

2.3 Sub-Total Provinces 33.3 37.7 42.2 '46.8 51.8 56.8 62.0 66.9 72.0 77.1 83.4 90.4

3. Total Edl

3.1 Required Gross Generation 351.9 369.3 395.0 429.8 462.8 499.8 546.0 597.9 657.0 712.1 775.4 850.4

3.2 Generation DispatchThermal - By Type of FueltDiesel Oil d/ 33.2 61.4 23.2 19.8 24.8 22.8 26.0 30.9 36.0 41.1 47.4 54.1Bunker C e/ 62.8 121.7 111.8 142.2 170.4 206.6 247.8 295.0 289.0 318.0 295.0 343.3Coal - - - - - - - - - - 80.0 .0Sub-Total Thermal 96.0 183.1 135.0 162.0 195,2 279.4 273.8 325.9 325.0 359.1 422.4 497.4

Hydro Generation 255.9 186.2 260.0 267.8 267.6 270.4 272.2 272.0 332.0 353.0 353.0 353.0

Total Generation 351.9 369.3 395.0 429.6 462,8 499.8 546.0 597.9 657.0 712.1 775.4 850.4

ai Actual data.k/ Sales forecast for equipment planning purposes.c/ Includes generation from emergency unito (gas turbines at Janvier and small diesels at Dalmas) used during the

shutting-down of Feligre due to low level at reservoir.d/ Generation at Janvier, Delmis and Provinces.e/ Generation at Varreux, Carrefour and Slow Speed Diesels.

February 10, 1964

HAITI

ELECTRICITE D'IAITI - EdH


Actual and Forecast Sales - GWh(For Financial Projections)

1982 1983 1984 1985 1986 1987 1988

Port-au-Prince Area

Residential and Commercial 93.9 97.2 103.3 111.1 120.8 133.0 '48.0Industrial 108.2 110.3 117.2 126.1 137.1 150.9 168.0Government 10.5 10.3 11.0 11.8 12.8 14.1 15.7Street Lighting 7.3 7.2 7.6 8.2 9.0 9.8 10.9Sub-Total 219.9 225.0 239.1 257.2 279.7 307.8 342.6

Losses 98.7 106.6 99.1 94.1 85.0 77.0 70.2Losses (% of Gross) 31.0 32.2 29.3 26.8 23.3 20.0 17.0Gross Generation 318.6 331.6 338.2 351.3 364.7 384.8 412.8

Provinces

Residential and Commercial 16.9 18.0 22.0 24.4 27.1 29.8 32.7Industrial 6.9 10.3 9.0 10.0 11.1 12.2 13.3Government 2.2 2.2 2.6 2.8 3.0 3.3 3.5Street Lighting 2.0 1.9 2.3 2.6 2.8 3.0 3.2Sub-Total 28.0 32.0 35.9 39.8 44.0 48.3 52.7

Losses 5.3 5.7 6.3 7.0 7.8 8.5 9.3Losses (% of Gross) 15.9 15.1 15.0 15.0 15.0 15.0 15.0Gross Generation 33.3 37.7 42.2 46.8 51.8 56.8 62.0

Total EdH

Sales 247.9 257.0 275.0 297.0 323.7 356.1 395.3 >Losses 104.0 11.2.3 105.4 101.1 92.8 85.5 79.5 & SLosses (% of Gross) 29.6 30.4 27.7 25.4 22.3 19.4 16.7 I xGross Generation 351.9 369.3 380.4 398.1 416.5 441.6 474.8

December 16, 1983

- 36 -ANNEX 3

HAITI

ELECTRICITE D'HAITI (EDH)-


FINANCIAL ANALYSIS

Past Earnings

1.01 Prior to 1975, EdH's financial performance was weak, mostly becauseof inadequate tariffs and high energy losses. Hlowever, as a consequence ofIDA's involvement in the sector, EdH's finances improved gradually in theperiod 1975-82. Sales growth increased at an average 13% per year over theperiod but declined to about 7% in the period FY80 to FY82. Rates of returnon average revalued assets in operation for the latter period were in therange of 5.7% and although somewhat lower than the covenanted rates of 8%,were adequate to meet EdR's cash requirements.

1.02 Financial conditions deteriorated sharply in F"83 (Attachment 1).This situation resulted from a combiniation of low hydro generation because ofan extremely dry season, the failure of thermal generating units at Varreuxpartly compensated by EdH by hiring portable thermal units from outsideHaiti, and the lower demand of electricity due to economic recession. Growthof sales in FY83 was about 4%, although this could have been 6% without therationing that took place because of the dry season. The rate of return forthis year was close to zero.

Present Financial Position

1.03 EdH's financial position as of September 30, 1983 (es-' of FY83) wasadequate. The debt/equity ratio was 40/60 and the current ratio 2.1 times.However, the amount of MUS$6.9 due by the Government for unpaid electricityconsumption was a matter for concern, and caused EdH liquidity problems(para. 1.05). EdH's balance sheet as of September 30, 1983 is summarizedbelow (see Attachment 3):

Summary of Balance Sheet for FY83

NUS$ Percentage

Fixed Revalued Assets 167.4 90Non-Current Receivable (Government) a/ 3.6 2Current Assets 15.6 8

Total Assets 186.6 100

a/ Portion of Government accounts receivable for electricity consumption notincluded in Current Assets.

- 37 -

Financed by:

Equity (including Revaluation Reserve) 106.3 57Long-term Debt 69.6 37Curr-.it Liabilities 7.6 4Consumer Contribution 3.1 2

Total Equity and Liability 186.6 100

1.04 The Government is EdH's main creditor as all the financing frominternational development organizations, as well as the official aid, isreceived by the Government and on-lent to EdH. As of September 30, 1983, thesources of credit and loans received by EdH were as follows: IDA and EEC,MUS$39.5 (57%); KfW, MUS$16.0 (23%); CIDA, MUS$7.4 (11%), and CCCE andothers, MUS$6.7 (9%).

1.05 The Ministry of Finances signed an agreement, in terms acceptableto the Association, under which the Government (a) will settle its arrears(US$6.1 million at the end of FY84) in lump sum payments in FY85, 86 and 87and (b) will pay on time current electricity bills, including publiclighting, starting in October 1984, the first month of FY85.

1.06 With the assistance of Consultants (SOFRELEC of France), EdHimplemented in 1976 a new tariff structure based on the principle of marginalcosting. As part of the Third Project, EdH's consultant, HQI, prepared a newtariff study based on the same principle confirming that the present tariffstructure is adequate and suggested some minor changes which were introducedby EdH in FY84. The tariff includes a fuel surcharge adjusted quarterly andincorporated into the basic tariff at the end of the fiscal year (see presenttariff in Attachment 8). The average tariff for FY83 was US cents 12.8 perkWh, and it has been projected to grow at an annual rate of 10% during theperiod 1984-88, or the same rate assumed for local inflation and in line withwhat EdH has achieved in recent years. The projected annual average tariffsare about equal to the long-run marginal cost estimated by the consultant,HQI. At the beginning of FY84, after incorporation of the fuel surchargeinto the basic tariff, the average tariff reached US cents 14.0 per kWh,which is close to the average tariff needed to meet financial requirements inthat year (US cents 14.2 per kWh), therefore only minor adjustments wererequired in that year.

Future Financing

1.07 The financial forecast for the period 1984-88 (Annex 2, Attachment5; Annex 3, Attachments 1, 2 and 3) shows that EdH's financial performance isexpected to be satisfactory through FY88, assuming the following: (a) annualtariff increases of 10% in nominal terms, (b) sales would gradually increasefrom 7% per year in FY84 to llZ in FY88, as the present economic recessionimproves, and (c) operating costs would increase at 18% average per year,which is considered reasonable (see footnotes of Attachment 1). The rate ofreturn would range between 5.2% in FY84 to 8% in FY88, the debt/equity ratiowould reach a maximum of 48/52 in the latter year and the debt-service

- 38 -

coverage would have a minimum of 2.2 times in the period, permitting EdH tocarry out its investment program without strain. During negotiations, theGovesnment and EdH agreed to maintain adequate tariffs to enable EdH to havea rate of return on the average current value of fixed assets in operation ofnot less than 5% until FY86, 7% in FY87 and not less than 8% in FY88. Theserates of return would be sufficient for EdH to meet its cash requirements forthe 1984-88 period. The rates for the first three years are similar to theones reached in recent years; higher rates of return are required in the lasttwo years of the period considered because of the increasing amountB of debtservice and the need of self-financing the local funds of the proposedinvestment program.

1.08 Because EdH's loan agreements have generally long grace andamortization periods, at present the debt service is relatively low.However, borrowings and debt-service will increase steadily during the period1984-88, long-term debt will reach MUS$225 at the end of FY88, compared withMUS$70 in FY83. Debt/equity ratio would be 48:52 in FY88 compared with 37:63in FY83. To provide the Association with the opportunity to review the termsof any future borrowings, the provision under Credits 1281-HA that EdH wouldnot incur any long-term debt without the Association's agreement, unless itsgross internal cash generation covers its maximum future debt service atleast 1.5 times, have been repeated under the proposed credit, amended toestablish that thie ratio should be calculated using reasonable internal cashgeneration forecast rather than historical data. Similarly, the covenantwhich limits EdH's short-term debt to one-sixth of annual cash operating,maintenance and administrative expenses have also been maintained.

1.09 To ensure an orderly financing process and that only technically,economically and financially sound projects are undertaken in the powersector, EdH agreed, as under Credit 1281-HA: (a) not to undertake any majorexpansion project (defined as in excess of 1% of current net fixed assets inoperation) other than those that have been reviewed by the Association duringthis appraisal unless it has furnished to the Association satisfactoryevidence that such projects are economically justified and that it will haveadequate financial, technical and managerial resources to carry them out; and(b) to limit the amount of unbudgeted village electrification to an aggregateanrnual amount not to exceed 0.2% of current net fixed assets in operation.

1.10 It is essential that EdH devote all its financial resources to thedevelopment of the sector if it is to self-finance a satisfactory proportionof its investment program. The current provision under Credit 1281-EIA thatEdH's resources be devoted exclusively to its construction program, thepayment of its debt service and to its operation, have been maintained underthe proposed credit. Moreover, because EdH expects to have some temporarycash surplusses beginning FY86 through FY88, the provision under Credit1281-HA that the Government authorize EdH to maintain its liquid funds ininterest-bearing accounts or in interest-bearing investments, not exceedingSiX months maturity, has been repeated in the proposed credit.

- 39 -

Investment and Financing Plan

1.11 EdH's 1984-88 investment program, including interest duringconstruction, requirements for working capital and other applications,amounts to MUS$264.7 of which MUS$33.8 or 12.8% corresponds to the proposedFourth Power Project. The ongoing works amount to M4US$44.1 (17%) andinclude the following: (a) the renovation of the distribution system,transmission lines and substations in Port-au-Prince; (b) construction ofCarrefour 23 MW diesel plant; (c) construction of a new head office; (d)execution of a feasibility study of Guayamouc hydroelectric project; (e)construction of the Jacmel and Caracol hydroelectric projects; and (f)routine investments which include line extensions, rural electrificationprojects, equipment acquisition, minor plant improvements, etc. Other futureprojects amount to MUS$157.3 (59%) and include a low-speed diesel power plantand the Guayamouc hydroelectric project and initial investments for acoal-fired steam power plant and the new La Chapelle hydroelectric project.Interest during construction is estimated at 14US$21.0 or 8%. The increase inworking r-- ;al requirements, which includes the acquisition of spare parts

.:aeration improvement program, amounts to MUS$16.8 or 6%. The1.... s program and financing plan .e summnarized below and are showa indetail in Attachments 2 and 4.

1.12 EdH's net internal cash generation would finance MUS$71.8 or 27% ofthe total requirements of the 1984-88 program; Government capitalcontribution would fund MUS$9.8 or 4% of the totai. and would consist of thegreater part of interest charges paid by EdH on tne on-lent proceeds of CIDAand KfW loans, and the contribution of MUS$1.8 for the repair of the Peligrehydroelectric power plant; the remaining 69% would be covered by loansamounting to MUS$183.3. Of this figure, MUS$31.6 comes from undisbursedproceeds of existing loans, US$3r.5 from the proposed IDA credit and CCCEloans and US$102.3 from future. unidentified loans that would come frominternational financing institutions and official aid. Finally, US$18.9million represents the financing of interest during construction.

Financing Plan for 1984-88

Requirements MUS$ Percentage

Construction ProgramOngoing works 44.1 17Proposed Fourth Power Project 25.5 a/ 10Other Future Projects 157.3 59Sub-total 226.9 86

Interest during construction 21.0 8Total 247.9 94

Increase in working capital 16.8 a/ 6Total Requirements 264.7 100

- 40 -

Sources

Gross internal cash generation b/ 122.1Less: Debt service 50.3Net internal cash generation 71.8 27Government contribution 9.6 4Borrowings 183.3 69

Existing loans 31.6 12Proposed IDA Credit 21.6 8CCCE loan for 4th Project 8.9 3Other future loans 102.3 39Other cl 18.9 7

Total Sources 264.7 100

a/ An amount of MUS$8.3 of the proposed Fourth Power Project will be used to'buy spare parts for the generation improvement program, and has beenine.luded as an increase in working capital.

b/ Includes US$0.8 million of consumer contribution.cl/ Includes IDC financed by different loans.

1.13 EdI's proposed financing plan for 1984-88 is reasonable. EdH wouldgenerate sufficient internal cash which, together with planned borrowings andGovernment contribution, would enable timely carrying out of the proposedproject. The financing plan for the proposed project assumes a total creditof MUS$30.5 to cover its foreign component, to be financed by a credit fromIDA in an amount of MUS$21.6, and b- tLWo CCCE loans amounting to anequivalent of MUS$8.9.

1.14 From the proposed IDA credit of US$22.1 million, the Govennntwill on-lend to EdH US$21.6 million at 9.89% for a period of 20 years with agrace period of 4 years. During the grace period, interest duringconstruction would be capitalized. A subsidiary loan agreement acceptable toIDA would be signed as a conclition of effectiveness of the proposed credit.EdH will bear the foreign exchange risk. Two loans totalling US$8.9 fromCCCE have been considered. Terms and conditions assumed bor financialprojections for tixese loans and for other future loans are shown inAttachment 7.

aUTI

WC!XICIE D'UAITI (-a)

FOJUlT POM PRDOJC!

Actual and Forcaat Incom Statemel1ts(tboummud of US$)

------- ----- Actual------------- ---------------- Forecast-----------------

FY90 FV91 FY82 FY83 FVY4 FYS9 FY86 FY67 FY66

Sales (6W) a/ 216.1 232.4 247.9 257.6 275.0 297.0 323.7 356.1 395.3

Average Tariff (US cvnts/kNh) bl 9.0 10.7 11.2 12.8 14.3 15.7 17.3 19.0 20.9

operating RevenuesEnergy Revanues 19509 24915 27667 32850 39325 46629 56000 67659 92618Other Revenues 119 213 79 74 SO ISO 200 200 200

Total operating Revenues 1I627 25128 27746 3Z924 39475 46779 56200 67TSS 92919

Operating Expenses

Fuel C/ 4969 6237 7657 14612 11400 12750 15900 18780 24180Lubricant Oil 314 456 527 1023 b&0 730 940 1160 1620Uperation and ¶aiuteonnce dl el 4418 5117 6351 7967 8500 10000 119oO 13950 16300General and Administration di f1 1845 2498 2711 3134 3650 4100 4600 5160 5900

Sub-Total 11546 14308 17246 26736 24210 27580 33240 38950 47900

Depreciation gJ 3478 3965 4538 6289 6638 8269 9577 10659 1121 £

Total Operating Expense; 15024 19273 21794 33025 30848 35849 42817 49609 59821

Operating Incose 4603 6955 5962 -101 8627 10930 13383 18250 22997

Interest Charges h/ 2017 2374 2896 4211 6078 8157 10426 13097 15964

Less: Interest Charged to Construction t93 507 969 L029 3180 2407 2382 5076 7999interest Charged to Operation 1824 1067 1Y27 3182 Z89U 5750 8044 9021 7166

Net Income 2779 4999 4035 -3283 5729 S510 5339 10229 15131

Operating Ratio tX) 77 73 79 100 79 77 76 73 72Rate of Return (X) 5.0 6.8 5,2 -0.1 5.2 5.2 5.6 7.0 B1.0

-------------_-------------------------------__- _----------- -- - -- _--I

al Een Annex 2, Attachment 5.bl Average tariff would grow at a rate of 10! equal to the assuoed local inflation rate. cx

Cl See Annex 3, Attachment 9.dl The forecast assumes increases in the average salaries of approwimately 22 per year above 'e local inflation.et operation and maintenance expees, excluding salaries, grow at 202 p.a. and include the spare parts for the progras

of generation improveennt.it General and administrative exptnses, excluding salartes, grow at an average of 10% p.a., which is in line with

historical growth.

9/ Based on the straight-line eethod. Weighted average annual depreciation of 3X was assumed.

hi Detai-1 of debt service statemeat are available in the project file.

MOy 31, 1984

. 42 ANNEX 3

HA.I! Attachmnt 2ELgCTRICITE Dtg&ZTX (PdH)

vOUTaR' POWvR PROJECT

Eetiuated and Porecact Pids etatements(thousand, of US$)

Actual - Forecast ------Total

FY83 FY84 FY85 FY86 FY87 FY88 1984-88SOURCES

Internal SourcesOperating Income -101 8627 10930 13303 18250 22997 74187Depreciation 6289 6638 8269 9577 10659 11921 47064

Gross internal cash generation 6188 15265 19199 22960 26909 34918 121251

Less: Debt Service a/Amortization 905 1345 1991 2383 4134 7836 17689Interest Charges 4211 6078 8157 10426 13097 15864 S3622Total Detbt Service 5116 7423 10148 12909 17231 23700 71311

Less: Interest during construction 1029 3180 2407 2382 5076 7998 21043

Net Debt Service 4087 4243 7741 tO427 t2155 15702 50268

Net Internal Cash Generation 2101 11022 11458 12533 16754 19216 70983

BorrowingsIDA 895-HA 3272 2640 0 0 0 0 2640IDA 12Bl-HA 5457 12500 6800 0 0 0 19300Proposed IDA 0 0 5200 8900 4500 3000 21600CIDA 2592 5200 0 0 0 0 5200KfW 2738 1700 400 0 0 0 2100CCCE ll 2100 300 0 0 0 2400Proposed CCCE 0 0 2100 6400 400 0 6900Future IDB 0 t1OO 0 0 0 0 1100Future K1W 0 0 1200 1300 0 0 2500Future Unidentified 0 2500 6100 21000 30300 38800 98700Other b/ 3103 2326 2129 2173 4707 7568 18903

Total Borrowings 57973 30066 24229 39773 39907 49368 183343

Consuaers' Contribution 4L3 150 ISO 150 200 200 850Government Contribution c/ 737 3051 1563 1670 1611 1666 9568

TOTAL SOURCES 21274 44289 37400 54126 50479 70450 264744

APPLICATIONS

Construction Program d/Ongoing Works 24804 33900 10200 0 0 0 44100Proposed Project 0 300 5500 13600 3100 3000 25500Future Project 0 5200 13000 34600 46300 58200 157300Total Zon,;truction 24804 39400 26700 48200 49400 61200 226900

Interest durini; construction 1029 3180 2407 2382 5076 7998 21043Total 25833 42580 31107 50582 54476 69199 247943

Increase (decrease) in other assets 671 -600 -2964 0 0 0 -3564Yariation in Working Capital el -5230 2309 9257 3544 4003 1252 20365

TOTAL APPLICATIONS 21274 44289 37400 54126 58479 70450 264744

a/ Detailed debt-service statement in avail8ble in the project file.bl Includes IDL financed from oans and other borrDo.ings.c/ Includes interests from loans of CIDA and KfW that return to EdH to be used in rural electrification and other

projects. In FY84, it includes US$ 1,800,000 for Peligre repairs.d/ See Attachment 4.e/ For FY8S through FY87, it includes spare parts for the generation iaprcvement program 4inanced under the

proposed Fourth Power Project.

May 31, 1984

- 43 -ANSIX 3

4IATf Attachmient 3

ZU2CR?CZTE D'IAIT (EdR)

IOW1R1 POWEt PROJECT

Actual nd Porecaa Saalca Sheetse housands cof8

.............---""-"---- --------------- For- cast

FYBO FY82 FV62 FY63 FY84 FY85 FY86 FYV7 FY88

ASSETS

Plants in operation 128679 139797 166319 192233 250292 300995 337457 373118 421600LeossAccunulated Depreciation 31242 34596 40375 49662 60025 72496 86423 102267 t20324

Not Plants al 97437 105201 125944 142571 190267 229499 251034 270851 301234

Work in Progress b/ 10969 9414 1 Ib61 24948 23786 21710 53890 92952 136047

total Flxid Assets 109406 115 137805 167419 214023 250209 304924 363803 437331

Other Assets c/ 1767 2282 2893 3564 2964 0 0 O 0

Curret AssetsCash and Bank 2620 4703 5655 966 -1282 2773 3631 5959 4886Accounts laceivable (GoveTnvAnt) d/ 0 0 700 8OO 0OO 1000 1150 127i 1450Accounts RtaeivaUI (Govorseot) e/ 0 0 0 2500 3712 2964 0 0 0Aecte.flectvable (Priv.8ector,Nnt) f/ 3213 3819 5308 4931 5450 6700 BC30 9800 12100Other Accounts Receivable 894 1602 590 506 600 600 600 650 650Naterlal and Supplies 91 4765 4569 5115 5633 7400 10300 12600 14500 14200Other h/ 387 4e2 476 334 500 550 5S0 600 800

Total Current Assets 11879 15175 17844 15570 17280 24087 26581 32784 34186

TOTAL ASSETS 122052 132252 128242 186523 234297 275096 333502 396527 47115i7

LIAD1LITIES AND EQUITY

EquityCapital 36309 40331 40365 40670 43721 45294 46954 48572 50238Retained Earnings 16840 23343 20324 26761 32490 37670 43009 53238 60369Revaluation Reserve 1/ 27131 26399 30117 38898 49590 62908 76618 91680 107932

_ e_0_ _8_ _ _ _ _ __ _ _ __ _ _ _ __ __9_ 7_ ___ --- -- - - --- -- -- - - -- - - -- - - ------- ____

Total 80280 90073 98806 106329 i25801 145862 166521 193490 226530

Long-term Debt j/ 32496 35458 53338 69593 97668 119514 155153 187224 225296

Current LiabilitiesCurrent portion of Long-tere Debt 2675 431 532 1345 1991 . 2383 4134 7836 11296Interest payable 2100 1379 112 900 150 1S0 ISO 200 200Accounts Payable 1565 1693 1878 3914 4000 2300 2400 2500 2600Customers' deposits 999 1121 1252 1385 1450 100 1350 1800 1650

Total Current Liabilities 7339 4624 3774 7544 759I 6333 8234 12136 15746

Consumer Contribut ion 1937 2400 2624 3087 3237 3387 3537 3737 3937

TOTAL LIABILItIES AND E9UITY 122052 132555 158542 186553 234297 275096 333505 396587 471517

a/ See Attachment S.b/ See Attachment 6.c/ Includes Government arrears for electr.'i tf consueption to be settled in FY84 through FY06.d/ Represents 60 days of Government's bitl ings.e/ Represents the current po,',!,- of Government arrears to be paid according to a new agreeineat signed with EdI4.Al Represents 60 days billings in tne forecast period.gi Forecast at 3. of plant in operation. Figure adjusted for FY85 through FYB8 to take into account tile building up of

the inventory of parts, to be fi2nanced under the proposed Fourth Power Project.h/ lincJudes prepaid and deferred charges.In FY83 excludes USS 1,670,010 that correspond to unfunded pension fund.I/ See Attachment 5.j/ Details of debt nerVice statement are available in the project fi'le.

May 31, 1984

aAzrr

ILBC XT1 D0 HAITI (515)

I"ntwsnt Progra for Period 1964-8d(thousads of current US dollars)

Accunalsted to P1 1984 FT 1985 n2 1986 PY 1987 FP 1988 PY 1984-88PY 1983 loc_ l Foreign Le2_n i Lool Foreign Local Foeiin _Il Forein ota I

1. OltGOD PROJXCTS

Port-tn-PriDce Area

m secoad Po_r Project 5,032 300 2.900 - - - - 300 2.900 3,200IDA Third Pnver Project 8,474 4,50D 16.400 1,500 6,600 6,000 23.000 29.000CIDA TransieSiou Project 8,038 - 4,600 - - _ - - _ _ _ - 4,600 4,600Ira Financed Stdie-e 800 1,700 - - _ _ _ _ _ _ 800 1.700 2,500Genersl Plant and Routine Investmsnt - - - - - - - - - - _ _ _

ProInces

KfW Jecoel Project 268 600 600 300 400 - - - - - 900 1,000 1,900Kil Carecol Project 86 400 1,100 500 900 - - - - - - 900 2,000 2,900Routine Ianvtements 2,950 - - - - - -

Total olngoag Proje.t 24,848 6,600 27,300 2,300 7,900 - - - - - - 8,900 35,200 44,100

2. FUTURS 8'OJEMc

Pert-au-Prince Area

IDA Proposed Fourth Power ProjectCarrefour Extension - - - 600 2,300 600 6,600 100 400 - - 1.300 9,300 10.600Gezeration Iprovelnnt e/ - 100 300 - 800 - 500 - 400 100 2,000 2,100DiStributlon Rerovation - S - 100 50O 500 2,200 600 1,100 - 2,z0O 1,200 6,000 7,200b 8gieering Studies 300 - 200 1,400 100 2,800 100 300 - 400 700 4,900 5,600

Sub-total Fourth Project 300 1,000 4,500 1,200 12,400 800 2.300 - 3,000 3,300 22200 25,50 el

tm, Speed DMesel Power Plant (2 units) u/ - - - - - 100 1,800 3,500 12,600 2,400 10,700 6,000 25,100 31,100Gaayerne Iydro-projeci a/ 100 1.000 2,800 3.900 8,100 15,600 8.200 14,000 9,600 18.000 bh 28,800 52,500 81,300Coal Fired Pover Planet (T unit) a/ - - - - - - - - 300 1,300 b/ 300 1,300 1,600La Chapelle Rydro-project a/ - - _ _ _ _ _ _ _ 2,0W 3,200 b/ 2,000 3,200 5,200Training and General Studies 100 300 100 600 100 900 100 1000 200 1,100 600 3.900 4.500Cencral Plant aud Routine loeser - 900 900 700 800 900 1,100 1,000 1,100 1,400 4,700 4,900 8,600 13,500

Provinces

Doluse-Lanzec Project (lfY) a* - - - 200 1,200 300 1.300 - - - - 500 2,500 3,000Voldrogne Project a - - - - - 300 SO 400 1,000 - - 700 1,800 2,500rmU Diesels and lIne extensionCeneral Studies - - 400 100 400 100 400 - - 200 1.200 1,400loutine Iunestienn* ZOo 300 200 TOO 300 900 300 I,O 300 1,13 1,30 3,800 5.100

Total Pb,ture Projects - 1,B00 3,700 5,200 13,300 11,600 36.600 14,800 54,600 16,600 44.600 50,000 132,800 1t2.800

3. TorAL rNvzS7Mr sr ReN (Correat FrIces 24,648 8,400 31,000 7,500 21,200 11,600 36,600 14,800 34,600 16,600 44,600 58,900 168,000 226,900

Total by 'Tea - 39,400 28,700 48.200 49.400 61,200 226,900

A. IxVSz1 IN 1983 CONSTANr PRICES 8.000 30,000 6.500 19.000 9.100 30.9WO 10.600 27,500 10.80D 33,500 45.000 140.900 185,900

Note: */ Included In the mot of the project to the aosocSttd tr aom, sad the cost of eoginering and euper.iio,Wf The Cuaymou Projaet aill be coiletad in 1989, the Ceal-Jrad Plant in 1991 n La Chapelle hydro in 1993cf the cost of the spre parts re not show in the fnvmtmt pFm, as thes form pert of the workhng capital (U882.8 mllIlon In 1985, UsS2-9 dillion tn 1986 end E582.6 ulloliu In 1987), and

win be charged to operating empecss darlag the period 1985-89.

VIb 31, 1984

MITI

ELXCTiUCITE DWHAITI (EdM)


Actual and Forecast Rate Base(thousands of US$)

-- tual - ----- - Forecast------------------

FY80 FY9I FY92 FY83 FY84 FYS5 FY86 FY87 FY88

6r4s5 Fixed Assets (beginning FY) 111B7A 129679 139797 166319 192233 2502?2 300?75 337457 373118Annual Revaluation 14215 0 5578 13128 14417 I7TZO 18060 20247 22397Annuai Caipitalization 2598 1ilts 20944 12786 43642 33183 10402 15414 261036ross Fixed Assets (end FY) 128a79 039797 L66319 192233 Z50S29 300995 337457 373118 421609

hWerage Gross Fixed Assets 120278 134238 153058 171976 221263 275644 31922h 355289 397363

Accumulated Depreciation(beginning FYJ 24740 31242 34596 40375 49662 b0025 72496 86423 102267Annual Revaluation 302M -611 1241 2999 3725 4202 4350 5185 6136Annual Depreciation 3478 3965 4538 6299 b639 8269 9577 10659 U9ZIAccumulated Deprectatign (end FYI 31242 3S459 40375 49MO2 60025 72496 86423 102Z67 1Z0S24

Average Accumulated DepreciatioU 27991 32919 37496 45019 54844 66261 7Y46Q 94345 111296

Net Fixed Assets 97437 105201 125944 142571 £90267 ZZ847? 251034 270851 301204

Average Nit Fixed Assets 92287 101319 113573 104258 166411 209383 239767 260943 296o06

Dperating Income 4603 6855 5962 -101 SW27 10930 133B3 16250 22997

Rate of Return (Z) 5.0 6.8 5.2 -0.1 5.2 5.2 5.6 7.0 8.0

Depreciation Rate (7. 2.9 3.0 3.0 3.5 3.0 3.0 3.0 3.0 3.0Revaluation Rate (X) 12.9 0.0 4.0 0.0 7.5 7.0 6.0 6.0 6.0

r3

May 31, 1984

HAITI

ELECTRICITE D1 HAITI (EdH)

Fu7URTH POWER PROJECT

Statement of Changes in Work in Progress

(thousands of US@)

---------------- Forecast ----------------

FY84 FY85 FY86 FY87 FY88

lalance (beginning FY) 24948 2378h 21710 538990 92952

'1ts: Addition during the year 39400 28700 48200 49400 61200

Interest during construction 3180 2407 2382 5076 799B

.ess:Transier to plant in operation:General plant & routine investment 5250 2400 31l00 3300 7500

CIDA Transmission Project 9538 0 0 0 0

CIDA Emergency thermal unit 0 1100 0 0 0

IDA Second Project 8332 0 0 0 0

IDA Third Project 16900 20574 0 0 0

KfW Jacmel 0 2064 0 0 0

KfW Caracal 0 2986 0 0 0

Fourth Power Project 0 0 11600 5900 8000

Deluge-Lanzac Project 0 0 0 3000 0

Voldrogue Project 0 0 O 0 2500

Small diesel units 0 0 0 0 4400

Distribution Projects 700 700 700 600 600

Gensral studies and training 400 1100 1500 1600 1300

Interest during construction 2522 2259 1502 1014 1903

Total transfer to plants 43642 33183 18402 15414 26103

3alance (End FY) 23726 2171D0 5389e 92952 136047

May 31, 1984

HAITI

ElECTRICITE D' HAITI (EdH)


Terms of Existing and Future Loans

GraceAmount In Period Haturity Interest

Lender Loan No. Purpose Date Thousands Currency (Years) (Years) Rate (X)

Existing Loans

On-lent by GovernmentKIlf 75-65-252 Drouet 1976 5,400 D1 7 30 5KfW 75-65-278 Gonaives 1976 2,500 [H 7 30 5KfW 76-65-252 Drouet 1978 7,543 114 7 30 5KfW 76-65-278 Gonaives 1978 4,300 E1 7 30 5KfW 76-65-839 Cap. Haitien 1978 7,543 1M 7 30 5RfW 80-65-359 Milot, Labdie,

Limbe 1980 1,800 OM 10 30 5KfW 80-66-060 Saut Mathurine 1981 10,000 DM 10 30 5KfW 82-65-258 Jacmel 1982 3.632 nH 10 30 5KfW 82-65-290 Caracol 1983 5,600 i1 10 30 5IDA 645-HA 1st Project 1976 16,00Q US$ equiv. 2 28 8.85IDA 895-HA 2nd Project 1979 16,050 USS equiv. 4 20 8.0IDA 1281-HA 3rd Project 1982 23,100 SOR 4 20 11.6EEC 4-H 2nd Project 1979 6,000 USS equiv. 4 20 8CIDA 444-007-07 2nd Project 1980 17,100 Can$ 4 20 8CCCE 58-78-00-82-01 3rd Project 1982 10,000 PF 10 30 1.52 grace;

22 balanceCCCE 58-78-00-82-02 3rd Project 1982 20,000 FF 5 15 52

Future Loans

IDA Proposed Credit 4th Project 1984 21,300 SDR 4 20 9.89CCCE 4th Project 1984 24,000 FF 10 30 1.5! grace;

22 balanceCCCE 4th Project 1984 48,000 PP 5 15 5KfW Deluge-Lun Zac 1985 6,750 LK 10 30 5Unidentified Various Project 1984 95,600 US$ equiv. 4 20 8

19861987

October 25, 1984 a

- 48 -

ANNEX 3

HAITI Attachment 8

ELECTRICITE D' HAITI (EDH)


Electricity Tariffs as of October 7, 1983

Basic Tariff Fuel Surcharge Total

Residential/Commercial customersand Government

First 30 kWh USE12.81 - USC12.81Next 170 kWh 15.20 - 15.20Above 200 kWh 16.99 - 16.99

Industrial customers

Low voltage (load lower than 45 icW) 11.47 - 11.47(Fixed charge: US$1.11/kW)

Medium voltage (load greater than 45 kW)- peak hours 2/ 12.66 - 12.66- off hours and Sundays 5.98 - 5.98

(Fixed charge: US$1.1/kW)

High voltage- peak hours 2/ 11.47 - 11.47- off bours and Sundays 5.31 5.31

(Fixed charge: US$0.77/kW)

Public Lighting 20.39 - 20.39

1/ The fuel surcharge of FY83 was incorporated into the basic tariff at the beginningof FY84.

2/ Between 7 am and 9 pm.

February 9, 1984

HAITI

ELECTRICITE D' HAITI (EdE)


Fuel Cost Forecast(For Financial Proiections)

-Actual-- ForecastPY 83 PY 84 PY 85 FY 86 PY 87 FY8B

1. Generation Dispatch GWh a/Hydro Electricity b/

Peligre 177.5 236.0 235.8 235.6 235.4 235.2Guayamouc - - - - - -Provinces 8.7 24.0 32.0 32.0 35.0 31.0Sub-total hydro 186.2 260.0 267.8 267.6 270.4 272.2

Thermal GenerationDiesel-Provinces 29.0 18.2 14.8 19.8 21.8 25.0Diesel Port-au-Prince 27.0 5.0 5.8 7.5 8.6 10.0Bunker C Plants 127.1 97.2 109.7 121.6 140.8 167.6Sub-total thermal 183.1 120.4 130.3 148.9 171.2 202.6

Total Gross Generation a/ 369.3 380.4 398.1 416.5 441.6 474.8

2. Fuel Cost ForecastDiesel Oil Costs:

Generation GWh 56.0 23.2 20.6 27.3 30.4 35.0 v3Consumption - million gal. ci 5.6 2.32 2.06 2.73 3.04 3.50Diesel oil cost, US$Igal. d7 1.36 1.50 1.65 1.80 1.96 2.14Total Diesel Cost, millions US$ 7.62 3.48 3.40 4.91 5.96 7.49

Bunker C Costs:Generation GWh 127.1 97.2 109.7 121.6 140.8 167.6Consumption, million gal. c/ 8.20 6.27 7.08 7.85 9.08 10.81Bunker C cost, US$Igal. dI- 0.85 0.94 1.03 1.13 1.23- 1.34Total Bunker C Cost, millions US$ 6.98 5.89 7.29 8.87 11.17 14.49

Total Fuel Cost, million of US$ b/ - 9.37 10.69 13.78 17.13 21.98Provisions for Dry-year, miliJioiL a US$ - 2.03 2.06 2.12 1.05 2.20

Total Fuel Cost, million o:E US$ 14.60 11.40 12.75 15.90 18.78 24.18

a/ See Annex 2, Attac'ment 5, 'Actual and Forecast Sales for Financial Projections". nb/ Hydroelectricity dispatch for average hydrological year is considered for the 1984-88 period. PY 83 was a dry year, this a X

explains the high fuel consumption. I wc/ Average consumption for EdH power plants: 10.0 kWh/gallon for diesel oil engines and 15.5 kWh(gallon for Bunker C engines. :Fd/ For financial forecasts, the fuel unit price paid by EdH for 1983 is assumed to increase at 3Z p.a. above international %

infl-tion.

Ocrober 12, 1984

- 50 -

ANNEX 4

U_ATI

ELECTRICITE D'HAITI - Edi4


Internal Rate of Return for the 1983-88 Program(In US$ millions, 1983 constant prices)

------ Costs ------------------- ---------- …--- Benefits -----------------Incremental Incremental

capital a/ 0 & M Fuel Incremental Average Rates RevenueYear Investment Conts b/ Costs c/ Total Sales GWh d/ US /kwh e/ From Sales

1984 38.0 - - 38.0 - 13.7 01985 25.5 0.6 0.3 26.4 22.0 14.0 3.11986 40.0 1.5 1.4 42.9 48.7 14.3 7.01987 38.1 2.4 2.8 43.3 81.1 14.6 11.81988 44.3 3.4 4.9 52.6 120.3 15.0 18.11989 - 4.4 e.1 12.5 163.8 15.4 25.21990 - 5.4 18.3 13.7 212.1 15.7 33.31991-2019 - 6.5 12.2 18.7 265.6 16.1 42.8

Sensitivity Analysis

Financial RateCase of Return x

1. Base ca3e as ahown above 10.6

2. Capital investment increased by 10% 9.6

3. 0 & H costs increased by 10% 10.5

4. Fuel costs increased by 10X 10.2

5. All costs increased by 10% 8.4

6. Benefits decreased by 10Z 8.7

Notes:

a/ Capital CostSee "Investment Program", Attachesent 4 to Annex 3. During this period, EdH would invest 89% of the total cost of the22 MW Guayamouc hydroelectric project for operation early in 1990, and 100l of the coat of the new 20 MW slow dieselpower plant for operation in 19C3-89.

bl Operattion and Mdaintence CostsIncremental 0 & K costs with respect to the 1984 operation; see 'Forecast Income Statement", Attachment 1 to Annex 3:0 & H costs were converted to 1983 constant prices, using deflactors. 0 & M costs related to the slow speed dieselpower plant and Guayamouc hydroelectric plant are also included.

c/ Fuel CootsIncremental fuel costs with respect to 1984 operation, including fuel costs related to the operation of the slow speeddiesel power plant. See 'Fuel Cost Forecast", Attachment 9 to Annex 3: these costs were re-calculated using thefollowing fuel prices, expressed in 1983 constant dollars:

- Prices in US$ (1983) per bbl --1983 1984 1985 1986 198) 1988

Crude Oil (FOB) 29.0 29.0 29.0 29.0 30.0 31.0Diesel Oil (CIF) 39.3 39.3 39.3 39.3 40.5 41.7Bunker C (CI?) 27.8 27.8 27.8 27.8 28.5 29.3

d/ Incremental SalesSee wV'Fecast Income Statemenr", Attachment I to Annex 3. For the period analyzed (1984-1988), total incrementalsale- with respect to 1984 are cornsidered. In addltion, Incremental sales for the years 1989, 1990 and 1991 are; Auded, in proportion to the invtestment made in generating plants in the 1984-88 period (Slow Diesel Plant: 100%,,uayamouc; 89%); the last year conssidered is 1991, as from thio year both power plants will be fully loaded.

e/ Average RateAveragetasrlffs have been assumed to increase at a rate of 10% in current terms during the 1983-1991 period. Thesetariffs were deflated to 1983 prices, using deflactors which assumed that the influence of local costs in the cost ofelectricity generation is about 30% and 70% the influence of foreign costs. The resulting tariffe ahow an increase of2.3% per year in real terms.

- 51 - ANNEX 5

hAITX

ELECTRICITE D'IHAITI - BdH


Project Cost Estimate

A. EdH's Project Local Foreign Total

1. Carrefour Diesel Plant Expansion A/

Two diesel-electric groups rated 7.8 KW each includingfoundation, erection and spare parts for 2 years. 0OO 7,100 7,900

Step-up substation including erection work 50 450 500

Sub-total Carrefour 850 7,550 8,400

2. Generat ton Improvement Program

Installation of a new cooling tower at Varreux (SWD groups) 50 450 500

Spare parts for diesel groups at Varreux (4 S1D groupsfor 4 years, 3 AA groups for 4 years) and at Carrefour(3 AA groups for 2 years) - 4,120 4,120

Spare parts for najor overhaul of Peligre hydro plant - 2,100 2,100

Mlscellaneous auxiliary equipment - 200 200

Technical assistance for the operation and mintenanceof Varreux and Carrefour (9 man-years) 90 900 990

Sub-total Generation. -Iprovement 140 7,770 7,910

3. CmpletpCono the DistributLontwrk Rovafon for Port-au-Prince 800 4,500 5.300

4. Consulting Services:

Engineering and supervision forCarrefour expansion and dts'ribution 200 1,200 1,400

Design and specIfications for a new hydroelectric projecton the Artibonite river, including transmission line 350 1,900 2,250

Adninistrative and general consulting services s0 720 8OO

Sub-total Consulting Services 630 3,820 4,450

5. Training

Training of EdH personnel 50 200 250

6. Total Base Cost (Dec. 1983 prices) 2,470 23,840 26,310

7. Physical Contingency (102 of base) 247 2,384 2,631

8. Price Contingency b/

Carrefour expansion 207 1,325 1,532

Generation improvement 22 1,286 ',308

Distribution 266 1,055 1,321

Consulting services and training 103 575 678

Sub-total price contingency 598 4,241 4,839

9. Total EdH's Project Cost 3,315 30,465 33,780

S. Goverteent's Project

Municipal finances study for Port-eu-Prince 75 425 500

C. Total Project Cost 3,390 i3089 34,280

Notes:

e/ Building to house the new units and fuel supply installations vere constructed as part ofthe Third Power Project.

bJ Indices for price escalation in percent:

1984 1985 1986 1987 1988

Local Costs 10.0 10.0 10.0 10.0 10.0

Foreign Costa 3.5 8.0 9.0 9.0 9.0

ia $OA

- 52- ANNEX 6

HAITI


FOURTIL POWER PROJECT

Project Implementation Schedule

Total Foreign CostCost Financing Procurement Bid Contract Completion

Project Component US$ MSillion _ by, ethod Irtvitation Award Date

1. Carrefour Diesel Plant Expansion

Fabricatiou, erection and testirgof two 7.8 MW units includingStep-up substation 10.1 CCCE Other 3/84 7/84 4/86

2, Generation Improvement Plan

Cooling tower for Varreux DieselPower Plant 0.5 IDA Other 3/85 4/85 12/85

Spare parts for Varreux and CarrefourDiesel Power Plants:

Package No. 1 1.6 IDA Other 3/85 6/85 10/85 itPackage No. 2 1.5 IDA Other 9/85 12/85 6/86 1/Package No. 3 2.4 IDA Other 12/85 2/86 10/86 1/

Spare parts for Peligre Hydro-plant 2.5 IDA Other 2185 4/85 11/86

Miscellaneous Auxiliary Equipment 0.3 IDA Other 11/85 1/86 1/87

3. Distribution Network Port-au-Prince

Equipment aud Materials 3.3 IDA ICB 6/85 9/85 6/86

Construction Contract 4.0 IDA ICB 4/85 8/85 12/87

4. Consultants

Technical assistance for operation andmaintenance of Varreux and Carrefour 1.3 IDA Other 11/84 1/85 1/88

Carrefour expansion: design & snpervLsion 0.7 IDA Other 11/83 1/84 4/86

Distribution: design 6 supervision 0.8 IDA Other 1/85 3/85 6/87

New hydro-project: final design 3.0 IDA Other 5/85 7/85 12/86

Administrative and financing consultant 1.0 IDA Other 10/84 12/84 2/86

Other consulting services 0.5 IDA Other 2/86

5. Training 0.3 IDA Other 6/87

6. Municipal finances study 0.5 IDA Other 11/84 3/85 6/86

1/ Completion of delivery of spare parts, to be used by EdH until June 1989.

October 25. 1984

53 -

ANNEX 7

HAITI

ELECTRICITE D'BAITI - EdR


Credit Disbursement Schedule(Million US Dollars)

Assumptions

Credit Signing January 1985Effective Date March 1985Closing Date June 1989

IDA Fiscal Year Disbursement Cumulativeand Semester During Semester Disbursement Percentage

1985June 30, 1985 1.3 1.3 6

1986December 31, 1985 4.9 6.2 28June 30, 1986 6.8 13.0 59

1987December 31, 1986 4.0 17.0 77June 30, 1987 1.6 18.6 84

1988December 31, 1987 1.3 19.9 90Ja'sne 30, 1988 1.3 21.2 96

1989December 31, 1988 0.7 21.9 99June 30, 1989 0.2 22.1 100

October 12, 1984

- 54 -

ANNEX 8

HAITI



Contents of Project File

. Programme de Developpement 1983-1995. Zone Metropolitaine dePort-au-Prince, 4 Volumes, September 1983Les Consultants HQI-LGL-LMBDS - Canada

2. Quarterly Progress Reports, June 30, 1983Second and Third Power Projects

3. Normes de Distribution - Edi. HQI, June 1983

4. Programme d'Equipement 1983-1987 - Reseaa de Distribution.Zone Metropolitaine de Port-au-Prince. HQI, January 1983

5. Installation de Condensatsurs sur le Reseau 12.47 kV en Port-au-PrinceEdH, September 1982

6. Programme de Repression de Vols d'Electricite.Price Waterhouse, September 1983

7. Electrification - Haiti - Rapport Avant-Projet (CIDA).Belt, February, 1981

8. Dimensionnement des Centrales des Rivieres Artibonite et Guayamouc.HQI, January 1983

9. Etude de Faisabilite - Projet Guayamouc GU-1 (Preliminaire).HQI, December 1982

10. Ouvrages de Rehabilitation de ODVA.B.V.King, July 1982

11. Prevision des Besoins de Main-d'Oeuvre d'Electricite d'Haiti - 1982-1987HQI, January 1982

12. Centre de Formation et Perfectionnement Professionels - EdH.Rapport d'Activities 1982 et 1983

13. Project Analyse des Besoins de Formation Technique da Ed'HRQI, June 1983

14. Etude du Programme d'Assurance des Domnages da EdHGerard Parizean Ltee. April 1982

- 55 -

15. Etude de Prefactibilite. Centrale Hydro-Electrique Caracol.Decon-Hydroplan, 1982

16, Etude de Prefactibilite. Centrale Hydro-Electrique Samana.Decon-Hydroplan, 1982

17. Project d'Execution - Centrale Hydro-Electrique Saut Mathurine.Decon-Hydroplan, 1982

18. Audited Report and Financial Stateients, September 30, 1981.Price Waterhouse, San Juan, Puerto Rico

19. Audited Report and Financial Statements, September 30, 1982.Price Waterhouse, San Juan, Puerto Rico

20. Bilan Pour l'ERercice L982/1983, au 31/07/83.Electricite d'Haiti

21. Forecast Debt Statement.IDA, October 1983

22. Selected Working Papers

Note: In addition, reference is made to Project File for the Second and ThirdPower Projects.

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