THE WORLD BANK GROUP ARCHIVES PUBLIC DISCLOSURE AUTHORIZED Folder Title: Guri Hydroelectric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P008181 - Administration - Volume 3 Folder ID: 1614834 Project ID: P008181 Dates: 1/11/1966 - 12/5/1966 Fonds: Records of the Latin America and Caribbean Regional Vice Presidency ISAD Reference Code: WB IBRD/IDA LAC Digitized: 9/17/2019 To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], ISAD(G) Reference Code [Reference Code], [Each Level Label as applicable], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business. The records that were created by the staff of The World Bank are subject to the Bank's copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers. M THE WORLD BANK Washington, D.C. @ International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org PUBLIC DISCLOSURE AUTHORIZED Arcluves1614834 A1995-113 Other# 1 170o 1 Gi Hydrostric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P006181 dministrugion - Volume 3 yI T..%.... IT... ... . .. . ....... ...... I. .. .. ..... LA - Loan 353-71 Administration III (A 4/p THIS FILE IS CLOSED, PLEASE SEE VOLUME IV. Form No. 27 (7-67) INTENTERoATONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OUTGOING WIRE TO: ECARONI DATE: DECEMBER 5 1966 CARACAS CLASS OF SERVICE: IBF GOVT. COUNTRY VENEZUELA TEXT: Cable No.: FOR PALACIOS REURTEL NOVEMBER 22 STP NO OBJECTION EDECA PROPOSAL AWARD ONTRACT 12 ACORDING HARZA RECOMMENDATION LETTERS CVG 337 AND 339 NOTW TO BE TRANSMTR MESAGE AUTHORIZED BY: CLEARANCES AND COPY DISTRIBUTION: NAME J. C. Lithgov cC, Mr. Zinman Mr. RiJgby DEPT. Projects Mr. Piccagli/Division File ( SIGNATUR E 0'ND q10 1A AUT -RIE5D. To AP-PROVF) FH 'well lfb For Use by Archives Division -353-VE O (ie Copy) (Pu.AL (IMPORTANT: See Secretaries Guide for preparing form) Checked for Dispatch: 3* I 5 laT A 34 7 4 0 564[ QD S~iW OH a ui q ~ no *d Fx . .03. .. i W FoRM No. 75 CC4NTERNATIONAL BANK FOR RECO NTRUCTION AND DEVELOPMENT (2.60) NTERNATIONAL FINA14CE INTERNATIONAL DEVELOPMENT CORPORATION ASSOCIATION Date ROUTING SLIP NAK ROOM NO. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation Full Report Recommendation Information Sianature F mitial I send On From HARZA ENGINEERING COMPANY CONSULTING ENGINEERS RIVER PROJECTS 400 WEST MADISON STREET CABLE ADDRESS 'HARZENG CHICAGO' CHICAGO, I LLINOIS 60606 TELEPHONE RANDOLPH 6-3451 November 23, 1966 Air Mail - In Duplicate Letter CVG-339 CVG - Electrificacion del Caroni, C. A. (EDELCA) Gerencia de Construccion Avenida La Estancia No. 10 - Piso 13 Ciudad Comercial Tamanaco Apartado 11563 Este Caracas, Venezuela Subject: Guri Project - Contract No. 12 Microwave Equipment And Supervisory System Gentlemen: We refer to our Bid Evaluation Letter No. CVG-337 dated November 17, 1966. We have enclosed herewith two copies each of a letter from GEVENSA related to the microwave equipment dated November 16, 1966, and a let- ter received from General Electric Company related to the Supervisory System dated November 15, 1966. These letters are in response to the meeting held in our offices with the General Electric Company representa- tives on November 10, 1966. These letters provide supplementary pro- posal information required for bid compliance. In addition to required clarification by tln General Electric Company, of the points listed in the Bid Documents we further recommended in our Bid Evaluation Letter that they document a statement of intent to comply with the Contract Documents, without exceptions, except as agreed by EDELCA in the terrs of the Contract Award. Our comments on the subject proposal letters are as follows: s e 4 .-. 4 .-.- :7:- . CVG - EDELCA - 2 - November 23, 1966 A. Microwave System. 1. Receiver Noise Figure. General Electric has stated that their receiver noise figures generally range from 9 to 13 decibels. The specified 12. 5 decibels, with reasonable care in manufacture and testing, should present no problem for complete compliance. Subsequent testing should verify receiver performance. 2. Path Calculations. General Electric suggested the possibility of using a larger parabolic antenna on the Guri Switchyard - Guayana Substation path for increased gain. After the contract is awarded, the microwave frequency bands are allocated and the manufacturers of the antenna equipments are designated; a revised set of path calculations should be submitted by the contractor for approval by EDELCA. The optimum parabola-reflector combination should then be final- ly selected following a study of the related factors such as: fade margin', tower stability, type and size of reflector-parabola combination, frequency, and tower height. 3. Jack Fields. Jack field racks and distribution frames are stan- dard options for Ge neral Electric microwave equipment. They are specified by Contract Documents and constitute a major re- quirement of EDELCA's microwave system. B. Supervisory System. The General Electric proposal clarification let- ters indicated 'substantially complete compliance. The list of major deviations covered in our Bid Evaluation Letter was not all inclusive. A letter from General Electric Company, that would establish the intent to comply, should cover any remaining or question- able areas of proposal deviation. We are transmitting this information to you directly, at the request of Harza Engineering Company International. Very truly yours, HARZA ENGINEERING COMPANY A. P. Geuss Executive Vice President Enc: As Noted Above cc : World Bank A^FLIADA A LA GENERAL ELECTRIC E. U. A. OF CARACAS DIRECCION TELEGRAFICA: INGENETRIC MARACAIBO EDIF. GENERAL ELECTRIC PUERTO LA CRUZ BARQUISIMETO AV. BELLA VISTA SABANA GRANDE APARIADO 292 APARTADO 1666 APTDO.: 4023 - CARRETERA NEGRA CARRERA 23. ESQUINA CALLE 31 TELFS.t 72601 AL 72610 TELFS.: 5594 11 - 5594 21 TELFS.: 2131-2-3-4 - 1135 APTDOs 618 - TELF.t 20770 Y 72050 RECEIVED Al contestar sirvase citar: November 16, 1966 - WAKY New York WV 171S Mr. A. Haban NO 716 Harza Engineering Co.,' Int. 400 West Madison Street Chicago, ILLINOIS EDELCA Contract 12 Our File CPB--6014 Dear Mr. Haban: In accordance with our conversations you will be receiving direct from our Mr. William J. O'Neil in Schenectady, written answers to questions pertaining to the Supervisory System with the exception of questions 3, 14, and 15. Attached to this letter please find answers to Microwave and Multiplex questions prepared by our Communication Products Depart- ment, Lynchburg, which also includes questions 14 and 15 of the Supervisory System since tone equipment will be supplied by cur Lynchburg factory. Question 3 of: the Supervisory System' relates 'to our options. Here an error exists in that Option II as quoted to EDELCA is really Option IB. Following is a clarification. Option IA 'provides emergency operation by GE/TAC with vis ial display. (Prices as given for Option I.) Option IB same as above except includes data logging of this information- on an electric typewriter. (Prices as given for Option II.). MISC. 6 (25 M) 2-62 - R X Mr. A. Haban November 16, 1966 Page 2 Option II as described in the text of our offer. This pro- vides a method for lighting a station alarm light at the CVG Central Office in the event of any operation at the remote station while the SPC is inoperable. This option proposes the use of the'microwave alarm system on the service channel. U.S. Dollar price $4000.00 No Bolivares (Bs.) adder as installation would be included with microwave alarm It is possible, contrary to what was said- before in our offer, that the customer may wish to order both Option I (A or B) and Option II. Regarding the Commerical Clauses in Section 7, Tomo III, Tele- communication Contract Terms and Conditions, they should be disregarded.. This English portion was included by error when including the English originals after the Spanish translation. General Terms of the contract apply. I hope that I have covered all the remaining questions. As mentioned today on the telephone, I will be in the U.S.A. until the middle of next week and will telephone you again from Lynchburg in case you have any messages for Venezuela. Upon my return to Venezuela I will submit all this information to EDELCA. It was very nice .meeting you. Best person r gards Regina /Stott GENERAL ELF EVENEZUELA, S.A. Manager of t ectronics Department rob Enclosure I. MICROWAVE AND MULTIPLEX Q. 1. Receiver Noise Figure 14.5 db. A. 1. The noise figure quoted does not refer to the receiver noise figure alone. The 14.5 db is the noise figure used in the system design for a frequency diversity design. Equipments are.factory tested to assure each individual receiver will meet the normal spread of 9 to 13 db. This eliminates the selection pro -ss at time of manufacture. The KTB of the ro. .eshold, and the FM improvement are factors t are considered during the design phase of the equipment. An excellent theoretical treatment can be found in the National Bureau of Standards Technical Note 103 beginning of page 98. Q. 2. Transmitter Frequency Stability 0.01% A..2. The equipment proposed was designed to meet the FCC require- ments for this band. Type acceptance data show the stability to be equal to or better than 0.02%. Q.- 3. Waveguide lengtha to be considered on path calculations are indicated on'Specification pages IX-2-5; IX-2-6; IX-2-7 and IX-2-8. A.- 3. The total loss, echo distortion and waveguide material lists were all predicated'on the referenced specifications. Q. 4. The difference between the receiver noise threshold and the FM threshold (52 db) is normally stated as 10 db. The transmitter power was defined in TOMO II Sect 3 as equal to 22.5 dcb. If these corrections are made we may arrive to a value of 10.6 db for the fade margin between Guri Switchyard and Guayana. A. 4. With the system design proposed, the fade margin on thir a will be equal to or greater than 35 db. Space los. -. fade margin 35 db for a total of 296 db. Two six foot give 79.4 db gain and the 30 x 40 foot reflector 11-1 du . System gain is given as 107 db. ' Larger dishes (ei ,ht ) can be considered at no price change if EDELCA so wi.she'. Q. 5. The power supplies should be in accordance with Para. I --. A. 5. The referenced sections of the specifications wi.ll be . as the requirement when orders are placed for any vendor power equipment supplied. In the case of G.E. manufactured equip- ment, compliance to the specifications will result. -2- Q. 6. If EDELCA decides to change the band frequency to (7125-8400 Mc) what are the changes in price and in system characteristics, if any? A. 6. In each case no change, the price is firm and the system was designed with these frequencies in mind. Q., 7. Where required the contractor shall supply 20 cps ringing voltage (73-130 vac) A. 7. The General Electric Company proposes to supply the ringing equipment where required. Q. 8. Jack fields are not included in the proposal (IX-44-CC). A. 8. G.E. judges its bid compliant without jack fields since all monitoring and test points are available on the equipment. Q..9.. The final survey of the radio path at the job site, and the required propagation test at the job site shall be included in the bid price. A. 9. Some final survey work has been recognized and will be performed prior to tower construction and equipment installation. This will be discussed in more detail with EDELCA in Venezuela. Q.10.. Obstruction lighting is only included at Guri Switchyard - we require also for Guayana and CVG office. A.10.. If lighting kits are required at the two sites, these will be furnished. The usual practice is not to light towers if they are shorter than surrounding obstructions. In general we will meet applicable Venezuelan regulations. Q.ll. Base band impedance specified (II-3-14) is 75 OHMS unbalanced. A.ll. The proposed equipment can be provided as a balancea or un- balanced baseband. Q.12. Microwave alarm system is not included. A.12. An alarm system for the microwave equipment will be provided to comply with the specifications. Q.13. Contract drawings call for intermediate distribution frames. A.13. Where required, and not previously in place, suitable IDFs will be provided. GEM ERA L ELECI' ._T C ELECTRIC UTILITY CO M PA NY S A LES ONE RIVER ROAD, SCHENECTADY, NEW YORK 12305 . . . TELEPHONE 518 FRanklin 4-2211 DIVIS ION November 15, 1966 RECEIVED Guri Project HAlE. .EEPW.. Contract No. 12 Microwave & Supervisory System NOV 16 1bs GE Proposal No. 247-2-11490 Mr. A. Haban AftWoo 0Ey ' %-2 Harza Engineering Co. Int. 400 W. Madison Street Chicago 6, Illinois Attached please find our summary of comments concerning the supervisory portion of Contract 12,' ar- rived at during our meeting November 10, 1966 in.your office. Comments on questions 3, 14, and 15 and the microwave will be provided by others in order to provide you with all the necessary answers as quickly as possible. I will mail the GE/TAC pictures which I promised under separate cover. William J. O'Neil Applicati Enginer System Automation Operation Bldg. 2 - Room 630 WJ 0: pw Attach. REC*D..HARZA NOV 1 8J0B ENGINEERING CO. II. SUPERVISORY SYSTEM Q. 1. Power supplies in accordance with 10.3-03D should be confirmed by GE. A. 1. Per Para. 10.3- p 64 4 h :: 4 ;' FORM 75 EINTERNATIONAL BANK FOR (O2M No. o.07 RECONISTRUCTION AND DEVELOPMENT (2.60) INIRNATbONAL FINANCE INTERNATIONAL DEVELOPMENT CORPORATION ASSOCIATION Date ROUTING SLIP NAME ROOM NO. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation Full Report Recommendation Information _ Signature IFto nitial _ Send On REWKS From COPT HARZA ENGINEERING COMPANY CONSULTING ENGINEERS CHICAGO, ILLINOIS 60606 November 17, 1966 Air Mail - In Duplicate Letter CVQ-337 CVG - Electrificacion del Caresil C. A. (EDZLCA) Gerencia de Construccion Avenida La Estancia No. 10 - Piso 13 Ciudad Coimercial Tananaco Apartado 11563 Este Caracas, Venesuela Subject: Guri Project. Contract No. li Microwave Equipsment and Supervisory system Bid Evaluation G*8tleeso: Bids were received and opened by EDELCA on October 3. 1946. The copy No. A of the bid documents for Contract 12 was sent to Harza Engineering Comupany Internationai, Chicago by air mailuand received on October Al, 1944. A total of three bids have been tendered. Prices for the various Bid Items and 51d Luamp Sums are tabulated in Exhibit I which is attached. ECEIVED RIDS Biddr Amount of Bid - Bolivars . GENERAL ELECTRIC DE VENEZUELA S.A. Edif. General Electric Sabana Grand Apartado 1664 Caracas, Venesuela 5,033,803 (Hereinafter referred to as General Electric) YI4AqMOD DMIF3:! iif3 AIXAH &33104ID3 14 1MTJU8MOO aoaoa sioPiuJi. ,ODADIHO sii .A 3 Ml-sa a) nis iu 4e - _ __ .A A A : u - LI .. 4a. *1 l Ai 9 JM be:M J.n 1< J. * ~~ raa - * i b* j ai A . ~ *I ea xialdl*sr b~ Iiiurv CVG - EDXLCA - a November 17, 1966 Bi~dr a of Bid- Solivar . GENERAL TELEPHONE & ELECTRONICS DE VENEZUELA C.A. Apartado 11624 (Chacao) Caracas, Venesuela 5,9510 161 (Hereinafter referred to as General Telephone & Slectrouics). j. OFICINA TECNJCA ARMANDO CAPAIXES, C.A. Edif. Araauac Avenida Las Palmas Los Caoboo Carseas, Venezuela 7, 689, 035 (Hereinaftor roferrid to as OTACCA) The total bolivars indicated in EUkibit I were calculated by NEC0 using the following free achange rato sting in the Banco Central UU do Venesuola seven days before the bid opening: I U. S. Dollar equivalent to 4. 50 Bolivwres This information was'received from lUg Silva by phone November IS# 1966. BRECOMMENDATION We recommend that award be made to the low bidder, General Electric of Venesuela to design, furnish, and install the complete Microwave Systema and Sapervisory Equipment covered under the SpeeficatIon for Contract 12, subject to a statement from them that they will furnish the equipment in complete compliance with the Contract Documents. A meeting was held in our offices with the General Electric Company representatives on November 10, 196. The General Electric repre- seutatives verbally establihed that the intent of their proposal is to design. furnis, and install the complete equipment in conformance with the functional and hardware, or equipment, requirements of ti Contract Documents. CVG - VDELCA - 3- November 17, 1966 supplamentary proposal letters fra the General Electric Company should clarity the full intent of their proposal and this should consti- tute an addendum to their proposal and become a part of the Contract. C. DISCUSSIN OF BIDS All of the bidders wee invited to send proposals in accordance with the specifications as Indicated in the proqualification letter dated February 9, l96. 1, Genral Electric: .G*nMral Tkis is the low bid, before and after evaluation of the variations in scope of work. Their bid as clarified by the supplemental proposal letters should not present devia- tions from the Contract Documents. Our comments follow- ing the analysis of their proposal are noted hereinafter. . Gontgrala. Their proposal includes "Coatract Termas and Conditions 1which should not nodify in any way, the Con- tractual Provisions of the Contract Documents. The completion dates for individual components are not clearly and directly stated in the bid and no advanced date for the initial microwave system between Gsayaa Substa- tion - CVG Office - Macegua Station is indicated. You may waft "hi clarified. .Technic l. The nuger tecnictal deviations or omissions from the Contract Documents &" listed. with our cmments, in Appeudiu I af this letter. j. General Telephons nd EIIT~jnics: j. gemal This is the second low bid. before and after eval- uation of variations In scope of work. Their bid Is compliant when modified as noted hereinafter. CVG E ELCA 104 - Novemaber 17, 1966 it. CgogggN j Their proposal is completely compliant for the Contractual PrVisions. ) M I n Orstem. Their proposal is completely com- pliaft. W.a) Survtsorv k9s1M. (a) The bid includes as an optional equipment a master station at Clart powerhouse to con- trol the our. cite d. This equipwou.t is required for codilacf with the specifiations ad in coasequonce to included in the bid pricoe (b) The Bid includes, at the CVG Office, a Process Controller with a memory apaaaty o 16 words. We anticipate that a memory capacity oi IAK words to adequat for this applisation &Md therefore credited General Telqokbae and Xlee- traftes' prices as indicated in Exhibtt A. ,.OTACCA A. Geeral.Their bid to the highest, "n Alo indleates maajor deviations fry* the specifiestimas as noted hereinafter, i. Conr e. deat t U) Th crmpae d Teanot in accordance with the p- cifications. The bid does not include an advanced date for the COMPI. RALVE the Initial Microwave System for fo4rtha S stion - CVG OffIc - Masagua tation. The Bidder indicates a lower price alternate using a -14V bauoery but was net quoted and is thereforo, not consubd.0dd to the evaluation. H)Ilgowe aifh The Fade Margin shown in the bid for the Gurt switebyard - Gusysan, subdoition. path to 31.5 46 instead of 35 db as specified. CVG EDELCA 5 November 17, 1966 (i) & II2EL System. (a) The maximum data trans - mission speeds of the proposed supervisory equipment is indicated as not greater than 1000 bits per second. and is not fally compliant. (b) The proposed supervisory control operation indicated the selet-befor-operate mode. This feture. we believes can be readily modi- fled for cempltaae. A. X VALUA TON aggnl. T he received Bids simm minor variations in doe scope of work and we have tharfoto" evaluated the principal differeaces be- twoon the Bids in order to evaluate them on an equal basis. The re- sults of this evaluation to shown to Mxhbit-11. No change in the order of bids result from this evaluation. . The6era4relephone & Electronic Bid includes in the bid price a microwave test equipment with a total value of U. S. $35, 000 equivalent to Ba 157, 000. As this equipenst has not been In- eluded by the other bidders and is not required to be furnished under the Isup Smm bid prices, we have provided a credit of Be 157. 000 to this Bid. For bicomparIson the memory storage requirement of the pro- cessor was based at IXi words. The General Telephone & Elec- troa proposed a 16K word of core storage and we have indicated an estaed+ reduction in he atha allte priceeathis Bid of S 12.000. 3. The General Telephone & Electronic Bid adjusted price In reduced SyoB 15,000e to cover their proposed alternate analog-digital converter which does zaest the Contract accuracy requiremst. We recommend that the contract be awarded to the General Electvic d* Yiessaw"la C. As on the basis that all the beforemontioned additional CVG - EDELCA -6 November 17, 1966 Conditious be Incorporated fit the Contract Award. K for any rea- son the Contract cannot be awarded to the above recommended bidder we recommend that the Contract be awarded to the General Telephone and Electronics do Vensausla, C. A. We have been Instructed by Harsa EgIneertng Compa" international to ma1 thi bid evaluation direetyto you in order to npedite your reeotpt Ofthis info lu "a . ft V T u d 0 9 HAR EA ENGINrXRING COMPANY & P. es A. P. Geiwe Executive Vie President cc: Zimaint. Voneoubla World 3asbf- Enc: Exhibit 1 Exhibit 2 Appendix 1 APPENDIX I Curt Project - Contract 12 Miicrowave Equipment and Supervisory System GENERAL ELECTRIC COMPANY - Major Deviations and Omissions From Bid Proposal - Evaluation Comments A. MICROWAVE - MULTIPLEX SYSTEMS 1. No explicit reference is made to the frequency shift tone channels required for: transferred trip relaying (with switching and monitor facilities), phase 'Comparison relaying, generator control, annunciation, and frequency telemetering. 2. The noise figure indicated in the bid is in excess of the speci- fLied maximum of 12.5 decibels. V e recommend that this point should be clarified in the proposal letters and that the factory and field tests should prove compliance. The specified fade margin tests should further substantiate the range of system performance required by the Contract Documents. The microwave equipment shall be subject to factory tests for each hop and end to end. The anticipated not path losses plus specified fade margin attenuation shall be inserted in each a. F. path by means of certified lbboratory standard attenuatrs. The complete factory tests shall be repeated in the field on the actual paths after installation, in conformance with the Contract Documents. The end to end field acceptance tests shill follow installation of the complete nicrowave-multiplex system. 3. Power supplies for the microwave equipment shall be in accordance with Section 9.6 of the Contract Documents. The batteries shall be reted for 8 hours microwave power supply assuming changes out of service and with busy-hour loading. The battery chargers shall be rated for 24 hour interval battery recharge including the microwave system load current. 4. The multiplex equipment should be furnished with Jack Field Racks and strapping facilities for compliance with the Contract Documents. The facilities shall provide suitable access for temporarily or permanently rearranging the voice channel multiplex channel allocations, for modifying E and M signalling and dialing, and for strapping hybrid coils as required for 4 wire to 2 wire terminations. The above options shall be avail- able with plug-in facilities and strapping as approved by EDELCA. 5. AC ringdown subcycle generators should be provided for Guri switchyard, Guaya"a substation, Maeagua station, or in any case a total of 3 terminals. 6. The microwave System Alarm shall include one master station, and one master read-out at CYG Office plus 4 remote stations to include the Guri Powerhouse, Guri Switchyard, Guayana, and Macagua. There shall be 14 alarm points per remote station with an ultimate capacity for 16 remote stations, furnished and installed as part of this Contract. 7. EDELCA shall have the option within 60 calendar days after award of the Contract to request a change of the frequency band from the 6575-6875MC band to the 7125 to 8400MC band of the Microwave System with no change in the bid price and the system performance shall otherwise conform with the Contract Documents. 8. The Contractor should furnish and install the required obstruction lighting equipment at three stations, presently designated as Ouayana Substation, Gur switchyard, and the CVG office building. 9. The proposed RF frequency stability wai indicated by the bid to be better than t 0.01% which covers, by standards, a temperature range of - 20 to +50 degrees C. The specified tO. 005% should be guaranteed within the anticipated range of ambient temperatures on EDELCA's system. 10. No explicit reference is made to the proposed battery power supplies and charging equipment. General Electric has agreed to comply with the requirements specified in Section 9.6 (Battery Power Supplies and Charging Equipment). - 2- B. SUPERVISORY SYSTEMS I. No explicit reference is made in relation to the bid the power supplies for the Supervisory System. On this matter, Ceneral Electric has agreed to comply with the requirements specified in paragraph 10. 3-03D for the GE/TAC equipment for all the remote and master stations. The Supervisory Process Controller (GE/PAC) will be fed from the AC Supply in the CVG Office, furnished by others. % 2. Power supplies for the GE/TAC equipment shall be in accordance with paragraph 10. 3-03D of the Contract Documents. The Super- visory Process Controller power supply will be furnished on a non-interrupt basis, by others. 3. The sequential recording teletypes shall record the time of oper- ation and the time sequence at the moment the data is received. 4. The Supervisory Process Controller and the digital clock shall be suitable for synchronisation from a 60 cycle external time stand- ard by others. 5. The proposed priority of alarm sequencing versus other super- visory functions complies with the Contract Documents on con- dition that the sequencing is dependent on the coincidental timing of the system scanning sequence. This is a minor condition in that the supervisory system is a high speed scanning type. 6. The proposed analog digital converters provide a 3 decimal digit resolution to an accuracy of +0.05%. Some competative equipments require 4 decimal digit resolution for the required percentage accuracy and it is for this contingency, 4 digits were specified. The percent accuracy requirement predominates and therefore the proposed converters are considered compliant in that the digital resolution meets or exceeds the analog transducers. 7. General Electric has proposed, as an option, an additional GE/TAC master station located in the CYG Office which in the event of Supervisory Process Controller outage for maintenance or revisions to programming, the CVG Office operator will have the means of receiving visual information from the remote stations. A second price for this option is given in the bid for the case of inclusion of the typewriters as an output for the additional GE/TAC master. We recommend the acceptance of the option using only visual read -3- outs, for a total price increase of Ba 10, 479 plus U.S. $18, 688. This would constitute an "extra" to the basic contract. 8. For operational supervisory control a direct operate, auto- . iatic cheek-back before operate, system should be furnished as called for in the Contract Documents. The above listed deviations and comments were discussed in our Offices during the November 10th meeting. General Electrie established their Intent for complete compliance and such a statement should be given as a supplement to their proposal and Contract. -4- .. .. .... -....... .. ... .... .. ... ..... .. .... .. .. .. . . ... .. .. ..... ... ........... ... . .............. . .. .. .. .. .. .. .. .... .. .. .. .. ... .. .. .... .. .. .... .. . E .......... .. .. .. . ....... ..... . ..... ...... ........ .. .. .. ....... . .. ..... .... ...... .. ... .. .. .. .... ... . M .. ... .. .. .- .. ... .. .. .. ... .. .. ... .. ...... .. ...... .. .. .......... .... .... .......... Pil . ......... ...... ....... ... ....... .................... ... .. ..... .... .... .. . ............ ...... i E g: . .. .. ........ ....... . ...... ... ......... . ...- .. .. .. .. .... ... .. .. .. .. ... ....- .. ......... . .- 1.. ............ ... .. .. .. .. .. .. .. . .. .. ......... . ........... . ...... ................. - --- --- ......... GURItFOjECT.,*.-.;CO:NT .RACi::: NT:::,AN-D---SUPERVIS0R Y 9TSTjgM::: ............. . .. ....... . .......... .. .. .. ...... .. ..... ... .. .. .. .. .. ... . TION - ........... .. .. .... .... ... .. . ............. .. .. ... .. .. .. .. ..... .. .. 410. ......... . ........ ............. 4w........ ...... .. . ... .... ..... .. ........... .. .. .... ....... .. .. .. .. .. .. ..... ... .. .. . - .. .. ......... GENvRAL- EIZCTRIC LEPRONE &ELECTRONIC OTAC:CA MICROWAVE S.. tt 'a A's U. S. Toti Be:: .. .... 7M T .. .. ... .. ..... .. . ... .. ... .. . ...... .... . Item 1 190 Z17 Z04 060 7 8941 "O :w 514 150 543j 1,10 067 .. .. ... .... .. ... .. .. .. ... . ...... 2 go 5z 0" 00 7 4,v -YA1 4 0 366,A46, 3,0 Z33,r,6 1,00 125.6 t......... a ...... TO 0 1 sz::: OSS 00. 834, Z47, 50 .. ..- .. .. .. 3 24t300jOG Ai lo: 2,0114ft 1-17 1 8 :15:-- -14-N 1160, 805,00 1201 000v .. .... ... .. ZOZ1876150 460769*55 7 tp,6 To 31Z,-.747#20 10 1 144 00 94,7471w 621005 #6 150,000: 1, 26 4.42 00 718 989 00 .... d -. 5 ..... ..... .. ..... ..- .... ... .... .. .. .. .... .. 24,534,00 82,380t8O 395, 247, 60 159 451,00 156, 418j:06 841 .. 33 56: MOO '145, 444," 00 804,498oOO - . ... .... .. 6 31.611,80 52,457,20 .. .... .. Z67,669,ZO 168,241,00 67, F6:1 471 1', 0 Off: --. ISO 000 99"4-50r, 00 55Z,525,00 .. ... . .. ......... .................. ...... Total 1 thru 6 176.5G4,75 348,964,75 ls746s846slZ 99 3,57-6,00 5Z3,08Z ,00 3 z 141 1 870 000 619:0,348, 00 3, 657, 066, 00-1 .... ..... SUPERVISORY ............. ... ....... . ..... ... ... . .. .. .......... Item .... -8 ... 26,9341,30 117t822t2O 557,134,20 U,460200 IDZ r 393,00 64 405 00 473* 118V.50 101 IQ . .... ..... .. .. .. 9g, 7 210 . 9, Z3, 517t 70 84r744s4O 404 867,50 9,360,00 36,343,00 14171:04,;GO 172, g0,!,,, 50;- 6.56,, 508T Z1,180 . .. ........ 10 Z1,905,33 820 344t 40 39Z,455013 12,979,00 49x6l4,00 236j:24Zi 00 00 72, 40 ...... ....... IS Z40 .... 11 520 798,;, 50 3004,287, TO 1-, ::#04, 093t IS 18,901,00 324,358,00 Im478 5,12 00 60 z 165 43: 6941:05Z r 1z 26tO57,00 1110,633,30 5 Z8j, 06, 85 15,630 00 50. 500 00 242, 990, 00 1, 201r, SZ2 . .. . .. .. .. .. ... .... .. .. .. ... -- Total 8 thru 12 15 1,, iZ 12, 83 696t83ZtOO 3,286,956,,83 69,330,00 - -- 563. 208. 00 2 603,766s, 00- 116:1,514 .. .. ... . . . .. ... .. .. .. .. .. .. .. .. .. - 'wo i! .. ... .. ..... .. ... ... .. . - ... 11 ........ .. . .. .. .... ... .. GRAND TOTAL 27,717,58 1,045,796,75 5,033,802,96 1 06Z, 856, 00 086 490 00 .... 5,951,1611OD: 006? 5A :4: l:;:: . ... .......... =W : ........... .. . .. ......... .... .. .... .... .. .. .. MAINTENANCE ......... ... .... .. .. ..... ..... .......... ... ......... JERK , . CONTRACT .......... ........ . .. . - ..... ....... .. ............. ........ 32,91 9sO5 ....... ..... .. .. .... ...... .... NkA ... .. .. .. w .. .. . --- 'I ..................................... ................ 11-1-1--- ............. ....... ........ .... . ....... .. ............... ....... .. .. .. ..... . .. .. .. ... .. .. .. . . .. .... .. .. - .. .. ... . .. ...... Notic Total Bolivars a6tv ...... .. . .. .... ... I certify the a4 a be, .. tr AD avc-Pr- .. .. .. ..I .... ... the: arnovints:: ...... ... .. .. .... .. .. .. .. .. .. .. ... Calculated by-Harza zri .... .. .... ..... .. .. .. :: 11 ::::,: ... .. .. a, - - - - ; -. ; 2 L Vtpment a n d .......... b'd for the - .. .... .... .. ... .. t-N ........... Company at the Superviser p sl , j _kft .. .. .. 'g.j . .. .. .. .... .. .....z... .. .. .. ... ..... ...... .... .... .............. . .. .. .. .... ........ .. .. .. .. ... ... . .......... ... .. .. ....... . .. .. .... .... .......... .. ............... .. .. .. .. . .. ... . ...... ...... ............ .. ...... ... . ............ . .. . ....... ............. v i * 4 4 - -. ... .. .. .. . .. .. .. .. ............ - .. N.-MA - - .. .. .. .. . ... ............... .. ...... .. .. .. .. - .. .... .. .. ............. ... ............. . .. .. .. ... . ... .. .. .......... .. .. .... .. .. .. .. ..... ..... .. .... ... .. ... .. ..... .. U s : 4 . ..... ... ... .. .............. ........ .. ............ Rate of Exchange (Bs per 44 B* US $ ... .. .... .. .. .. .. ... .. .. . . ... .. ... . .. .. .. ....... ..... . .. . .. ... ... ........ ... RUT- .. ... ....... . .. .......... ........... . . .. .. .. .. .. .. .. .. ... .. ... .. .... .. .. .. ............. ... ............ ........ .... ...... . .............. .. .... .. .. .. .. .......... . .............. .. .. ............... .. .... .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .... .... .. "A ll . I " , ,"' ---- l- "I'll "I'll 11 - -- ...--...---- I 11 ----------- - - ... "I'll'', 11 . .. . .. ... .. ... .. .. .. .. .. .. ..-.-....-...--- ::::-::-:;2:mq;!M.. =11-I.....1- - . -: - .... 1 . .11 I - .1 11- 111.1- 1 .1 I'll 11 I - :,N.. -Ir..... ....... ...11 1. - ' I - - 11. .. - - .1-1.1- I - ... .. - ij .. . ...... . I'll, I I - - 11 11 11 I II ".." .. I ........ - I.. .. .. .. " .... -: ... 111.1 -1. .. . .-I I -1- ........ I .. - I .. I i- . 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Howell SUBJECT: VENEZUELA: Back-to-Office Memorandum In accordance with my Terms of Reference of September 14, 1966, I travelled to Venezuela during the period September 23-October 12, 1966 to (1) review the status of EDELCA's Guri Hydroelectric Project (Loan 353-VE); and (2) to appraise EDELCA in connection with its request for a second Bank loan to assist in financing proposed ERV transmission facilities, which will be required to transmit Guri power to the Caracas-area load center. During the course of my visit, I contacted, in addition to officials of EDELCA, the managers of CADAFE, and La Electricidad de Caracas. Status of Guri Project 1. The Bank has been aware for some time of the delays which have occurred in connection with the execution of the general (civil works) con- tract by Consorcio Guri, (managed by Kaiser Engineers & Constructors). Apparently none of the time lost by Kaiser has been recovered since the last Bank visit in October 1965,* and Kaiser is still seeking an extension of the June 1967 completion date for commissioning unit 1 as called for in the con- tract, until July 1968, a 13-month delay. This issue is still not settled between EDELCA and Kaiser, but agreement in principle has been reached that Kaiser is entitled to some extension in time, and that certain additional difficult excavation performed by Kaiser will be paid for at a price (not provided for in the original contract) to be negotiated. At the present time, the positions of the two parties are far apart as regards both time extension, and unit price for the excavation. General Alfonzo, whom I was able to see September 23 prior to his departure for the Bank's Annual Meeting, was of the opinion that settlement of these two issues may have to be reached in the courts. Aside from these issues, Kaiser has not yet submitted any other formal claims. 2. I visited the site September 29, and received the impression that relationships between EDELCA and Kaiser have much improved over last yearts. Schuppe, the Kaiser project manager, was in the U.S. at the time. I was told by Kaiser's people that Boyce (whom we encountered during 1965 in connection with the Bandama Project in the Ivory Coast) has been put in charge of co- ordinating job-site and headquarters activities. Construction activity has increased somewhat, and Kaiser is reportedly planning to move in additional equipment, following the arrangements made by EDELCA, Kaiser, and the Bank to assist Kaiser in obtaining commercial bank credits to ass st in financing * See LithgowAlowell Memorandum to you dated November 4, 1965, 353-VE, Guri Hydroelectric Project, Project Supervision Visit. Mr. Mario Piccagli - 2 - October 14, 1966 the contract.* EDELCA's project supervisor, Gomiez, believes that monthly payments to Kaiser for work performed have not yet reached the level of Kaiser's monthly costs. 3. Except for the long tailrace channel below the powerhouse and spill- way, excavation is essentially complete, including preparation of the right abutment for the rock-fill dam. The rate of concrete placement in the main gravity dam and powerhouse has improved, but still is somewhat below Kaiser's own target. The bottleneck in this operation is the cable-crane used to carry concrete from the preparation plant to the work areas. The critical element now appears to be concreting the lower portions of the spillway to a level sufficiently high to permit flooding the area next year, when the right channel (now carrying the River) is scheduled to be diverted through sluice- ways provided in the main concrete dam. Provided this spillway work can be accelerated (Kaiser has recruited additional form-workers in Italy to help) and the upstream cofferdam raised higher soon enough, Kaiser will probably attempt the diversion in April 1967, the next dry period. Otherwise, diversion will have to be delayed until October 1967, the next following dry period. More risk is involved for Kaiser in attempting the earlier diversion, because River flows in the summer are generally higher than in the winter, and the possibility of overtopping the cofferdam is increased. On the other hand, Kaiser stands to gain some time, and faster payment, since the contract re- quires lump-sum settlement for diversion. (Kaiser has retained a meteorologist to forecast flood crests for 1967.) Harza's manager at the site is of the opinion that Kaiser will attempt the April 1967 diversion, based upon his belief that Boyce wants to complete the job as soon as possible and move out. Palacios, EDELCA's construction Manager, believes it more likely Kaiser will not be able to complete the necessary spillway concrete and cofferdam heighten- ing early enough to attempt the April diversion. EDELCA prudently plans to avoid discussing Kaiser's April vs October decision with them, to avoid laying any foundation for possible further time extension claims. Kaiser has stated initial power generation can be achieved by July 1968, regardless of whether diversion is made in April or October 1967. 4. According to the latest cost estimates (Harza, July 1966) there remain ample funds in Loan 353-VE to cover foreign exchange expenditures (in- cluding completion of generating unit 3, to which the Bank has not yet agreed), since all major contracts have been signed, and final costs can be estimated closely, except for the general contract. As of June 30, 1966, funds equi- valent to about US$51 million were available in the Loan account, whereas direct construction and engineering costs to complete are estimated to be about US$31 million equivalent. Thus, some US$20 million is available from the Loan for contingencies and interest. The local currency cost estimate has increased considerably from Harza's initial estimates, due principally to extra quan- tities in excavation and concrete. It is now equivalent to US$61 million, including about US$4 million equivalent for contingencies. This compares to * See Mr. Zinman's letter of September 2, 1966 to Dr. Espinosa. Mr. Mario Piccagli - 3 - October 14, 1966 the Bank's 1963 estimate (which was reviewed by Cooper Bros.) of the equivalent of US$55 million. (These figures are exclusive of any local currency claims which may be presented by -- and probably can be expected from -- Kaiser.) While EDELCA should have no difficulty in financing the local currency costs of the Project, the delays which have occurred, and the Bank's agreement to extend the Closing Date ten months to accommodate Kaiser in their attempt to obtain additional working capital financing, may raise a question as to use of Loan proceeds (the US$20 million for contingencies and interest) to defray the inevitably increased interest charges EDELCA will have to finance during the construction period (as opposed to the grace period provided for in the Loan Agreement), to the extent contingency allowances are not needed. EDELCA will presumably be required to begin principal repayments in accordance with the Loan Agreement, beginning May 1968, while the Loan account is still open for withdrawals owing to the extension in Closing Date already granted. Pro- vided there remain sufficient funds in the account, i.e., present contingency allowances prove to be too large, as appears likely at present, consideration might be given to allowing their use to make interest payments in 1968 and part of 1969. This is of some importance to EDELCA's and CVGts financial planning, since the equivalent of about US$7 million in interest is involved. EHV Project Appraisal 5. With the several exceptions noted below, my appraisal of EDELCA for a second loan of about US$20.5 million equivalent has revealed no unusual problems. The proposed EHV facilities have been well-engineered; EDELCA should be capable -- assisted as it proposes to be by consultants -- of executing the Project capably and on time; and the companyts projected finan- cial performance appears to be acceptable in all respects.* The cost estimates as used in the appraisal appear, on the basis of prices already offered for the principal equipment and materials, to be conservatively high. Contract documents will require completion within 25 months, whereas I have assumed commercial operation will not be achieved before 36 months after the longest lead-time equipment has been ordered. The principal areas of uncertainty as regards EDELCA's eligibility for further Bank financing are: (i) Conversion of La Electricidad's 50 cycle system to 60 cycle operation has not yet begun, in spite of the fact that the Government under- took in connection with Loan 353-VE to have conversion completed to coincide with completion of Guri. It is likely Guri will be completed in late 1968, whereas conversion cannot be completed until mid-1970. (ii) Sales of EDELCA's power available before Guri's completion (from the existing Macagua plant) cannot begin until mid-1967, when CADAFE is now scheduled to have completed the 230-kv line financed in part by Loan 391-VE of August 1964. In the meantime, the Bank has made Loan l4g-VE of April 21, 1966 to INOS, to expand the water supply system of Caracas. INOS will require additional electric * These preliminary observations, based upon cursory analysis in the field, remain to be confirmed. Mr. Mario Piccagli - 4 - October 14, 1966 power for pumping as this Bank-financed project proceeds to com- pletion, step-by-step. Although CADAFE does not have any power agreement with INOS, it has nevertheless proceeded to acquire (with the Bank's agreement in its letter of July 13, 1966) additional peaking generating facilities. Even if the INOS load does increase as soon as claimed, one would still have to question the ability of CADAFE to complete the timely installation of its recently-purchased gas turbines. These additional gas turbine generating facilities are in the market area for Guri power, in which sales were an impor- tant aspect of the justification of the Bank Loan for Guri. CADAFE's purported justification of these gas turbines is based upon: (a) the fIOS load developing as INOS claims, although no power sales agreement exists; (Charles Morse of our Water Supply Division believes the INOS project will be delayed somewhat); (b) generating reserve criteria which are overly conservative, especially in view of the relatively short-term exposure to risk before supplies from EDELCA will be available; (c) the assumption that spring 1968 will be an unusually dry season, and only a minimum of power will bs avaiJ.ab1: from EDELCA's Macagua plant, before completion of Guri unit 1 in J.ly 1968; and (d) the complete acceptance that the INOS pumping load -- even i, it develops as rapidly as claimed -- cannot be modestly cur- tailed during the few peak hours daily.* (iii) The misconception on the part of certain of EDELCA's senior manage- ment (not General Alfonzo) that the Bank would finance, without any particular prior agreement, certain nationally-fabricated elements of the EHV transmission line, in particular, tower steel and wire; and that furthermore, the Bank would agree to do so with an element of protection for Venezuelan suppliers of the order of 10-15 percent of the lowest CIF foreign prices. (A draft letter to clear up this point is attached.) 6. I believe the Bank should establish its position vis-a-vis the EDELCA EHV Project as soon as possible. The availability of Bank financing of the proposed line will, in my judgment, be very important in assuring that La Electricidad proceeds expeditiously with its 50-60 cycle conversion. Specific recommendations appear in paragraph 10. * While CADAFE's planning engineering advisor bases his recommendations on an assumed 95 percent daily system load factor, average load factor during January-June 1966 was less than 75 percent in the area concerned, including NOS. Mr. Mario Piccagli - 5 - October l, 1966 7. I was fortunate to obtain an interview October 3 with Oscar Machado, General Manager of La Electricidad, who, although seriously ill, received me in his home. He appears satisfied that the funds to defray costs of con- version CVG has already in hand, together with the Government's authorization to CVG to obtain local or foreign guarantees for the rest, form a satisfactory basis for La Electricidad to proceed with conversion. La Electricidad has formed a subsidiary company (Cambio de Frecuencia C.A. - CAFRECA) to carry out the work, assisted by Bechtel Corp. (USA), who have considerable experience in this field. A staff has been organized (headed by Edmundo Lopez, who capably handled conversion of CADAFE's Central System in the early 19601s) and a census of consumers' apparatus/appliances is well underway. Procurement of portable substations, etc. which will be required during conversion has been initiated. Actual physical work by CAFRECA is due to begin July 1967, and to be completed June 1970. CADAFE 8. I had a brief general discussion of CADAFE's affairs October 10 with Oscar Niemtschik. I expressed my disappointment that CADAFE proposes to purchase another 53 7W of gas turbines, in addition to those already agreed to by the Bank. I offered the opinion that CADAFE's system planning was being carried out on the assumption that the engineering dopartment is in- capable of buying, installing, and operating badly-needed transmission. There is no question in my mind but that in large measure CAD4FE's gas-turbine purchases will in the near future be either redundant, or redci;.e the potential power sales of EDELCA. Coordination in the planning of the public pcwer sector is badly needed. 9. CADAFE has recently appointed -- as we have been urging for over two years -- a capable engineer, Jorge Cavallotti, to assume full respon- sibility for completion of the Bank-financed 230-kv line project. It seems unlikely that time already lost will be recovered, but the appointment of Cavallotti should at least increase the chances of commercial operation by the middle of 1967.* Recommended Action 10. I believe it would be appropriate for the Bank to officially inform EDELCA of current policy with respect to use of Bank loan proceeds for national procurement, as related to the proposed EHV line. My own opinion is that, irrespective of policy, Venezuelan manufacturers cannot fabricate -- and deliver on time -- transmission tower sections and ACSR wire of acceptable quality. * Vhen Loan 391-VE was made in August 1964, the already-delayed project was scheduled to be completed in March 1966. Mr. Mario Piccagli - 6 - October 14, 1966 11. The Working Party should consider immediately whether present arrangements for frequency conversion will be acceptable as a basis for a new loan to EDELCA, in view of the undertakings of the Government to have the conversion completed in coordination with completion of Guri, originally scheduled for 1967. The inclusion of Guri generator No. 3 in the 3escription of the Project should also be considered. We should start to discuss, as well, any general undertakings we may wish to ask EDELCA for, in the event the Bank considers making a second loan. We might, eag., wish to require a power agree- ment be signed by CADAFE and EDELCA now. 12. The Bank should insist that CADAFE obtain firm "take-or-pay" agree- ments for power from INOS, in view of the considerable investment in additional generating facilities CADAFE has committed itself to assure power supplies to INOS, in accordance with INOS' schedules. 13. The Bank should make strong representations to the Venezuelan Govern- ment that it expects the Government to promptly comply with its undertaking to have the Ministerio de Obras Publicas pay to CADAFE INOS' past due accounts for power sales.* Niemtschik informed me this past-due account is of the order of Bs 12 million. Distribution: Mr. Aldewereld, Mr. Chadenet, Mr. Ripman, Mr. WenzeLl, Miss Van Gasse, General Vogel, Mr. Bell, Mr. Spottswood, Mr. Sadove, Mr. Lipkowitz, Mr. Zinman, Mr. Cancio, Mr. Rigby, Mr. Nelson, Mr. Morse, Operational Files (5), Division File (4) FHHowell/mw IBRD * A detailed account of this situation is set forth in my memorandum to the Working Party, of December 16, 1965. DRAFT FHHowell:epg October 17, 1966 General Rafael Alfonzo R. President C.V.G. Electrificacion del Caroni, C.A. Anartado 11563 Este Caracas, Venezuela Re: EDELCA EHV Project Procurement Dear General Alfonzo: Fred Howell has reported to me that, during his recent visit to Caracas, he discussed with you, and several members of EDELCA's Board of Directors, certain aspects of the procurement now underway for the 400-kv line and substation. I would like to confirm to you, that should tho Bank agroe to make a second loan to EDELCA for the ERV Project, the Bank would not expect to make any disbursements other than against foreign exchange contracts. We would also require that EDELCA consider awards only to fully qualified contractors. Very truly yours, Mario Piccagli Assistant Director - Projects Department in charge of Public Utilities To be cleared by: Messrs. Nelson/Zinman Cancio Rigby .75 o. 75INTERNATIONAL FOM FORM BANK FOR RECONSTRUCTION AND DEVELOPMENT NTWNATI0ONAL FINANCE INTERNATIONAL OEVELOPMENT CORPORATION ASSOCI ATION Date ROUTING SLIP N ME ROOM NO. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation Full Report Recommendation Information Signature Initial Send On RtMAKKS 4 From REGISTERED MAIL NUMBER C.V.G. ELECTRIFICACION DEL CARONI, C. A. (EOELCA) - - GERENCIA DE CONSTRUCCION APOO. 115B3 ESTE - TELFS: 336756 AL 61 CIRECCION CABLEGRAFICA: E L CA R 0 N I CARACAB - VENEZUELA 13 OCT 196G F Messrs. International Bank for Re- construction and Development Loan No. 353 VE. 1818 H Street, N.W., Contract No. 12. "Acta Washington D.C. 20433 de Licitaci6n".- L U.S.A.- IL Projects Dept. Correspondence ANS'D By Att: Mr. J.C. LUthgow DATE ... Chief, Power Section I Pro- jects Department - Public Utilities Please find enclosed one (1) copy of "Acta de Licitaci6n" for Contract No. 12, Microwave Equipment and Supervisory System. Very truly yours, GE CIA ONSCCON ------------------------------------------------------------ ING. P. PALACIOS HERRP----- ----- GERENTE FA/mev. - 10-10-66. - 6 * wili i ... C.V.G. ELECTRIFICACION DEL CARONI C.A. (EDELCA) GERENCIA DE CONSTRUCCION ACTA DE LICITACION GURI - CONTRATO No. 12 EQUIPO DE MICROONDAS Y SISTEMA SUPERVISOR En Caracas a los 4 dfas del mes de octubre de mil novecientos sesenta y seis, siendo las cuatro de [a tarde, se procedi6 a la apertura de los sobres que contentan las proposiciones para el proyecto, fabricaci6n, entrega, instalaci6n y pruebas de un equipo de Microondas y un Sistema Supervisor. Las ofertas recibidas fueron las siguientes: LICITADOR: General Electric de Venezuela S.A. EQUIPO DE MICROONDAS Boltvares Divisas ($) Partidas 1 a 6 176.504,75 348.964,75 Divisas convertidas a I 1.570.341,38 Total en B. 1-746846.13 SISTEMA SUPERVISOR Bolivares Divisas ( $ Partidas 8 a 12 151.212,83 6. Divisas convertidas a IP 3.135.744,40 Total en B! 3.286.956,83 Gran total en B! 5.033.802,96 Pag. 2.- Observaciones: LICITADOR: Collins(OTACCA) EQUIPO DE MICROONDAS Boitvares Divisas ($) Partidas 1 a 6 870.000 619.348,00 Divisas convertidas a BI 2.787.066 Total en B 3.657.066 - SISTEMA SUPERVISOR Boltvares Divisas $) Partidas 8 a 12 136.514 910.099 Divisas convertidas a BI 4.095.445 Total en BI 4.231.959 Gran total en BI 7.889.025 Observaciones: Pag. 3.- LICITAI .: Lenkurt - Marelli (GT & E) EQUIPO DE MICROONDAS Boltvares Divisas ($ ) Partidas I a 6 993.526 523.082 Divisas convertidas a IP 2.343.34r Total en B! 3.336.867 SISTEMA SUPERVISOR Bolivares Divisas ) 69.330 563.208 Partidas 8 a 12 Divisas convertidas a B! 2.523.172 - Total en B! 2.592.502 Gran total en B! 5.929.369 Observaciones: LICITADOR: EQUIPO DE MICROONDAS Bolivares Divisas ( ) Partidas 1a 6 -. visas convertidas a B! Total en BI P6g.4.- Estuvieron presentes: Dr. Alfonso Espinosa, Dr. Domingo Calatrava, Ing. Carlos Silva e Ing. Francisco Abfreu, por C.V. G. EDELCA. Ternlin6, se ley6 y conforme firman, los licitadores en los espacios a Ia - derecha de sus respectivas ofertas y los dem6s otorgantes al pie de ta presente.- POR LA C.V.G. ELECTRIFICACION DEL CARONI C.A., Messrs. J.G. LIthgow and P.N. Swe1l October 12, 1966 Mario POOSegli V3I803VEA - &i. - Autotranstorasr - 1in4i$ Y Ihortly after 1ithgow's departure I had a call from Guess of Xara who said he was in a quan&y over the question of the matotransftormers as consideration of gliverie and in-servie. dates raised a question about even the award solution that we had objected to and muLjt make it meoessary to go to a still more ensive svpplier. I told him that I could not diseass a of this until we had ben satisfied on the question of whether it was prper to rule out Nagliah Electrie and that we were stil waiting for mara to satisfy us on that point. I went into same apemifies n this and Guess then agreed to tackle that point tr itself and send us sameting en it. On the basis of what he would end ma I would than be able to decide whether there was a point in haming the meting he was suggesting. Xe than sent a letter dated September 30, 1966 about the question of Vkglish Electris. I read it and was Impressed by the arguments put foward, to a point where my sempetation that we woulded up saying that tbW should award to laglid Electric was badly shaken. Iover, I wanted ithgi s to review this letter and to reach his own oonclusions; henee, I did not all Guess back. Guess himself did eall on October 21. I told him that I had been impressed W the arguoments in the letter but did not want to discuse them ftrther arself and would rather wait for TAthgow to return. We agreed that after such a final review we would get in tomch with hi and toll him finatly whether we do or do not agree with their soaclusions. In the meantim he said he would contine to try and uwravel the time and delivery puasle for a sholes among the other hLdders, which t m still jo not see elearly. He added that the Yanesuelans would like to split the order perely an the grounds of having equipmot fre dLffereat manratuers so as to siunisze the posobm UtT of trouble. I told him that an this I had &Mfflo- ulty seeLag the logic of such a position but in am event, we culd only contemplate a decision of this kind it the manufotmern being aensidered were offering pretically the sa price and since this is not the case here I told him that I did not see hew we could go alang with that kind of a oanclusion. I =m leaving this for LithW an paper in the event that I mW leave nort week so that he ean take it up as soon as he is back. attach. (-.lthgw )-Iarna ite.Sept.30 We bli UP. Iu m . 944 oeubw 6, 166 urd an , P4wrasat to a rooat furm ?hes flsr zt reoqestmg that docmmtA poltaia1n to certain ac en lzow be sent diretly to tbat 9apat, I .dimg y. 4tebe4 h.t.* %o cdep of a letter frw Zd*lUa dated Septaber , 1 U96, to the ank reqiestlng owtweBi of the Closing ate for io= 353-YE. ye vill note tkat the eotenoim is cenfirmed br.7 sioantwe of 3r. wmufernier.7 A OcWy of the gbw.mentsmnd letter had &lUea* been sent to yen mndz ovver at my nmwanda dated Owtbber 3, 2966, to Wr. Caic. AttI*mUeb BZinrman:sb FORM No. 57 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION I RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Mr. Leopoldo Cancio DATE: October 3, 1966 FROM: Bernard Zinman SUBJECT: VENEZUELA - Gui H oelectric Project (Loan 353-VE) Attached for the Legal Department file is the original of the letter of September 9, 1966, from the President of the Borrower (EELCA) on the extension of the Closing Date from March 31, 1968 to January 31, 1969. The extension has been confirmed by the signature of Mr. Chaufournier on the letter. Attachment cc: Mr. Lithgow/Mr. Howell Mr. Hasal Mr. Nelson (to be returned to B. Zinman for file) ( k G01t C400"140 WWI %OWN"4 AV~u RKVni capusa v..same & apm I m pum I to L m tw rw nQa so oft ro Uz - Ot t F966, a w Sa fes at I1 so Satm Is eafnd IWe a 19IP OM aseft pw steft .~ --- % a.. St Xr, Aq A s Pan .. av DW& "- mN, XiwenebW US ot V a m* afte- at aw** asmuaie mmura BZ inmanzb cc: M rs Cancio Lithgow/Howell Hasal Nelson Form No. 27 (7-61) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTIONAND DEVELOPMENT CORPORATION OUTGOING WIRE TO: R ALFONSO ESPINOSA DATE: SEPTIM 27p' 1966 EIDCARCNI CARACAS CLASS OF SERYICE: IBF GOVT COUNTRY: VENEZUEA Cable No.: COMPARED COPY 0FAREMN YOU GAV IN AAA WT ETREIWDB BANK AND KAISER RERES E S O AUGS N 3 P T A ITICAL STOP REGARDS NOT TO Of TRANSMITTED MESSAGE AUTHORIZED BY: CLEARANCES AND COPY DISTRIBUTION: NAME Bernard CC: 0in0an Mears. Canoio Rigby DEPT. Wsen4 iha SIGNATUnRE - C4 BZinman:( SIGNA U OF INDIVIDUAL RIZED To APPROVE) ORMGINAL (Fi Copy) (IMPORTANT: See Secretaries Guide for preparing form) Checked for Dispatch: I. A 14 mM .m l'11 em - - ssme w m esse .. em -++. m +m wwm. mmmmw T3101 ellviv # 14. ..... mluuuumilt* a el111 ..... ... *** ******* ******** **...* *."...""""...***".."".**.............."""............. " **** *** +**** ** 44 I. y F T01) I} '99RAI tM M7 d3 r! IVn At 7 VE-a3 FORM No. 59 (2.55) CROSS REFERENCE SHEET COMMUNICATION: DATED, ptember 27, 1966 TO: (r. aJrald Alter ( Through Mr. Nelson) FROM: r iml FROM, Mr, Bernard zimnan FILED UNDER: YRNEMUEIA - General Negatiationm SUMMARY: SUMMAYIA - Interia Mission Report Infornation obtained during mission to Venesuela Sept. 12-23 1966 Gari i wogelseWr rredjnt (wa 1Ia3 Thin preoot hkm bnn dsllid aemm e to So r4W# bab ewmmitgsti is new pLopeesi*g ausfts*. at lstI t UALw 1 the cmArsstor oouwatiU (oad b Kaisw ftgoassuw) S wow ffl. Tb wo nom Astta a ftenl request frmi the ersw fov %A* amt *too. FoRM No. 57 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT I CORPORATION OFFICE MEMORANDUM TO: Files DATE: September 16, 1966 FROM: Max Lorie SUBJECT: Venezuela 353 - VE Guri Hydroelectric Project Technical and Financial Progress Report for the Second Quarter of 1966 Technical Report As of June 30, 1966 the overall construction progress was 45.8%, against 56% estimated on the "slow schedule" basis. The delay for completion is now 13 months, according to new forecasts prepared by the contractor. Excavation activities are greatly reduced due mainly to leakage of cofferdams which finally forced the contractor to stop all exca- vation work in the tailrace channel. At the end of the reporting period the contractor was trying to obtain additional pumps to reduce the leakage and to permit resumption of the excavation activities in that area. Concrete work was generally progressing satisfactorily except in the lower part of the spillway where concrete placement had not been started at the end of the reporting period and which was, therefore, at least two months behind schedule. This delay may affect the schedule for the diversion now contemplated for April 1967. The installation of the three penstocks is about complete. All the turbine parts have been received except the shafts, which have to be aligned with those of the generators at the factory. The questions of liob relations, claims and extension of time were discussed at a meeting in April between staff members of CVG, Harza and Kaiser Guri at which both representatives of the field office and the head office were present. A better under- standing was achieved. Financial Report The contractor had requested an advance payment from the Consortium of $15 million to be used in the work. This request was refused as not being permitted under the terms of the contract. Files Page 2 September 16, 1966 The estimated costs, as of June 30, 1966 compare as follows with the original estimate: Original Estimate Present Estimate (in U.S. $ millions) Foreign Exchange Costs 73,208 70,070 Local Currency Costs 51, 967 63,129 Total 125,175 133,199 The reduction in foreign costs expenditures is essentially due to the reduction of thedtcosts for the spillway construction. The increase in the local currency costs is essentially due to the higher cost of reinforced steel, labor and cement. As of June 30, 1966 the actual expenditure (excluding the item "contingencies") required to complete the project was estimated at: U.S. $27.5 million and BS 121.0 million (U.S. $26.9 million) or a total of U.S. $5h.h million. cc: Division Files Project Supervision MLorie:pjs V VE- E-:f'J INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFF ICE ME40RANDUM TO: Mr. F.H. Howell DATE: September 14, 1966 FROM: Mario Piccagli SUBJECT: COLOMBIA: Public Utilities Regulation VENEZUELA: Supervision, Gurn Project (353-VE) Appraisal of EDELCA for proposed EHV Transmission Project Terms of Reference Colombia 1. You will join Mr. Zenick in Bogota during September 19-23, 1966, to participate in discussions he will be holding with the Government, con- cerning the regulation of public utilities as visualized in the Memorandum on Economic Policy of December 17, 1965. You should make clear that, in the Bank's view, meaningful regulatory policies can be established only after uniformity of utility accounting practices has been achieved, and provisions have been made for regular, periodic revaluation of utility assets. 2. While in Bogota, you should take advantage of any opportunities which may arise to discuss the status of the proposed Bogota-Cali-Manizales- Medellin interconnection, with power system representatives and the Government. Venezuela 3. Following your visit to Bogota, you will travel to Caracas to review the status of the Guri Project (Loan 353-VE) and to appraise C.V.G. Electri- ficacion del Caroni (EDELCA) in connection with their request for the Bank's assistance in financing the proposed Guri-Caracas EHV transmission facilities. You should be guided in general by the Bank's "Summary of Information N.eeded for Power Project Appraisal", and pay particular attention to the following: (a) The plans of CADAFE and La Electricidad de Caracas, whose require- ments will constitute the major portion of EDELCA's market; and (b) The timing of the ERV facilities in relation to the completion of the Guri Project. 4. Your assignments should require about three to four weeks. Upon your return to Washington, you will submit brief reports. You should complete a draft of an appraisal of EDELCA within six weeks of your return. Cleared & cc: Mr. Frost Mr. Nelson cc: Miss Van Gasse (2); Operational Files (4); Division File (3) Mr. Aldewereld; Mr. Chadenet; Mr. Ripman; Mr. Zenick. Project Supervision File. FHHOWELL/mw IBRD a C.V.G. - ELECTRIFICACION DEL CARONI, C.A. (E D EL C A) AVDA. LA ESTANCIA NO. 10 - PISO 13 ^1 C-ESTAR REFEA1-1E A: CIUDAD COMERCIAL TELEFS. 33 97 61 - 33 97 56 - DIR. TAMANACO CABLE: ELCARONI ACH.: No. GDA-026 APARTADO 11563 ESTE CARACAS - VENEZUELA Caracas, L Ac--: 9 de septiembre de 1.966 International Bank for Reconstruction and Development 1818 H Street, N.W. Extension of Closing Date.- Washington, D.C. 20433 U. S.A. - L With reference to S-ction 7.01 of the Loan Agreement (Guri Hydroelectric- Project), dated September 20, 1963 between us, we request that the Closing Date be extended from March 31, 1968 to January 31, 1969. Please confirm your agreement with this request by signing in the space pro-- vided on the attached copy of this letter and returning it to us. Sincerely yours, C.V.G. Electrificacio' del Caronr C.A. (EDELCA) Gral. RafaeLAlfonroavard Presidente Confirmed: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By FAA/mev.- BY AIR MAIL MERZ AND CLELLAN .YARMBURN, I CONSULTING ENGINEERS ESHER, ALAN E. POWELL, M.I.C.E., M.I.MECH.E. ALSO SURREY. HAROLD J. BEARD, M.I.S.E. WILLIAM H. DIXON, A.M.I.C.E., M.I.MECH.E., M.I.E.E. CARRIER HOUSE - WARWICK ROW * LONDON. S.I WILSON W. CAMPBELL, M.I.MECH.E.. M.I.E.E. T R ARTHUR W. PEDDER, M.I.MECH.E., M.I.E.E. TFLEORAMS; AMBERXRAFT ESHER THOMAS W. WILCOX. M.I. CARLIOL HOUSE. NEWCASTLE UPON TYNE I HAROLD B. JOHNSON, M.I.SE.E TELEPHONE: ESHER '52121 STANLEY A. ROSSITER, M.I.C.E. TELEX: 252559 C. WILLIAM TAYLOR. A.M.I.E.E. CONSULTANTS ARTHUR HOWELL, M.1.MECH.E., M.I.E.E. CHARLES L. BLACKBURN, M.I.E.E. T. GRAEME N. HALDANE. M.I.C.E., M.I.EE. FREDERICK C. WINFIELD. M.I.E.E. E. LEWIS E. WHEATCROFT, M.J.MECH... MISE. THOMAS R. J. BISHOP, M.S.E., M.I.E.E. YOUR REFERENCE SIR JOHN HACKING, MIS. DR. ALBERT PARKER. C.-.., F.R.I.C.. OUR REFERENCE A1ITKY /7th September, 1966. M.I.CHEM.E.. M.I.GAS.E. ASSOCIATES BASIL WOOD. M.I.MECH.E.. M.I.E.E.. ROY H. WATSON, M.I.MECH.E. GEORGE LYON, MI.E. IAN H. B. CHESELDINE. M.I.E.. MR. M. PICCAGLI, Assistant Director - Projects Department, International Bank for Reconstruction and Development, 1818 H Street, N.W., Washington D.C.20433, U.S.A. On my way out to Tokyo to the World Power Conference I am travelling via the States and stopping off in Washington where I will arrive during the afternoon of Monday, September 26th. I hope you will be able to spare me a short while on Tuesday, September 27th and I will ring your secretary on that morning to try to arrange to see you. I hope I shall also see you at the WorldPower Conference. R *~ 4a09 .+s , ( ~1 i N NUM M fI - -1 1 September 2, 1966 Dr. Alfonso Nspinosa CYG lectrificacii del Caroni C.A. Avenue La Istanoia No. 10 Ciudad Comeroial Tamanao, Caraas, Venesusla Ouri t*dosleotri Proj eot (Lmn 353-VI) Bear D. Ispinasa: Confixulng our telephone conversation of August 31, I en lning six spies of the latest draft (Augst 31) of the modifted Case V Irrevooable Agroe- ment to Reimburse Procedure. As mentianed to you, this draft corrects sae inconsistencies in the ear-- lier versions. We would appreciate hearing fran you if you have any further conm te. Sineerely yora, W X nman Wter msphere Dpartmant Enlosures cc: Messrs. Cancio o/r Clark (no attachment) Lithgow HowelI Rigby/Hasal BZinman:ab Septenber 2, 1966 Mr. Robert 1. Bernard Vice.President Kaiser kngineers Kaiser Genter Oakland$ Calif rnie 91"6OI. (Gu !iHdroeltxis?rejeot (LaA 3343) Dear r. Bernard: Prsuant to our conversation, I am eloelsing herewith three oopies of the latest draft (Augst 31) of the modified Case T Irrevoabl Aposmnt to Reimburse Procedure, which we discussed with you and Mr. James of the Bank of America during meetings at the Bank an August 30 and 31. Copies have alrea* been sent to Dr. Ispinosa of Edela. 81neerely yours, Be d ZMiman Western eisphere epartment Inolosuzes cc: Messrs. Cancio o/r E. Clark Lithgow Howell Rigby/Hasal BZinman: sb X V e- 2IS j FORM No. 57 INTERNATIONAL DEVELOPMENT | INTERNATIONAL BANK FOR | INTERNATIONAL FINANCE ASSOCIATION | RECONSTRUCTION AND DEVELOPMENT I CORPORATION OFFICE MEMORANDUM TO: Files DATE: September 1, 1966 FROM: Bernard Zinraxj SUBJECT: VENEZUELA - Guri Hydroelectric Project (Loan 353-VE) On August 30, 1966, Mr. Robert E. Bernard, Vice-President of Kaiser Engineers, visited the Bank with Mr. Robert L. James, Washington repre- sentative of the Bank of America, to discuss (a) the draft Payment Agree- ment between Consorcio Guri and the Bank of America National Trust and Savings Association, from which the Consorcio proposes to borrow $10 mil- lion and (b) the draft documents for the modified Case V Irrevocable Agree- ment to Reimburse Procedure. The visitors met with Messrs. Ellsworth Clark, Lithgow, Rigby and Zinman on August 30; Messrs. Clark, Rigby and Zinman met again with Mr. Bernard on August 31. During the meetings, several minor changes were made in the above- mentioned documents. The modifications were of no major substantive char- acter, but were made to achieve consistency among all of the documents now that the draft Payment Agreement has been prepared by Kaiser and the Bank of America. A redraft of the Payment Agreement was prepared during the meetings (see copy attached). It was agreed at the meeting that the writer would telephone Dr. Espinosa, Counsel of the Borrower, to indicate that the Bank had seen the draft Payment Agreement and had made several changes in the draft Case V documents, and that as soon as clean copies are prepared we would send them to him. Daring the telephone conversation, on August 31, I informed him that the Bank had agreed to the extension of the Closing Date of Loan 353-VE from March 31, 1968 to January 31, 1969, and that a letter had gone out on August 31 to initiate the formalization of the extension. Mr. Bernard informed me br telephone, on the afternoon of August 31, that he had communicated the text of the new version of the Payment Agree- ment to the Consorcio representatives in Venezuela by telex, and that they would show the text to Dr. Espinosa. Attachment cc: Messrs. E. Clark/Cancio o/r Howell Lithgow Rigby/Hasal R. Nelson o/r BZinman:sb DRAFT: August 31, 1966 PAYMENT AGREEMENT (Letterhead of Bank of America National Trust and Savings Association) Consorcio Guri (address) Gentlemen: We hereby authorize you to draw on ourselves up to an aggregate amount of U. S. $10,000,000.- (U.S. dollars ten million): Upon presentation of your statement of work performed, approved by C.V.G. Electrificacion del Caroni C.A. (Edelca) and International Bank for Reconstruc- tion and Development (the International Bank) and notification thereof to us by the International Bank; Covering the approved amounts for the value of work performed as detailed on the Statement in accordance with the items and unit prices contained in Guri Project Construction Contract No. 1 dated August 8, 1963, as amended from time to time by the parties thereto with the approval of the International Bank; Partial payments permitted; For any purpose in relation to this Payment Agreement, between the par- ties or in connection with third parties, it has been agreed that the International Bank may conclusively rely on any written statement by us that any payment has been made by us under and in accordance with the terms and conditions of this Payment Agreement and amendments, if any, thereto. You will give prompt written notification of this Payment Agreement to the Corporacion Venezolana de Guayana (CVG) accompanied by two copies of this Payment Agreement. This notification will constitute, and will so state, a -2- complete, formal, definite and irrevocable authorization for CVG to proceed, in accordance with the aforementioned Guri Project Construction Contract with you and for Edelca to proceed in accordance with its Loan Agreement with the Inter- national Bank, to effect payment of the amounts referred to in this Payment Agreement to us, instead of to you, and to request, in accordance with the Inter- national Bank's requirement, that it issue to us its Agreement to Reimburse in order to effect said payments. This agreement expires on or before January 31, 1969. Please confirm your acceptance of this Payment Agreement by signing in the space provided on the attached copy and returning it to us. Upon receipt of such copy we shall forward two additional copies of the executed Payment Agreement to CVG. Very truly yours, BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION By AGREED: CONSORCIO GURI By August 31, 1966 General Rafael Alfonso Ravard President CVO 3lactrificaci&a del Carmw 0.A. Avenida La Istanoka No. 10 Ciudad Comorcial Tamaa" Caracas, Yunesela Doar General Alfensot I am pleased to inform you that the Bank is agreeable to an extension of the Closn ]a. for Loan 353-VU (u-I Ndroelectrio Projeot from March 31, 968 to January 31, 1969. I a attaching a draft formal request which should be submitted to the Bank for aonfirmation. linoerely yours, Roger Chaufournier DIputy Itrector Western Imiisphere hpartmnt Attahment Cleared with and oc: Messrs. Ellsworth Clark Lithgow Rigby c: Cancio o/r Howell BZinman: sb (Letterh..A of WWA) (hte) international PAn for Reonstruction and Devolopment 1818 H Street, N. W. washingtin, D. C. 20 4 33 Gentlam.n: Re$ Atension of ClosInAg iate 11th reference to sectian 7.01 of the Lan Agreement (ftri Ibdr.- electric Projet), dated Septmber 20, 1963 between us, we request that the Closing Date be extended fran March 31, 1968 to January 31, 1969. Please confirm your agreement with this request y uiging in the space provided an the attached copy of this letter and returning it to us. SimeareIy youmrs 010 IIZCTRIFICACION EL CARONI C.A. CIRMEDs INTEZBATILAL BANK FOR RECmSTRUCTIN AND TEWPMT August 31, 1966 S. J. Pears, Isq. Coopers & Iybrand Abacus House Outter Lane Cheapuide London I.C.2, lUgland Dear Pearst Thank you very such for your offer to look into problems res Ouri during your forthcoming visit to Venesuela. Although we have many problems in connection with the project, they are not related to finicial affairs at the moment, so there is no enquiry which could usefully be made during your visit. You have certainly mapped out a comprehensive tour which I am sure you will find most interesting but not a little exhausting. Yours sincerely, J. C. Lithgow JCL:bli IMND-353-VI COOPERS & LYBRAND LONDON, BIRMINGHAM, GLASGOW, GREAT YARMOUTH, CHARTERED ACCOUNTANTS TELEPHONE: MONARCH 4040. HALESWORTH , LEEDS, LEICESTER, LIVERPOOL, LOWESTOFT, :;,10H PEA" GREVILLE C.B.GIDLEY-KITCHIN TELLMAN : COOP R, LONDON. MANCHESTER, NEWCASTLE, NORWICH SHEFFIELD, THETFORD. A HENRY BENSO , S.J.OAVID ORB.E. COEBAN AND NORTHERN IRELAND. VIVIAN R.V. COOPER T ANTHONY TANBLEY BRIAN WGRAVES DONALD R.CHILVERS OHN PERFECT ALEXANDER D. GORDON UNITED STATES OF AMERICA, CANADA, MEXICO, . FRANCIS SHEARER, O..E. ANTHONY PINKNEY A BA CU S HO U S E, J AMAICA, PUERTO RICO, VENEZUELA, ROBERT PHILP DEREK J.JAMEB BERMUDA, BAHAMAS, AUSTRALIA, NEW GUINEA. NEW ZEALAND, RONALD F. SUMNER PAUL F.M.EHEWELL MALAYSIA, SINGAPORE,* HONG BONG, IRAN, BSRIAN A.MATNARD C.BERNARD WULCICO G UTTER, LANE, BELGIUM, DENMARK, FRANCE, GERMANY, ITALY, AVID CHOBBON IOHN C.006 THE NETHERLANDS , NORWAY, SPAIN, SWEDEN. SWITZERLAND, SOUTH AFRICA, RHODESIA, ZAMBIA, PRINCIPAL MANAGERS .. P.SMITH, PETER H.HODGKINS C H EAPS I D E, KENYA. TANZANIA, UGANDA. NIGERIA, GHANA, LIBERIA A11}MIL LONDON, E.C.2. OUR REFERENCE 606 25th August 1966 Mr J.C.Lithgow. International Bank for Reconstruction & Development, 1818H Street, N.W. Washington 25, D.C. Dear JW Lithgow, It looks as if I shall be in Caracas at the end of October. While I am there is there any enquiry you would like me to make in regard to Guri ? There -mould of course be . stion of my charging any of my traL&In .e Rens as I am going to be there any way. I wrote to Simon Aldewereld yesterday telling him that I am making a general tour of South America visiting Colombia, Peru, Chile, Argentine, Brazil, Venezuela and possibly Honduras and Nicaragua. Yours sincerely, bb Mr. Usury 6. Hilken August 25, 1966 FelAks G. loehenski 7 VV8N931At 1 hxtension of C2sing Date an Loan 353-VI - .. t is a. aM1tt anmeteos 1. Attashed is the original of Mr. Chamfournier's asmreAndS dated August 23, 1$66, to Mr. npp an the above subjeet. (fMees. return the mweandam.) As you will see from Mr. KnappS pencil note on it, he approved the attension ot the Cosing Date but wanted ts to ehenge the explanation to be givem to the Skeoutive Direetors. 2. W* noW suggest the folIoing text to be inserted in the mact issue ot the seei'aunthUj Report an Dank and IDA Operstionot $85 Milion (Gauri ydroeLoctria Prodect Loan of September 20, 1942, to Elactrificaion del Caroni ( M0U): At the request of the Borrower, 'the Mlosing Ditto ham been extended from Pareh 31, 198, to January 31, 1969, mainly because of delays caused by extra excavations required after dwatring of the ctfter dam. The extension bee been agreed upon at this time to peonit the possible use of a special comitmeot in the toze of an irrsveoabl. guarantee by the Bank to re- imburse a eamersial bank for payments to be made by it to the *wntra*4r eanc rtium on eligible items of the Pojest. 3. Mr. Manfournier approved the above tet and asks you now to elear it with Mr. Knapp before using it in the next issue. Attachment as Mr. zinman (s/r) FMBochenski/jim FORM o 75 NTERNATIONAL SANK FOR FORM No 5 RECONSTUCTfON AN O&VELOPMENT INTERNATIONAL FINANCE INTERNATIONAL DEVELOPMENT CORPORATI ON ASSOCIATION Date ROUTING SLIP .,, /q Z.- NAME ROOM NO. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation .Full Report Recommendation formation ____ inature Initial _ Send On REMARKS From Rm No.057 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION I RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Mr. R. Chaufournier DATE: August 24, 1966 FROM: F.G. Bochenski-1 SUBJECT: Venezuela - Loan 353-VE - Extension of Closing Date 1. I wonder whether you would approve the insertion of the following sentence at the end of the notice to Executive Directors, to replace the sentence questioned by Mr. Knapp. Sextension has been agreed upon at this time to permit the possible use of a special commitment in the form of an irrevocable guarantee by the Bank to reimburse a commercial bank for payments to be made by ito the contractor consortium on eligible items of the Projec - 2. This new sentence has been cleared with Messrs. Rigby and Zinman. 3. If you approve, I will have the memo to Mr. Knapp re-typed. Fonu (2~ No. .) 75 INTERNATIONAL BANKEOR RECON STRUCTION AND DEVELOPMENT (2.60) NTeRAIONXI FINANCE INTERNATIONAL DEVELOPMENT CORPORATI ON ASSOCIATION A Date ROUTING SLIP August 23, 1966 NAME ROOM NO. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation .Full Report Recommendation Information _ _ignature initial Send On REMARKS 1. I have redrafted paragraphs 5 and 7 in the light of your instructions. 2. I cleared the changes with Zinman. From F.G. Bochenski , 1. Ru ke Xqy August 23# 1966 Roger OhaufWnar Y5K3ZEfRLs L..aa 3!3-V2- b1tmnslen of QOasin. Dats 1. in a letter dated duly 2i 1966, the Bormrwr roquested the extenain of the Clesing Date of loan 353-4 ('uri "ydroelectrio Project) ftoi Marh U, 198, to January 31, 1969. 2. The llouing are the baaic oharnoteriatos of this Leans (a) Amount$ 0 (bW) P"eos To assist in lsnacing the construction of the Our don and anillary works, tiha Curl *mw station and i.hp ewitciLng statics and transission f~aslitIes, &U oJ lihio soorise the first stage of the Gui iydi' eSlctrlo rsojest. (a) Date of signimp Septenber 2 , 1963 (d) Date of Ifflotivennas October 7, 1963 (e) Undisbursed Balane an of Juy 31* 1966s 51,%2,983.82 (f) OrigIual Masing Dates March 31, 1968 3. DatIng a Project Nuporvision Mission in October 1965 it became avidest that the saeplotion of the projeat would be delayed mainly as a result of extra excavations uecessary after the dewatering of the oofter dam. It now Is eartain that %he contractors cannot ael up the time lest, that the project will net be cospleted as aebedulM,* and that 141isbreet from the loon Accounat ill be required fes about 9 - 10 mosntb beyend the present Clesing Date of March A, 1968. The 3orvow has estimated that the dates of .amplation of the various works would be as fbloues . J, D -p. 2 - Au t 23,3, Vrv tnal CentpasI rpemnt D t, Ro1eitie 2'4 A-M. 19X7 1kit. '.o nerawor red cfr eammorC.&I vlate all w rk except m ThLe Projeots DpartMIA if Of tQh. oplalam it,, asaciauut uim ' eid iaiu divara 1v uf tw ri"r Ii mrspl: 1 tod7, .. $h da14 5. The u &to t (I 1e*L *hw*L a1n.n p et t eu'4 4 c y.l ly pand an Pwx9tin'ton Of 10614 U' , a to Je~ay 31, I69, was wIle an ex sion or the t1sinm ate Wl -W1d*, It 1a ompL o t.t - 1 ank s01V ,'14 e to it Tpm tn nrrdor ko perait thA t=Mngewentv 1,r tm Ngsstb a1nr or a .pwet. coseet dewaid in Mr. Itwane mes sadow to tM 711*s *f July 25, 1964f ieopy atahed). The 5euk ain prial, ti ite letter of Jus J, 1 90s to Uh V mmmer, to tier Latr *:Gh masre 1 oomritment Ob Via oerrownrls rillmt. 6. Ln#er awiml ejws'stamse w - 4 id mve waitod ntfl xt rr gomwtiinr exte IOU of t* CL aiu rA .m - oI t C. I - of the abve-metiod s a1 c t.t waV rqur* Ot this t" %n &x~t;,enso of h kAosiN :2te to Jwzary 31, 1 'C%-wwr , env at Iret mine to ten additlonal *,nV4 wtl1 be rqti.rd -,z eowpjqto Ve proe@4t In wly 6*"*, 1thV ef mrM tW .Otrk. Fn M?(reoma , eadi ' OV!*r, ot G. . ank infor Vh 'w rravmr that it a, re" to an ext $Ir of t-q "lrsim GAt4 Lan 3-:V t s KTmu * " , 1 , to -aIuwry U 1, 1It, ."XT Proosewasa e .0 nmvq23.r_ satums Is tokae wo 'xten;d te "l iii pf. *Wtioe Ivcioorae itQmed cf !m Wc uon, as vVlI a" of WA ,wa for it ! sv!A Lusm tawu eWf , Vy thiu L U 'u 1afrmAitn fe be tild o t min Ly pirt -- on iak *nd A puitious. 2 are , 1E , to Jml f ir , 169, m %a bsen we 1) ZayS eA-_sed Dy *xtr exevt1o re#qu.6red aft*r aeaern ' the noIrtr lai. he sotoJO'n ;s beRoa a ed uOn et this eaTsy ate ir arder to p4rmqt wrrumle ate for rm possible -f 4 4 SUEnga NS sUWS. &flImj OV11it~eW 'ASalI SLe OI" heaskIosl FORM No. 75 INTERNATIONAL BANK FOR (2F6O)j.7 f RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE INTERNATIONAL DEVELOPMENT CORPORATION ASSOCIATION Date,, ROUTING SLIP NAME ROOM NO. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation Full Report Recommendation __ Information ___Sicinature I41111nitial ___ iSend On REMARKS From V e- r rVt4_ REGISTERED 14ML NUMBE ~ --- 4 -------- C.V.G. ELECTRIFICACION DEL CA -C*-J - CEOELCA) - GERENCIA OE CONSTRUCCION APOo. 11583 ESTE - TELFS: 338758 AL 81 OIRECCION CABLEGRAFICA: E L C A R 0 N I CARACAS - VENEZUELA lternational Bank for Reconstruction and Development Loan No. 353 VE. Contract 1818 H Street, N.W.9 No. 12 - Circular No. 4. Washington D.C. 20433 U.S.A.- L Att: Mr. J.C. Lithgow L Chief, Power Section U Projects Department-Public Utilities Please find enclosed one copy In english and one In spanish of Circular No. 4 to Contract No. 12, "MIcrowave Equipment and Supervisory System". Very truly yours, C.V ELECTP;T CACION D'L "ARONI GE WCIA bE CONSTJUCCION F- ---- -- ---- -- ----- - --- ING. FRANCISCQJ3*- - cowwn 12 : Cowwwite M AA___s4 A Ja L10A1OADIRTOaJ9 .O.V.0 [ AOJ303) WOIOURT8MOO 3c AIO M.RSE PS JA 8a5"ZE :BqJBT - aT89 E:5Irr .OOqA W)i PR A 0 J 5 :A0IRAROBJaA0 MOI3003Rk AJBUSBW5V - BAOARAO noitiu:) nood 1iO >nade ItmoitDomInI tootinoD .3Y MZE .oH nooJ inmqolv.oG bno .J .o[vl in10u0 - V .ow ,.W.1 itsaitQ H 818 aw42 .:).(I noi.idW -. A.z. u wogUiJ .2.L .,M sttA oildu9-1nqmtnDqe a0.Joi9 aeitilitU 1oluoiilo deinqz ni eno bnD dzigne ni Xqoo eno beeolme ball emeI9 ."metaX \1oeivisqu2 bnu tnsmqlup3 svowo-4M" .oH tooioD ot I .oH omus un >C a30 An 6 30 -i.As A-Q 1SAI .01M9 SN~Ii3It~lWWO < g A I 8 de agosto de 1.966 C.V.G. - ELECTRIFICACION DEL CARONI C.A. (EDELCA) GERENCIA DE CONSTRUCCION GURI - CONTRATO No. 12 - ECUIPO DE MICROONDAS Y SISTEMA SUPERVISOR CIRCULAR No. 4 - MODIFICACIONES A LOS DOCUMENTOS DEL CONTRATO P6gina C16usula P6rrafo de LUnea del No. No. la CI6usula P6rrafo Modificaci6n vii-Ri T rt u I o de Ia S e c c i 6n 10.2 Suprtmase "DE LA OFICINA DE DESPA CHO DE CARGA". vii-RI T it u I o de Ia Secci6n 10.3 Suprfmase "DE LA OFICINA DE DESPA CHO DE CARGA". 11-2-6 R1 Titulo de las partidas 8 a 12 Suprmase "DE LA OFICINA DE DESPA CHO DE CARGA" X-2-1 RI T ftu I o de Ia Secci6n 10.2 Suprrmase "DE LA OFICINA DE DESPA CHO DE CARGA" X-2-1 RI 10.2-01 1 2y 3 Suprrmase "para el sistema supervisor de la oficina de despacho de carga" X-3-1 RI T ftu I o de Ia Secci6n 10.3 Suprrmase "DE LA OFICINA DE DESPA CHO DE CARGA" X-3-1 RI 10.3-01 1 2 Suprrmase "para la Oficina de Despacho de Carga" X-3-1 RI 10.3-02 1 1 y2 Suprrmase "(Excluyendo Secci6n 10.4A)" FA/mev.- C.V.G. ELECTRIFICACION DEL CARONI C.A. (EDELCA) GERENCIA DE CONSTRUCCION GURI CONTRACT No. 12 - MICROWAVE E@UIPMENT AND SUPERVISORY SYSTEM CIRCULAR No. 4 - MODIFICATIONS TO THE CONTRACT DOCUWETS Page Clause Paragraph Line of No. No. of Clause Paragraph Change vii-R1 Title of Section 10.2 Delete "LOAD DISPATCH OFFICE" vii-R1 Title of Section 10.3 Delete "LOAD DISPATCH OFFICE" 11-2-6R1 T i t Ie of Items 8 to 12 Delete "LOAD DISPATCH OFFICE" X-2-1 RI Title of Section 10.2 Delete "LOAD DISPATCH OFFICE" X-2-1 RI 10.2-01 1 2 Delete "for the load dispatch office" X-3-1 RI Title of Section 10.3 Delete "LOAD DISPATCH OFFICE" X-3-1 RI 10.3-01 1 2 Delete "for the Load Dispatch Office" X-3-1 RI 10.3-02 1 1 Delete "(except Section 10.4 A)" FA/mev. - August 2, 1966 Genaral Rafael Alfonso Ravard Presidente CVG Eletrificacin dal Oaroi, C.A. Apartado l1563 Exte Caracas, ve"eSuela Loan 353 (OW1. tri Pwoiet) Doar General Alfansao This is to acknowledge rocept of your letter of July 28, 1966, in which you requested so extension of the Closing Date of Loan 353-vE to January 31, 1969. I a= pleaxed to inform you that after reviewing your request we shall promptly oumav- nicate to you our position an this matter. Sincerely yours, Waaterg Hemisphere Department cc: Messrs. Cancio Hasal/Rigby Howell Lithgow Nelson BZinman:sb r1m No. 27 (7-61) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OUTGOING WIRE o A 2 T0JGSEPH RUCINSKI ROBERT BERNARD DATE&UGUST 1 , 1966 KAISENGS KAISENGS QAKLAND QkKLAND cLtss OF SERVICE: LT COUNTRY: CALIFORNIA TEXT- Cable No.: GEMERAL ALFONZO CABLED US INU INFQU4IN EDELCA HAS APPROVED BANK'S IR.. REVOCABLE mAEMENT DOCUMENTS DISTRIBUTED BY US TO EDELCA AND YOU AT JULY 20 MEETING HERE STOP SUGGEST YOU WORK OUT DRAFT PAYMENqT AGREEMENT WITH COMMCIAL BANK FCR CONSIDERLTION BY EDELCA AND BANK STCP I-NTBAFRAD MdESSAGE AMMHRIZED BY COPY DISTRIBUTION: CLEARANCES AND Cleared with and cot Mr. Cancio NAME Roger S. Nelson Mr. Litbgow Mr. Hasal DEPT. Western Hemi1sphere o MrRibo/ SIGNATURE A~ (SIGNATURE OF INIDIVIDUAL AUTHORIZED Tro APPROVE Bitinmanrs lyFre 6y ArhvsDiio 00NAL (File Copy) (IlMPO ANT: See Secretaries Guide for preparing form) Chired for D *ra'h - K T 4 .!99.14 9: . C 1 Y& + x 44 Fo'6 Po 5INTERNATIONAL N. 75 RECoNSTRUCTI ON AND SANKi FOR DEVELOPMENT INTERNATIONAL FINANCE INTERNATIONAL DEVELOPMENI CORPORATION ASSOCIATION Date ROUTING SLIP NAME WOOM No. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation Full Report Recommendation AInformation Signature 1 Initial _ Send On REMARKS From Fosm No. 26 (-A65) INTERNATIONAL DEVELODPME!NT INTE1RATIONAL BANKaFOR INTERNIATIONRAL FlINANCE ASSOCI ATION RECONSTRIUCTIONi ANDe DEVELOPMET CORPORlA TION ^ INCOMING CABLE DATE AND TIME N R 0 U'T IK OF CALE: JULY 28, 1966 1800 LG No.: RC14 - JULY 29 ACTION COPY: MRt. ZUElAN To.: INTBAFRAD INFOlFMATICNMRALE Fpiom: CARACAS DEM3DED BY: TEXT: 36 ZINMAN EDEC HAS APPROVED DIFFERENT DRAFT FORW>, PRESETED BY THE BANK TO EiSPINOZA AND PALACIDS DEALING WITH THE LOAN FROM COMMERCIAL BANK TO CONSORCID GURI ELCARONI GRAL RAFAEL ALFONZO RAVARD PRESIDENTE FOR INFGMeATIC REGARDING CABLES, PLEASE CALL THE CMlMJNICATIONS UNIT EXT. 2021 ORIGINAL . . .. ... . . ... .. . REGISTERED MAL NUMBER -1 C.V.G. ELECTRIFICACION DEL CARONI, C. A. [EDELCA) - 199 - GERENCIA OE CONSTRUCCION APOO. 11583 EBTE - TELFS: 339758 AL 61 OIRECCION CABLEGRAFICA: E L C A R 0N I CARACAS - VENEZUELA L-_~ 28 de Julio do 1.966 7 International Bank for Re- construction and Development 1818 H Street, N.W., Loan 353-VE.- Washington D.C. 20433 Proiects Dept. Correspondence U.S.A.- L. J L.As'D ~~~~~ BY -------- --- J DATE ----------------- Att: Mr. J.C. Lithgow Chief, Power Section I Projects Department- Public Utilities Due to various circumstances occurred during the construction of Gurl Dam, the dates of completion of the job recently proposed by Consorcio Guri are the followings: Dam to elevation 190 March, 1968 Dam to elevation 204 May, 1968 1 st Generator ready for comercial operation July, 1968 Complete all work except 3rd Generator December, 1968 3rd. Generator ready for comercial operation July, 1968 EDELCA considers that under the present status of the construction, the dates -- shown above are the best estimate possible ck this time on what the Consorcio Guri may accomplish; therefore, it will be necessary to make payments to the Consorcio after March, 1968 wich is the termination date of the Contract between the Bank and EDEL - CA for loan 353-yE. In view of these circumstances, we will appreciate very much the consideration you may give to extend the termination date of the above mentioned contract to --- January 31st, 1969. Vers y yours, Gral. R f o1 Ratr Presidente . PPH/mev.- RECEIVED GENERAL FILES COMMUNICATIONS 1966nUG- I nH11:57 IDA IFC FORM0. 92 CORRESPONDENCE RECORD FORM FROM ... Roctriftcdon del a Caracas, Vaesuula SUBJjfj = Letter endlosiag *pds of circulars to Ootrato No. 12, Niorowave WUpomt ad 8ftervisary Sys- tem, Losn Wo. 353 U. Addressed to I #D, Att. Mr. Litbpw REFE&RED.D R VIV Files - 2- July 25, 1966 used by the contractor to borrow. (In Venezuela a "carta de credito" - a letter of credit - is commonly discounted and viewed as an advance, which, according to the Borrower, is a practice not acceptable for Government- owned entities in their payments arrangements with contractors.) An in- strument obtained independently by the contractor from a commercial bank, however, would be acceptable to EDELCA. 5. After discussing this matter at a meeting attended by the Kaiser representatives, it was proposed that after clearance of the modified Case V documents, Kaiser would negotiate a bilateral "Payment Agreement" with a com- mercial bank, instead of a letter of credit, and that the Bank would irrevo- cably guarantee to reimburse a commercial bank for eligible payments made to the contractor consortium under the Payment Agreement by the commercial bank. Between meetings this proposed arrangement was discussed by members of the Working Party within their Departments and later accepted by the Kaiser repre- sentatives. 6. During the meetings the phasing of the contractor consortium draw- down and repayment of the commercial bank loan was explained by the Kaiser representatives and a resulting need was indicated to extend the Closing Date at the time of signature of the attached documents. The contractor consortiumts drawdown of the proposed $10 million loan from a commercial bank would take place on a monthly basis beginning September 1966, until November 1967, during which time expenditures by the contractor consortium would exceed revenues from the civil works contract by an estimated $10 mil- lion in foreign exchange. During this period no reimbursements from the Loan Account to the commercial bank under the guaranteed Payment Agreement would be required. Beginning December 1967, it is estimated that monthly revenues of the contractor consortium would exceed its expenditures on the civil works for the Project. Amounts requested by the Borrower for work performed and certified would then be paid by the Bank from the Loan Ac. count to the commercial bank in the form of reimbursements under the spe- cial commitment up to a total of $10 million. This amount would be reached by January 31, 1969, and hence the need to extend the present Closing Date (March 31, 1968) until January 31, 1969. The Borrower's representatives stated that EDELCA would consider requesting the Bank to extend the Closing Date until January 31, 1969, for the above purpose. (The attached documents make reference to the current Closing Date /Zarch31, 19687. The Working Party recognizes, however, that the present date will need to be extended. In any event delays in progress of the project would require an extension of the Closing Date until about mid-1969, because of extra excavations nec- essary after dewatering of the coffer dam.) 7. In the closing meeting on July 20, 1966, the Working Party emphasized the following points to the representatives of the Borrower and of the Kaiser organization: a) The modified Case V documents were working drafts and were sub- ject to final clearance within the Bank. FORM No. 57 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Files DATE: July 25, 1966 FROM: Bernard Zinman L SUBJECT: VENEZUELA - Guri Hydroelectric Project (Loan 353-VE) 1. In response to a request by the Borrower, meetings were held at the Bank July 18-20, 1966, to discuss implementation of the proposal un- der which Lhe Bank would consider making a special commitment in connec- tion with the civil works contract for the Guri Hydroelectric Project. 2. The meetings were attended by the following:2/ EDELCA Dr. Alfonso Espinosa?/ Ing. Pedro Palacios BANK Mr. Leopoldo Cancio Mr. John Lithgow Mr. John Rigby Mr. Bernard Zinman KAISER ENGINEERS, INC. Mr. Joseph Rucinski Mr. James E. Boyce Mr. Robert E. Bernard Mr. J. R. Miller 3. The point of departure for the discussions was a draft set of docu- ments consisting of modified Case V Irrevocable Agreement to Reimburse Pro- cedure, prepared by Mr. Cancio and cleared in substance within the respec- tive Departments of the Working Party members. (These documents, as revised during the course of the meetings, are attached hereto.) 4. In the initial meeting between the Borrower's representatives and the Working Party, Dr. Espinosa informed us of his instructions that EDELCA did not wish to be a party to a letter of credit in favor of the contractor con- sortium as such request would, in effect, make EDELCA party to an instrument 1/ Some meetings were held separately between Bank staff and representatives of the Borrower. 2/ Board member of EDELCA and counsel. Files - 3 - July 25, 1966 b) The contractor consortium would have to await approval of the draft Case V documents by the President of EDELCA and the EDELCA Board of Directors, as well as final clearance by the Bank, before negotiating a Payment Agreement with a commercial bank. c) Reimbursements to a commercial bank by the Bank under the spe- cial commitment would be limited to work performed under the civil works contract supported by the normal documentation now governing disbursements under the loan. d) Although it was recognized that the Closing Date would have to be extended on or before the date of signature of the modified Case V documents, the Bank staff members pointed out that ex- tension so early before the current Closing Date should be con- sidered exceptional. 8. To assist in the preparations for the formal requests provided for in the modified Case V documents, the Kaiser representatives made available a Schedule of Goods for attachment to the Borrowert s application to the Bank for a special commitment; and a summary of expenditures by the contractor consortium up to June 30, 1966. Attachments Cleared with and cc: Messrs. Cancio Lithgow Rigby R. Nelson BZinmans sb Record Removal Notice File Title Barcode No. Guri Hydroelectric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P008181 1614834 - Administration - Volume 3 Document Date Document Type 20 July, 1966 Memorandum Correspondents / Participants To: Venezuela Working Party From: Leopoldo Cancio Subject I Title Venezuela - Guri Hydroelectric Project Powerstation Ex (Loan 353-VE) Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Tonya Ceesay 9/5/2016 Archives 01 (March 2017) FORM No. 57 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Files DATE: July 15, 1966 FROM: Max Lorie SUBJECT: Venesuela Loan 353 VE Guri Hydroelectric Project (EDELCA) Auditors report for 1965 of EDELCA The income statement for 1965 compares as follows with the forecast for the same year contained in the T. 0. Report of September, 1963. Actual Results Forecast Millions of Bolivars Operating revenues 20.3 29.2 Operating expenses: Operation and main tenance 3.5 2.0 Depreciation 4.5 4.9 General Expenses 2.1 1.2 TOTAL 10.1.. Net income for the year 10.2 21.1 REMARK: While for 1965, the operating revenues and the net income were respectively about 70% and 48% of the estimates prepared in 1963, for 1964, the actual results were respectively 77% and 49% of those forecast. cc: Division Files Project Supervision Files FORM No. 26 (6.65) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION INCOMING CABLE DATE AND TIME ROUTING OF CABLE: J= 15, 2966 1030 LOG NO.: 7C - + A$ ACTION CDPY: MR. I mS TO: SAYM & INFORMATION R AM COPY: FROM: CAMU|g DEODDED BY: TEXT: V3=1 T PAAM YT 3A3 UK DMW LA IU r CWTOSAWOMan AONTEB M ANBUMRO 3MM T MS M~ gg3 AL@3 m~r~ FUR INFORMATION REGARDING CABLES, PLEASE CALL THE CaMWUNICATIONS UNIT EXT. 2021 DUPLICATE The W..rld .. nk Group Record Removal Notice Arcives & Records Management File Title Barcode No. Guri Hydroelectric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P008181 1614834 - Administration - Volume 3 Document Date Document Type 15 July, 1966 Memorandum Correspondents / Participants To: Venezuela Working Party - Guri Contract From: Leopoldo Cancio Subject / Title Venezuela: Loan No. 353 VE- Guri Contract Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Tonya Ceesay September 01, 2016 Archives 01 (March 2017) FORM No. 57 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Files DATE: July 14., 1966 FROM: Bernard Zinman SUBJECT: Guri Hydroelectric Project - Loan 353-VE In a letter dated June 29, 1966, General Alfonzo Ravard informed the Bank that EDELCA agreed with the suggestions in our letter of June 3, 1966, on the principles and conditions for a request by the Borrower for the Bank to enter into a special commitment in connection with the Guri Hydroelectric Project. In his letter and a subsequent cable, General Alfonzo requested that Bank representatives attend a meeting in Caracas between EDELCA and the contractor consortium to discuss the agreement be- tween them on this matter. Mr. Knapp, who was informed of the request by Mr. Weiner, conveyed instructions to the Working Party that if it is found to be necessary for the Bank to assist at the meeting, only one Bank staff member should attend, either from the Treasurert s or the Legal Department. The purpose would be to assist in the Borrower's formal request for a special commitment, and not to become involved in a discussion between the Borrower and the contractor. On Friday, July 8, 1966, the Working Party (including Messrs. Nelson and Norman Jones) met with Mr. Ellsworth Clark to discuss the most appro-- priate step in response to the Borrower's request for assistance in this matter. It was decided that rather than sending a Bank staff member to Caracas at this time, it would be more appropriate for the Bank to pre- pare modifications of the Case V Irrevocable Agreement to Reimburse Pro- cedure for subsequent discussion with the Borrower. It was decided fur- ther that since Mr. Rucinski had offered to stop in Washington on his way to Caracas, he be advised that it might be useful to discuss this matter with him before his departure. Mr. Zinman so advised Mr. Rucinski by telephone on July 8. On June 12, 1966, Messrs. Rucinski and Bernard, Vice-Presidents of Kaiser Industries Corporation, visited the Bank in connection with the Borrower's request, and met with Messrs. Cancio, Lithgow and Zinman. Mr. Nelson joined the meeting for part of the time. A representative of the Treasurer's Department was unable to attend. The Kaiser representatives told us they would arrive in Caracas on July 13 to reach agreement with EDELCA on matters concerning the Borrow- er's request for the special commitment. After exchanging views with us on the matter, they agreed that it would be most appropriate for the Bank, as planned, to draft the modified Case V Procedure for a subsequent dis- cussion between the Borrower and the Bank, and, if necessary, the Kaiser representatives. On July 13, 1966, General Alfonzo telephoned the writer and informed him that Dr. Espinosa, Board member end counsel to CVG, would arrive at the Bank on July 18 to review the draft modifications with us. Files 2 - July 14, 1966 Mr. Rucinski made the following points: 1. That the special commitment was required because Kaiser could not borrow from commercial banks at this time with- out it. 2. The $10 million drawdown from a commercial bank by the contractor consortium would be against a monthly or quar- terly schedule showing out-of-pocket costs of the contrac- tors, progress payments received, and shortfalls. The $10 million would represent the foreign exchange component of the contractor's periodic deficits resulting from the ex- cess of out-of-pocket expenses over progress payments re- ceived under the civil works contract. At a later stage of the work, Kaiser anticipates monthly surpluses from which it would repay the commercial bank loan. 3. As Kaiser anticipates about a year's delay, until early 1969, in the originally scheduled completion date of the project, they believe it will be necessary for the Bor- rower to request an extension of the March 31, 1968, Clos- ing Date now, so as to permit the proposed special commit- ment to be undertaken under the Bank's conditions.1/ More- over, according to Kaiser representatives, sufficient funds would not be generated from progress payments to repay the commercial bank until after the presently scheduled Closing Date of Loan 353-VE. 4. The borrowing from thecommercial bank and the repayments by the contractor consortium would cover items under the civil works contract at the unit prices provided for in the con- tract as it now stands. Mr. Rucinski stated several times during the meeting that the contractor consortium's claims are beyond the scope of the proposed transaction and will be treated separately at a later stage. 5. While in Caracas, Messrs. Rucinski and Bernard would work out with EDELCA a schedule of progress payments from now until the expected completion date of the project. This, together with a Schedule of Goods to be covered by the let- ter of credit, would be made available to the Bank as part of the Borrower's request for a special commitment. Mr. Cancio requested that as soon as the contractor consortium en- ters into discussions with the commercial bank which would issue the letter of credit, a sample of such letter should be made available to the Bank for 2/ One of the conditions of our issuance of the special commitment was that its term would be for a period ending no later than the Closing Date. Files - 3 - July J 4 , 1966 the purpose of inserting the proposed conditions. Mr. Rucinski said that he did not wish to approach commercial banks until he had a firm proposal in hand, i.e., a schedule of drawdowns and repayments, which in turn depends on the revised schedule of progress payments now being worked out by the contractor consortium in cooperation with the Borrower. Mr. Cancio has drafted the modified Case V documents which have been circulated for clearance. It is expected that our meetings to discuss these documents and other matters relating to the proposed issuance by the Bank of a special commitment, will begin upon Dr. Espinosats arrival at the Bank on Monday morning, July 18. The Working Party is therefore requested to be available on Monday morning to meet with him and the contractor representatives in Room 569 (Conference Room). I will telephone you on the time prior to the meeting. cc: Messrs. Cancio E. Clark Nonnan Jones Lithgow Rigby R. Nelson BZinman:sb The World Bank Group Record Removal Notice Archives File Title Barcode No. Guri Hydroelectric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P008181 1614834 - Administration - Volume 3 Document Date Document Type 14 July, 1966 Memorandum Correspondents / Participants To: Venezuela Working Party - Guri Contract ]From: Leopoldo Cancio Subject / Title Venezuela: Loan No. 353 VE- Guri Contract Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Tonya Ceesay September 01, 2016 Archives 01 (March 2017) Form No. 27 (7-61) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OUTGOING WIRE TO: GENERAL ALFONZO RAVARD DATE: JULY 13, 1966 EWCARONI GARAWS CLASS OF SERVICE: IBF GOVT COUNTRY: VENEZUEL TEXT: Cable No.: REZERNlE OM 'TLEPHONE CONVERSATION WE PLAN MEETIMG DR ESPINWA AT BMN MONDAY MCHNIN JULY 18 STO REGARDS ZINKAN INTBAFRAD NOT TO 81 T1RANSMITTED MESSAGE AUTHORIZED BY. CLEARANCES AND COPY DISTRIBUTION: NAME Bernard Zinman cot Messrs. Cancio/Clark DEPT. Western fphere Lithgaw Rigby SIGNATURERib SIANAilRFNelson IGNATURE OF INDIV11DUAL Au izED TO APPROVE) For Use by Archives D4;o ORGAL (File Copy) (IMPORTANT: See Secretaries Guide for preparing form) Chocked for Dispatch: .... .. . ..... ... .. ., m mm+ ..w+ s +++ + +++++++ + + + +++ ++ + +++++ - _____~ii ______ - A Form No. 27 (7-61) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OUTGOING WIRE TO: GENERAL RAFAEL ALFONZO RAVARD DATE: JULY 13, 1966 ELGARONI CARACAS CLASS OF SERYICE: - 1ffi---Rek!E-- COUNTRY: VENEZUE/A TEXT: Cable No.: REERNC YOUR CABLE JULY 8 WE BETLIEVE MOT APPROPRIATE ARRANGEMT WOULD BE Fl US TO PREPArE DRAFT REQUEST UNDER MoIFIED CASE V PROCEDURE TO BE REVIEWED WITH EDELCA REPRESENTATIVES AT MEETING AT BANK NEXT WEEK IF POSSIBLE STnF PL.ASE ADVISE WHETHER ESPINOA AND PALACICI AVAILABLE FOR MEETIW3 STOP CONTRACTOR REPRESENTATIVES INDICATED AVAILABLE TO PARTICIPATE IF YOU AGREE STOP REGARDS INTBAFRAD TONr NT TO BE TRASMITTED MESSAGE AUTHORIZED BY. Mr. Weiner CLEARANCES AND COPY DISTRIBUTION: NAME Roger S. Nelson Cleared with and act Mr. Cancio Mr. Rigby DEPT. Western Hemisphere Mr. Lithgaw SIGNATIRE ( ShNATURE OF INDIVIDUAL AUTHORIZED To APPROVE) BZiruant "r > OIGNL(ilboy For Us. by Archiv.s Division (IMORTNT Seies Copy) (IMPORTANT: Sen Snnetlrne GM.d for prmrpav ftr.) Chn&k.d for Dkspat*h 4X A3 The World Bank Group Record Removal Notice Archives &s M File Title Barcode No. Guri Hydroelectric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P008181 - Administration - Volume 3 1614834 Document Date Document Type 13 July, 1966 Memorandum Correspondents I Participants To: Venezuela Working Party - Guri Contract From: Leopoldo Cancio Subject I Title Re: Borrower's Application for Agreement to Reimburse Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Tonya Ceesay September 01, 2016 Archives 01 (March 2017) FOM NO 75 INTERNATfONAL BANK FOR (2RN.60) RE CON STRUCTION AND DEVELOPMENT INt-RFIT C 4AL FINANCE INTERNATIONAL DEVELOPMEN CORPORATI ON ASSOCI ATION Date ROUTING SLIP NAME ROOM NO. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation .Full Report Recommendation Information Signature Initial Send On REMARKS From FORM No. 26 (6. 65) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION INCOMING CABLE DATE AND TIME R O U T I N G OF CABLE: JULY 7, 1966 1700 LOG NO.: RC9 - JULY 8 ACTION OPY: MR. CHAUFMURNIER TO: INTBAFRAD INFOIRATION MR. ALTER COPY: FROM: CARACAS DECODED BY: TEXT: 31 / REFERENCE LETTER FROM ROGER CHAUF)URNIER OF JUNE 3RD, TREFETHEN AND BOYCE FROM KAISENG INFORMED US CONSORCIO GURI IS INTERESTED TO DEAL WTTH BANK AND EDELCA OFFICIALS ABOUT CREDIT OPERATION ACCORDING TERMS OF THE ABOVE MENTIONED LETTER. BECAUSE EDELCA AGREES WITH SUCH OPERATION WE SUGGEST BANK SEND IF POSSIBLE NEXT WEEK HIS REPRESENTATIVES WITH A LWWER TO CARACAS TO DISCUSS FINAL AGREEMENT WITH CONSORCIO AND EDELCA. WE FEEL THAT THIS MEETING WILL BEST TAKE PLACE IN CARACAS WHERE ALL THE PERTINENT INFORMATION IS AVAILABLE. ELCARDNI EDELCA MP FOR INFORMATION REGARDING CABLES, PLEASE CALL THE COMMUNICATIONS UNIT EXT. 2021 ORIGINAL Record Removal Notice File Title Barcode No. Guri Hydroelectric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P008181 - Administration - Volume 3 1614834 Document Date Document Type 21 July, 1966 Letter Correspondents I Participants To: Dr. Alfonso Espinosa From: Leopoldo Cancio Subject / Title Payment Agreement Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Tonya Ceesay September 01, 2016 Archives 01 (March 2017) REGISTERED CORPORACION VENEZOLANA DE GUAYANA fALNNUMBERM7 AVENIDA LA ESTANCIA NO. 10 - PISOS 18 Y 14 ^1. CONYKSTAN WUMM At CIUDAD COMERCIAL TAMANACO - TELEFONOS: 83.97.56 - 88.97.61 - DIR. CABLE. INVEHIERRO AC.1 i NO.PRE-305 APARTADO 7.000 CARACAS - VENEZUELA LUGAR Caracas PCHA: 29 de Junio de 1966 F World Bank 7 ASUNTO7 Deputy Director Western Hemisphere Department Loan 353 -VE Guri 1818 H Street, N. W. Hidroelectric Project. Washington, D. C. U. S. A. I L Estimados seffores: En contestaci6n a la apreciable carta de ustedes de fecha 3 de junio de 1966, nos complace comunicarles que, en principio, estamos de acuerdo con las ideas y la forma expuesta en su mencio nada correspondencia para dar soluci6n al financiamiento adicional requerido, por parte del Consorcio Guri, para cubrir las necesida- des inmediatas del Contrato de obras civiles para el Proyecto Hidro electrico de Guri; e informarles que despues de celebrar una reu - ni 6 n aquf en Caracas, con representantes de los Contratistas -los seflores E. E. Trefethen, Jr., James E. Boyce y Donald W. Shupp-, en la que revisamos extensamente la materia y cambiamos nuestras respectivas opiniones sobre el particular, estuvimos, en principio, de acuerdo en las ideas y la forma expresadas en la mencionada co- rrespondencia para dar solucidn al asunto, y consideramos conve - niente celebrar, con asistencia de un representante del Banco Mun - dial, otra reuni 6 n en Caracas, para convenir y establecer los t6rrni nos concretos y definitivos de ejecuci6n del asunto, en fecha que po- drfa ser fijada por ustedes a su conveniencia, teniendo en cuenta la urgencia que el financiamiento tiene para los Contratistas. El seflor E. E. Trefethen nos inform6 que el seffor Bernard Zimann tenfa el prop6sito de venir a la reuni6n celebrada en Caracas, en representaci6n del Banco; pero que no pudo hacerlo por motivos transitorios de salud. Hemos elegido la ciudad de Caracas por tener a a a - - e~anii -2- disponibles en esta todos los elementos y cualquier dato que pudiera requerirse en la consideraci6n y resoluci 6 n del asunto a tratar. Apreciamos y agradecemos mucho la buena voluntad y coo peraci 6 n mostrada por ustedes en el asunto, y en espera de nuevas noticias, somos de ustedes, Muy atentamente, Gral. RafeAlfonzo Ravard Presidente AE/rg. c..poeste. VSa .. els de .ems Cesosee Jums 29, 19*W Western Nowlsobers VSrld Sash WIpS y sitest Isoam atqhm- Reprtesat ISIS I Street %Shtmtam, D.C. L oft 53-"O ft vdrWtoweirie Psojeet Der Sir., to rply to yew teta' of J. 3, 19M6, we are pleaeed to tafoer yea that, ia proesiplo, we are ia aweemt with the ideas sd few 0mpe0eed to provide a seluatsto the peblen of additmesol flSeSSas wequss nsits of the Ceonsoat. Owl to s the inediaee asseittes eg he Civil WeUi coatreet few the Owrt Rsdeieastria Projeast. Wo wish, a180, to tere yee that sfter hoUts a imeettw howe ta Ouam, with upewe nt t e. of the IS.M ters . Neare. a 3. . brfinthin, Jr., Jamse 3. Sase ad Neft"d V. $opp - la Atlis we reviewed the matter thOroeghly OW esahwasd Idoe., we agneed, Is prasiple, with the euagoetae of year letter awd seselder it -pUpriawe to held Msther weettug Ia Carese, with the astdarneSe of a Worid so* woep e ntatIve, to agrese upa, sad to estabisth, the apoifts. toame for sawyMAm es the required aettis. Ue isettb* eldd be flied en a date sasad t so you, U*mg Iate saessat the ureacy of the flseasfag required by the sososratere. Mr. 3, X. Teafatohea inomad as that Me. IeuW4rd glams bed plafted to attend the absoag Caeas em behalf hold So the deS, but esuld met de se boses. of a ts.ewy illue.. Ve hve osloated Cares s he plew af she asettag bs.se all of the elunsatsd any e the data reutited 2 9Wq .s~sM Mtim iM ve1uu*ast ON sdb ntege wsleab* n. 96 appnesUut mat tbookye your e jowgo l sod oopw*U to t. qpvest.. A .pvS m dSmmmLy, (SI-)Y 1attssm )nw Pm.is" mt C.V.G. - ELECTRIFICACION DEL CARONI, C.A. (EDELCA) A1 C.NTO.TM "1114010- A AVDA. LA ESTANCIA NO. 10 - P190 13 CIUDAD COMERCIAL TAMANACO ARcH. No. TELEFS. 83 97 61 - 38 97 56 - DIR. CABLE: ELCARONI APARTADO 11563 USTE CARACAS - VENEZUELA REGISTERED - 2_. MILl NU MBER --------- -1 U..T Senores INTERNATIONAL BANK FOR Contrato Cambio de Frecuencia RECONSTRUCTION AND DEVELOPMENT con la Electricidad de Caracas. 1818 H. Street, N.W. Washington, D.C. 20433, L U.S.A. J L Projects Dept. Correspondence ANS'D BY ----------------- ATENCION: Sr. Mario Piccagli DATE -------------------- Con referencia a su carta del 31 de Marzo sobre el Contrato de Frecuencia entre CVG y La Electricidad de Caracas, deseamos hacerles los siguientes comentarios: 1) Es cierto que la cldusula 5 del contrato implica que puede pasar un aho antes de iniciarse el trabajo frsico del cambio de frecuencia. De todas formas este perrodo de tiempo es necesario y fud considera do como mfhimo para establecer la organizacidn de trabajo, reali- zar los censos, hacer los trabajos preparatorios, etc. indispensables para comenzar con el trabajo frsico. Esto estd en marcha desde ha - ce ya algdn tiempo. Actualmente se sostienen conversaciones con La Electricidad de Ca racas con el objeto de determinar quO tipo de garantras deberdn sir establecidas por el Gobierno, habiendose estimado que dichas ga - rantras podrdn estar establecidas antes del ano indicado. 2) La cldusula 14 establece una tarifa fija no mayor que el costo para entonces para La Electricidad de Caracas por un plazo mdximo de 20 aros para las compras de energra hasta por un monto equivalen - te al costo para la CVG del cambio de frecuencia ($26,7 millones aproximadamente) mds los intereses sobre los saldos. La Middle West estima en los cuadros 45 y 46 de su informe sobre los modelos alter- nativos de generacidn ( Anexo 1) que las ventas a La Electricidad de Caracas superardn la cifra de $ 27 millones actualizados antes -- del aho 1976, incluso con la tarifa usada solo como un ejemplo, ta rifa que confiamos sld negociada a valores mas altos. tI && a ) .. (e Pdg.2 El anexo 2 que es el 6ltimo texto del Contrato de Interconexi6n (11 de diciembre de 1966) explica la intensi6n en la Secci6n 8 ( tarifas) pdgi nas 20 y 21 cldusulas 8.11 y 8.1 2 . Durante las negociaciones con La Electricidad de Caracas se pens6 en que, ya que las inversiones que actualmente se hacen para la presa y tres unidades mds las que se hardn para el sistema de transmisi6n a 400 KV representan como mrnimo el 65% de la inversi6n total necesaria pa ra completar el desarrollo de la primera etapa, el costo total de gene- raci6n se verra muy poco afectado por un posible incremento en los pre cios correspondientes al 35% restante. Nuestra preocupaci6n ha sido y continua siendo la de mantenerlos comple- tamente informados de todos los aspectos del contrato, tanto a travds de las conversacio- nes con sus funcionarios y tdcnicos como en cuanto al conocimiento que ustedes tenran de los borradores del contrato. Procedimos a celebrar el contrato al no recibir observa - ciones de parte de ustedes a los borradores que extraoficialmente les fueron suministra - dos. Como nuestro deseo es que sus dudas queden aclaradas estamos a su disposici6n pa- ra cualquier informaci6n adicional. Atentamente, fonzo Ravard Presidente, RTV/ymr 8-6-6 Anexo: Cuadros 45 y 46 MW (1) Copia contrato (2) VJ l-. -1 D FVDRMAo 60 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (2.65) INTERNATIONAL DEVELOPMENT ASSOCIATION CONF ENT I LOAN COMMITTEE DECLASSI 13 SEP u 5 20% WBG ARCHIVES June 10, 4ENMRANDUM TO THE IOAN COMMITTEE Venezuela - Guri Hydroelectric Project The Minutes of Special Loan Meetings held on May 27 and June 1, to discuss the Guri Hydroelectric Project in Venezuela, are attached for information. John M. Malone Secretary Loan Committee DISTRIBUTION: Copies for Information to: President CHAIRMAN Vice President DIRECTORS OF AREA DEPARTMENTS Economic Adviser to the President DIRECTOR, PROJECTS DEPARTMENT Secretary GENERAL COUNSEL Director of Information DIRECTOR, ECONOMICS DEPARTMENT Director, Economic Development Institute TREASURER Director, European Office DIRECTOR, DEVELOPMENT SERVICES Special Advisers to the President DEPARTMENT Special Representative for UN Organizations Executive Vice President (IFC) LM/M/66-13 June 10, 1966 Minutes of Special Loan Meetings to discuss Guri Hydroelectric Project in Venezuela, held in Mr. Knapp's Office on May 27 and June 1, 1966 Present 1. Messrs. Knapp (Chairman).,Cancio, Cavanaugh, Chadenet, Chaufournier, Lithgow, Nurick, Poore, Zinman and Malone. Issue 2. The Bank had received an inquiry from Kaiser Engineers and Constructors Incorporated concerning whether or not the Bank would consider making, if the bhorrower so requested, a special commitment in the form of an unqualified guarantee of a letter of credit issued by a private bank in favor of the construction consortium on the Guri project. The Bank had not so far irrevocably guaranteed a letter of credit in favor of a contractor on civil works under a Bank-financed project although such guarantees had been given against the procurement of commodities. Furthermore, the Bank was aware that there was a dispute over a claim by the contractor against the borrower. The attached memorandum of May 31, 1966 written by Mr. Zinman was prepared to clarify the facts relating to Kaiser's inquiry and to the disputed claim for consideration at the second meeting on June 1,1966. Discussion 3. At the first meeting it was noted that Kaiser was simply asking the Bank if its procedures would permit such an unqualified guarantee. The actual request for such a guarantee, however, would have to come from the borrower rather than from the contractor. There was con- siderable discussion on the question of how the disputed claim by the contractor related to the question of the unqualified guarantee. It was decided at the conclusion of the first meeting that a paper should be prepared summarizing the facts in the situation and isolating the relevant factors. 4. At the second meeting it was noted that, if the Bank should receive and approve a request from the borrower for a special commit- ment, disbursements from the Loan Account to be made under the guarantee would be based only on work performed by the contractor in accordance with the List of Goods. Furthermore, the usual documentation would be required to substantiate any request for a withdrawal from the Loan Account. The only difference which would result from making the un- qualified guarantee would be that, in accordance with sections 4.02 and 5.04 of the Loan Regulations, the Bank would no longer have the right to suspend disbursements with respect to the amount guaranteed so long as the work against which such disbursements were to be made had actually been performed and certified and a request from the borrower for withdrawal submitted and approved. All of the Bank's LM/M/66- 13 -2- usual rights and privileges, however, would apply to the amount of the Loan not covered by the guarantee. It was generally agreed that the Bank would be assuming no undue additional risks by making the sort of guarantee which the contractors hoped to obtain. The disputed claim might easily result in litigation, thereby conceivably delaying disburse- ments. However, this risk existed anyway and the proposed special commit- ment should therefore be considered on its own merits as a means of enabling the contractor to obtain needed working capital by borrowing against future Bank-financed payments under his contract. Decision 5. It was decided to inform the .borrower (copy of letter attached) and, informally, Kaiser, that the Bank was willing to consider an application for an unqualified guarantee of a letter of credit in favor of the consortium, but that it should be made clear that the only right the Bank would forego would be that of suspending disbursements against the amount of credit so guaranteed, provided all the normal conditions and prerequisites for disbursement were met (e.g. Borrower's request for withdrawal, consulting engineer's certification, etc.) Rather than offering to guarantee the entire $15 million which the contractor hoped to borrow, the Bank should be prepared to enter into a special commitment for an amount of up to $10 million, and should require ample documentation to support this or any other amount, including detailed information about Kaiser's plans to borrow the money and the purposes for which it would be used. J. M. Malone Secretary Attachments Knapp Cleared with Messrs. Chadenet Nurick Poore Zinman Distribution: LoaniTmui tee FoRm No. 57 INTERNATIONAL DEVELOPMENT R INTERNATNA BA FOR INTERNAONAL NANCE ASSOCIATION IRECONSTRUCTION AND DEVELOPMENT I CORPORATION OFFICE MEMORANDUM TO: Ziles DATE: May 31, 1966 FROM: Bernard Zinman SUBJECT: V-21iZUEIA - Guri lydroelectric Project 1. Further to the meeting on this subject in Mr. Knapp's office on May 27, 1966, the following summary was prepared to set forth the factors for consideration of the enquiry by Kaiser 1ngineers and 3onstructors, Incorporated, concerning whether or not the Bank would consider making, if the Borrower so requests, a special commitment in the form of an unqualified guarantee of a letter of credit issued by a private bank in favor of the construction consortium on the Guri project. According to Kaiser representatives, this enquiry arose as a result of a suggestion by the Borrower that he would be prepared to assign payments under the construction contract to a private bank in accordance with normal Venezuelan practice. The Borrower has emphasized, however, that he could not make an advance to a contractor. 2. It should be pointed out that, although there has been a considerable amount of diss sion in the past about a pending contract claim by the contractors, - Kaiser representatives have informed the Bank and the Borrower that such claim is not immediately relevant to the present discussion. The claim involves an extension of the contract period and a revision of unit prices in the contract which Kaiser plans to discuss with the Borrower towards the end of the contract period. Kaiser thus has indicated that its enquiry is related only to the possibility of obtaining the special commitment described in paragraph 1, above. Background 3. In a letter dated April 13, 1966, Kaiser informed the orrower that, because more work, materials, equipment and time have been required than anticipated at the time of bidding, the contractors will require $15 million in additional financing during the remaining months of 1966. Up to the beginning of 1966, 23 million in financing has already been provided by the contractor consortium, according to Kaiser. I. Kaiser representatives state that no sizeable amounts of funds have been retained by the Borrower because of the disputed claim. The contractors have received progress payments for the extra quantities of excavation at the unit price for this item as provided for in the contract. However, Kaiser states that much higher-than-normal contractor 1/ Tor background on the contractors' claim see attached memorandum. - 1 - File s May 31, 1966 financing was made necessary by: (a) unanticipated extra excavations which required the contractors to bring additional equipment to the site in an attempt to make up for the construction delay so as to avoid penalties, and (b) the need to finance equipment and materials for dam construction in accordance with the original construction schedule which has not yet produced income to the contractors because of the delay mentioned in (a), above. A Kaiser representative ' has informally reported to the Bank that of the ,23 million in financing already provided by the contractor consortium $15.6 million were borrowed from private banks with the joint guarantee of the consortium partner firms (,9.6 from the Bank of America and '6 million in bolivares from three Venezuelan banics). Ie also indicated that some members of the consortium arc unilling to make further guarantees. 6. Kaiser now proposes to obtain the additional $15 million from the following sources: (a) Additional progress payments for work which Kaiser believes can be interpreted under the contract as performed but not yet paid for. Kaiser representatives in the field are discussing with the Borrower the possibility of identifying items eligible for such payment (certain inventoried items, and unamortized equipment, which they believe would be covered by the contract with the Borrower), and (b) Advances from a private bank or baftI supported by a special commitment of the Bank in the form of a letter of credit guarantee described in paragraph 1, above. Kaiser would be prepared to pay the commitment fee. Summary of Relevant Factors 7. To date, disbursements of $20 million have been made from the Loan Account out of a total of $43 million for the civil Jorks item in the List of Goods. (The Loan totals $85 million). 8. The amount to be covered by the special commitment guarantee, which might be requested by the Borrower, has not yet been determined. Kaiser states that the amount would depend on the value of the items eligible for progress payments described in paragraph 6 (a), which can be agreed upon by the Borrower and approved by the Bank. 9. In the event of approval of a special commitment by the Bank, disbursements from the Loan Account would not be accelerated but would continue to cover normal progress payments for work performed, - 2 - ile s Hay 31, 1966 A private bank would advance funds to the contractor consortium. The Bank would reimburse the private bank by making progress payments only for work performed as certified by the consulting engineers and approved by the Borrower and the Bank, instead of mald.ng progress payments directly to the contractor group, against the docuentation described above, as is now being done. 10. Kaiser's proposal for a special commitment has not yet been suggested to the Borrower by either Kaiser or the Bank. 11. A special commitment by the Bank would not appear to endanger the position of the private banks which have advanced funds to the contractors as their previous loans, according to Kaiser representatives, were guaranteed jointly by the consortium partners. 12. Construction of the dam and other works, beginning in 1967, should result in an acceleration of progress payments to the contractors, as these items have higher unit prices under the contract than those relating to work now being performed on the project. 13. The contractor's claim is not immediately involved as an issue in considering whether or not the Bank should provide a special commitment for an unqualified guarantee of a letter of credit in this case. Attachment 3leared tith and cc: Mr. Lithgow Mr. Nelson Ir. Chaufournier cc: Mr. Knapp 11r. *3avanaugh Mr. Chadenet Mr. Poore Mr. Iiurick Mr. Cancio IMessrs. Rigby/Hasal BZ :ad June 3, 1966 Conoral Rafael Alfonzo Ravard Pro ridenta C.,V.. Eloctrificacion del Caroni, C.A. Ave. La Estancia No. 10 Caracaa, Venezuela Loan 353-7V (Guri lydroelectric Pro eot) Dear General Alfonzo: Following the discuesions held in' Caracas in ear2y May batwcan EDELCA and the contractor consortium, represantatives of Xaizcr Engincers and Constructors, Incorporated informad the Bank of thi3sr efforts to obtain additional financing required to covor thair immediato needs on the civil works contract for the Project. The representatives of the contractors have informed us that LD2LCA cannot maks an advance to the contractor consortium but that you would consider assigning future payments for work performed against the aforenentioned contract to commrcial banks from whom the contractor consortium would propose to apply for advances of up to $15 million. In furthor support of their efforts to obtain an advance from comzrcial banks, Kiser Engineers has inquired an to whather the Bank, if EDELCA requests it, would enter into a special committrant in connaction with Catagory 1 of the List of Goods for loan 353-VE. This co.-.itnznt would tali the form of a guarantee by the Bank to reimburse a comnrrcial bank or banks for paywnts made by thom under a letter of cradit in favor of the contractor consortium, such reimbursoment to be mads as the work progresses and on the basis of the normal evidence now required by the Bank. Such a special commitment by the Bank in provided for under Section 4.02 of the loan Regulations which statea that: "Upon the Borrower's request and upon such terms and conditions as shall be agreed upon betwoon the Bank and the Borrower, the Bank may enter into special commitments in writing to pay amounts to the Borrower or others in respect of the cost of goods notwithstanding any subsequent suspension or cancellation". June 3, 1966 Ccnaral Iaf~al Alfonzo Ravard Scction 5&04 of the Ioan logulations providos in respect of such special co:it=..nta that: cancellation or susponsion by the Bank shall 1lio apply to anounto subject to any special co::itmont entorcd into by the Bank purcuant to Soction 6,02 excopt as exproaoly provided in ouch commitmont.u We rish to inform you that to help ensure the successful -omplatioz of the Civil Works for the Project, wo are prepared to consider a requc;t by EDELDA that the Bank enter into a special commit=ont under our Caza V Irrvoc:ble Agroooont to Roimburas Procoduro (see our letter of October 11, 963), provided that the following conditions are mts (1) The contractor consortiua would provido to the Bank, through ED=LCA, with a schedule of expenditures to be made by thzm under their contract with EDELCA. This schedule should show detailed expwnditures to date and, for the future, the expenditures to be met from the amount to be covered by the proposed special comitant, (2) The amount to be covered by the proposed special commitment would not exceed the equivalent of US $10 million. (3) The term of the special co~mitmant would be for a period ending to later than the Closing Date of the Loan (March 31, 196), (4) The conditions of the letter of credit isnuod by the co=.-rcial bank would be identical to thoce not; governing disbursements on your instructions from the Loan Account by the Bank directly to the contractor conoortium; iso., among others, certification by your consulting engineor of work performed and paynts to be made under the contract, and prior approval by EDEMCA and by the Bank. You will recall that Section 2.05 of the loan Agreement batwoon tha Bank and EDELWA provides that: "M2copt as the Borrower and the Bank shall otherwisa agram, the charge payable for special comnitwants entared into by the Bank at the request of the Borro::er pursuar-t to Scotion 4I.02 of the loan rfogulations shall be at the rate of one-half of one per cont (I of l%) per annum on the principal amount of any such special commitmsnts outstanding from time to time". -2- June 3, 1966 C-.n.ral Ra.ael Alfonzo Ravard p is of Kaisar En,.neora hava infommd U that they vill axmo to rcimuro EDLA for tha abovo-mz::tionod charro. Thoy have alzo agX;cd to =aido EDELCA iith an additional porformnco bond for thi c.ouit covarad by tho propoood sp.cial co-=41t43ut* This bond, thoy proposi, vould ba rducod proz'rooiwly by th3 aount3 rmi-.ur=-d to the cozr .. bank or banka from tho Ioan Account. Of cou, you would hava to malm lo-al arranom-nta Lith thoia .with r.esect to thaso rmattera. If, after conaidoring thia dith tho contractor ittcr cor.cotiump you wie4 to malos a raqzaat to ti3 Dank for a pc.ial cos::it.ont as deacribod horoin, w would "0 Clad to Cziilt in proparin tha nac-zsary docum.nts roquirod to entcr into tla opooial cm..it:: nit. We uill also ba pleasod to roccivo any co~zout3 you may hava or to annwer any questions on thin mattor. Sincerely yours# Roger Chaufourniar Dloputy IlLroctor Westorn Homisphore DMpartment Cleared with and cc: essrs. Broches/Cancio essrs. Chadenet/Lthgow Mr. Rigby Mr. Nelson Mr. Knapp cc: Drr, Carlos Perez de la Cova, Minister/Counsellor, Venezuelan Dabassy cc: Kr. Howell cc: 1r, Nurick B.Zinman:a/" June 10, 1966 Mr. Joseph Rucinski Vice President Kaiser Industries Corporation Kaiser Center Oakland 12, California Dear Mr. Rucinskis I am enclosing a copy o, letter from Mr. Chaufournier sent to you on June 6, 1966. To the best of my knowledge, the original of the letter was sent to you air mail. I regret any inconvenienee which your failure to receive the letter may have caused. Sincerely yours, Bernard Zinman Western Hemisphere Department Enclosure BZinmant sb Fom No. 57 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Files DATE: June 7, 1966 FROM: Max Lorie SUBJECT: VENEZUELA - 353-VE, Guri Hydroelectric Project Technical and Financial Progress Report for the First Quarter of 1966 I. Technical Report In connection with the contractor's claim that the actual geological conditions at site warranted a revising of the contract, the panel of three experts appointed by the Court did not bring out in their report any new element not already acknowledged by the owner. As of March 31, 1966, only 4i of the work on the project had been completed, instead of an estimated 58% on the basis of a "slow schedule" and 76% for a "fast schedule". The principal jobs where difficulties and delays were encountered are the following: Due to delays in the excavation, the construction of the spillway may require an additional 2 to 3 months beyond the scheduled date of March 31, 1967. As of March 31, 1966, the work on the spillway had progressed 25% against a scheduled 60%. Due to the rising water level and the small size of the rock used, serious difficulties were encountered in the construction of the cofferdam, which had not been closed as of March 31, 1966. At the latter date, work on the river diversion was 44% completed against 95% scheduled. The job may require an additional year beyond the scheduled date of June 1966. Two short labor strikes occurred at site. Cons. Guri will ask CVC-EDELCA for reimbursement of the extra cost caused by the new labor contract settling one of the strikes. II. Financial Report New cost estimates for the Guri project show: For the foreign exchange cost, a decrease in actual total expen- ditures of US$3,193,000, or about 5.2% (due essentially to a reduction in the cost of the spillway). For the local currency costs, an increase in actual total expen- ditures equivalent to US$.l0,991,000, or about 24.7%. Files - 2- June 7, 1966 In order not to change the totals of US$73,208,000 for foreign costs and of US$51,967,000 for local costs, the contingency item for foreign costs has been increased by US$3,193,000, while the contingency item for local cost shows now a deficit of US$3,0h5,0OO, the latter corresponding to the excess above its original value of US$7,946,000. The increase in the local costs reflects essentially the increased expenditures for reinforcement steel, cement, payroll escalation, supervision. It is estimated that actual expenditures (excluding the "contingencies") required to complete the project will amount to US$30,.42,000 and Bs 136,627,000 (US$30,362,000). cc: Division File %V Project Supervision HLorie/m IBRD JVAe 6, 1966 Mr. Joseph bIflaeki Vie President Iaier Indsties Osperatiem Oakland 12, California Out MR1eeleetrtI Prejeet - (a 3UW3Eu ) Door NO. Roolmokis I refer to your lquix7 oeseraing the peslbiltty of the Bank entering Inte a speCial 0a001"Nat, at the requwet of the Barroer, 14 omustims with the lvil verkts =r Loaw 353-YE to MQ Eleetrfieasien 41 Carmsi 0A. (EDELCA). At your reqWest, I On SeUeselig a sMaWy of th pesttioM whieh Mr. Kaapp Indioated to yu over "e tolopho" last Thmrdoq. We have written General Alfmus. lavard .aqg these Ues amd ladesated to his that we understand your ergaisatien wOUld be propared to reiaburse the Borrewer for the eharge payable for the speseal witsut it sush einmitsat is requested by then, and that ye alee veAld provide them with an additional perfermanoe bead for ts ausuat of the proposed speetal omoiteaot. Thso. matters, of eurseo, weauld have to be Werked out between yews orgoaaation ad the Borr.er. As mationed to you earlier, we have Informod the Borrwesr of our pesi- ties to a separate ltter, and are awaiting their reactions after they have dieussod the matter with represeatatives of the Cassersie Ouri. Simsere.y your., hupr ome DIputy mrooetr Westera Hmisphere Dopartmint Cleared with and cc: Messrs. Cancio/Broches Lithgow Rigby/Jones Nelson Cope RZinman:dw X INTUNATIONAL ANK 11R UR0NTRUCTION AND DBEMOPME(T Ban P..itu a Pzop.e4 5Pes4 COtmtusat' Far the GiVil WrkS GatoSy Of the GrIi gdr*oeestrta PE*Je*t The Bank is prepared to esuidw a roqeest by CM7 lettie4s.a &I1 CwamS C.A. (IDU4A) that the Rak outer Ite a spesial etent ummer Cass V Iraevoesbl Apmemat to Redm o Prooadure (see Uttar $*wo Bank to IRDZA of (0tober 13, 163), po.4ded that the f*1indAg 4mditlo a e et t: (1) The SMUtatr OWeeWrti m would prWio to the RAk, tbrough ZDIA with a sabodsle of eOPesiture. to be made by t" undor their satreet with uMLCA. 'Mi sbed*Ul sh d show detaild expditures to date sad, for the futwo, the sopenditure to be not frs the smt to be erred by the ,pWosod 51e.A4 "Oiii t. (2) The aemat to be covarod by the propo"eA avoal emit- eatnd woml4 net ozeed the .p$*alest of UL$$M a4ltm. tera of the epeetal snitameut wold be far a Period (3) -h later noam teMJIesiag Date of the Lea (Mrob 31s 109). (k) The 0sd0tlmi of the letter of eret issued by the osm- eroal bank wauld be ideatial to these mm goversimg dibV inIt, s Instraeetin of the BDSTVw, from the I*e& AReent by the Sauk dizestly to the etraster can- eorttia i.e., amng ethw, ewarttfleatum by the Brrwver's sonasultlg .mgiew, of work pertwmed and paqmests to be aide under the emtrostl and prier approsal by EILGA and by the Bak. Jime 3 1966 General Rafael Alfeaso RaSard O.YA0. Elsotwlftaem, &I Caret, C.A. An. IA Estaacia No. 10 eracas, wa susaa Dar General Alfosuma 7o1Waidng tMe disOSMIou. beld in Oawafes in arr NNq between DWWA and the sntractor oamertIss wrpes"ntat1US of Kaiser Bines and GOnstrust , Op ted ntO MSdtm Bank eo their effts to otain addimal fancing qId to cover their Immediate needs on the civil works contract for the PrajecU Tbo repmewaatiwes of tm contractors have intnred we that RIMA cammot min an advanes to th contractor omorml but that you wold .onsler adgning futmrs pqimsnts for work perfelned against the aforementmmed *ontract to Moamouval b*w frm whm the contractor sonseortm would propose to apply for advances of up to $15 a11Man, In furtw .sWportt of hai efforts to obtain an advancs trm .a'sorial baksa, atsor bmgins s bas inqired as to whthar tim Rank, if MDMIA mquste tt, weuld enter into a qosatal .emea t in oansctien wIth Cateaery I at the List of Ods tor loan 353.VR. This sesatmat would talm to fonm of a guarantee bW the Bank to rsisbuars a .am tral beak or banks for paymnts nado Uy thenm dAr a 2atter of mrmdtt in fava' of ti esmtratotr memnotims, smah riowbusontl to be mmdb as the work pe esses and em the basis of tho nernal evidemne new rqLrod W tMe Bank. Smah a apesaal omo utment by the Bank in pmddid for saubr seation 4*.O af the loen RgPUatema iddah states thats '1pm the Bemwer's request and opme each toras and oamtions as shall * ageed ipn between tim Bank and the Iwwwuer, the Bank my onte" into spimal Nemi tWeAs in Writing to pq amonts to ts arrmer or stimes In respect of the oost of g-0t ntiAthsauSding any sabsqusnt suspension or sanosl3Atiem. - 1 . Juas 3. 1966 Oassral batl AUVfMu Ravws Sectio 5.4 of tae lava btatim pwue In m"" of eao h pa1 Lin ate tbantv Me .. f011a t or magmos-im by the ak shall SpY to ats *object to emy vpwdta oemtitt, estmnd Int. by the Bak PmWWMt to Settm I4.02 ommspt as aq e. y pmWibd Im smham isimmte .s We Vdik to info= yu that to belp onamm tam -- ss.af .saatim of the Cvil Wrstk fb the Projeets, we am pm to msder a isrqet by inWA that the Bmk into' ist. a mpecl m.aiot indr aw cam V a0a AgVomint to Aslam.e, Procedwe (am aw letter of October 31, 2963), prenduad that the Soalmtug mdntLins ave stg (1) w estnwotr eaisnmtim vd pvid to the *W, throvgh DnCA, wLth a he1a. of expeodftnwr to be -m& by them i r their catract vit mIArL. is * abould hm fhr a ab .u Litw to date molp fm the fuwbw., the O epsd to be Mat from the 1m wt to be 0u011"d by the pmrond sa3. (2) no awaxt to be vmald by the propemd .jaaMul iealtau wel me gsosed th equiem i of U $I mllmm, (3) theom tteapmvial ef Ute 6 v..3i1 I* for a pai ss.tg me ao than the amd*g ate of the Lemn (Obrh 31, X%8),o (4) to esdi ticae of tho 3ttmr of odfta Iau.d by the 04o--I1a bmk woulA to idhmtlml to the.. am orngWASa 11 1 - -'- m yew' inegrltSmit frim the Us* Aseumt by Wo Bmk diroot3l to the metragtor o0Met&M 1.*,, mmg oainms, earkw as am by yOW 00=1agm eaginor Of Werk pswft=md and pepamsts to tom a the amtmm, aml prej Oppreval by MLCsad by the Bw*0 *a XIU MU..31 that SeOtiM 2.o5 of the Uam Agresmat betsum the ShM ad ZEKA pnnlds tbst %XWmp t he &rr'uatrMmd the Bank Shall .thrdea "ate, the Charp ps'm . t'r apqoal 0midtimate 40600" ate by ts mk at the xquet f the mrrm p n m t to Sectlam )&.2 St the la. ig-l t l uMbl hi at to rate t am-hAif of oe p t (S r Il) par am " the prlalpo movabt of S awe6 1 ae" ... te 0a.t t frm tim. to tim.'. - 2.- Juo3v 1966 Osmeal Wooal AUGfOm Xaiwd Ropmesentativ ef aeer Bogimoww bav informed % that they *LLM &g to reiwbAe ErnA for thn abow-mentmed charge. Tbey how alse agre"d to pralvv1 1CWL idtA = additional paeronee bond ftr USe SWOUet Covered bW tko poposed sp*eavdu, Mesem= Ti bmgt they propoe, vfld be admoed Vr*O Wav& by thAe imts r-iAbo--d to the eam -ewatal bank or amim fmrea the Isan Ascmt., Of course, ysm u2*A aMw to I*k U1l a t h S O th reree to Owas masttm.o If, after a wLg Ulm matter vith the entrettwr amertvn, yv vish to majo a xegowt to the Bank for a OPuOa1 amtsat d ri, " iw weu l be gad to amdet i. p arpsawlg tha usvemry dmian. "sMpLrod to enter Ato the %svaial eammitmat, v win al.se o Plase to roo' amy -ma 7W. my hm or to miam quMsbmne an this WOe bpsuly Mu..tow 1siomk y peStat Cleared with and cc: Messrs. Broches/Cancio Messrs. Chadenet/Lithgow Mr. Rigby Mr. Nelson Mr. Knapp cc: Dro Carlos Perez de la Cova, Minister/Counsellor, Venezuelan Bhbassy cc: Mr. Howell cc: Mr. Nurick BaZinman: INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ORM No. 57 INTERNATIONAL DEVELOPMENT ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Iiles DATE: lIfay 31, 1966 FROM: Bernard 'inuan SUBJECT: V 'ZJELk - Gu i a'droelectric Project 1. urtier to the meeting on this subject in 1r. Knapp's office on Miay 27, 1966, the followxing summary i,:as prepared to set forth the factors for consideration of the enquiry by Kaiser Zngineers and 2onstructors, Incorporated, concernin, whether or not the Bank would consider makinz, if the 3orrowur so requests, a special commitment in the form of an unqualified guarantee of a letter of credit issued by a private bank in favor of the construction consortium on the Guri project. Accordin2 to Yaiser representativos, this enquiry arose as a rasult of a suZgestion by the Dorrower that he would be prepared to assign payments under the construction contract to a private bank in accordance with normal Venezuelan practice. The 3orrow-er has emphasized, however, that he could not make an advance to a contractor. 2. It should be pointed out that, although there has been a considerable amount of discjssion in the past about a pending contract claim by the contractors, -' 1aiser representatives have informed the Dank and the Borrower that sucii claini is not immediately relevant to the present discussion. The claim involves an extension of the contract period and a revision of unit prices in the contract which Kaiser plans to discuss with the ZJorrower towards the end of the contract period. Kaiser thus has indicated that its enquiry is related only to the possibility of obtaining the special commitmrent described in paragraph 1, above. Background 3. In a letter dated April '3, 1966, 'aiser informed the 3orrovier that, because more work, materials, equipment and time have been required than anticipated at the time of bidding, the contractors will require '315 million in additional financing durinr the remainin-7 months of 1966. Up to the beginning of 1966, 23 million in financin- has already been provided by the contractor consortium, according to iaiser. .Kaiserrepresentatives state that no sizeable amounts of funds have been retained by the Borrower because of the disputed claim. The contractors have received progress payments for the extra quantities of excavation at the unit price for this item as provided for in the contract. Ilowever, K1aiser states that much hiiher-than -normal contractor 1/ -or backZround on the contractorst claim see attached memorandum. - 1- Files May 31, 1966 financing was made necessary by: (a) unanticipated extra excavations which required the contractors to bring additional equipment to the site in an attempt to make up for the construction delay so as to avoid penalties, and (b) the need to finance equipment and materials for dam construction in accordance with the original construction schedule uhich has not yet produced income to the contractors because of the delay mentioned in (a), above. A Kaiser representative has informally reported to the Bank that of the "23 million in financing already provided by the contractor consortium ,15.6 million uere borrowed from private banks with the joint guarantee of the consortium partner firms (39.6 from the Dan'k of America and .6 million in bolivares from three Venezuelan banks). He also indicated that some members of the consortium arc unilling to make further gtuarantees. 6. iaiser now proposes to obtain the additional 315 million from the following sources: (a) Additional progress payments for work trhich Kaiser believes can be interpreted under the contract as performed but not yet paid for. iaiser representatives in the field are discussing with the Borrouer the possibility of identifying items eligible for such payment (certain inventoried items, and unamortized equipment, which they believe would be covered by the contract with the Borrower), and (b) Advances from a private bank or bmke supported by a special commitment of the Bank in the foria of a letter of credit guarantee described in paragraph 1, above. Kaiser would be prepared to pay the commitment fee. Sumr.rary of !Zelevant Factors 7. To date, disbursements of '20 million have been made from the Lcan Account out of a total of $43 million for the ivil Works item in the list of Goods. (The Loan totals ,85 million). 8. The amount to be covered by the special commitment guarantee, which might be requested by the Borroiyer, has not yet been determined. Kaiser states that the amount would deoend on the value of the items eligible for 2rogress payments described in paragraph 6 (a), which can be agreed upon by the Borrower and approved by the 3anik. 9. In the event of approval of a special commitment by the Bank, disbursements from the Loan Account ;7ould not be accelerated but would continue to cover normal progress payments for work performed. - 2 - ile s K-ay 31, 1966 A private bank would advance funds to the contractor consortium. The Bank would reimburse the private bank by maidng progress payments only for work performed as certified by the consulting engineers and approved by the Borrower and the Bank, instead of makdng progress payments directly to the contractor group, against the documentation described above, as is now being done. 10. 1aiserts proposal for a special commitment has not yet been suggested to the Borrower by either Kaiser or the Bank. 11. A special commitment by the Bank would not appear to endanger the position of the private banks which have advanced funds to the contractors as their previous loans, according to Kaiser representatives, were guaranteed jointly by the consortium partners. 12, Construction of the dam and other iorks, beginning in 1967, should result in an acceleration of progress payments to the contractors, as these items have higher unit prices under the contract than those relating to work now being performed on the project. 13. The contractor's claim is not immediately involved as an issue in considering whether or not the Bank should provide a special commitment for an unqualified guarantee of a letter of credit in this case. Attachment t ,leared with and cc: 1r. Lithgow Hr. K~elson Kr. Chaufournier cc: 1r. Knapp 1r. "lavanaugh Hr. 'lhadenet Hr. Poore Ir. I-urick Ir. Cancio iessrs. Rigby/Hasal BZ:ad FORM No. 57 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION OFFICE MEMORANDUM TO: Files DATE: Py 31 1966 FROM: B. Zinman SUBJECT: VENEZUELA - 6 uri Hydroelectric Project Mr. Rucinski, Vice President of Kaiser Engineers and Constructors Incorporated, called me on Friday afternoon, May 27, to ask whether we had come to a decision on his enquiry concerning the possibility/of the Bank providing a special commitment for the Guri Loan (see he writer's memoranda to the files on this subject, May 19, 20, and 25, 1966). I told him I had informed those concerned in the Bank about his enquiry and I indicated that it would not be possible for me to give a reply at this time. As in ry previous conversation with Mr. Rucinski, I took the opportunity of filling in the gaps of information onncerning his company's attempts to obtain additional financing for their work on the Guri project. The following points made by Mr. Rucinski are pertinent to the discussion on his enquiry now being held within the Bank: (1) There are no sizeable amounts of funds being withheld by the Borrower because of the disputed claimi The contractors have received progress payments for the extra quantities of excavation at the unit price provided for in the contract. Higher unit prioes called for in the contract for work to be performed on the dam will accelerate payments to the contractors when this work is undertaken. Kaiser proposes to act on the claim towards the end of the contract. (2) Additional equipment was brought to the site by the contractor in an effort to make up for the extra time required for the extra excavations. Also because of the delays required for the extra excavations equipment and materials for the dam construction (not yet started5 are not yet being used and hence, are not producing progress payments to the contractors. (3) Of total financing ($23 million) by the contractors, $9.6 million were borrowed from the Bank of America and $6 million in bolivares were borrowed from Venezuelan banks. These loans are backed by .joint guarantee of the contractors in the construction consortium. Some of Kaiser's partners in the consortium are unwilling to provide further guarantees to support new loans, because of the absence of profits on the works completed to date. I expect Mr. Rucinski to telephone me again tomorrow, Wednesday, June 1, to follow up on his enquiry concerning the special commitment. cc. Mr. Chaufournier, Mr. Cancio, Mr. Howell, Mr. Lithgow, Mr. Nelson, Mr. Nurick and Messrs. Rigby/Hasal. BZ:ad REGISTERED MAIL NUMBER i2i9 C.V.G. ELECTRIFICACION DEL CARONI, C. A. (EDELCA) 152 GERENCIA OE CONSTRUCCION APOo. 11563 ESTE - TELFS: 339756 AL 81 OIRECCION CABLEGRAFICA: E L C AR 0 N I Ca.acas CARACAS - VENEZUELA May 26, 1966 1 International Bank for Reconstruction and Development Loan No 353 VE. 1818 H. Street, N. W. Projects Dept. Correspondence Washington 25, D. C. . L U. S. A. IL ANS'D BY Att: Mr. Mario Piccagli Public Utilities Division Department of Technical Operations For your information we are enclosing herewith two copies, in Spanish and English of the "Selection of Bidders" of Contract 12. We also enclosing one copy of the "Carta Cir- cular" of the above mentioned Contract. Very truly yours, C.VG. ELT''--'CACIC " ' ''ARQN1 .A GER CIA DE CONSTRUCCION ING. F /mby 9:- C.V.G. - ELECTRIFICACION DEL CARONI C.A. (EDELCA) GERENCIA DE CONSTRUCCION GURI - CONTRATO No. 12 - EQUIPO DE MICROONDAS Y SISTEMA SUPERVISOR CARTA CIRCULAR Se Ileva a conocimiento de las empresas que presentaron las postulaciones correspondientes a ]a licitaci6n del Contrato No. 12, - Equipo de Microondas y Sistema Supervisor - que los datos en ellas suministrados han sido en general insu ficientes a los fines de la calificaci6n de los licitantes. Por consiguiente, [a invitacion formulada por EDELCA para concurrir a la licitaci6n no envuelve la calificaci6n de las empresas postuiantes ni la acepta- ci6n de los equipos propuestos en dichas postulaciones los cuales .eber6n cumplir con los requisitos exigidos en ;as especificaciones y dem6s documentos del Con-- trato.- EC- &4CAS -VENEJ-7 PPH/FA/mev.- 15-4-66.- "THE DAILY JCURNAL" 13-4-66 pag. 4. that have RE CA VENEZUELA DEC.. (LE LA GEREN . DE CONSTRUCCION PLANTA I RICA DE GURI SO SELECCION "E POSTULANTES EQUIPO DE MICROONDAS Y SISTEMA SUPERVISOR Se Ileva a conocimiento de las siguientes empresas: RAbIO CORPORATION OF AMERICA INTERNATIONAL TELEPHONE & TELEGRAPH CORP. GENERAL ELECTRIC CO. LTD. SIEMENS & HALSKE COLLINS LENKURT - MARELLI RAYTHEON COMPANY TELETTRA HITACHI LTD. COMPAGNIE GENERALE DE TELEGRAPHIE SANS FIL NIPPON ELECTRIC CO. LTD. A.T.E. INGLATERRA ENGLISH ELECTRIC - MARCONI S.I.R.T.I. GENERAL ELECTRIC DE VENEZUELA S.A. PHILLIPS -. HOLANDA PHILCO CORPORATION, las cuales sometieron sus datos de calificacidn correspondientes a los equipos en referencia, que los documentos de licitaci6n estin a su dis- posici6n a partir del dia 15 de abril'de 1966 en las Oficinas de la Geren- cda de Construcci6n de EDELCA, situadas en la Avenida La Estancia, Edificio No. 10, piso 13, Ciudad Comercial Tamanaco. Las ofertas correspondientes se recibirin el dia 15 de julio de 1966,. a las 4:00 p.m., en las Oficinas antes an6tadais. Caracas, 13 de abril de 1966., EL PRESIDENTE. LOS INCENDIOS FORESTALES AGOTAN EL AGUA DE TUS RIOS... SOLO TU PUEDES EVITARLO. ~C IeLeZoDoa: 01000 - (.lMUW Apartado Posti 2440 Caracas - Venezuela cArrrAL, s.. ma Crewa-G* pwpdo) - "EL UNIVERSAL" "ULTIMAS NOTICIAS" 0 "ELrTE" "EL NACIONAL" E "LA RELIGION" Q "MOMENTO" "LA ESFERA" 0 "EL MUNDO" L "VENEZUELA GRAFICA" - "LA REPUBLCA" ''THE DAILY JOURNAL" - "EL GALLO PELON" REPUBLICA DE VENEZUELA . F1 C C.A. (E'E CONSTRUCTION MANAGEMENT GURI HYDROELECTRIC PLANT SELECT 7 OF BIDDERS CROWAVE AND SUPELVISION SYSTEM EQUIPMENT It is made known to the following firms: RADIO CORPORATION OF AMERICA .INTERNATIONAL TELEPHONE & TELEGRAPH CORP. GENERAL .ELECTRIC CO. LTD. SIEMENS & HALSKE - - COLLINS LENKURT - MARELLI RAYTHEON COMPANY TELETTRA HITACHI LTD. COMPAGNIE GENERALE DE TELEGRAPHIE SANS FIL NIPPON ELECTRIC CO. LTD. - A.T.E. INGLATERRA ENGLISH ELECTRIC - MARCONI . S.I.R.T.I. GENERAL- ELECTRIC DE VENEZUELA S.A. PHILLIPS - HOLANDA PHILCO CORPORATION, v-hich have filed the qualifying documentts for the above equipment, that the bidding documents will be available as of April 15, 1966 at. the offices of the Construction Management of EDELCA, located at Avenida La Fstancia, Edificio No. 10, 13th Floor, Ciudad Comercial Tamanaco. Tenders will be received July 15, 1966, at 4:00 p.m. at the above mentioned offices. 7 Caracas, April 13, 1966 THE PRESIDENT z INCENDIOS FORESTALES AGOTAN EL AGUA DE TUS RIOS2. SOLO TU PUEDES EVITARLO.'.. C.V.G. - ELECTRIFICACION DEL CARONI C.A. (EDELCA) GERENCIA DE CONSTRUCCION -RI CONTRATO N . 2 EQUIPO DE MICROONDAS Y S CTEMA SUPERVISOR CiRCULAR No. 1 Se fleva a conocimiento de las empresas seleccionadas para concurrir a la Licitaci6n del Contrato No. 12, (Equipo de Microondas y Sistema Supervisor) - de la presa y planta hidroelctrica de Guri, que dicha selecci6n se refiere a las empresas fabricantes de los equipos principales comprendidos en las Especificacio nes de la Licitaci6n. En consecuencia, EDELCA considerar6 tanto las ofertas hechas directamen- te por dichas empresas fabricantes o por medio de sus sucursales o representantes en Venezuela, como tambien las formuladas directamente por fstos en su propio nombre. En este Oltimo caso los equipos principales comprendidos en las ofertas deber6n provenir exclusivamente de los fabricantes seleccionados. EDELCA. DC/PPH/FA/mev.- 19-5-66.- y/ 41 1 \ AtUMBER C.V.G. ELECTRIFICACION OEL CARONI, C. A. ,. [EDELCA) 1G-N GERENCIA OE CONSTRUCCION APOO. 11583 ESTE - TELFS: 335758 AL C a OIRECCION CASLEGRAFICA: E L C A R 0 N I CARACAS - VENEZUELA March 14, 1966 International Bank of Guri Project. Reconstruction and Development Contract NO 11. 1818 H. Street N.W. Washington D.C. 20433 Projects Dept. Correspondencs U. S. A. L _J AtS'D BY a------------- DATE -------- Att: Mr. Mario Piccagli Chief Public Utilities Division For your information we are enclosing herewith one copy of the Contract N* 11 (Control Room Switchboards, Unit Switchboards, Storage Ba- tteries, Battery Chargers, Inverter and Water Le- vel Gauges) which was signed on the February 24, 1966. Very truly yours, 6=... E- L_. - F= C.V.G. T rC4C1N DFL C RONI CA 87 CIAil CONS ION PALACIOS HERREAj /aby I-[ ~UJIMI A .1 ,MORAO J30 /1010A0FIRT0Ja .O.V.C { - [ A 0.J2C2) L-1OIDURTL-1O0 30 AIPMBR3D rS JA GOveCE :BRJST - aTiea 00rr .OOqA SB Wo O I MOR A 0 J 3 :A0IAAR0)JEAO M4OI00aRO, AJMU3LM3V - BAOARAO L01 41 do-sM .*09Lt'-f J-wID 1o *is8 Lsnol saeaI .11 *s osisnoD *sn.qolovoa bna nol$owzmssoio. .W.N $essi8 H 8181 6mebnoqae, 7o3 Jq.90 E siOS .D.Q Eo*0kAissW .A .8 .U 3TAa ltsoolq olaM .iM :IsA nokstY G selil sU oklduq leldD snlaolon. @s sw nolksarioll 'zuoy -%o lo-ulnoD) 11 ON $towzdioD s4 lo yqoo eno d1lw-izd '*f *sgso*8 absisoddosiw8 InU abisoddollwe mooR -eJ i-elsW bas ed-levnI ,S7O3-1SAD "*.tsS '8,0.t- ,4S isisrdel .d no bengle esw doldw (seousD Lev ,"-uof l IrI r"e I- ~ -a)-.....J ~ ~~--.. -- -- - 1Mo3H ZoM arK3iiQ O 5d1 FORM No. '7 5 R NTERNATIONAL BANK EOR FOR2.) RECCONSTRUCTION AND DEVELOPMENT NTEATIO#TAL FrNANCE INTERNATIONAL DEVELOPMEN7 VOPPORATI ON ASSOCIATION Date ROUTING SLIP k5,/, / f /4 NAME ROOM NO. /_Y To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation Full Report Recommendation Information Signature Initial _ Send On REMARKS From C.V.G. ELECTRIFICACTON DEL CARONI, C.A. (EDELCA) AL CONTENTAR REFERIRSK A: AVDA. LA ESTANCIA No. 10 - PISO 13 CIUDA1I COMERCIAL11 TAMANACO ARNO* TELEPS. 88.97.01 - 88.7.56 - D... C.L. ELCARONI APARTADO 11563 ESTE CARACAS - VENEZUELA LUGAR Caracas, L FECHA 10 MAR f966 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Cambio de Frecuencia.- 1818 H. Street, N;W. Washington, D.C; 20433, Projects Dept. Corrs onde ce U.S.A.- DATE J - - --- Atenci6n: Sr. Mario Piccagli D R .- ~MAL H__________ Para su conocimiento y con prop6sitos de completar su expediente sobre este asun- to, me es muy grato enviarle copia de los rec~ws de prensa con motivos del acto de la firma del contrato de cambio de frecuencia y copia del documento suscrito entre la Corporaci6n Venezolana de Guayana y la C.A. La Electricidad de Caracas. Atentamente, GrAfzo Rayard Presiden te RTV/mhp.- 9-3-66 Anexo: lo indicado p 'I -. - -'S- s~ Copia fiel del documento firinodo entre La Electricidad de Caracas y la Corporaci6n Venezolana de Guayana el dra 3 de Mar- CAMBIO DE FRECUENCIA zo de 1966 en el PMlacio de Miraflores.- DOCUMENTO DE CONTRATO CONTRATO No. 1 Entre la Corporaci6n Venezolana de Guayana, Instituto Aut6nomo Nacional, que en lo adelan te se liamard "La Corporaci6n", representada en este acto por su Presidente, General Rafael - Alfonzo Ravard, quien acta suficientemente autorizado por el Directorlo de ese Instituto co- mo consta en el ccta de su sesi6n del dra 12 de Febrero de 1965 y por el Gabinete Ejecutivo - Nacional como consta en el acta de su reuni6n del dra 23 de marzo de 1965, par una parte; y por la otro, ]a C.A. La Electricidad de Caracas, que en adelante se Ilamard "La Electricidad" de este domicilio, inscrita en el Registro Mercantil que ]levaba el Juzgado de Aimera fnstan- cia en lo Civil y Mercantil del Distrito Federal, en fecha 29 de Noviembre de 1895, represen- tada en este acto por su Presidente, el Dr. Nicomedes Zuloaga, suficientemente autorizado pa ra este acto por sus estatutos y par la Junta Directiva de la misma como consta en acta de su se si6n del 17 de marzo de 1965, se celebra el siguiente contrato: 1.- Objeto del Contrato: De conformidad con lo dispuesto en la reuni6n del Consejo de Ministros de fecha 16 de - abril de 1963 y en cumplimiento de la Resoluci6n del Ministerio de Fomento aparecida en la - Gaceta Oficial No. 27.140 del drb 10 de mayo de 1963 en la quo se designa "la comisi6n pa- ra Ilevar a cabo los estudios y ejecuci6n para la unificacidn de frecuencia en el centro de ]a - Repdblica a 60 ciclos y la interconexi6n de los sistemas y fuentes de energra" quo en lo adelan te se denominard "La Comisi6n Oficial", se celebra el presente contrato para el estudio y - * q a/* * * -2- la ejecuci6n del cambio de frecuencia, de 50 a 60 ciclos por segundo, en los sistemas de la - C.A. La Electricidad de Caracas y C.A. Luz Eldctrica de Venezuela, que en lo adelante se - llamardn "Las Compairas". 2.- Extensi6n del Contrato: Este contrato comprenderd la ejecuci6n de las diferentes etapas de trabajo necesarias pa ra Ilevar a efecto la conversi6n total de los equipos de utilizaci6n de los suscritores de "Las - Compalitas" y sus propios equipos a saber: 1) Organizaci6n y estudio de los trabajos por realizar. 2) Investigaci6n y estudio de los equipos por convertir. 3) Conversi6n de los equipos hasta la culminaci6n total de los trabajos. 4) L quidaci6n total de la organizaci6n establecida para lievar a cabo los estudios y trabajos de la conversi6n, una vez completados los prop6sitos que originaron su esta blecimiento. La ejecuci6n de las etapas dichas se hard de acuerdo con programas de trabojo previamen te aprobados por "La Comisi6n Oficial", y se regird por las cldusulas siguientes: CLAUSULA No. 1.- Los costos que se deriven de la conversl6n de frecuencia en su totali-- dad (consultores, organizaci6n, estudios, ejecuci6n, etc.) serdn a cargo y responsabilidad de La Corporaci6n como productor de la energra que requiere la unificaci6n y expansi6n del mer- cado que se obtendrd por medio de la conversi6n de frecuencia y por consiguiente, el inmedia- to y principal beneficiario de dicha unificaci6n propuesta de conformidad con la Resolucidn - del Gabinete antes mencionada. La Electricidad tendrd a su cargo, Onica y exclusivamente los costos concernientes a la conversi6n de sus propias unidades de generaci6n termo- - diversos aspectos econ6micos, los cnst.- incurridos para efectuar El cambio de frecuencia, ex ... /... -3- elctrica, con exclusi6n de la Unidad Tacoa VI, en actual montaje a la frecuencia de 50 ci- clos par segundo, y cuyo costo de conversi6n ser6 par cuenta de La Corporaci6n. De considerarlo tdcnica y econ6micamente conveniente, La Electricidad convertird a 60 ciclos par segundo, todas a algunas de sus plantas hidraulicas a su propio costo. A fin de cubrir situaciones especiales que pudieran presentarse durante el proceso de conversi6n, en el sentido de que cualquier costo directo a indirecto del proceso de conversi6n que no le corresponda pagar a La Electricidad de acuerdo con lo aqui estipulado ser6 par cuen ta de La Corporaci6n, se considera conveniente aclarar y precisar el alcance de esta cl6usula: a) La Corporaci6n pagard el costo de ]a conversi6n de las instalaciones de los clien-- tes de Las Companras y el costo de la conversi6n de la Unidad Tacoa VI de La Elec tricidad. b) La Electricidad pagar6 la conversi6n de todas sus unidades de generaci6n con ex-- cepci6n del costo de conversi6n de la Unidad Tacoa VI. c) Los gastos que se ocasionen par la sustituci6n de equipos o partes de las instalacio- nes de transmisi6n, transformaci6n a distribuci6n de Las CompairTas y que no signi- fiquen un incremento del patrimonio neto de esas Empresas, serdn pagados por La - Corporacidn. d) La Corporaci6n pagard aquellas instalaciones de emergencia de comprobada nece- sidad y que en definitiva no vayan a incrementar el patrimonio neto de Las Compa- flas. e) El costo de cualquier instalaci6n que signifique un incremento del patrimonio neto de Las Compan tas, serd pagado por Las Compar ras. * . */11. -4- CLAUSULA No. 2.- La programaci6n y cjecucifn de los trabajos de adaptaci6n de equipos correspondientes a la unificaci6n de frecuencia a 60 ciclos por segundo, motivo de este con- trato, estar6 bajo la rEsponsabilidad de La Electricidad quien lo ejecutar6 en forma directa o como lo considere mds convenientc. Todas las operaciones para Ilevar a cabo la conversi6n dc frecuencia, se haron bajo la inmediata supervisi6n de La Corporaci6n y Estar6n constantemente sujetas a su inspecci6n y fiscalizaci6n. A tal fn, La Corporaci6n dispondr6 de los elementos necesarios que garanti- cen la buena calidad de los trabajos y la sincoridad do los costos. CLAUSULA No. 3.- La Electricidad serd responsable y se compromete en este acto a Ilevar a cabo los trabajos del Cambio d- Frecuencia, dc 50 a 60 ciclos por segundo, en el sistema de Las Companras. A tal fin dcber6 desarrollar y ejecutar un programa de trabcjo para la adaptaci6n de los equipos de gencraci6n, transmisi6n y distribuci6n de Las Compahtas, ast como de los equipos de utilizaci6n de- los suscritores, para su debido funcionamiento en la fre_ cuencia d 60 ciclos por segundo. Este programa dcber6 ser tal que: 1) Se Ileve a cabo lo mrs rdpidamente que sea posible y con cl minimo de molestias para los suscritorEs; 2) Quc los interrupciones dcl servicio de energia elctrica, necesarias para el desarrollo de los planesde conversi6n, se realiccn cn el lapso de tiempo minimo posible; y 3) Que los costos resulten - econ6micamente razonables. CLAUSULA No. 4.- A fin do disponer d una documcntaci6n que sustancie las actuaciones quo se derivan de los trabajos dc conversi6n contratados, La Corporaci6n fiscclizar6, en sus diversos aspectos ccon6micos, los crzt:,. incurridos para efectuar El cambio de frecuencia, ex -5.- ceptuando lo correspondiente a los costos de conversi6n de la generaci6n de La Electricidad que estdn a cargo exclusivamente de Osta. La Electricidad se obliga por este contrato a brin dar todas las facilidades de que disponga a los representantes de La Corporaci6n, cada vez - que esta desee efectuar alguna inspecci6n do los trabajos de conversi6n de suscritores o audi- torta do las relaciones do gastos presentados. La inspecci6n, fiscalizaci6n y auditorta que reclice La Corporaci6n serd por su propia cuenta y no deberd entorpecer en ningon momento y por ningon motivo, la continua marcha - de los trabajos. CLAUSULA No. 5.- En vista do que, una vez iniciados los trabajos do conversi6n de sus-- critores, La Electricidad no tiene otra alternativa que Ilevarlos hasta su final terminaci6n, - sin que se puedan permitir interrupciones suspensi6n o abandono de los mismos por-falta de re cursos econ6micos, se conviene en que dentro del termino de un afo a partir de la firma de - este contrato, La Corporaci6n establecerd las garanttas que fueren necesarias, a satisfaccifn de La Electricidad, para asegurar que en ningOn momento durante el transcurso de los progra- mas do cambio de frecuencia se interrumpird el financiamiento por parte de La Corporaci6n, - do los trabajos de conversi6n de los suscritores de Las Compantas hasta su total terminaci6n. De igual manera y en la misma forma y plaza, La Electricidad establecerd las debidas garantras a satisfaccifn de La Corporaci6n, por las inversiones quo a ella corresponda efec-- tuar conforme a los terminos de este contrato, en la conversi6n de sus propias unidades de ge- neraci6n. De no establecerse las garantfas dichas dentro del ttrmino previsto, La Corporaci6n o ... /. . . La Electricidad, segOn el caso, podrd quedar libre por propia y voluntaria decisi6n, de las - obligaciones establecidas en este contrato y por lo tanto no se dard comienzo a los trabajos - de conversi6n y se suspenderd toda actividad relativa al cambio de frecuencia. CLAUSULA No. 6.- Como quiera que La Corporaci6n se ha obligado a costear la totalidad del cambio de frecuencia con las salvedades especificadas en la Cldusula No. 1 de este con- trato, a partir de esta fecha La Corporaci6n se compromete a incluir en su presupuesto de ca- da ano, y hasta tanto finalicen los trabajos dcl cambio de frecuencia, las cantidades Estima- dos por La Electricidad para el cumplimiento de los programas de trabajo del cambio de fre-- cuencia en el menor tiempo posible. Igualmente La Electricidad incluird en sus respectivos - presupuestos anuales, las correspondientes cantidades que le corresponda sufragar conforme a dichos programas. Estos programas deberdn ser aprobados por la Comisi6n Oficial. A la firma de este contrato y en el menor plazo posible, La Corporaci6n y La Electrici dad Estudiardn y acordardn el mecanismo financiero y la modalidad de iniciaci6n de los pagos que sean necesarios para realizar y ejecutar la parte de Ila conversi6n de frecuencia que de - acuerdo con este contrato es a cargo y responsabilidad de La Corporaci6n. CLAUSULA No. 7.- A partir de la fecha de este contrato La Electricidad queda autorizada para preparar el programa de trabajo y organizar el personal de administraci6n y ejecuci6n de; la obra, y lo someterd a la aprobaci6n de La Comisi6n Oficial a fin de proceder de inmediato a los estudios indispensables del cambio de frecuencia de los suscritores de Las Companas. La Comisi6n Oficial deberd conocer y aprobar los planes que resulten de los estudios con cardc-- ter previo a su puesta en marcha. -7- CLAUSULA No. S.- El ritmo de progreso de los trabajos de conversi6n dard origen a los - presupuestos semestrales correspondientes que La Electricidad habrd de presentar oportunamen te ante La Corporaci6n. Estos presupucstos, determinardn las cantidades quo cada mes deberd depositar La Corporaci6n a nombre de La Electricidad para los trabajos dc conversi6n. CLAUSULA No. 9.- La Electricidad rendird cuenta mensual del uso de los dineros puestos a su disposici6n par La Corporaci6n. La Electricidad facturard a La Corporaci6n los costos - en que so incurra, sin derecho a margen do beneficio. Las relaciones mensuales que enviard La Electricidad a La Corporaci6n deberdn ser aprobadas u objetadas por La Corporoci6n en el termino de sesenta dras a partir de la fecha de recibo de la misma. De no haber objeciones dentro del plazo mencionado se presume que han sido aprobadas. CLAUSULA No. 10.- De considerarlo necesario, La Electricidad y La Corporaci6n contra- taran do mutuo acuerdo los servicios de consulta do expertos en la materia, para asesorar en planificaci6n, organi7.:ci6n y ejecucidn, con objeto de reducir al mrnimo el costo do los tra bajos do conversi6n y lks posibles molestias a los suscritores. CLAUSULA No. 11.- A la terminaci6n do las obras de ejecuci6n del cambio de frecuencia, La Corporaci6n, conjuntamente con La Electricidad, hard un balance general de la obra eje- cutada con el objeto de doterminar el monto total de la erogacifn quo haya sido efectuada - por La Corporaci6n para realizar el cambio de frecuencia. CLAUSULA No. 12.- La Electricidad so compromete on este acto a comprar a La Corpora- ci6n y La Corporaci6n a vender a La Electricidad energia eldctrica a 60 ciclos por segundo a la tarifa que se establezca de acuerdo con la Cldusula No. 14 de este contrato, por un valor I1 1 1 . igual al monto de la Erogaci6n que haya sido dotcrminado de acuerdo con la Cidusula No. 11. La compra deber6 cubrir adcm6s los interEcsES calculados al 5.5% anual sobro los saldos de la crogaci6n efoctuada por La Corporaci6n para el prop6sito referido, que no se hubiran recupe rado en la forma dicha. Es entendido quo La Elkctricidad se compromete adquirir energra -- por cI valor antes stlalado dentro de un plazo mdximo dc 20 anos a contar de 1a fecha en quo La Corporaci6n se encuentr. en condiciones de entregar a La Electricidad la Energra prove-- niente del sistcma dc Curi con la rcgularidad y soguridad necEsaria quO pErmitan continuar - con las normas de servicio 6ptimas ectualmente ofrecidas en las zonas que sirven Las Compa-- Sras. CLAUSULA No. 13.- SL entiendo que la intorconexi6n de los sistemas de la Corporaci6n, - la CADAFE y La Elctricidad, sC IkEvard a efccto solamente dospu(s dil establf-:imiento do - los acuerdos indispensables sobre la misma y do la firma de los contratos d. compra-vonta de cnergta clectrica entre las partes. Base de estos acuerdos serdn los resultados de los estudios quo actualmento realiza la firma internacional Middle West Service Co., !a cual ha sido con- tratada conjuntamente por La Corporaci6n, la CADAFE y La Electricidad para el Cstudio de la interconexi6n, normas dc contratos, precios y demds recomindaciones respecto al plan dc. ex-- pansioncs futuras para los diferentes sistemas. CLAUSULA No. 14.- La tarifa pare la c ncrgra edctrica primaria (quo serd parte de la ca-- pacidad dA una planta hidr6ulica disponible (n todo momonto, en que la energra sea necesa-- ria), del proyecto Guri, quo vendckr La Corporaci6n a La Electricidad, quEdar6 dEterminada por un prrodo no mcnor dc veinte (20) aios. Dicha tarifa serd 6stablocida tomando coma ba- -9- se el informe que presente la compahro consultadora ya escogida y contratada especialmente para este ftn, pero en ningOn caso tal precio podrd ser mayor quG el costo para hoy para La Electricidad en cada nivel del factor de carga de su sistema con sus actuales unidades de ge- neraci6n termica. CLAUSULA No. 15.- Debido a las condiciones muy especiales en que habrd de operar el - sistema de La Electricidad durante el cambio de frecuencia de 50 a 60 ciclos por segundo, pa_ a el caso do que La Electricidad necesite adquirir energta en 60 ciclos por segundo, del sis- tema de Guayana, durante ei proceso de conversi6n, esta energra le serd enviada segOn las recomendaciones que establezca la firma consultora internacional Middle West Service Co. CLAUSULA No. 16.- Queda entendido que ninguna de las estipulaciones de este contrato podrd interpretarse como una restriccifn de la libertad que tiene La Electricidad para aumen- tar la capacidad de generaci6n de sus sistemas, en cualquier momento en que a juicio propio ast lo considere conveniente. CLAUSULA No. 17.- Los dudas y controversias de cuolquier naturaleza que se susciten en- tre las partes acerca del establecimiento de las estipulaciones del presente contrato ya sean - de interpretaci6n de sus cldusulas o de cuestiones de hecho y que no puedon ser resueltas ami tosamente entre ellas, serdn sometidas a arbitraje, el cual, se Ilevard a cabo por tres (3) dr-- bitros, expertos en la materia que se discute, a menos que ambas partes convengan que lo ha- ga uno solo. Los drbitros serdn nombrados ast: Uno por La Corporaci6n, otro por La Electricidad, y el tercero por los dos primeros 6rbitros nombrados. En caso de que cualquiera de las partes - - 10 - dejare de nombrar su drbitro en el plazo de un (1) mes, contando a partir de la notificaci6n - por escrito efectuada por una de las partes de la existencia de un conflicto no solucionable - de mutuo acuerdo, la otra parte ocurrird at Colegio de I ngenieros de Venezuela para que pre sente una quinaria a la Corte Suprema de Justicia a fin de que este Oltimo Cuerpo seleccione uno y proceda a su designaci6n. Igual procedimiento habrd de seguirse si los dos drbitros de las partes no se pusieran de acuerdo para el nombramiento del tercero en el mismo plaza antes mencionado. Los gastos - que ocasione la experticia seran pagados a medias por La Corporaci6n y La Electricidad. La decisi6n o dictamen de la mayorta de los drbitros serd obligatorio para ambas partes. La de- cisi6n o dictamen de los drbitros se tomard y notificard par escrito a ambas partes dentro de un plaza de tres (3) meses despues del nombramiento del Oltimo drbitro. A petici6n de uno o mds drbitros se concederd un plazo adicional Onico de un (1) mes como mdximo. CLAUSULA No. 18.- La vigencia del presente contrato serd hasta nueve (9) meses des- - puts de terminada la conversidn de los suscritores de Las Compaitas y las unidades de gene- raci6n de La Electricidad. CLAUSULA No. 19.- Para todos los efectos de este contrato, se elige como domicilio es- pecial a la ciudad de Caracas a la jurisdiccidn de cuyos tribunales quedan sometidas las par- tes. Se otorgan y firman dos (2) ejemplares del presente contrato, de un mismo tenor y a un sdlo efecto, habiendo sido sellados sus folios sabre las junturas interyacentes de sus empalmes, . .. /,. - 11 - con el sello oval de La Corporacion y con el usado por La Electricidad en su correspondencia, los cuales aparecen al pie, junto a las firmas de los otorgantes, Caracas a los tres dias del - mes de marzo de mil novecientos sesenta y seis. Por LA ELECTRICIDAD Por: LA CORPORAC ION eL IERSAL 4, 6 PAG # 1 ae urn la grafica se aprecqa cuando el doctor Niconedes Zuloaga, representaci6ii de a Electricidad de Caracas, firmaba el contrato de unificaci6n de frecuencia, junto con el General Alfonzo Ravard, Presidente de la Corporacifn Venezolana de Guayana. Aparece en la foto el doctor Hector Hurtado, Di- rector de CordiplAn. En horas de la tai-de de ayer poraci6n Venezolana de Guaya se Ilev6 a efecto en el Salon de na y la C. A. Electricidad de Ca los Espejos del. Palacio deMira- racas. fkbres, un acto durante el cual El Contrato fue firmado por e se firm6 el Contrato de "Uni- General Alfonzo Ravard, Presi ficacidn de Frecuencia" entre la dente de 1a Coporaci6n Vene Naci6n, representada por la Cor- zolana de Guayana y por el doc tor Nicomedes Zuloaga, Presi dente de la C. A. Electricidad d( Caracas. Ademas de los firmantes, s( encontraban presentes ls docto res Manuel P6rez Guerrero, Mi nistro de Minas e Hidrocarbu- ros; H6ctor Hurtado, Director dt .CORDIPLAN; Eloy Anzola Mon. tauban, Presidente de la Corpo- raci6n Venezolana de Fomento Oscar Niewstchiz, Presidente dE CADAFE; Leonardo Montiel Or- tega, Director de Industrias de Ministerio de Fomento; Oscai Machado Zuloaga, Director-Ge- rente de la. C. A. Electricidac de Caracas, y otras personas. Previo el acto de la firma de . Contrato se efectu6 una Rued- de Prensa, durante la cual s( ofrecieron amplias explicacione sobre la Unificacifn de Frecuen- cia electrica de, los sistemas df Guayana y la regi6n central de pafs, su significaci6n y bene- ficios. (Amplia informaci6n er Luego de firmado el contrato para "Unificaci6n de la Frecuencia El6ctriea", los direc- Pag. 1 tivos ofrecieron una rueda'de prensa. LA RELIGION Firmado en' Miraflores C0ntrato d U-n 4-3-66 de Uri f 'c a c 1'n d e Frecue nca _ectrica En horas de la tarde de rrero, Ministro de Minas e la C. A. Electricidad de Cara- ayer, se liev6 a efecto en el Hidrocarburos; Hdctor Hur- cas, y otras personas. % Sal6n de los Espejos del Pa. tado, Director de Cordipldn; Previo el acto de la firma lkcio de Miraflores, un acto Eloy Anzola. Montaubdn, Pre- del Contrato se efectu6 una durante el cual se firm6 el sidente de la Corporacidn Ve- Rueda de Prensa, durante la Contrato de "Unificaci6n de nezolana de Fomento; Oscar cual se ofrecieron amolias Frecuencia" entre la Naci6n, Niewstchiz, Presidente de explicaciones s la Unifi- representada por la Corpora- CADAFE, Leonardo Montiel caci6n de Frec - electri- cdn Venezolana de Guayana Ortega, Director de Indus- ca de los ssitemas de Guaya- y la C. A. Electricidad de Ca- trias del Minister o de Fo- na y la regi6n central del racas. mento; Oscar Machado Zu- pais, su significcaidn y bene- loaga, Director - Gerente de ficios. El Contrato fue firmado por el General Alfonzo Ra- vard, Presidente de la Cor- poraci6n Venezolana de, Gua- yana y por el doctor Nicome- des Zuloaga, Presidente de la C. A. Electricidad de Cara- cas. Ademds de los firmantes, se encontraban presentes los doctores Manuel Pdrez Gue- ULTIMAS NOTICIAS 4-3-66 Paig. 6 ambio de Frecuencia en Elctricidad ara Caracas, de 50 a 60 Ciclos por Segundos Afec i Industrw as y Edificios El Gobierno y la Electrici- co que es el alumbrado domesti- ad de Caracas suscribieron E i, ualmente, necesitaran zo corriente, refrigeradoras, yer un acuerdo para cam- una tenci6n especial los ra- pulidoras, radios y los apara- iar la frecuencia de 50 a- 60 yos X y otros aparatos d tos de calentamiento par re- iclos por segundo en ]a zona cos y cientificos en general. sistencia, tales como hierro de ietropolitana y en Valencia, aplanchar, hornillas, cocinas, ara de esa, forma unificar En una reuni6n efectuada calentadores, etc. >s sistemas de frecuoncia en en el Palacio Blanco, . el Di- El cambi de frecuencia se Ddo el pals en. 60 ciclos. rector de Cordiplan, doctor iri hacienda paulatinamente, Hdctor Hurtado, y el Presi- v los gastos de acondiciona- Esta unificaci6n de frecuen- dente de ]a Corp( ci6n V - niento sern eRor a la entre las, producirA inconvenientes nezolana de Guayana, Genera ni n 1 . n los aparatos movidos por Rafael Alfonzo Ravard, ant Ni- En el c la. Electrici- notores el~ctricos, motores in- ciaron el acuerdo con la E ec- dad se comproa te a adquirir Durante [a firma del contrato para la "unificaci6n de las frecuencias elictricas en 60 lustriales, ascenwores, tricidad de Caracas, y afirma- vdnti- ran adores, aire acondicionado, aores ara acndmbr ado, r que no serian afectad por un plazo de 20 afios ener- ciclos", o parsercbiande fecencs gia el6ctrica procedente de: de la CVG, General Rafael Alfonzo Ravard; y aparecen en la grAfica el Director de Cordiplan, H6ctor Hurtado; el Presidente los representantes de la Electricidad,de eactores para alumbrado fluo por el camblo de frecuencia Guri. encabezados escente de tubos muiltiples y los reactores de alumbrado Caracas, por, el doctor Nicomedes Zuloaga. le mercurio y otras partes de fluorescentes de un solo tubo ircuitos el6ctricos magn~ti- el alumbrado incandescente N1.1 SWITCH - In Miraflores' Hall of Mirrors the contract converting left. Also present were, left, Director of Industries Dr. Leonardo Caraeas frequency to 60 cycles was sirned by La Electricidad . Montiel Ortega, Mines Minister Dr. Manuel PCrez Guerrero, de Caracas president Dr. Nicomedes Zuloaga, third from left, and right, Cordiplan director Hector Hurtado, and La Eiectrici- and CVG president General Rafael Alfonzo Ravard, fourth from dad de Caracas manager Oscar Machado Zuloaga. G ri Electricity for Caracas By ower" Ccl By ALVARO ARRAIZ THE DAILY JOURNAL Journal Staff Writer 4-3-66 C.A. La Electricidad de Caracas - the largest private power company in the country - and the Venezuelan Guayana Corporation (CVG) yesterday signed an agreement unifying Venezuela's electric power cycle frequency to allow uniform distribution of both Electricidad de Caracas and government power throughout the nation. The, measure means that Caracas power will be converted from 50 to 60 cycles, affecting almost every industry and every home using frequency sensitive devices such as electric motors, clocks, record players and tape recorders. Sixty-cycle frequency, standard in the Americas today, is that produced by CVG power generators. The co ,ract was signed at Miraflores by CVG President Rafael Alfonzo Ravard and Electricidad de Ca- racas President Nicomedes Zuloaga. It was announced that the con- trial consumers of electricity will version process will be implement- not be required to pay for the ed over- a period of "from four conversion of electric applicances to five years." . and equipment to the 60 cycles. - CVG President Rafael Alfonso Home appliances, such as refria- Ravard explained at the contract- gerators, stoves, heaters and other signing ceremony that the pur- appliances which function through pose of the agreement is to en- heat from resistance will not be able transmission of power in the affected. future from Guri - whose po- La Electricidad de Caracas will tential is estimated at. 10,000, 000 a tect oe c ar ill kil1owatt -hours - to Caracas and assume the cost of converting its kot high-consumption areas id generators, which is-estimated to other be more than Bs. 15 million. the central zone. GURIPOWER Unification of Venezuela's elec- tric power frequency 'has been urder study since 1963, when the need to connect Guri powqr with the central zone consumption area became apparent. To connect Guri power , with the centraf zone the government has built a 230,000-volt transmis- sion line from Guayana to Santa Teresa del Tuy south of Caracas. Another 400,000-volt, line 'will be built by the CVG with a Bs. 84 million World Bank loan, Ir - announced yesterday. ' _ As a consequence of the unifi. cation of frequency, all equipment using- electric motors, set for 50- cycle current will :have . to be adapted to the new frequency. The cost of the change in fre- quency will probably reach about Bs. 140 million Home and imu 4-3-66 LA REPUBLICA l CgC ade Guaan La Coporaion enezla- acional un Proyecto de y eCoa- Ley para contratar un em, niaAde unaE lctricia e pr6stito por una suma Co1m1 Ctarc, frmaro yerciar- JeOR 1 prendida entre los 22 ylos daacs en je dn el el an es , Espe-a alain de Lo iriar- lafr cu 28 millones de ddlares para la construccin de la. inea jos el contrato dearal u- f\*adicional de 40.000 voltiOs rescacntr d ar lrceca de-uni1 OSp fSe- entre Guri y Santa Teresa' los Sistemas de Guayana y detr Tuy. Asiiso, la Region Central del pais, ser soa- ctr toc~io o a que serdn interconectaatos lor de -1,8 millones de d6laT medintelinas e alatn- . .res para la instalacidn en sidn, para lo cual sera ne- gia el6ctrica proveniente 'de sistemas de Guayana y el Gr euatreauia cesario cup las compaluas - Guri, por un Valor iguaL a Centro y la unificacion de generadora de energia el6c- privadas conviertan su tre.- lo invertido por la Corpora- sus frecuencias permitirA el trica. cuencia de 50 a 60 ciclos Poe cidn af terminarse los traba- abastecimiento de gran parte segundo,, unificindose ambus jos - de conversi6n,. mis mnte- '.de la demanda futura de Fnletifr Fnletifr en,esta uiltima. reses del 5 por ciento anual. Guayana, el Orient, y el que el costo del prcjyecto de La jjrmja ciel contrato se . Para lai interconexidn de Centro .de Venezuela con,- conversi6n y unificacidn de Ilevo a cakco por ei ivu Le- ambos sistemas exidste ya energia zenerada en el sis- frecuencias, que se realiza- riodehuns nuroaru- una linea de trasmisidn, pr6- tema Guri-Macagua, que a ri entre los anios 1966 y rjo, de kwas aei r eerUar xima a entrar en funcionA- partir de 1968 tendri una ca- '1969, seri de 130 a 135 mi- wuerrevo; ei uener~al Itaiael, miento, entre Ciudad Guaya-- pacidad instalada de 895.000 . lones de bolivares, pero ad- Aionzo ktavara, e'resiciente. na v Santa Teresa del Tuy; -kilovatio3. ,virtieron que cada dia que de la Corooracidn Venezula.. dicha linea. cue, funcionark se hubiese demorado -costa- na de Guayana; el aoctor a 230 mil voltios, fue cons- El presidente de la Cor- ria a la Nacion 10.000 bo hector Hurtado, Director de trulda iDor CADAFE. .En el -poracidn Venezolana de Gua livares diarios, lo cual, te- la Oficina d,. Coordimacio futuro, se tendrd otra- linea yana y el doctor .Oscar Ma- niendo - en . cuenta Clue estas y Planificacibn de la Presi- de 400.000 yoltios entre las. chado Zuloaga mnformaron conversaciones demoraron 3 dencia de la Repfiblica; el dos ciudades citadas. qu dentro de algunos dias anlos, represent6 una p rdi- senior Oscar Niemstchik, pre- La interconexion de los serfi sometido al Congreso .da de 10.950.000 bolivares. sidente de la Compania And- .C- nhna de Administracion y Fomento EJectrico (CADA- FE); el doctor Leonardo Montiel Ortega, Director de Indlustrias del Ministerio de .Fomento y los docteres .Ni- comedes Zuloaga y Oscar Machado Zuloaga, estos ulti- mos en representaci6n de la Electricidad de Caracas. En Venezuela, actualmen- te, s6lo las zonas servicdas con enerygia de la Electrici- dad de Caracas, asi como I'a-- parte de la' ciudad de Va- lencia perteneciente a la Electricidad de Valencia, operan en, 50 ciclos. El resto del pals na adoptado la fre- cuencia 60 ciclos, en la cu'al se ).oducir~i la corrien-, -~. ~ ~...~.~..-~.. te del Caroni. . ~ De aCLuerdo con el contra- i El Ministro de Minas e Hidrocarburos, doctor Manuel Perez Guerrero; 4pl presidente de la to, la El2ctricidad de Cara- CVG, geoeral. Rafael Alfonzo Ravard'y. el Director de.CordiplAn, doctor HWctor Hurtado, cas pageaa el costo de Ia ' -observan mientras firma el doctor Nicome~les Zuloaga. (Foto Mir.).- conversi6n cde sus unidades - de generacion, con excepcidn de la Unidad Tacoa VI, que hubo de ser instalada en 30 ciclos con posterioridad'-a compromiso preliminar entre dicha emoresa y la Corpura- ci6n Venezolina de Guaya- na. A% su vez. la C.V.G. paga- rAi a converis i6n de la Un-i- dad Ole Generaclon TFacoa VI por las razones antecriovnmen- te expluestas. Por otra parte, la Eleectricidlad de Caracas; se comn-ormete a comprar a ]a Corporacifn Venezolana d. Guayana en un ptazo mixImo de 20 anios laener- %I ENelel ciclaje Espejos, en Miraflores so produjo [a firma del contrato para, cambiar de los Sal6n de la elec-rlcidad en Caracas. Por el Ejecutivo Nacional, en su caricter de Presidente de la Corporaci6n Venezolana de Guayana firm6 el General Rafael Alfonzo Ravard, y por [a C. A. Electricidad de Caracas su Presiden.te el doctor Nicomedes Zuloaga. ldF 7 ladores (enti-e ellos las uni- AUnl costa Ptre y fluctila que los 125 en- 130 millo- Firniado aver el Conirato1reactores dades de aire acandicionado>. para el alumbrado nes de bolivares, el Gobier- flourescente de tubas mniti- no Nacional y la C..A. Elec. areas servidas prsntd uPe compa- pa por - del 16 de abril de 1963.. le Zuoaa chd de mercurio ie:r6u y otras tricidad de Caracas acome-. nijas privadas,' de acuerda Coma consecuencia del pires d crutse6tio ten el cambia de frecuencia, con el contrato suscrito ayer cambia de frecuencia ten- parteicds Acncuis espe-o eldctrica en 1 Caracas y las en el Palacia de Miraflores drin que ser acondicianadas, cial reclamarin los rayos X entre el Ejecutivo Nacianal, las aparatos mavidos par ma- y' otros aparatos medicos y representado par el 'Presi- tores electricos: motores in- cientificos en general. dente de la Carporacion Ve- dustriales, ascensares, venti El Director-Gerente Gene- nezolana de Guayana, Gene- .ral de Ia C. A. Electricidad ral Rafael Alfonso Ravard, de Catacas, Dr. 'Oscar Ma- y la mencinada empresa re- a te, doctor aoes icr auesa- el cambia de frecuencia ra los usuarios del serviciao pa- ga- de energi a electrica no re- -esSe inform6 que el contra- presenta costa alguno sino to tiene par finalidad unifi- la peque a molestia de que .. d . car la frecuencia de los sis- C en los damicilis las tecnjcos temas de Guayana y la re- de la empresa hagan las pe- . ' gi6n central del pais que se- quenias adaptacianes. El cam- rin intercone tados median- bia de ciclaje esperan lograr- te lineas de alta tensi6n. Pallo ente r y5ans. ra alcanzar este objetivod se- ya preciso que las companlias privadas conviertan su frep cuencia de 50 a 60 ciclos par segundo con la cual ambos sistemas se unificarian en la frecuencia de 60 ciclos .par segundo. - Se inform6 que en Vene- zuela, actualmente, solo las zonas servidas con energia de ia Electricidad de Cara- cas asi coma la parte de la ciudad de Valencia pertene- ciente a la Electricidad de Valencia, estin en 50 ciclos. El resto del pais ha adopta- do 60 ciclos par segundo y en esta frecuencia se produ. cirA la corriente del Caroni. La unificaci6n de la fre- cuencia fue estudiada por una Comisi6n Especial en cumplimiento de lo dispues- to en el Conseja de Ministras 7 d9 Un contrato para el canbio de Por el convenio, la Electricidad de Caracas se compromete a adquirir durante 20 anos frecuencia electrica (de 50 a 60 ciclos) en el Area metropolitana, energla el6ctrica de Gun fue firmado ayer en Miraflores entre la Corporaci6n Venezolana Los aparatos de uso dom6stico, como refrigeradoras, pulidoras, radios do Guayana y la Electricidad de oaar Caracas. Comrrende una inversi6n y los aparatos de calentamiento por resistenqio, como planchas, hornills,' cocines de 100 millones de bolfvares y com- y calentadores, no son afectados por el cambio promiso de la empresa privada de adquirir durante veinte afios ener- 0 Caracas recibir6 corriente de Gvri en 1968 gia eldctrica de Gur!. Cada dia que demora el programa cuesta al pais El contra fue firmado al final eldctric. fue estudlada por una dr6 que fabricar productos para diez mil bolivares. Se espera que de una rueda de prensa en la que cornision mixta durante mis de que funcionen en ambas frecuen-i dentro de cinco afnos la transfor- los representantes de ambas par- tres afnos. Esa comisi6n lleg6 a las cias, con los consiguientes ahonr95 mnaci6n se haya logrado en forma tes explicaron los detalles de la siguientes conclusiones: a) la uni- tanto para los fabricantes COMP absoluta en Caracas, ciudad que materia. En el acto tambidn estu- ficaci6n de frecuencia es conve- para el pnblico consumidor. para 1968 estari en condiciones de vieron presentes el doctor Isaac niente para el desarrolloecon6mi- 3) Los suscritores de una re- recibir el fluido desdo la presa de Pardo, por La Electricidad deL Ca- co del pals; b) la unificaci6n de gi6n podrin mudarse a otra sin Guayana. racas, y los doctores Fernando Al-: frecuencia permitiriL la Interco- el inconvenlente de adaptar sus El convanio fue suscrito en el varez Manosalva y Alfonso Espi- nexi6n de los distintos sistemas artefactos eldctricos a una frecuen- Sal6n de los Espejos, del Palacio nosa, de la CVG: eldctricos del 'pals sin restricci6n cia distinta. Presidencial, por Rafael Alfonzo El acuerdo tiene por finalidad alguna; y c) tanto la unificacl6n 4) Los vendedores de equipo Ravard, presidente de 1a CVG; unificar la frecuencia electrica de de las frecuencias como la Inter- eIctrico no tendrIn necesidad de Manur er Cnistro los sistemas de Guayana y la re- conexi6n I permitirn una expan- mantener en sus dep6sitos arte- Cdi a , . iur o, ~di- gi6n central del pals que serin in- si6n mds ripida de la central hi- factos capaces de funcionar en una rector de Cordiplrn, por el Ejecu- terconectados mediante lineas de droelectrica de Gurn. u otra frecuencia. tio. Por la C. A. Electricidad de alta tensi6n. Para alcanzar este Caracas firmaron su presidente, objetivo ser6 preciso que las com- VENTAJAS DE LA UNIFICACION APARATOS AFECTADOS POR Nicomedes Zuloaga, y Oscar Ma- panlas privadas conviertan su fre- chado Zuloaga, director-gerente. cuencia de 50 a 60 ciclos por se- De acuerdo con la informaci6n LA UNIFICACION El doctor Crcar Machado Zuloa- gundo, con lo cual ambos sistemas de prensa que explica los alcances Se explic6 a la prensa que como ga inform6 qu- a .. Elec- se unmficarin en la frecuencia de del contrato, las ventajas princi- consecuencia del cambio de re tricidad de Caracas Ia conversi6n 60 ciclos por segundo. pales de la unificaci6n de frecuen- cuencia tendrin que ser acondi- d- icL -labor En Venezuela. actualmente,46lo cia son las siguientes: cionados los aparatos movidos por senca, ce ~ nveii- de las zonas servidas con energfa de *1) La interconexl6n de los sis- motores eldctricos: motores indus- F n La Electricidad de Caracas, asi temas eldctricos sin restricci6n al- triales, ascensores, ventiladores -La ccmp? -- x licd- habia como la parte de la ciudad de Va- guna permitirn lograr importantes (entre ellos los de unidades de ai- previsto el cambio y desde hace lencia perteneciente a La Electri- economias 'en las reservas de ge- re acondicionado), reactores para tiempo viene preparando sus e,ui- cidad de Valencia, estin en 50 ci- neraci6n necesarias, y en conse- alumbrado fluorescente de tubos pos. cbos. El resto del pals ha adoptado cuencia el mejor aprovechamiento mfiltiples y de' mercurio y otras Con el trabajo de conversi6n que 60 ciclos por segundo y en esta fre- de las capacidades instaladas ac- partes de circuitos electricos mag- se realizar& en el area metropoli- cuencia se producirb. la corriente tuales y futuras. n6ticos. Atenci6n especial recla- tana, se tendri una sola frecuen- del Caron!. . . 2) La'industria nacional de ar- marin los rayo.T X y otros apara- cia el6ctrica en todo el pals. La unificacidn de , frecuencia tefactos. y equipo el6ctrico no ten- tos medicos y cientificos en ge- neral. No serin afectados por la unifi- cac16n: los reactores do alumbra- do fluorescente de un solo tubo, el alumbrado incandescente, que es el alumbrado domestico corrien- te; refrigeradores, pulidoras, ra- dios y los aparatos de calenta- imlento por resistencia, tales como hierro de aplanchar, hornillas, co- cinas, calentadores. Se estima que los estudios nece- sarlos y la realizaci6n de los tra- bajos para la conversi6n de fre- cuencia tomarbn alrededor de cin- co anos. La ejecuci6n de los trabajos es- ar6. a cargo de La Electricidad de "V - Caracas bajo la Inmediata super- visidn de la Corporacldn Venezo- lana de Guayana. LOS GASTOS DEL 2LOGRAMA La Inversi6n para el programa se ha estimado en mins de cien millones, aun cuando es imposible determinar una cantidad definiti- La firma del contrato en el Sal6n de Los Espejos (Miraflores), ayer a las 4 p.m. Fue suscrito por va hasta tanto no se haga el es- el Presidente de la CVG, Rafael Alfonzo Eavard; Manuel Perez Guerrero, Ministro de Minas, y 11c- tudio. tor Hurtado, Director de Cordiplin, por el Ejecutivo, y por ]a C. A. Electricidad de Caracas, su Pre- sidente, Nicomedes Zuloaga y su Director-Gerente, Oscar Machado Zuloaga. rsion de f. uencia serAn cubier de sus unidades de generacdn, ' so preliminar sobre costos en- del patrimonio de las compa- os de la manera siguiente: con excepcidn de la Unidad tre la Corporacldn Venczolana n1as. Tacoa VI que hubo de ser ins- de Guayana y La Electricidad 2. La Corporacidn Venezolana do . La Electricidad de Caracas pa talada en 50 ciclds por segundo de Caracas; y cualquier instala- Guayana pagari la conversion gar& el costo de la conversi6n con posterioridad al compromi- , cl6n que signifique incremento ae - la Unidad de Generaci6n Tacoa VI por las razones-antes expuestas, las modificaciones de la red, las instalaciones de emergencla y ]a conversi6n de equipos de la clientela. Se ha convenidD- en esta forma por ser la unificaci6n do frecuen- cia a 60 cielos por segundo, asunto de interds nacional, lo cual contribuye La Electricidad de Caracas con el costo do adaptaci6n de sus unidades. En virtud del convenio, La Elec- dricidad de Caracas se comprome- to a comprar a la Corporaci6n Ve- qezolana de Guayana en un pla- Zo mftximo de 20 aos energia 16ctrica proveniente de Guri (ac- tualmente en construccidn) por un valor igual a Jo invertido por la Jorporacidn al terninarse los tra- ajos de conversion, mnis interescs Je 5,5 por ciento anual sobre los ;aldos de erogaci6n efectuados por a Corporaci6n que no se hubie- ;en recuperado. NERGIA DE GURI AL CENTRO Para la interconexi6n de los sis- ;emas eldetricos de Guayana'y la egidn central existe ya una linea le transmislon, pr6xima a entrar n funcionamiento,. entre Ciudad 3uayana y Santa Teresa del Tuy, jue pasa por Ciudad Bolivar, El rigre y Barcelona. Dicha llnea de Ilta tensidn ha sido construida por "ADAFE. Funcionarb a 230 mil Foltios. En 'el futuro se tender& otra Ifnea, de 400 mil voltios, entre Ciu- lad Guayana y Santa Teresa del Tuy, y a medida que la central pidroeldctrica de Guri vaya am- -pliando sus Instalaciones se reque- rir.n nuevas lineas. La linea de 100.000 voltios serA construlda por a Corporacidn Venezolana de Guayana. La interconexidn de los sistemas ae Guayana y el centro y la uni- ficaci6n de frecuencia en el siste ma Interconectado permhi-rA abas- tecer gran parte de la demanda futura de Guayana, Oriente y el centro de Venezuela con energia generada en el sistema Gurn-Ma- cagua, que a partir de 1968 tendri una capacidad instalada de 895.000 kilovatios con posibilidades de su- plir cargas mayores a medida que 10 exija la demanda. El contrato que permitir el cambio de frecuencia contempla las medidas que deben tomarse para convertir de 50 a 60 ciclos las instalaciones generadoras de j," iricidad que asi lo requieran de los consumidores. FONRM No 75' INTERNATIONAL BANK TOR (2 50f RECONSTRUCTION ANI OEVELOPMENT [NTERMATIONAL FINANCE INTERNATIONAL DEVELOPMEN CORPORATI ON ASSOCIATION Date ROUTING SLIP NAME ROOM NO. To Hand e Note and File Appropria Disposition Note and Return Approval Prepare Reply _ Comment Per Our Conversation 'Full Report Recommendation Information Signature initial Send On REMARKS F BY AIR MAIL MERZ AND McLELLAN MILBURN, CONSULTING ENGINEERS ESHER, A Lr E. POWELL, M.I.C.E., M. I.M-c.. E. ALSO SURREY. WILLIAM H. DIXON A. C.E., M.I.MeM.EM.I.E.E. CARRIER HOUSE- WARWICK ROW- LONDON,S.WI WILSON W. CAMPBELL, M.I.Mec.. E., M.I.E.E. AND TELEGRAMS: AMBERKRAFT ESHER ARTHUR W. PEDDER. M.I.M.c.E.,M.I.E.E. CARLIOL HOUSE, NEWCASTLE UPON TYNE I TELEPHONE: ESHER 62121 THOMAS W . WILCOX. .., HAROLD B. JOHNSON, M.I.E.E. TELEX 262559 CO NSULTANTS ARTHUR HOWELL,M. .MZ' E.,M.I.E.E. CHARLES L.BLACKBURN. M.I.E.E. T. GRAEME N. HALDANE,NM.I.C.E., MI.E.E. FREDERICK C.WINFIELD, M.I.E.E. YOUR REFERENCE - LEWIS EWHEATCROFT,M.I.M.e.E.,M.I.E.E. DR.ALBERT PARKER,C.B.E.,F.R.I.C.,M.I.CH".E.,M.I.GAS.E. OUR REFERENCE ... -th March,-19 MR. M. PICCAGLI, Assistant Director - Projects Department, International Bank for Reconstruction and Development, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Dear Mario, On my return from4 short leave I have received your letter of February 1;th. In the meantime Tom Wilcox and Arthur Pedder managed to make contact with John Lithgow and explained to him how we happened to come into the picture Caracas. Wilcox has written to John Lithgow (2nd March) confirming his telephone conversation and I have no doubt you will now be aware of the position so far as we are concerned. If we have introduced a complication into the plans you have in mind for Venezuela I am sorry. It may be that what appeared to Wilcox and Ken Dou las as an elegant solution does not match up with the political situation and with hindsight it is clear to me now that it might have been better had we telephoned you. As there seems to be some chance of our being appointed by E.D.C. to assist in the adjudication on tenders for gas turbine plant, I think it would be helpful to us at least if Tom Wilcox aame out to Washington to spend a JIAM RIA Y8 AqUaJIM ./IAJJ3JoM PLIA SR3M F13HP-3 a i o so Y39R UwI 08JA .3. 4M M JMj3Woq 3 AJA l WaH O0M4OJ WOA XOfWRAW 3eUOMAIRARA, '-! RA!'( L. (3JOR;, fM,3 rIiM (M. 3.0 M AMQXIq H MAIJJIW R3H23 TiAqax. -':IT .I) I N -3 I M H W I 31IT Li0qU 3JTeAOW3 3etO a 3.3 L.M 3 -. M N ,R30039 W -. 'RA SI8 S 4 I 3J3T,3 IM .XOOJIW W eAMOM f3 M,i4OetHO,, - JCB ETOA em 331M. P4I .3WO1 RU 3 3 I M 1R COA J.4 34JA 3.3 1M,3,0 1 m QJAH M 3M 30a"Ras3R RUOY MlI 3 rA3 - 'ew LMW H 33M333M MUo 3 I 3 wiN 3 AA' JA / t. - t a a x - - - - x -o - - - - x -- -- MERZ AND W LELLAN -2- 7.3.66. Mr. M. Piccagli, Assistant Director - Projects Department, International Bank for Reconstruction and Development while with your people to get the background so far as you are concerned of the situation in Venezuela, and perhaps to give you our thoughts on D.C. transmission as an adjunct to frequency unification. If you agree perhaps you would let us know some suitable dates. In this connection I should tell you that when in the next few months our work in Buenos Aires is sub- stantially completed, we propose that Ken Douglas should come home and handle any future work in Latin America from this country. We therefore have in mind that he should pay periodical visits there. We also think that en route for South America he should call in to see you from time to time and I trust you would be able to spare him some time. Whilst on the subject of South America, we are all a little concerned over the slow progress in Colombia. There seems to be little progress in implementing the idea of the formation of the new company and in the meantime we have outstanding bills to the sum of .approachin X100,OO. /,"This will presumably be paid eventually, but an outstanding bill of this amount is something of an embarrassment. I attended a dinner in London recently and ran into Philip Squire. When I told him I was about to write to you he asked me to convey his good wishes to you. Yours sincerely, A.E. POWELL FoRM No. 26 (6. 65) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION INCOMING CABLE DATE AND TIME R O U T I N G OF CABLE: MRCH 4 1966 1050 LOG NO.: "A RC34 - 7 ACTION CPY: PROJECTS DEPRMT TO: INTBAFRAD INFOFMATION COPY: FROM: CARACAS DECODED BY: TEXT: XA&C43 ATT32TION PEICAI VERY NAEM TO IFM YO THAT FRMWENCY UIFCATION AESMN WIT EDC HAS BEEN SIGE D R H TIRD- AIR MAILING COFr OF AGREEMUT GEUERAL RAFAEL ALF1OZ0 RAYARD PDTE FOR INFORMATION REGARDING CABLES, PLEASE CALL THE ahMWUNICATIONS UNIT EXT. 2021 DUPLICATE -0 d~44 YE t FORM No. 337D (12-61) Mr. Zinman Room 500 True copy of the document signed between The Electricity Corporation of Caracas and the Venezuelan Corporation of Guayana on 3 March 1966 in the Palace of Miraflores. CHANGE OF FREQUENCY CONTRACT DOCU4ENT CONTRACT No.1 The following contract is drawn up between the Venezuelan Corporation of Guayana, National Autonomous Institute, hereinafter called "The Corporation", party of the first part, represented at these proceedings by its President, General Rafael Alfonzo Ravard, who is duly authorized by the Board of Directors of this Institute as recorded in the minutes of its meeting of 12 February 1965, and by the National Executive Cabinet as recorded in the minutes of its meeting of 23 March 1965, and the Electricity Corporation of Caracas, party of the second part, hereinafter called "The Electricity" of this city, registered in the Mercantile Registry at the Court of First Instance in Civil and Mercantile matters of the Federal District, on 29 November 1895, represented at these proceedings by its President, Dr. Nicomedes Zuloaga, duly authorized by the statures and the Board of Directors thereof, as recorded in the minutes of its meeting of 17 March 1965: 1.- Purpose of the Contract: In conformity with decisions taken at the meeting of the Council of Ministers on 16 April 1963 and in compliance with the Resolution of the Ministry of Development which was published in Official Gazette No. 27,140 of 10 May 1963, which designates "the commission to study and implement the standardization of frequency in the center of the Republic at 60 cycles and the interconnection of the systems and sources of energy", hereinafter called "The Official Commission", the present contract is drawn up to study and implement the change of frequency from 50 to 60 cycles per second, in the systems of the Caracas Electricity Company and the Venezuelan Electric Light Company, hereinafter called as "The Companies". 2.- Scope of the Contract: This contract shall cover the execution of the different stages of work necessary to effect the total conversion of equipment used by subscribers of "The Companies" and their own equipment, to wit: 1) Organization and study of work to be done. 2) Investigation and study of equipment to be converted. 3) Conversion of equipment until all work has been completed. TRANSLATION SECTION 525/66 Translated From:Spanish 3/25/66 By: RS:ab -2- h) Total liquidation of the organization established to study and effect the conversion, after these ends have been accomplished. These stages shall be executed in accordance with work programs previ- ously approved by "The Official Commission", and shall be governed by the following clauses: CLAUSE No. 1.- The total costs arising from the change of frequency (consultants, organization, studies, execution, etc.) shall be borne by The Corporation as producer of the energy needed to standardize and expand the market that will be obtained by the change of frequency, and consequently, as the immediate and chief beneficiary of this proposed standardization in accordance with the aforementioned Cabinet Resolution. The Electricity shall be solely and exclusively responsible for the costs relating to the conversion of its own thermoelectric generating units, with the exception of the Tacoa VI Unit, at present installed with a frequency of 50 cycles per second, the conversion cost of which shall be borne by The Corporation. If it is deemed technically and economically advisable, The Electricity shall ccovert some or all of its hydraulic plants to 60 cycles per second, at its own expense. To cover special situations which might arise during the conversion process, in the sense that The Corporation shall be held responsible for any direct or indirect cost of the conversion process which The Electricity is not required to pay by the stipulations of this Contract, it is deemed advisable to clarify and explain the meaning of this clause: a) The Corporation shall pay the cost of converting the installations of The Companies' customers and the cost of converting The Electricity's Tacoa VI Unit. b) The Electricity shall pay for converting all of its generators with the exception of the Tacoa VI Unit. c) Expenses incurred for replacement of equipment or parts of the Companies' transmitting, transforming, or distributing installations, which do not involve an increase in these Companies' net assets, shall be paid by The Corporation. d) The Corporation shall pay for any emergency installations proven necessary that will not increase the Companies' net assets in any way. e) The cost of any installation which signifies an increase in The Companies' net assets shall be paid by The Companies. CLAUSE No. 2.- The programming and execution of the work of adapting equipment for unifying the frequency at 60 cycles per second, the subject of this contract, shall be the responsibility of The Electricity which shall execute it directly or in the manner it deems most advisable. All change of frequency operations shall be carried on under the immediate supervision of The Corporation and shall be constantly subject to its -3- inspection and supervision. To this end, The Corporation shall have available the necessary staff to guarantee the good quality of the work and the accurancy of costs. CLAUSE No. 3.- The Electricity shall be responsible for changing the frequency in The Companies' system from 50 to 60 cycles per second, and hereby agrees to complete this work. To this end, it shall develop and carry on a work program to adapt The Companies t generating, transmitting, and distributing equipment, as well as the equipment used by the subscribers, so that such equipment shall function properly at the frequency of 60 cycles per second. This program shall meet the following requirements: 1) It shall be completed as soon as possible, and with a minimum of inconvenience to the subscribers; 2) Interruptions of electric service, necessary to carry out the plans for conversion, shall be as brief as possible; and 3) The costs shall be reasonable. CLAUSE No. h.- In order to provide documentation that will substantiate the conversion operation contracted, The Corporation shall supervise the various aspects of the costs of changing the frequency, with the exception of costs of converting The Electricity's generators, which shall be the exclusive responsibility of The Electricity. The latter is bound by this contract to make all of its facilities available to the representatives of The Corporation, whenever the latter wishes to inspect the conversion operation of the subscrib- ers or to audit the expense accounts submitted. The inspection, supervision, and auditing done by The Corporation shall be at its own expense and shall not hinder at any time or for any reason the continuous progress of the work. CLAUSE No. 5.- In view of the fact that after the conversion operation for the subscribers has begun, The Electricity has no alternative but to complete such work, without permitting any interruptions , stoppages, or suspension of such work for lack of funds, it is agreed that within one year after the signing of this contract The Corporation shall establish the necessary guarantees, to the satisfaction of The Electricity, to ensure that the financing by The Corporation of the conversion operation for The Companies' subscribers shall not be interrupted at any time during the change-of-frequency programs until such works have been completed. Similarly, and in the same manner and time, The Electricity shall establish proper guarantees to The Corporation's satisfaction, for the investments it must make to convert its own generators in accordance with the terms of this contract. If the said guarantees are not established within the aforementioned period, The Corporation or The Electricity, as the case may be, may, by its own voluntary decision, be released from the obligations set forth in this contract and accordingly the work of conversion shall not be begun and all activities relating to the change of frequency shall be suspended. CLAUSE No. 6.- As The Corporation has agreed to bear the total cost of the change of frequency with the exceptions noted in Clause No. 1 of this contract, after this date The Corporation agrees to include in its annual budget, -4- until the change of frequency has been effected, the sums estimated by The Electricity for completing the change-of-frequency work programs in the shortest possible time. Similarly, The Electricity shall include in its respective annual budgets the sums it is to pay for these programs. These programs shall be approved by the Official Commission. As soon as possible after the signing of this contract, The Corporation and The Electricity shall consider and decide upon the financial machinery and the manner of initiating the payments needed to accomplish and execute that part of the conversion of frequency for which, by the terms of this contract, The Corporation is responsible. CLAUSE No. 7.-From the date of this contract, The Electricity is authorized to prepare the work program and to organize personnel to adinister and execute the work, and shall submit it to the Official Commission for approval, in order that necessary studies for the change of frequency for subscribers of The Companies can be made at once. The Official Commission shall review and approve the plans resulting from the studies before they are put into effect. CLAUSE No. 8.- The semiannual budgets which The Electricity shall present to The Corporation in due course shall be based on the rate of progress of the conversion operation. These budgets shall determine the sums which The Corporation shall deposit each month in the name of The Electricity for the conversion operation. CLAUSE No. 9.- The Electricity shall render a monthly account showing how the sums of money placed at its disposal by The Corporation have been used. The Electricity shall bill The Corporation for the costs incurred, and shall have no right to a profit. The monthly statements which The Electricity shall send to The Corporation shall be approved or disapproved by The Corporation within sixty days of their receipt. If no objections are made within that period, they are presumed to have been approved. CLAUSE No. 10.- The Electricity and The Corporation, if they deem it necessary, shall, by mutual agreement, engage experts in the field to give counsel on the planning, organization, and execution in order to reduce to a minimum the cost of the conversion operation and the possible inconvenience to subscribers. CLAUSE No. 11.- When the change of frequency operation has been completed, The Corporation and The Electricity shall make up a joint balance sheet of work done to ascertain The Corporation's total expenditure in effecting the change of frequency. CLAUSE No. 12.- The Electricity hereby agrees to buy from The Corporation, and The Corporation to sell to The Electricity, electric energy at 60 cycles per second at the rate established in accordance with Clause No. 14 of this contract, for a price equal to the amount of the expenditure determined in accordance with Clause No. 11. The purchase shall also cover interest computed at 5.5 per cent annually on the balance of the expenditure made by The Corporation for the conversion operation which has not been recuperated in the manner stated. It is understood that The Electricity agrees to purchase energy for the abovementioned price within a period of not more than 20 years from the date on which The Corporation is able to furnish The Electricity with energy from the Guri system with the necessary regularity and safety to permit the maintenance of the excellent standards of service now being offered in areas served by The Companies. CLAUSE No. 13.- It is understood that the interconnection of the systems of The Corporation, CADAFE and The Electricity shall be effected only after the completion of the necessary agreements on this matter and the signing of contracts for the sale of electric energy between the parties. These agreements shall be based on the results of studies currently being made by the international firm, Middle West Service Co., which has been engaged jointly by The Corporation, CADAFE, and The Electricity to study the interconnection, contract standards, prices and other recommendations with regard to the plan of future expansion for the different systems. CLAUSE No. 14.- The rate for primary electric energy (which shall be part of the capacity of a hydraulic plant available at any time, when energy is necessary), from the Guri project, which The Corporation shall sell to The Electricity, shall be determined for a period of not less than twenty (20) years. This rate shall be established on the basis of the report presented by the firm of consultants already selected and contracted especially for this purpose, but this price shall in no case exceed the present cost for The Electricity on each level of the load factor of its system with its present units of thermal generation. CLAUSE No. 15.- Due to the very special conditions under which the system of The Electricity will have to operate during the change of frequency from 50 to 60 cycles per second, in case The Electricity needs to acquire energy of 60 cycles per second from the Guayana system during the conversion process, this energy shall be provided according to the recommendations established by the international firm of consultants, Middle West Service Co. CLAUSE No. 16.- It is understood that none of the stipulations of this contract shall be interpreted as a restriction of the liberty enjoyed by The Electricity to increase the generating capacity of its systems, whenever it deems this advisable. CLAUSE No. 17.- Any doubts and controversies that may arise between the parties with regard to the stipulations of the present contract, whether of interpretation of its clauses or of matters of fact and which can not be amicably resolved between the parties themselves, shall be submitted to arbi- tration, which shall be executed by three (3) arbitrators who are experts in the subject under discussion, unless both parties agree that there be only one arbitrator. The arbitrators shall be appointed as follows: One by The Corporation, another by The Electricity, and the third by the first two arbitrators appointed. In case either of the parties should fail to appoint its arbitrator within the period of one (1) month from the time of the written notification made by one of the parties that there is a conflict that cannot be settled by mutual agreement, the other party shall request the College of Engineers of Venezuela to present a list of five persons to the Supreme Court of Justice so that the latter may select one and proceed to appoint him. The same procedure shall be followed if the two arbitrators of the parties do not agree on the appointment of the third in the aforementioned period. The cost of an expert's advice shall be borne equally by The Corporation -6- and The Electricity. The decision or judgment of the majority of arbitrators shall be binding on both parties. The decision or judgment of the arbitrators shall be adopted and the two parties shall be notified of it in writing within a period of three (3) months after the appointment of the last arbitrator. At the request of one or more of the arbitrators, one extension of not longer than one (1) month shall be granted. CLAUSE No. 18.- The present contract shall be in effect until nine (9) months after completion of the conversion of the subscribers of The Companies and the generators of The Electricity. CLAUSE No. 19.- For all purposes of this contract, Caracas is elected as the special domicile and the parties are subject to the jurisdiction of its courts of law. Two (2) copies of the present contract are issued and signed, both identical in content and purpose, and their pages have been stamped on the interjacent seams of their folds with the oval stamp of The Corporation and the stamp used by The Electricity in its correspondence, affixed at the bottom, with the signatures of the contracting parties. Caracas, the third of March, nineteen hundred and sixty-six. For:THE ELECTRICITY For: THE CORPORATION The Wotrld Bank Groip~ Archiver Record Removal Notice & Records Managn File Title Barcode No. Guri Hydroelectric Project - Venezuela, Republica Bolivariana de - Loan 0353 - P008181 - Administration - Volume 3 1614834 Document Date Document Type 02 March, 1966 Letter Correspondents / Participants To: Mr. John Lithgow, Esq. From: T.W. Wilcox Subject / Title Caracas: Frequency Unification Exception(s) Information Provided by Member Countries or Third Parties in Confidence Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Tonya Ceesay September 01, 2016 Archives 01 (March 2017) V-5 ?avnmmy 2%, 196 Mr. L *mtfSrd fat" Narsa anierngCes h6O West Namr Stroet mieAMe, mnaso ft YImuela - Gt Plrjest G-- safte It - C asta' Pmmm3tatam bear Is. Fusiks I th t it usti to "op yo a Ues reostng t ' tOWspe m .wwsoti IL n wit %O thge a Us k w do g th os t pre I mf- at n af sarapts far GAW osetrest h.2id .kis 0 exchaus iS Sal freek is yo- Nad. The shs"t.e!Ia at t pasrulw peAe, as 4101la0ed #o Mr. UtOW, WO the latet Sf a 00W ft prebrnsW tat bave O t. mw attenmU - .inag the hootung T yur staff 06 mqs"fe- Uss wd e.sw tal vwk do the GOw Preeot. I wse ftilt lnawas- Ian - a o mr the vpoktLim at -i -ieh es to .,ides a U* at sfafatan attanluss f the par at yw staff t the 's0*1 ltttr4nal t1*g pO Medu's. %ess, AS ye IMS, if prqperI tsw ints asfeemt, *Mad he reflsted In mw respests In te prwatia 4t speetistm and in te tebmique used In prl - amn * he had tosasie. to row staff .esear d wArm Pt. Ot ftfs Satre "ft I* JA past and 0a0asatMuS wII thW 3 - te u isbt w*M thr urns ot yow staff ar sS"tisiuy *Uheed= r pelieas rn thir asessawy mseqses the wn*. *a lim eesa nMswe tnd so wwwws of the -- fA* awes 9gA pelisies etm" "urf I -estsrn with Rsmb-fmame prejests as mopwrd to, s V.5. II psujest WWi E, Mm** whiak yin' staf is PA-PS -* b Notofy easm. I thmk yes wini ee mat fts is an I tao mattw, weh sts4d he Uodsd Iate Is a d to avid ftsr" in asmmts, ad that It weaid ba mwe agspriate3y ta TV a aa es-dated GONttes at staff brietftsg IV Sura u*t th r eweves = #A ad he as *Am prebins waiss, 1e mwe so as ow .ftsrt wt th past 8. ae qwppw to bew st t waob am"as* ~ urU~t. ~r D A bIi 4M4 w 1 A&f'Z i $ 3 d bi :6F 8 Mr. 2. Nmtfiwd PWak - 2 - bwuwwry 25, 2$w6 rw them rsegma I mggoswtd te UtAs liat he sail ALreSta an you I*at vk, a I felt .m'teta that you wld want pWe*G*3U to be 1aornmd. I a& at yoW qsal fW em trwthAw labation you m flad unfaul * d we dfl U bop to diouas the prtkm tmwtbw Ith yo u* Waabingba at OW t", If you %ih to do gQ. 8imasurIy you'rs, Krsot - P*$** Dopoatama* la urwp at Plle Vt&]itLes Cloarod with & oc )bwu. lipmaa Vogel V :blI COPY HARZA ENGINEERING COMPANY CONSULTING ENGINEERS CHICAGO. ILLINOIS 60606 February 23, 1966 Air Mail - In Dupicat. International Bank for Reconstruction and Development 1818 "H" Street N. W. Washington 25, D. C. Attention: Mr. John Lithgow Subject: Guri Project Contract No. 12 Microwave Equipment and Supervisory System Gentlemen: Enclosed are two copies in English of Contract No. d'for the Quri Project. We have not yet bee informed by EDELCA of the bid opening date for Contract No. 12. Very truly yours. HARZA ENGINEERING COMPANY r mod 0. P. Roberts Donald P. Roberts Project Manager Enc: 2 copies Contract 12 cc: Harsint, fPuto Ordas, w Q . EDELCA. w/0 enc. I YI4AMMOD iMIR3SL4IDEf AXIH eisMWIo43 a4ITJUeI4OD BOSOS 3IOI..iJJ..lO&ADIHD - e 3 .7 e # *V 1 )tC bijoi 1i Hd rd A * - *? ndd Af- a ~tdO1 .9 .0 s arIAa ac% t ar~ *&~Aj~j &0 ZNTERNATIONAL BANK FOR FoW No. 75' RECONSTRUCTION AND DEVELOPMENT (2.60) NTERNATIONAL FINANCE INTERNATIONAL DEVELOPMEN1 CORPORATI ON ASSOCI ATION Date ROUTING SLIP AME 00km No. To Handle Note and File Appropriate Disposition Note and Return Approval Prepare Reply Comment Per Our Conversation Full Report Recommendation Information Si gnature ,Initial Send On REMARKS F- V1-- 2- BY AIR MAIL MILBURN, .MERZ AND McLELLAN CONSULTING ENGINEERS ESHER, ALAN E.POWELL,M.I.C.E.,M.I.M-. E. ALSO SURREY. HAROLD J. EARD C M.I.E.E. CARRIER HOUSE - WARWICK ROW - LONDON.S.WI WILSON W. CAMPBELLM.I.MCEu. E., M.I.E.E. AND TELEGRAMS '. BERKRAFT ESHER ARTHUR W. PEDDER. . -. E.-M.I.E.E- THOMAS W . WILCOX. M.I.E.E. CARLIOL HOUSE, NEWCASTLE UPON TYNE IProjects Det r f2u2Jnn 621 HAROLD B. JOHNSON. M.I.E. TELEX 262559 ANS'D BY-------------------- CONSULTANTS ARTHUR HOWELLM.I.MaE.. E., M.I.E.E. CHARLES L. LACEBURN. MIE. T. GRAEME N. HALDANE, MI.CE., M.I.E.E. DATE ---------------------- FREDERICK C.WIN7IELD. M.I.E.E. ELEWIS E.WHEATCROFT, M.I.Mc.E.,M.I.E.E. YOUR REFERENCE - SIR JOHN HACKING, M.I.E.E. DR.ALSERT PARKER,C.B.E.,F.R.I.C.,M.I.CH.I.E.,M.I.GAs.E. OUR REFERENCE AP/DMO 22nd - February _966 - MR. M. PICCAGLI, Assistant Director - Projects Department, International Bank for Reconstruction and Development, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Dear Sir, In Mr. Powell's absence ab ad I acknowledge and thank you for your letter of the 15th February. Mr. Powell will be returning to the office next week when your letter will be placed before him. In the meantime, Mr. T.W. Wilcox, the partner particularly interested in D.C. developments, has asked me to say he would particularly like to be one of those who talks to Mr. Lithgow. As Mr. Wilcox has to travel down from Newcastle he would appreciate a day or two's notice of the date when Mr. Lithgow will be here. Yours faithfully, Private Secretary to Mr. Powell \Jr ".uaJIM WAJJ3JoM- A3 Y3RAiU8 I rI t * t TO L 3 " Formi No. 27 (7-61) INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE ASSOCIATEON RCONSTRUCTIO AND DEVELOPMENT CORPORATION OUTGOIN4G WIRE TO: ELCARONI DATE: FEBRUARY 16, 1966 CARACAS CLASS OF SERVICE: IBF GOVT. COUNTRY: VENEZUELA TEXT: Cable No.: REFERENCE CONTRACT 12 HAR7.A LETTER FEBRUARY 9 STOP PLFASE DEFER ACTION RECOMDIEDATION PREQUALIFICATION UNTIL BANK HAS OPPORTUNITY STUDY SPECIFICATION DOCUMT LITHGOW NOT TO BE TRANSMITTED MESSAGE AUTHORIZED BY: CLEARANCES AND COPY DISTRIBUTION: NAME J. C. Iithgow DEPT. Projects cet Division File SIGNATURE (bIGNATUR!F DA RZE OAPOE For Use by Archives Division JCLithgowfb ORIGINAL (File Copy) IM 3NRTANT: See Secretaries Guide for preparing form) Checked for D spatch; )4 + s s~~ e 1 * . .I e .a **4.sk i 4 s DECLASSIFTED SEP q 23 WBG ARCHIVES February 16, 1966 PERSONAL General Rafael Alfonso Ravard President. Corporasion Venesolana do Guayana (CVG) Caracas, Venesuela Dear Rafael: On his return from Venezuela Jerry Alter told me that you were still hoping to receive from me some suggestions about possible ways of tackling the steel mill problem which we discussed. I had somehow understood that you were on the verge of solving the problem via an arrangement with Inland Steel and, accordingly, had not done anything about it. Since learning that my understanding was wrong, I discussed the matter briefly yesterday with Martin Rosen, Executive Vice President of the International Finance Corporation, who I felt would be most apt to have some constructive ideas about the matter. As you know, IFC is the member of the Bank family primarily responsible for operations in the industrial sector. Although I could describe the problem only in very general terms, Mr. Rosen expressed a willingness to try to help. He was inclined to feel that most likely candidates would be found in the U.S., Japan, or the U.K., with Kaiser, Jones & Laughlin, and Republic among those which might be considered in the U.S. Should you desire to pursue the matter further, I would suggest that next time you come to Washington you stop by and discuss the matter with Mr. Rosen. This would enable you to explain to him in detail the basis on which you would be able to proceed and what steps you have taken so far to try to work someting out (who you have talked to and what kinds of arrangements you have explored). I personally think that IF is in a better position to help than any other organisation I know and that a discussion of this type with Mr. Rosen would be very useful. If you are interested in following up on this suggestion, you can get in touch with him directly or, if you prefer, I would be glad to help arrange an appointment. He will be away from Washington until the middle of March. I hope that all is going well with Guri and your plans for the Guayana. I keep seeing most interesting stories about them from time to time in the newspapers. Elizabeth joins me in sending best regards to you and Corina. Sincerely yours, Orvis A. Schmidt Special Adviser to the President QAS/afp cc: Messrs. Rosen, Alter. HARZA ENGINEERING COMPANY CONSULTING ENGINEERS RIVER PROJECTS 400 WEST MADISON STREET CABLE ADDRESS 'HARZENG CHICACO' CHICAGO, ILLINOIS 60606 TELEPHONE RANDOLPH 6-3451 February 23a 1966 Air Mail - In Duplicate Projects Dept. Correspondence International Bank for Reconstruction ANS'D and Development 1818 "H" Street N. W. DATE /%~ Washington 25, D. C. Attention: Mr. John Lithgow Subject: Guri Project Contract No. 12 Microwave Equipment and Supervisory System Gentlemen: Enclosed are two copies in English of Contract No. 12 for the Guri Project. We have not yet been informed by EDELCA of the bid opening date for Contract No. 12. Very truly yours, HARZA ENGINEERING COMPANY Donald P. Roberts Project Manager Enc: 2 copies Contract 12 cc: Harzints Puerto Ordaza w/0 enc. EDELCA, w/0 encf YMAqMO) oIwsaLIami3 ASSAH Ba33MIOM3 011T.Juamoo IT3LOpq F3VIS T3735qTa 00210AM T23W 00O0 ia4e 8 HJoai4AR 3WOHq321T 8- 8 8 P-IOMIJJI ,O0AOIHO 'OA-IHO 0W3SFAH'2a3FOOA 3JEA- 6601 ES ymsumdel alsoigquG aI - ThsM xiA sonebnOpeueoi Y a aAAnoitjjuiinos5 .01 >Isa sn ISfOXn.SfSl lnrmqoIveG bns TAG .. W.1 ieass2 "H" 8181 .0 .G P-S noIgnidesW wogdJiI rdoL T. M :noinsJIA lostosxq i.,"D :ostduB SI .1 ID-isnoD bns lnsrnqiupa avrwo-xiM meiay2 yxoavxsqu2 :noma1ineO iwuD ead ioI SI .oI i3:rS1noD lo dailgalf ni aqiqoo owl 9-is baeolon3 bid qdi lo AD3aia Xd bams-olni nsad lay Ion svsd 9W .as3toxq .SI .oZ loszinoD iol gsub gninsqo t8auoy YLiUri ymsV YzAqMOD ovuIa31I3oza AS31AH alisdol . bisnoG IsgsansM jostosq SI iJ.sxrnoD asiqo3 S :Dna SIC. of1 103 Rema *5, 14 mt...g, 1221m.Is -4SOUOL %I-- " bea Yesas1a - 0Lm fr.sss jar. a "a Outrrswuee" oto &Wr @emkne aatw U OasntrResM~ma It - wrmt *20*l o naipt *ne main row at"as to wkaahs r. OP. YgWst an. te ut I am" t ta1 ub*40 Ilas -reg t.ypbsa -at t eaft ta mt d.13, do *0 vmw L esseerat the r"utf Otamae la wrmm u ak *amee fe OW-o ZwtL ast toe aprpwa vAv* onori sbi.t reW Isa t e o&ihsmtmg - MeAt .6 sa**-dVSS t~aan pmvU asesea mee ilaate aeot al #e G Pa'jst#. I hea emt dwil UO wwnaftr toseee MW rnestaod Lanems La umtaIa at 040 mavAft ft" IV a = m *et t h thm U.Ma0 va t.dog A~ am* it if ,wr.. ibmb, Wtaftd aw oie *a bme w *, th*oi vaeeasr 1 mso a i *sas Urn jrearam b"s" at -rLftmb fptu -- ns bn nrae w t a ta s *mamma 9. ued is 16"eda * Wk bed ma-a a. *a *an beff ONnM tt go U POU tad a. IRV in sqva amp aIi awwvmtlms wit as POmWe ft a taff ms0t0e02y tI d 7 pLML *a a ft is tin -su------ a. the wok t.sm seses nfe -s amrms at tbs isene. Is pawsiluss t Let a u--.*MnM 4 .. h ~faua e eeet I at* ye 411 ege tbra tbi Lu a etaar mttw, stih ehinAd be lost& La inadw to sweLd fuls awrut., -t Ust It wwId b m e taa a *Aeamtei t Ot suff briatift V 20%sa - I 'thl ee ana ad be. bIAs A arin, then-m so s fa atstr at on pOAu to a" peow to be A" Nish mk w"00. ft", S46 ar. . - - __ r Au I **Mp*W to XLhpr bat be *&U 4irepr a yw* 2ama sW4, A I itat owtain ba ym wWA umt pwoma U ts be IntWNAet. I O 66 qWArn*Sftl hr SWr tub PM aw Aavow mead wo d2ai be bow to Awww aw I m V V" isasitIqa. at aw ftw, it Yj wtA d 0a. fA -MW at PL Pbt& wtd oh.. %am. .sh es esat wmew oll Toe *I'Vs HARZA ENGINEERING COMPANY CONSULTING ENGINEERS RIVER PROJECTS 400 WEST MADISON STREET CAbLE ADDRESS 'HARZENG CHI(.AGO' CHICAGO, ILLINOIS 60606 TELEPHONE RANDQLPH 6-3451 0 February 11, 1966 Air Mail - In Duplicate Projectshepj. Corresoondened ANS'D International Bank for Reconstruction ANATE and Development DATE------------ 1818 "H" Street N. W. Washington 25, D. C. Attention: Mr. John Lithg Subject: Guri Project Contract No. 12 Microwave Equipment and Supervisory System Gentlemen: As requested by CVG-EDELCA, we are transmitting herewith two copies of our evaluation of the prequalification information submitted by prospective bidders of Contract No. 12. Very truly yours, HARZA ENGINEERING COMPANY D. P. Roberts Project Manager Enc: As noted cc : CVG-EDELCA Harzint, Puerto Ordaz A A0 YV4AqMOO rDmisIR33mI:M3 ASFAH 2as33MIOM3 CIMITJUP-moo 8TD3tOq 13VI1 T33RT2 L4IO2QAM T23W OO laAE-a HAJQOAi 3mOI4A.JfT bO 8O a IO1 Ii OoA |IHO 'ODAZIH3 0V3SFAH' 23RlO A 3JaA3 6 1I y1mswrd9' 9sisaquQ nii - IlsM -iA Gf' IAA noinjaosIl iol inad Isnoitsivisirl - - [nzwgv aG bas .W .9 1ilp,2 "IH"'8181 .DJ .cL JS hodg*iesW grifi ndoT .iM :rroinslIA st .o1 i-1rioD yxdlivIx9qmu bns JAinzi pa g vswoioil owl tlliwsred ganilifrairs-i 9'.s sw ADJacGa-OVD yd batsuppr aA b9ijimdua noitsmiolai nobsl XupsIq gd' lo noilsalsve wuo lo asiqoo .S1 .oK4 sinojD lo aisbbid svi9sqgeoTq lof ,awxoy Ylvi- yiXV YM AqMOD OKI33:MIDa AS RAH .q G a sIdoR . mgsnsM lagtoq boton a.A :orra xsb-0 0orxsu- Irm-sH (.3J9961 31W0 A261t gs Ir February 9, 1966 Mail - I Duplicate Letter CVG-285 CVG - - lectrificacton del Caroni, C. A. (EDELCA) Gerencia do Construccion jivenida La Estancia No. 10 - Piso 13 Ciudad Comercial Tamaxaco 0.partado 11563 Este Caracas, Venezuela Attention: Dr. P. Palaclos I1. Subject: Guri Project Prequalification for Contract No. 12 Microwave Equipment and Supervisory System Gentlemen: We have reviewed the prequalification information transmitted with your letter dated April 27, 1965. We held up the review of this infor- mation while Contract No. 12 was being developed and finalized. Contract No. 12 has now been sent to the printers and should be in your hands in about two weeks. None of the bidders who wished to be prequalified submitted sufficient data as required by the prequalification advertisement, to enable us to prequalify them without reservations. However, we consider the following proppective bidders qualified pro- vided they furnish supervisory equipment meeting the requirements of Contract No. 12: 1. Radio Corporation of America (RCA de Venezuela C.A.) I CVG - EDELCA, Caracas - 2 - February 9. 1966 2. International Telephone and Telegraph (Standard S/5 Telecomunication C. A.) 3. General Electric Co., Ltd. (G. E. C. General Electric do Venezuela, S. A.) 4. Siemens Ialske (Siemens Venezolana S. A.) 5. Collins (Ottaca) 6. Lenkurt- Marelli (General Telephone & Electronic de Venezuela C. A.) 7. Raytheon Co. (Virgil C. A pplewhite y Cia) The following prospective bidders may be considered qualified pro- vided they furnish microwave and supervisory equipment meeting the requirements of Contract No. 12: 8. Telettra (Olivetti do Venezuela C. A.) 9. Hitachi Limited (Corial C. A.) 10. Compagnie General de Telegraphie (Ecyt. C. A.) 11. Nippon Electric Co.. Ltd. (Sumitomo Shoji de Venezuela A C. A.) 12. ATE England (A TE do Venezuela) ;3. English Electric - Marconi (English Electric do Venezuela C. A.) With regard to the first group No. I through 7, these prospective bidders are well qualified microwave xnanufacturers but did not submit sufficient data indicating their ability to provide the supervisory equipment. CVG - EDELCA, Caracas 3 - February 9, 1966 Vith regard to the second group ,LgthogL "-, these prospective bidders submitted data on microwave equipment which wUlnot meet spi. 1Lcations of Contract No. 12 and also did not submit sufficient ind cating their ability to provide the supervisory equipment. We suggest that in your letter to these prospective bidders you men- tion that they are prcquaflfied provided that their bids are in full compli- ance with Contract No. 12. . any of the prospective bidders requests information as to who makaa supervisory equipment that will meet specifications, youcould send them the following suppliers names: Transitel International Corporation, 6!5 Winters Avenue, Paramus, N. J., U. S.A. I Lundell Corporation, 2560 N. Elston, Chicago, Ill.. U.S. A; Automatic Electric Corporation, 1033 West VanBuren Street, Chicago. M1., U.S.A.; Dresser Controls, 10201 Westhelmer Road, Houston. Txas; Datex Corporation, 1307 Smyrtle Avenue, Monrovia, California. U.S.A.; General Electric Co., (GETAC) U. S.A. The following prospective bidders have not submitted data indicating that they have produced equipment compliant with the characteristics set forth in the prequalification advertisement and in our opinion are not qualified as bidders for Contract No.- 12: S.I. R. T. I. Genova GEVENSA (General Electric do Venezuela, S.A.) Phillips, HolLand (C. A. Phillips Venezolana) Philco Corporation S. I. R. T. I. has not provided sufficient technical data as required by the advertisement. GEVENSA equipment does not conform to the specified receiver noise figure limits and would consequently result in a significant reduction in total system gain. Phillips and Philco Corporation proposed equipment with electronic tubes and therefore their equipment is non compliant. CVG - EDELCA, Caracas - 4 - ebruary 9, 1966 We are transmitt ' this information to you directly at the request of Harza Engineering Company International. Very truly yours, HARZA ENGINEERING COMPANY rd y A. P. Geuss Executive Vice President ZC: l. V. Engstrom, Puerto Orda' 2/9/66 FORM No. 26 (6.65) 7k INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE C SASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATIONbol INCOMING CABLE DATE AND TIME ROU'TING OF CABLE: JANUARY 31, 1966 1930 LOG NO.: ITT 11 JAN 31 ACTION CDPY: MR VIGNES TO: INTBAFRAD INFWrATION MR ALTER COPY: CM: CARACAS DECODED BY: TEXT: REFERENCIA SU CARTA ENERO VE TE RELACIONADA ANTEPROYECTO REFORMA ESTATUTOS CADAFE COMUNICOLE POR ERROR COPIA PAGINA 9 ANTEPROYECTO ENVIAD USTED DICESE JUNTA DIRECTIVA ELEGIRASE DIRIGIRA EXCEPCIONALMENTE CADAFE HASTA 24 OCTUBRE 1966. REALMENTE JUNTA DIRECTIVA CADAFE ELEGIRASE CONFORME DISPOSICION TRANSITORIA QUE APARECE PAGINA OCHO DICHO ANTEPROYECTO CUYO TEXTO ES COMO SIGUE: LOS DIRECTORESE ELEGIDOS EN LA ASAMBLEA EXTRAORDINARIA DE ACCIONISTAS QUE APROBO LA REFORMA DE ESTOS ESTATUTOS, HAN QUEDADO EXCEPCIONALMENTE ELEGIDOS EN LA FORMA SIGUENTE: LOS TRES PRIMEROS MIEMBROS PRINCIPALES Y SUPLENTES DURARAN HASTA IA ASAMBLEA ORDINARIA DE 1.969 LOS MIEMBROS 4DEGREE Y 5DEGREE PRINCIPALES Y SUPLENTES DURARAN HASTA LA ASAMBLEA ORDINARIA DE 1.968 LOS MIEmBROS 6DIGREE Y 7DEGREE PRINCIPALES Y SUPLENTES DURARAN HASTA LA ASAMBLEA ORDINARIA 1.967 CON TODA ATENCION ANIBAL DAO - GERENTE - CORPORAFOM FOR INW*IWATION BEGARDING CABLES, PLEASE CALL THE QdM1UNICATIONS UNIT EXT. 2021 ORIGINAL Venesela Wo*kiug PaWty Jena 16 1966 Safflard zumm 7 VTEZU'ELA - 2xti le!! eOtric Proect (Loan gjzvE) JU Un~mthe ssue of Jaeuy Carwsse daily naspper, ii th 9, 1260 eattahend amouacemst q*utiug the reselutien of the Win. I t NODevelpmt No. 3633t dated Osteher I , 156, rmqring that be- ginsing Jul7 1, 2966S 1. All moters er elestrieal equpmmt using AC to be iastaled at be suitable for 50 or 60 sysles. 2. All doetlie or 1porsued quipmawt to be operated at 60 "yslee in the futre ast came equipped with parts for medi- fteation to 60 sysle. After July 1, 1*9, all .qudViMat whish do nat met the above requirse- meant must be mdaVed to 60 sycle. at the sxpease of the user. Thus the Vemosaulan autbwIties are giving publity o the stps sd- sismed to soeawt the Carveas regies from 50 to a s to pwa im for the supply of Power from Gui upo its osmp3*ttos in Iii,. A copy of the Resolutin vas reesived by the Bank after its issumee. Attae mt C, )Mesasm. CeWi Hasal (no attaebsat) Leadrm .r (no atamlint) Lithgow/Hwafll Vigms (return to Zimwa for files) KinmmAsb January 1, 1966 General Rafael Alfonso Ravard Presidents Corporacion Venesolana de Guayana Apartado 7000 Caracas, Venezuela Dear General Alfonsot Re: Frequency Unification and Interconnection Agreement We were pleased to read in the Venezuelan newspapers recently of the agreement between La Eleatricidad de Caracas and the Municipal Council of the Federal District with respect to the arrangement for settlement of the city's account with the company. We aseume that by now the study of the Bechtel Corporation on the cost estimate of the frequgncy conversion has been copleted or is near ospletion. As you indicated to Mr. Zinman in November of last year, the cooperation of La Electricidad reflected a positive attitude regarding frequency unification. We therefore expeet that in view of these two de- velopments there are no further obstacles to the signing of the Frequen- cy Unification and Interconnection Agreement and that its execution will take place very soon. In view of the importance of this matter to the success of the Guri Hydroelectric Project, we would appreciate hearing from you about the progress of the Agreement. Bincerely yours, Sacques Vignes Western Hemisphere Department Cleared with and cc: Mr. Howell CC: Messrs. Cancio Hasal Lerdau Lithgow BZinman: sb - - I-- r,- . I 1Hd Vw .jI2vs :: b c iw n s S.-IIIJ o0olsD.easM :3