RETURN TO REPORTS DESK JFfL C p 'RESTRICTED REPRT DE @ITHI Report No. WH-ZOOa ONE WEEK This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ECONOMIC GROWTH OF COLOMBIA: PROBLEMS AND PROSPECTS (in XII Volumes) VOLUME VIII POWER AND TELECOMMUNICATIONS November 1, 1970 South America Department (Certificate Market Selling Rate of Exchange) End s968 1 US$ 16.91 Pesos 1 Peso = US$O.059L3 End 1969 1 US3$ = 17.90 Pesos 1 Peso = US$0.05586 End-M;arch 1970 1 US$ = 18.20 Pesos 1 Peso = US$0.005494 POWER AND TELECOMMIUNICATIONS Table of Contents Page PART A. POWER I. INTRODUCTION 1 II. THE PUBLIC SECTOR 3 Generation and Transmission 3 The Electric Service 5 Organization and Development of the Sector 8 Financial Situation 11 III. CONSTRUCTION AND INVESTMENT PROGRAMS 13 IV. PLANNING 15 V. GENERAL COMMENTS 17 ANNEX 1. Table 1. GENERATING PLANTS UNDER CONSTRUCTION Table 2. MAJOR TRANSMISSION LINES UNDER CONSTRUCTION Table 3. GENERATING PLANTS PLANNED Table 4. MAJOR TRANSMISSION LINES PLANNED Table 5. EXTERNAL FINANCING OBTAINED SINCE JANUARY L, 1969 Table 6. PUBLIC POWER SECTOR INVESTMENT PROGRAM ANNEX 2. Map 1 Map 2 ANNEX 3. Figure 1 Figure 2 ANNEX 4. Preinvestment Program - Study Data Sheets (1-14) PART B. TELECOMJINICATIONS I. INTRODUCTION 18 II. THE SECTOR - DELINEATION OF ROLES 19 The Role of Government 19 Policy-Making 19 Licensing 19 Regulation 20 III. PRESENT FACILITIES 21 General 21 Local Telephone Services 22 Long-Distance Services 23 Page IV. FUTURE EXPANSION PLANS 24 Local Services 24 Long Distance Services 25 V. REORGANIZATION OF THE SECTOR 26 VI. CONCLUSIONS 28 ANNEX 1. Providing Local Telephone Service (Automatic Exchanges) ANNEX 2. List of Centers with Automatic Local Telephone Service ANNEX 3. Local Tariffs in Selected Cities (Colombian Pesos) PART A POWER I. INTRODUCTION 1. Colombia occupies a territory of 1,139,000 km2, crossed on the western part by a molumtain system with three north-south cordilleras, ranging up to 5%000 m in altitude, which di-vide the country into three main geographic regions: Costa Atlantica (northern), Andina (central and western) and Llanos Orientales (eastern). Near 99 percent of the popula- tion live in the Costa Atlantica and Andina regions, which comprise about 40 percent of the area of the country and are divided politically into Departamentos and the Distrito Especial de Bogota. The rural population represents about 43 percent of the total. The Llanos Orientales region has an extremely low population density and minimum economic development, with practically no electrification. The electric sector is therefore geographic- ally located in the northern, central and western regions of the country, which are endowed with remarkable complementary resources for power genera- tion: important hydroelectric potential in the extensive central mountain system, with different hydraulic regimes in the Amazonas-Orinoco, Atlantic and Pacific river basins: oil in the north and southwest; natural gas in the north; and coal in sevreral parts of the cordilleras. 2. In 1969 the public utilities generated a total of 7,100 GWh and at the end of the year had a total installed generating capacity of 1,870 MW; about 75 percent of the generation was of hydro origin, 15 percent was generated in steam thermal plants and 10 percent in gas-turbine and diesel plants. In addition to the public service, 250 MW were installed in industrial facilities which generated 1,000 GWh. The location, type and size of the principal existing generating plants and transmission lines in the country are shown in Mao 1, which also shows those under construc- tion, planned and under inlvestigation. The evolution in the last 25 years of the total installed generating capacity and annual generation by the country's public utilities is shown in Figures 1 and 2. The development of the Colombian electric sector in recent years has been remarkable: in the last 12 years the energy demand has itnereased at an avcrerage rate of approximately 11 percent per year, which is expected to be at least main- tained in the next decade. In spite of this, the average per capita annual consumption in 1969 was about o00 kWh, below the Latin America average in 1968 of approximately )47L kWh. 3. The levels of electric development and consumption are substan- tially different between regions, and even more so between urban and rural areas. The average per capita annual consumption in some Departamentos is Df the order of 03 khx, but in others does not reach 100C kWh. While in -the 30 cities of more than 30,000 inhabitants the average consumption in 1969 was about 600 kWh, about 30 percent of the country's population (70 -percent of the ruiral population) did not hLave any electric service at all. rhe following table is illustrative of the differences between regions; it indicates the percentage shares of each electric region of the country's total generation and installed capacity in 1968, as compared with the respective percentage shares in the area and population: -2- Installed Electric Region /a Area Population Generation Capacity Antioquia (Medellin) 7.9 15.3 28.9 28.3 Central (Bogota) 10.6 30.4 28.3 33.2 Occidental (Cali) 8.8 17.3 18.1 17.5 Norte (Cartagena, Barranquilla) 10.5 18.8 13.3 12.1 CaLdas (Manizales) 0.9 8.2 7.3 5.0 Nordeste (Barrancabermeja- Bucaramanga) 6.2 8.7 3.8 3.6 Rest of the Country: Los Llanos and San Andres 55.1 1.3 0.3 0.3 /a See para. 16 for the definition of each electric region. Main population centers in the regions are indicated in brackets. II. THE PUBLIC SECTOR Generation and Transmission 4. The public service is practically wholly supplied at present by the following four entities: (a) Empresa de Energia Electrica de Bogota (EEEB), a municipal utility for electrical service only, which supplies energy to Bogota and the Departamento de Cundinamarca, directly and bulk supply to departmental rural distributing agencies and subsidiaries of ICEL. At the end of 1969, the total installed capacity of EEEB's own plants was 440 MW, of which 85 MW were thermal and the rest hydro. (b) ETrpresas Publicas de Medellin (EPM), a municipal utility providing electricity, water/sewerage and telecommunication services, which supplies electric energy to Medellin and the Departamento de Antioquia, directly and by bulk supply to the rural distributing subsidiary of ICEL. The total installed capacity in EPM's plants at the end of 1969 was 450 MW, all of them hydro. (c) Corporacion Autonoma Regional del Cauca (CVC), a multi- puirpose, autonomous, nationally-chartered regional entity for the development of the Cauca Valley, which supplies energy to the Departamento de Valle, mainly by bulk suoply to Empresas Municipales de Cali (EMCALI) and to other rural distributing agencies, subsidiaries of ICEL and CVC. CYTC is the major owner of Central Hidroelectrica del Rio Anchicaya Limitada (CHIDRAL), a local agency for generation only, which is also owned by EMCALI. At the end of 1969, the total installed capacity in CVC/CHIDRAL's plants was 270 MW, of which 76 were thermal and the rest hydro. (d) Instituto Colombiano de Energia Electrica (ICEL), a National Government Institute, formerly called Electraguas, which through 15 departmental and 13 minor subsidiaries supplies electric energy to the rest of the northern, central and western regions of the country. At the end of 1969, the total installed capacity in ICEL's subsidiaries was 684 MW, 330 MW in thermal plants and the rest hydro. One of the major subsidiaries of ICEL is Central Hidroelectrica de Caldas (CHEC), which serves an area of Departamentos de Caldas, Quindio and Risaralda around Manizales, in Central Colombia, and has at present a total installed capacity of 200 MW in hydro plants. 5. The extensive geography of the country and its rugged mountain chains have isolated the various regional centers, which traditionally have developed separately their own customs, regional institutions and economic resources, and also their own electric systems. Furthermore, the parochial - 4 - attitude prevailing in the various regional electric systems sometimes has caused uneconomic development of the country's power sector. This has been more noticeable in recent years, when the need to supply higher and rapidly increasing demands has shown the advantages of the integra- tion and joint planning of the sector to permit the development of larger and more economic projects and a better utilization of the country's energy resources. The Departamento Nacional de Planeacion (Planeacion) has been promoting actively for a number of years the coordinated organiza- tion and expansion of the sector, and in 1967 important steps towards this end were initiated by the establishment, with the Government's support, of Interconexion Electrica S.A. (ISA) and the Corporacion Electrica de la Costa Atlantica (CORELCA). 6. ISA, a stock corporation sponsored and owned in four equal parts by EEEB, EPM, CVC/CHIDRAL and ICEL/CHEC, was formed in September 1967 for the interconnection of the sponsors' electric systems and for the planning, construction, ownership and operation of new power generating plants in the interconnected system. In 1968, ISA undertook its first project, a 535 km 230 kV transmission network to interconnect the systems of EEEB, CHEC, EPM and CVC/CHIDRAL, which is presently under construction with financing from the I.B.R.D. and supplier countries; its completion is expected by mid-1971. :SA's interconnection network has made possible the first joint planning in Colombia of a long-range, large-size power generation program at supra- regional scale. ISA and Planeacion carried out several studies, using computer models, to determine the most suitable and economic schedule of new generating plant construction in the interconnected system to meet its forecast demand up to 1980. In accordance with the results of the studies, ISA and its sponsors agreed to the construction of two major hydroelectric plants, as follows: (a) Alto Anchicaya (340 MW) in the area of Cali, to be built by CVC/CHIDRAL to start operation in 1974; and (b) Chivor (first stage, of 500 MW) in the area of Bogota, the first generating plant to be built, owned and operated by ISA, to start operation in mid-1975. Both projects are presently under construction, Alto Anchicaya with financ- ing from Canada and the Inter-American Development Bank (IDB), and Chivor with IBRD's financing expected to be complemented by bilateral financing from major equipment suppliers' countries. ISA, its sponsors and Planeacion will be continuing and updating the studies to schedule new additions to generating capacity, which it is foreseen will be required in the inter- connected system in the present decade. Various possibilities are being considered, particularly thermal units for short-term construction, and the second stage (280 MW) of Guatape Project in the area of Medellin for longer-term operation, not before 1977/78. 7. CORELCA, an autonomous regional agency, was established in December 1967 for the planning, construction and operation of new power generating plants and transmission lines in the northern region, which in- cludes seven Departamentos, from Cordoba to La Guajira, and is not con- sidered yet integrable in ISA's system because of the distances involved. - 5 - CORELCA is in the process of being organized to assume its responsibilities, which in the interim have been assigned to ICEL. There is urgent need to install additional generating capacity and interconnect individual systems in the area of the Atlantic Coast. A program towards this end has been undertaken, which includes initially the construction by CORELCA of a 132 NW thermal plant in Barranquilla (Termonorte I) and the transmission lines .Barranquilla-Sabanalarga-Cartagena (230 kV) and Barranquilla-Santa Marta (115 kV); the construction of these projects, which are scheduled for comple- tion by early 1972, was started in early 1970 with financing from supplier countries. More recently, in order to supply industrial consumers, particularly -,he expanding Soda Plant, CORELCA-ICEL undertook the emergency construction of a 19 MW gas-turbine unit in Cartagena to start operation by mid-1971. CORELCA's longer-term plan includes the construction of three 100 MW thermal umits -- two of them in Cartagena (1974 and 1978) and the other one in B3arranquilla (1976)--, and of the transmission lines Cartagena-Sincelejo 1230 kV, 1972), Sabanalarga-Fundacion-Santa Marta (230 kV, 1975), Fundacion- V'alledupar (115 kV, 1975) and Santa Marta-Riohacha (230 kV, 1976). It is planned to study and undertake the interconnection of CORELCA and ISA systems in coordination with the actual developments in both systems in the next f'ew years. I'he Electric Service 6. The areas of the country presently served by EES,B EPM, CVC/CHIDRAL and the 15 departmental subsidiaries of ICEL are shown on Map 2. The urban and industrial areas of Bogota, Medellin and Cali, the three principal cities of the country, are thus served by autonomous agencies. The service in rural areas is provided by ICEL subsidiaries, except for the areas around Bogota and Medellin and the important rural area served by CVC. In some population centers, electricity is provided by municipal undertakings which in many instances rely upon ICEL systems for bulk supply. The principal cities, particularly Bogota and Medellin, have enjoyed the benefits of sophisticated planning by the utilities serving themn whereas the development of other parts of the country has at times been haphazard and uncoordinated. Although in the past the planning and efforts for the development of the sector have been concentrated much more in generation and transmission than in distribution, the expansion has not been sufficient to meet the demand in some important areas of the country, which at times have experienced power shortages. In many areas the distribution systems present serious deficiencies, and rural electrification is indeed scarce. This situation of the public sector in the past underlies the comparatively extended practice by industrial consumers of electricity of installing their generating facilities, which as mentioned above aggregate at present to a total of 250 MW. 9. The annual peak loads and gross generations in the period 1965-69 for the three major electric systems in the country were as follows: -6- System 1965 1966 1967 1968 1969 EEEB Peak Load (MW) 243.4 267.7 315.1 350.1 422.8 Gross Generation (GWh) 1,085.2 1,218.6 1,383.6 1,629.7 1,920.6 EPM Peak Load (MW) 267.0 289.0 309.8 327.0 349.5 Gross Generation (GWh) 1,373.3 1,478.4 i,579.0 1,698.4 1,829.1 CVC/CHIDRAL Peak Load (MW) 164.3 n.a. 196.0 211.0 n.a. Gross Generation (GWh) 825.4 n.a. n.a. 1,033.9 911.3 /a /a In addition, about 170 GWh were supplied in 1969 to CVC/CHIDRAL system from EEEB (43 GWh) and other systems. The composition of the energy sales in the three systems in 1969 was: Total Sales Composition (%) System GWh Residential Industrial Commercial Ot EEEB 1,600 32 32 17 19 EPM 1,330 48 31 8 13 CVC 912 36 42 12 10 10. Examination of historical data reveals wide fluctuation in growth rates, reflecting economic problems of the country which depressed market growth in some years and brought about financial difficulties in the sector contributing to shortages of power. However, remarkable stability has been manifested in later years, as above data on EEEB and EPM systems show, and a more orderly development in the future is expected. The unavail- ability of data for the CVC/CHIDRAL system shown above corresponds to periods with power shortages in the system. The overall annual rates of growth experienced by the three systems in the last decade have been approximately 12 percent in generation and peak load for EEEB and CVC/CHIDRAL systems, and 10 percent in generation and 9.3 percent in peak load for EPM system. No significant trend towards a change in the pattern of electric consumption has been manifested in the last five years in the public sector. Industrial consumption served by the utilities has been maintained in those years at an average level for the country of about only 24 percent of the total public service consumption. This is a reflection of the extended practice by large industrial consumers of installing their own generating facilities (para. 8), particularly in areas not served by EEEB, EPM and CVC. Serious power short- ages were experienced during 1969 in four areas of the country, indicated below; some emergency actions have been taken to correct them temporarily, while long-range solutions presently under way can be put in service. 11. Call and Cauca Valley: CVC system presented important genera- tion deficits during 1969 aggravated by unfavorable hydraulic conditions, and the help received from CHEC was not sufficient to prevent serious power shortages. The 115 kV line Ibague-Zarzal (see Map 1), in operation since September 1969, is being intensively used to supply surplus energy from EEEB to CVC, thus helping to solve temporarily the problem. The situation will remain crit;ical until the operation, scheduled for mid-1971, of ISA's interconnection network with sufficient capacity for the necessary transfers from EEEB, EPM and CHEC. CVC system itself will present generation deficits until the operation of Alto Anchicaya, scheduled for 1974. 12. Atlantic Coast: This area has experienced chronic deficits of generation and corresponding power shortages in recent years. An emergency program of installation of gas-turbine units in Barranquilla, Cartagena and Chinu presently under way will help to solve the problem temporarily, for 1970 and 1971. The situation will not be definitely improved until the completion, scheduled for 1972, of the 132 MW steam plant in Barranquilla and the transmission lines Barranquilla-Cartagena and Barranquilla-Santa Marta. Additional thermal units and transmission lines are planned to meet the demand in the area from 1974 (para. 7). 13. Northeast: A delay in the start-up of a new 25 MW steam plant in Barrancabermeja (Termobarranca), initially scheduled for September 1969, caused power shortages in the area of Bucaramanga. This is illustrative of the deficient situation of the electric service in the area of the Departa- mentos de Santander, Norte de Santander and Boyaca, where lack of coordination between their electric systems, of small size and isolated from each other, has caused inadequate planning and development of the sector. It is expected that the operation since early 1970 of Termobarranca, together with an addi- tional 15 MW gas-turbine plant under construction in Bucaramanga scheduled to start operation by mid-1970, will permit to meet the demand in Santander until about 1972, when the 230 kV lines Paipa-Bucaramanga and Bucaramanga- Cucuta are scheduled to start operation (see Map 1). These lines are the first development towards the much-needed electric integration of the North- east's power systems and with ISA's system (future 230 kV lines Guatape- Barranbermeja and Chivor-Paipa). The integration of a Northeast integrated sys- tem with ISAts interconnected system appears as the most feasible and economic longer-term solu-tion to assure satisfactory electric service in the region, and with a view -towards the future interconnection with Venezuela (230 kV lines Bucaramanga-Cucuta-Zulia-Venezuela). 14. Departamento de Narino: Serious power shortages were experi- enced during 1969 in the area of Pasto because of a delay of about one year in the start-up of Rio Mayo Hydro Plant (21 MW), in operation since early 1970. A new 24 MW hydro plant (Florida II) under construction near Popayan and the 115 kV line Popayan-Cali are scheduled to start operation by end- 1L972 and 1971, respectively. No problems are foreseen to meet the demand in Narino system during the next few years. - 8 - Organization and Development of the Sector 15. One of the major problems of the sector is the existing jurisdictional desintegratiorn of the electric service, which is provided by numerous entities. These entities are in many cases too small, have financial difficulties, service areas of uneconomic market size and in- sufficiently connected with other areas, and are therefore unable to provide satisfactory service. A Government's decree of December 1968 reorganized ICEL, until then called Electraguas, and defined its functions, which include, among other responsibilities, the specific one of carrying out; a plan to re-structure the electric service by regional integration. According to Planeacion's studies, the new structure is to be based on the grouping of the regional and local electric systems into six zones covering all the Departamentos. The regional zones were tentatively defined on the basis that each one should. have appropriate geogr aphic limits and be large enough to perrmit its integrated electric development and become financially self-sufficient. The responsibility for coordination of supply within each zone will rely upon a basic system in the zone, to which the local distri- bution systems will be conrnected by regional transmission lines. The basic zorLal systems will be interconnected by high voltage transmission lines to form a national network, which will permit the realization of econormies of scale through the planning, construction and operation of large generating plants. 16A. The six regional electric zones presently contemplated and their re-pective basic systems (in brackets) are: Central (EEEB), Caldas (CHEC), Gccidental (CVC/CHIDRhAL), Antioquia (EPM), Norte (CORELCA) and Nordeste (basic system not established yet). The areas covered by these zones are shoTrn on Map 2. Four of the basic systems will be interconnected from 1971 by ISA?s net work, which will form the keystone for the development of the national network. It is expected that ISATs network will soon be expanded to interconnect from 1973 the basic system presently under gestation in the Nordeste. The interconnection with CORELCA is planned for further in the future, because of the distances involved. The construction of Chivor will help to consolidate the establishment of ISA as the agency responsible for the planning, construction and operation of interconnection and generation facilities on a national scale. ICEL is working towards the institutional and physical integration of the electric service within the zones; much work remains to be done in this field, still in incipient state. 17. TLVo parallel studies are at present being performed by the same consultants dealing with the expansion and interconnection of the Nordeste: (a) a study for ICEL, which includes analysis of the electric market and projections of power demand in the Northeast region, and identification and evaluation of prospective generation and transmission projects and alterna- tive programs of construction to meet the demand up to 1977; and (b) a study for ISA to determine the technical and economic feasibility of the 230 kV interconnection line Guatape-Barrancabermeja. These studies are expected to provide the bases for a comprehensive analysis of the Nordeste and. ISA systems, to be jointly performed by Planeacion, ISA and ICEL using their com)uter models, to determine the most economic schedule of projects to carry out the integration of the systems and at the same time meeting the forecast demands in both systems and in the integrated ISA-Nordeste system. - 9 - Preliminary conclusions of those studies indicate that additional thermal generation capacity and 230 kV transmission lines will be required to accomplish this. They indicate a prospective schedule of new projects, which would include the construction of three 66 MW steam units -- two of them in Paipa and. Barrancabermeja, ICEL/Nordeste, and the other one in :Uipaquira, EEEB -- to start operation in 1973/74, and of the 230 kV lines Barrancabermeja-Bucaramanga-Cucuta (ICEL/Nordeste, for 19'72), Guatape- B3arrancabermeja (ISA, for 1973) and Chivor-Paipa (ISA, for 1974). The actual schedule of project construction to be undertaken will be deter- rmined from the analysis by Planeacion/ISA/ICEL. i8. The future interconnection of -the CORELCA system with the inte- grated ISA-Nordeste system (see para. 7) will have to be planned in coordi- nation with the developments taking place and planned in those systems. In addition to the power projects under construction and planned mentioned in preceding paragraphs, there are other prospective developments, particularly new power supplies to large industrial consumers (see para. 23), which are likely to influence the schedule and nature of projects to carry out the interconnection. It is expected that by 1972 many of the developments pre- sently planned and foreseen in both systems will have been defined; it will then be possible to undertake a technical and economic feaLsibility study of prospective alternative projects for the interconnection of ISA and CORELCA systems. It seems advisable to plan this preinvestment study, which would provide the bases for a subsequent comprehensive analysis by CORELCA/ISA, using computer models, to determine the most economic schedule of construc- tion of transmission and generation projects to carry out the electric integration of both systems. 19. As mentioned in paragraph 8, priority has been given in the past to the development of generation and transmission facilities, and until recently, only isolated, non-coordinated efforts were devoted to the development of local distribution and rural electrification, which in many areas are acutely deficient, to the point that about six million people in thte country do not have electric service. ICEL undertook in 1969 a plan to improve and expancd in a first stage subtransmission (facilities at 13.2 kV aid 33 kV) and urban distribution (service to cities and population centers of more than 1,500 inhabitants); and in a second stage, rural electrifica- tion, practically non-existing at present except in coffee-growing areas, i,&ere some successful developments have been carried out in cooperation w:ith the Federacion Nacional de Cafeteros (FEDECAFE). 2(1. In mid-1969, ICEL with Planeacion's support and FONADE's financing, retained consultants to (a) prepare a comprehensive national p-Larn which will identify subtransmission and urban distribution projects, establish priorities, estimate financial requirements, etc.; and (b) draw up codes and standards for distributions systems, facilities and equipments. Part (a) of the consultants? study is at present well advanced. The program unider preparation of construction of subtransmission and urban distribution projects is based on a planned investment of US $40 million equivalent in the period 1971-74; the Government intends to request the IDB to participate - 10 - in financing of this program, and an IDB's loan of about US $25 million is expected. It is foreseen that the program will include, among others, projects to improve the service in Cartagena, Santa Marta, Sincelejo, Monteria, Valledupar, Riohacha, Bucaramanga, Villavicencio, Pie de Monte (Meta), Quibdo, lbague, Neiva, Popayan and Pasto. 21. Part (b) of -the study is also in progress, and it is planned to apply the resultant codes and standards to the projects in the program. The standardization of types and sizes of equipments and materials, in conjunction with the schedule of procurement for the construction program, will facilitate greater participation in the supplies by local manufacturers. They may need some adjustments in their present capacities and programs of production to be able to participate substantially in the program, as it is desirable and expected. The Colombian manufacturing industry is qualified to supply to the electric sector equipments and materials for subtransmission and distribution, in particular transformers up to 33 kV, cables, insulators, conduits and fittings, poles, steel towers, minor switchgear and control boards, lighting fixtures, etc. Practically all of these local manufactures include foreign components or materials in various degrees, and their prices are usually higher than those of foreign supplies for public utilities, which are exempt of import duties. The quality of local manufactures has not always been satisfactory; lack of appropriate quality control of fabri- cation has been generally experienced. The work in progress by INCOTEC to establish quality standards of fabrication should be intensified and accelerated, in order to assure the reliability of national supplies to the subtrarnsmission and distribution program. 22. Rural electrif-ication in Colombia presents special difficulties, because of the difficult topography of the country and the wide dispersion of its rural population (centers of up to 1,500 inhabitants). As indicated in para.3, about 70 percent of the country's rural population does not have electric service. There is a growing consciousness in the country of the need to improve this situation; this atmosphere has culminated in the organization by ICEL and SEEB of the first "Congreso de Electrificacion Rural Colombiano" (I CERCO), to take place in Bogota in July, 1970. It seems that the solutions to the problem would have -to be worked out through close coordination between the electric agencies, particularly ICEL, and agricultural entities such as INCORA, FEDECAFE, Banco Cafetero, Caja de Credito Agrario, Banco Ganiadero, etc. Because of the magnitude and complex- ity of the problem, it is recommended that a comprehensive preinvestment study on rural electrification on a national scale be undertaken as soon as possible. The purpose of this study would be to prepare and evaluate alter- native programs of rural electrification projects in priority areas and corresponding investment plans, which would serve as the basis for deciding and determining the possible undertaking of a development plan of rural electrification. ICEL's study on sub-transmission and urban distribution, as well as the prospective resultant project construction programs, deal in fact with fields electrically interrelated, and would have to be coordinated with each other. ICEL is the agency to naturally assume also the primary responsibility for the rural electrification study. - 11 - 23. The progress being achieved by the public sector, particularly in ISA's interconnected system, in assuring the reliability of the electric service obviously underlies the present intention of important industrial consumers of electricity to use the public supply, instead of installing their own generating facilities as it has been the practice in the past. Such are the cases of Siderurgica de Paz del Rio in Belencito and ECOPETROL Refinery in Barrancabermeja, both in the 1Nordeste, which plan important expansions in coming years, with corresponding increases in power demand to be served by the public sector. The power consumption in Paz del Rio and ECOPETROL will increase, according to their forecasts, from about 200 GWh (peak load 31 MW) and 260 GWh (peak load 42 MW) consumed in 1969, to about 360 GWh (peak load 75 MW) and 440 GWh (peak load 70 MW) in 1973, respectively. An expansion of Siderurgica del Pacifico in Cali will increase by 2 GWh/month the demand from EMCALI in 1971. EPM is in the process of entering into an agreement with Hanna Mining Company to supply electric power to the Cerro- Matoso Nickel Plant, planned to be built in Monte Libano (Cordoba), with a peak demand of 65 MW, 90 percent load factor and strict requirements for very high reliability of supply. The construction term of the Nickel Plant is three years, but no firm decision to build it has yet been reached. This new approach will be very beneficial for the public sector, because of the base-load nature of industrial demand, and for the industries themselves, which will thus be freed from the complexities and higher costs usually associated with the small, isolated plants. The benefits of course, will materialize only if the public sector is able to comply economically with its commitments, and for this a continuing process of planning and expansion is required. There is no doubt that this can be accomplished in the systems integrated in ISA, which is already applying long-term, updated planning on a large scale for those commitments. All this emphasizes the need and urgency of carrying out the integration of the Nordeste and its interconnection with ISA system (paras. 13, 16 and 17). Financial Situation 24. At present, only EEEB and EPM are financially self-sufficient to carry out their operations and construction investments; external financing -for foreign exchange costs of their main projects has been available to them. 'ISA was created by its sponsors to achieve joint objectives of coordinated planning, construction and operation which would have been difficult to r.-ealize without the intermediary of a commonly-owned corporation. In parti- cular, the sponsors have agreed to make available to ISA funds for expansion wihich they would have been unable to lend to, or invest in, other sponsors for the same purpose. Thus, ISA is wholly dependent upon the sponsors, which must contribute to ISA's operating expenses and construction investments. ISA has obtained external financing for the foreign exchange cost of its two projects. CVC/CHIDRAL, ICEL and its subsidiaries, on the other hand, have needed in the past, and still do, substantial budgetary contributions and credits to cover part of their expenditures and investments, as well as to service external credits and loans. These agencies have in the past peren- nially experienced difficult financial circumstances, due in part to their failure to make timely application for tariff increases, and subsequent delays by the Government in granting them. - 12 - 25. The establishment and implementation of a comprehensive, rational public utility tariff policy in Colombia has been needed for many years. Until recently, tariff adjustments have been granted on an ad hoc basis, and sometimes they have been too small and too late. In December 1978, the Government instituted the Junta Nacional de Tarifas de Servicios Publicos (Junta), as part of Planeacion, to regulate public utility tariffs, appro- priately structuring and adjusting them to cover operating expenditures and provide a reasonable return on revalued assets to permit orderly financing of expansion. The preparation by the utilities and the study and processing by the Junta of tariff adjustment applications have been organized by the use of comprehensive data forms and computer programs which permit fast and complete evaluation of alternative structures and levels of adjustment. The Junta thereby has been able to process a good part of the backlog of applications by power agencies. Much work is at the same time being done by Planeacion and ICEL, in close coordination, to bring about national uni- formity in accounting, reporting, valuation techniques, etc. Since the beginning of 1970, a new accounting plan prepared by ICEL is being used by all its subsidiaries and affiliates. The plan is coordinated with the data forms used by the Junta for the processing of tariff adjustment applications. Planeacion and ICEL have been helping those utilities to initiate the use of the new techniques, particularly with regard to the collection of statis- tical data and the preparation of tariff adjustment applications. Planeacion is at present considering the revision of the basic structure of tariffs, but no information on this is yet available. The problem to be resolved by all these activities is important. The National Government's budgetary subsidies to service ICEL's debt have increased from Ps 45 million in 1968 to Ps 73 million in 1969 and are programmed at Ps 120 million for 1970. These subsidies represent a drain on resources, which curtails the Govern- ment's capacity to finance new investments. III. CONSTRUCTION AND INVE3TMEDIT PROGRAMS 26. As it can be inferred from preceding paragraphs, an impressive, but necessary process of expansion of power generation and transmission facilities is underway throughout the country. In 1969, 6 new generating plants, aggregating a total of 200 PW, and 270 km of 115 kV lines were put in service. The size, schedule, cost estimate and status of external fi- nancing of the generating plant and major transmission line projects present- ly under construction and planned are indicated in Annex 1, Table 1 to 4. The location of these projects is shown in TMap 1. According to this program, ll new plants or extensions to existing ones aggregating a total of 1,624 NW, and 1,51i5 kan of 230 kV and 115 kV lines are under construction for completion during 1970-75. Additionally, 7 plants aggregating a total of 778 MW and 1,160 km of 230 kV and 115 kV lines are planned for start of construction during 1970-1976. Following is a surmmary of the total cost estimates and external financial requirements for these projects; the investrment and financing planned for ICEL's program of subtransmission and urban distribution projects (see para. 18) is also included. External Financing Cost Estimate US$ million Foreign Dxchange Total Additional US$ million COL$ million Obtained Required Generating Plants: under construction 232.0 6,096 204.7 28.1 planned 77.1 2,070 - 77.1 Transmission Lines: under construction 37.2 913 26.3 10.9 planned 26.9 619 - 2609 Subtransmission and Urban Distribu-tion Program (planned) undefined 800 - 25.0 TOTAL 373.2, plus 10,498 231.0 168.0 amount undefined 27. Of the total external financing obtained for above construction program, the credits and loans obtained since January 1, 1969, as listed in Table 5, amounts to a total of US$140.9 million equivalent. The amounts of additional external financing required for each project and their scheduled periods of construction are indicated in Tables 1 to 4. The new projects for external financing during 1970-72 and the amounts required as indicated in those tables are as follows: - 14 - External Financing Obtained Add. Required Year US$ million US$ million Required CGeneration Plants Chivor I - Hlydro (ISA) 52.3 22.8 1971/72 Paipa Thermal (ICEL/Nordeste) - 7.4 1971/72 (x) Zipaquira Thermal (EE&B) - 7.L 1971/72 (*) Barrancabermeja Thermal (ICaL/Nordeste) - 7.6 1571/72 (*) Cartagena Termonorte I (CORELCA) - 10.5 1972 Transmission Lines Bucaramanga-Cucuta (ICEL) - 1.0 1970 (*) Bucaramanga-Barrancabermeja (ICEL) - 2.3 1970 (*) Guatape-Barrancabermeja (ISA) - 3.4 1971 (*) Cartagena-Sincelejo (CORELCA) - 7.5 1971 Chivor-Paipa (ISA) - 3.2 1972 (*) (*) Prospective schedule of projects for ISA-11ordeste integration (see para. 17). 28. The program of total investments in the public power sector for the period 1970-72 and the forecast investments for 1973-75 are indicated in Table 6. The expected sources of funds to finance the 1970-72 program are also indicated in Table 6. The program includes the investments to carry out the projects listed inTablesl to 4 and all other investments by the public power entities in the country. 29. TEne present and forecast financial situations of EEEB and EP11 appear satisfactory to carry out, without need for budgetary contributions, their operations and investment programs and also to make the necessary contributions to ISA's investment program. CVC/CIHDRAL will need con- siderable national assistance to meet its investment program and its obligations to ISA; this is due mainly to the need to macke substantial investments in Alto Anchicaya. ICI'L/CHi3C will fulfill its obligations to ISA with appropriations from the national budget. Dhuring 1970-72, ICEL subsidiaries and CORELCA wrill continue to rely heavily on national budgetary contributions and credits to finance their invest,ment prograums, as their internal generation of funds is expected to cover not more than half of the planned local financing. It is expected that this situation lwill be gradually improving as result of progress achieved in the organization and development of the sector and in the implementation of appropriate tariff policies. IV. PLAMIg- D 5 * K B z x * ~~tf 77,/@ 7 // / '7°I>>>.v. .* - ' r * , ' ' > m ' m * ° ~~~~~~~~~~~~~~~~N~ F L'S~-' / ' '...... e1:'g'' '. >*a z i 3* . ** \> 0 2 ' -^ m , .0 0 . - . A * 0 ; 0 '.-__- b _ - I -'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Z C ~ ~~~ ~ ~~ ~ ~ ~ n4 -> 1 1 l - -* D El 0C CD~~~~~~~~~~~~~~~~~~~~ -00 I-o 's ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~0' r> r) r)~~~~~~~~~0 o 0~ 0 >~~~~~~~~~~~~ E)3r 0 0 ~ ~ ~ ~ ~ ~ ~~~o ........... 2'£yx%. § 0s~.~ oo oo0 Mt iD 2~%4 j* * -~~~~~~~~~~~~0 ~ ~ ~ ~ ~ jj 0 0 0 - h J 0 0 0 \ 0~~~~~~~~~~~~~~~~~~~~~~~~~= 0 Q3~~~~~c MAP 2 P E R U040 // V . , 7. DE ~~~TLAITCORDB S A \/,\ f f A t/.|;.g,,LX,. ~~~~~~~~~~~~~~~~~~~~~~~~~~~.8,aga- -- d ,-7 PI;D BCACA S la7 (C V C ) & o r I ~~~~~~~~~~~~~~~~~~I- / LCRF'I/CADORAY k ) ELECTRICA ~~~~~~~~~~~~~~~DEL MI ;- tETIAGALED .CNINA ACS A, e N 'li; 5<\NNwI / C O >g<''X~ j XzOp/9- > Aro 7r Areo Ii-evc \S( -7t'......... /,,2\ 'K ...... ... . // ELESCTrRIFII C 8AN DO NO R A 'N~ ~~~~>tETRLRN \AdL\MI ///, / |-DEL MAOEN SUONMOU /GN{E ECUADOR N IN B4AZIL >A-N,RTE"'/'7/XP°t/ 'Iv P E R , , , . ,, C /OTENARIS AI / X~~~~~~4 E.CRFCDR '/7f i/7/ / SANTERATOABUNDER ESA f ~~~~~~~~~~~~ ELECU FIADR DO-.x / / '0 u100 mo200 7 LJUL IAED ABS.AA DEL CAUA SA~D/ CODELUBAS EC RC P W R SC O ESET JULY 1970 BED 3049~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ANNEX 3 Figures 1 and 2 Figure - 1 COLOMBIA INSTALLED GENERATION CAPACITY IN THE PUBLIC SECTOR 1945-1969 MW - - -~~~~~~~~~~- 2000 -_*-*-__TH____h l F ________- 1900 I1800 ________ - - - - ~~~1700 1945 ____ 1950____ _________ - - - 1600 IBRD - 1500 -----~1400 -----1300 - - - - 1200 TOTAL--- 10 HYDRO 1000 ---- - - THERMAL _ 900 _ _ _ _ _ _ _ _ _ _ -- - - - ~~~800 ________ - - - - - ~700 _ _ _ _ _ _ _ _ - - I - - - - - - - - - - 6 0 0 ________ - - - - - ~500 T~ -/--- - - - -400 _ _ _ _ _ _ _ _ _ _ _ _ / - - - - - 3 00 100_ _ _ _ - - - 0 ________ _______200 1945 1950 1955 1960 1965 1970 IBRD - 5038 Figure - 2 COLOMBIA - POWER GENERATION BY THIE PUBLIC SECTOR 1945-1969 GWH W n'7000 _____ HYD RO _ 7 _ _ --_36500 T6000 _________ _______ _ __ _ _ _ _ 2 5500 5000 4500 / __4_ _ 000 TOTAL - …- - ---IHYDRO 03500 ... .. .. THERMAL/ -----3000 -A---- - - -2500 -----2000 1 - . - 7 - - - - - 500 L i I I I I I I 1945 1950 1955 1960 1965 1970 IBRD - 5037 ANNEX 4 Preinvestment Program Study Data Sheets FIr. N 3 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL F-INANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: Area: Country: Sector(s): S.iTH AMERICA CO ILMB IA POWER 1. NAMI- OF PROPOSED STUDY: RURAL ELECTRIFICATION 2. PURIPOSE: To prepare and evaluate alternative programs of rural electrification projects in priority areas and corresponding investment plans, to serve as the basis for deciding and determining the possible undertaking of a development plan of rural electrification on a national scale. 3. SCOI'E: 1) To evaluate the present situation of the country with regard to rural el12ctrification, identifying areas with potential electriz dgmand not being served; 2) to prepare potential demand forecasts in identified rural areas and select priority areas; 3) to identify rural electrification projects for selected priority areas, prepare preliminary designs and estimate construction terms and costs; 4) to evaluate alternative project schedules for prospective investment plans. !4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems Rural electrification in Colombia presents special difficulties because of the difficult topography of the country and the wide dispersion of its rural population (centers of up to 1,500 inhabitants). Some successful projects of rural electrification have been carried| out in certain areas in cooperation with FEDECAFE and INCORA, but about 70% of the rural population has no electric service. Close coordination between the electric agencies, par- ticularly ICEL, and the agricultural entities (INCORA,FEDEDCAFE)would be needed to undertake $ a pcssible deve-lopment PlaRand also to cary out,the propased.stuJx TTis study should pcsi_advlomnL IsLonad r I. rir inalsr hi- ^>ord1naOd .t:L's tucLy on subt'ansmissil and urDan t ution resent.y 5. T(t1fr Y (a) Duration and Phasing of Study (b) Gesired Starting Date 1970 Total Duration: 12 months 6. COMMENT ON POTENTIAL STUDY SFPONSORS: ICI1 is the agency expected to assume the primary responsibility for the study. 7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known): (a) Description A program of projects of electri- (b) Estimated Investment (USS equivalent) The fi(cation of selected rural areas. The projectA program of projects would be coordi- would normally include the installation of dis- nated with the investment plan. tribution trnnsfonmers and switching and protec- (c) Financing Need and Potential Source tion equipment, aerial pole lines, meters, supply feeders, etc. It is expected that the codes and standards for distribution systems PrGsentlv under preparation wniulrl hp applied for th e projerts. 8. ORDER OF MAGNITUDE OF STUDY COST (USs equivalent): 200,000 Sheet Prepared by: Manuel Isla Dept. or Agency: J1RD/PUPD 7 F~~~~~~~~~~~~~~~~ae June 14f, 1970 Date: 19. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Sheet Revised by: ThLis study is considered of highest priority and Item(s) Revised: should be started as soon as possible. Dept. or Agency: _ Date: _________________________________ ________________________________ ____ . FORM No. 386.01 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE (11-69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 5-1 (2) (to be filled in when possible) I. TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months (a) Professional Staff: F7ect Manager 1 12 Engineers 6 54 Assistant Ehgineers 8 72 Advisers: Agriculturalists 3 18 Economist 1 12 Total: 17 168 (b) Local Supporting Staff : 72 2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local Total Currency Currency ota (a) Professional Staff Costs : 1O, 000 140, 000 (b) Equipment 6 6,0 (c) Other (Travel, non-prof. staff, etc.): 6o, ooo 6o,000 _ (d) Total 200,000 200,000 3. OTHER COMMENTS Supplement Prepared by: Manuel Isla Dept. or Agency: TlBD/PUPD Date: June 1L, 1970 Supplement Revised by: Item(s) Revised: Dept. or Agency: Date: r .Ry N' . IA5 IN1ERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL VINANCE IlI. 64i ASSOCIATION RECONSTRLICTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SHEET No,: 5-2 (1) Area: Country: Sector(s): SOUTH LMIAICA COLOMBIA POWER 1. N OW OF PROPOSED STUDY: RIO CAUCA HYDROELECTRIC POTENTIAL 2. PURPOSE: To evaluate the hydroelectric potential of the middle part of the Cauca River (Rio Cauca Medio) and determine the technical and economic feasibility of constructing reservoirs and power plants to utilize that potential. 3. SCOPE: 1) Recapitulation of existing basic information on the topography, hydrology, meteorology, geolog-, etc., of the area; 2) Installation and operation of a network of hydro-meteorological stations; processing and interpretation of data obtained. 3) Topographic surveys and complementary aereophotographic surveys; analysis of region's I natural resources and ecology; 4) General geologic survey, more detailed in preselected dem and plant sites; 5) Preliminary selection of dam and plant sites and determination of their main parameters; 6) Preliminary basic designs of dams, plants, transmission lines and accesses to sites, and corresponding cost estimates; 7) Comprehensive report with conclusions and recommendations. 4. BACKGROUNO: (a) Related Studies (b) Other Available Data (c) Expected Data Problems Very preliminary estimates indicate a hydroelectric potential of the middle part of the Cauca River (Departamentos of Caldas and Antioqu4a) of the order of 11,000 MW, in about 360 km from La Virginia (average flow of 570 ma/sec) to Caucasia (average flow of 1,200 m3/sec). 5. TI.4I1NG: (a) Duration and Phasing of Study (b) Desired Starting Date 1970 Total Duration: 3 years Parts 1), 3) and h4): first two years Parts 5) and 6) : second year and ten Part 2) : throughout the three years months of third year i Part 7) : last 3 months 6. CO#4MENT ON POTENTIAL STUDY SPONSORS: Interconexion Electrica S.A. (ISA), the executing agency for this study, has requested the I.B.R.D. to finance 50% of the cost of the study wilth proceeds of loan 575-OD0, and the Bank is expected to agree. FVNADE is presently studying a request by ISA to finance 25% of the study. The remaining 25% would be financed by ISA. 7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known): (a) Description (b) Estimated Investment (US$ equivalent) Not known Several hydroelectric generating plants (c) Financing Need and Potential Source and related high voltage transmission facilities S. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): 740,000 Sheet Prepared by: Manuel Isla i ~ OF STUDY COST US$ equivalent): Dept. or Agency: xBR,D/PUPD ________________________________________________________ Date: M ay 13 , 19 70 |9. STAFF'S COPMENT ON PRIORITY RANKING OF STUDY: Studies of new Sheet Revised by: l generating sources are needed for proper selection Item(s) Revised: of future plant construction. Because of the esti- Dept. or Agency: mat ed potential and location of the Cauca River in ISAi systen, this stu(y should be started in 1970. Date: FORM No. 386.01 INTERNATICNAL DEVELOPMENT INTERNATIONAL BANK FOR tNTERNATIONAL FINANCE (I} 69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 5-2 (2) (to be filled in when possible) i. TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months (u) Professional Staff: Project Manager 1 36 Engineers 7 160 Assist. Ehgineers 7 160 Foreign Advisers: Dam and Power Plant Specia ist 1 Geologist 1 3 i0rie anics Sppcial st Total: 1°3 69 (b) Local Supporting Staff : Topographers, d.raftsmen, adldnisra 22h 2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local Total Currency Currency ota (a) Professional Staff Costs 27,000 385,000 412, 000 (b) Equipment 56,000 109,000 165,o00 (c) Other (Travel, non-prof. staff, etc.): 1 63,000 163,000 (d) Total 83,000 657,000 740,000 3. OTHER COME4NTS ISA sent to the Bank, with its request for financing 50% of the study, a proposed contract with the Colombian consulting finm Integral Limitada to carry out the study. Integral would use the services of specialist advisers when appropriate and as agreed iith ISA. Supplement Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD Date: May 13, 1970 Supplement Revised by: item(s) Revised: Dept. or Agency: Date: FroQ No,. 386 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE (11-69) ASSOCIAIORN RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: 5-3 (1) Area: Country: Sector(s): SOUTH A1ERICA COLOMBIA WATER SUPPLY/POWER 1. NAME OF PROPOSED STUDY: CHINGAZA WATER SUPPLY/BOGOTA RIVER BASIN POWER DEVELOPMENT 2. PUIRPOSE: To prepare and evaluate alternative coordinated construction schedules of projects for water supply to Bogota from Chingaza and flow regulation and power generation in the Bogota River Basin, to be used as the basis for a comprehensive, joint analysis by EAAB/ EEH23 to determine the most economic schedule of project construction and establish the _arangements to undertake it (see page (2), item 3). 3. SCOPE: 1 ) Review of all available data and studies on existing, under construction and planned projects for water supply to Bogota and flow regulation and power generation in t Re Po7ota River Basin; supplemental surveys as required for the purpose of the study; 2) Selection of alternative schedules of coordinated construction of projects; 3) Technical feasibility analyses of the selected project schedules, and determination of the main parameters of the respective projects; 4) Preliminary basic designs and cost estimates of the projects in selected schedules. -I 4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems (See page (2), item 3) 5. TIMING: (a) Duration and Phasing of Study (b) Desired Starting Date 1970 Total Duration: 12 months 6. COMIENT ON POTENTIAL STUDY SPONSORS: It is expected that FONADE would finance 50% of the proposed study, to be jointly undertaken by EAAB/EEEB. UNDP might also be interested to provide funds for the study. 7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known): (a) Description (b) Estimated Investment (US$ equivalent) - Water supply expansion for Bogota from Not known Chingaza (c) Financing Need and Potential Source - Pumping/reservoir developments and power generation expansion in the Bogota River Basin 8. ORDFR OF MAGNITUDE OF STUDY COST (US$ equivalent): 300,000 Sheet Prepared by: M.Isla/J.Krombach Dept. or Agency: IBRD/PUPD Date: June 17, 1970 9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: It is planned to Sheet Revised by: undertake some of the prospective projects,particularly Item(s) Revised: 'Chingaza Pro,ect and pumping/reservoir developments i D o t+he Bogota River Basin,within the next two years. This ep.oAgnyI Uthe i eonsidered of hieh priority and should be Date: tPt__ _ _ _ _ soon1as 5T______e. I _ __ FORM No. 386.01 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE i11-69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 5-3 (2) (to be filled in when possible) 1. TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months (a) Professional Staff: Project Manager 1 12 Engineers 4 h0 Assistant Engineers 6 60 Foreign Advisers: Dam, tunnel and power plani, Specialist 1 2 Hydrologist 1 Geologist 1 Total 119 (b) Local Supporting Staff Topographers, Draftsmen, Administrative, etc. 100 2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local Total Currency CurrencyToa (a) Professional Staff Costs 25,000 150,000 175,000 (b) Equipner;t 25,000 20,000 45,000 (c) Other (Fravel. non-prof. staff, etc.): 20,000 60,000 80,000 (d, Total _70,000 230,000 300.000 3. 01HER CM44fNTS The Ernpresa de Acueducto y Alcantarillado de Bogota (ELAB) has presently under ccnrstrui;Žorn in the Bogota River Basin, north of the city of Bogota the Tibito II r:l'ct wTriic nill increase the water supply to Bogota by about 8 mV/s (average). According tr the forecasts, additional supply will be needed from 1976 to meet Bogota's water demand, ornd fcr this FAAB is planning to undertake the construction of the "Chingaza Project,? for an (h-iitionai average supply, in its first stage, of about 12 m /s from the Guatiquia River tri- butaries `Si the Chingaza Highlands. West of Bogota. The feasibility study of the Chingaza -rC ect being carried out by consultants for FlAAB is scheduled for completion by March 1971. Bothi -rojects will affect the utilization of the Bogota River Basin for power generation; its hydroelectric potential below Bogota will be increased substantially by Chingaza's flow C:ont.ribution. On its part, EZE1 is considering some pumping/reservoir projects in the Bogota Basin to improve the regulation of the River; it also plans to study the installation of ad- dibional generating capacity in the Bogota River to use the prospective increase of its hydroelectric potential by the Chingaza Project. It seems advisable that all these studies, unliertaken at present separately by FAAB and EEEB, be combined and supplemented as required to orovide the basis for a comprehensive analysis of the prospective Chingaza Water Supply/ togota River Basin Power Develorment, to be jointly perfonmed by EAAB/EEEB, with the co- oaero3tion of Planeacion and ISA and the use of their computer models, to determine the most economic schedule of project construction and establish the technicaI and financial arrange- ments -tc undertake it. Supplement Prepared by: M.Isla/J.Krornbach Dept. or Agency: IBRD/PIJPIB Date: June 17, 1970 Supplement Revised by: _. Item(s) Revised: Dept. or Agency: Date: F(RViw No 3Si6 INrERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL rINANCE ( 1I- 6) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: 5-4 (1) Area: Country: Sector(s): SOUTH AMERICA COLOMBIA FOWER 1. NAME OF PROPOSED STUDY: RIO PATIA HYDROELECTRIC POTENTIAL 12. PURPOSE: To evaluate the hydroelectric potential of the Patia River, in Southwestern Colombia, and determine the technical and economic feasibility of constructing reservoirs and power plants to utilize that potential. 3. SCOPE: 1) Review of a preliminary survey made in 1967, and recapitulation of available information on the topography, hydrology, meteorology, geology, etc., of the area; 2) Installation and operation of a network of hydro-meteorological stations; processing and( interpretation of data obtained. 3) Topographic surveys and complementary aereo- photographic surveys; analysis of region's natural resources and ecology; 4) General geologic survey, more detailed in preselected dam and plant sites; 5) Preliminary selection of dam and plant sites and determination of their main parameters; 6) Preliminary basic designs of dams, plants, transmission lines and accesses to sites, and corresponding cost e,timates; 7) Comprehensive report with conclusions and recommendations. 4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems At the request of ICEL, a Japanese official mission made in the first half of 1967 a I Dreliminary survey of the Patia's hydroelectric potential, identifying two possible developments with a total capacity of about 1,200 NW. However, that survey was of a very preliminary nature and limited scope, and will only serve as initial reference for the comprehensive study which is proposed. Other preliminary estimates indicate hfigher potential of the Patia, of the order of 4,000 MW. 5. TIMING: (a) Duration and Phasing of Study (b) Desired Starting Date 1971 Total Duration: 2 years art 1) First six months Parts 5) and 6) : Second year Part 2) : Throughout the two years Part 7) : Last (2) months arts 3) and W): First fifteen months 6. COM4ENT ON POTENTIAL STUDY SPONSORS: At the request of ICEL, FONADE agreed to finance 50% of the cost of the study. Financing for the rest may depend on the final arrangement to carry ouit the study. If ISA assumes the responsibility for the study, as it is recommended £jee page (2), item 3 (a)), proceeds of I.B.R.D.'s Loan 575 to ISA might be used to finance! ~he remaining 50Y%. 7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known): (a) Description (b) Estimated Investment (US$ equivalent) A hydroelectric development of one or more Not known dams and generating plants, and related (c) Financing Need and Potential Source high voltage transmission facilities ORI)ER OF MAGNITUDE OF STUDY COST (US$ equivalent): 630, 000 Sheet Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD (See page (2), item 3 (b)) Date June 11, 1970 9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Studies of new Sheet Revised by: Manuel Isla generation sources are needed for proper selection Item(s) Revised: 9 i of future plant construction. Because the Patia Det orAec: BDPP River is the prospective large-size hydroelectric Dep o cRD/FUPD sourcerin ooutl stern Colombia, this study should Date: October 1, 1970 Dt started in __ _ FORM No. 386.01 INTERNATIONAL DEVELOPMENT INTERNATIONAL BAK FOR INTERhATINAL FINANCE (31-69) ASSOCIATIOI RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No. 5-s ( 2) (to be filled in when possible) I. TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months (a) Professional Staff: Project Manager 1 24 &igineers 5 100 Assist. Ehgineers 5 100 Foreign Advisers: Dam and Power Plant Spec alist 1 I Geologist 1 3 Hydrologist 1 3 Soil Mechanics $Secialit 1I Total: 15 237 (b) Local Supporting Staff : Topographers, draftsmen, acdninistrative, etc. 160 2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local Total Currency Currency (a) Professional Staff Costs 30,000 275,000 305,000 (bl Equipment 50,000 90,000 1 40, 0C0 (c) Other (Travel, non-prof. staff, etc.): 185,000 ,85,ooo (d) Total 8:,000 550,000 63 OXOOO 3. OTHER COMMENTS (a) nie possible future utilization of the Patia River's hydroelectric potential woul1 have to be part of a power generation program for ISA's interconnected system, and ISA would be the agency responsible for its planning and construction. It seems therefore that ISA should also assume the full responsibility for this preinvestment study, with the appropriate initial help of ICEL. (b) 1CELTs preliminary cost estimate of US$1.5 million equivalent appears too high. The tenms of reference for the study have not been prepared yet, but if they are based on the proposed scope of work, which appeazrs appropriate for this stage, a reasonable cost estimate would seem to be of the order of US$630,000. (see 2 above). Supplement Prepared by: Manuel Isla Dept. or Agency: IB1Rl/eUPD Date: June 11, 1970 Supplement Revised by: Item(s) Revised: Dept. or Agency: Date: FoR- NC. 3S6 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL IINANCE v X 1- 691 ASSOCIA7 ON RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTNENT PROGRAM - STUDY DATA SHEET No.: 5-5 Area: Country: Sector(s): SOUTH AMERICA CCLOMBIA POWER a. NAME OF PROPOSED STUDY: R-T0 SALDANA HYDlROELECTRIC POTENTIAL 2. PURPOSE: To evaluate the hydroelectric potential of the Saldana River, located in the South of Departamento de Tolima, and determine the technical and economic feasibility of constructing a hydroelectric development to utilize that potential. 3. SCOFE: 1) Recapitulation of existing basic information on the topography, hydrclogy, meteorology, geology, etc., of the area; 2) Installation and operation of a network of hydro-meteorological stations; processing and interpretation of data obtained. 3) Topographic surveys and complementary aereophotographic surveys; analysis of region's natural resources and ecology; 4) General geologic survey, more detailed in preselected danm and plant sites; 5) Preliminary selection of the site for the dam and plant and determination of the main parameters of the proposed development; 6) Preliminary basic design of the development and associated transmission lines, and corresponding cost estimates; 7) Comprehensive report with conclusions and recommendations. 4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems Preliminary estimates indicate a hydroelectric potential of the Saldafna River, above the irrigation works in its lower part, of the order of 400 MW. There are some uncertainties about the general suitability of the geology of the area for a hydroelectric development; -pr or to undertaking the proposed comprehensive feasibility study, a general geologic survey of the area is planned to assess its basic geologic prospects. 5. TIMING: (a) Duration and Phasing of Study (b) Desired Starting Date 1971 Total Duration: 12 months |Parts 1), 3) and 4): first seven months Parts 5),6) and 7): last six months ,Part 2) : throughout the twelve months 6. COMMENT ON POTENTIAL STUDY SPONSORS: Interconexion Electrica S.A. (ISA), the executing agency for this study, has requested the IBRD to finance 50% of the cost of the study with proceeds of Loan 575-CO, and the Bank is expected to agree. FONADE is presently studying a request by ISA to finance 25% of the study. The remaining 25% would be financed by ISA. 7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known): (a) Description (b) Estimated Investment (US$ equivalent) A hydroelectric development of a dam and Not known generating plant, and related transmission (c) Financing Need and Potential Source acilities 8. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): 200,000 Sheet Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD Date: June 10, 1970 g. ST,AFFS COMMENT ON PRIORITY RANKING OF STUDY: Studies of new ge -Sheet Revised by: Manuel Isla brating sources are needed for proper selection of fu- Item(s) Revised: 4 and 9 ture o)lant construction. Because of the location of the rospective Saldana development in ISA system, between Dept. or Agency: IBR}D/PUPD Fali and Bogota, this study should be carried out, Date: October 13, 1970 Eontingent upon the geologic survev (item l). __ _ FORM No. 386.01 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE I11.69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 5-5 (2) (to be filled in when possible) I TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months (a) Professional Staff: Project Manager 1 12 En&gineers 3 22 Assistant Ehgineers 2 18 Foreign Advisers: Dam and Power Plant Special ist 1 5 Geologist 1 5 Hdrologist 1_ _ Engineers 2b Total: 11 71 !b) Local Supporting Staff : Topographers, draftsmen, amcninistrative, etc. 60 2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local Total Currency Currency (a) Professional Staff Costs 70,000 84,ooo 154,000 (b) Equipmnent 51 29,000 312,000 (c) Other (Travel, non-prof. staff, etc.): 12,000 1 2, 000 (d) Total _______ 7N,000 12.,0 200, 000 3. OTHER COMiENTS ISA sent to the Bank, with its request for financing 50% of the study, a proposed contract with the Colombian consulting fimn Compania de Estudios e interventorias Ltda. associated with the Canadian finm Acres International to carry out the study. ISA's present plans to start the study are con- tingent upon the results of the general geologic survey of the area (re. item 4, sheet 5-5(1) ). Supplement Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD Date: June 10, 1970 Supplement Revised by: Manuel Isla Item(s) Revised: 3 Dept. or Agency: IBRD/FUPD Date: October 13, 1'>1( I -4 N1, ,6 INTERNAFIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL FINANCE (11{9) ASSOCIATr(N RECONSTRUCTION AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SHEET No.: 5-6 (1) Area: Country: Sector(s): SOUTlH AMERICA 0OL0MB IA POW'ER 1. NAME OF PROPOSED STUDY: RIO GUAVIO HYDROELECTRIC DEVECRMENT 2. PURPOSE: To complete the evaluation of the hydroelectric potential of the Guavio River and its tributaries and determine the most feasible and economic development of reservoirs and power plants to utilize it, preparing preliminary dam and power plant designs, cost estimates and con;truction and investment schedules. 3. SCOPE: 1) Reniew of existing studies on the Guavio River; 2) Completion of the topographic survey, particularly of selected reservoir and power plant sites, construction areas and rou-ftes of transmission lines and access roads; detailed topographic or aereophotographic surveys as required for the preliminary design of the development; 3) Expansion as required 0 the existing network of hydro-meteorological stations; processing and interpretation of data Iobtained; h) Geologic survey of selected dam and plant sites, including sub-surface explora- tiori to determine their feasibility and possible sources for construction materials; 5) Pre- liminary designs of dams and power plants and corresponding cost estimates and basic con- struction schedules; 6) Evaluation of alternative developments; 7) Comprehensive report with conclusions and recommendations. !4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems I As part of the studies for a power development on the Bata River which led to the decision to build the Chivor Hydroelectric Plant, Bmpresa de Energia Electrica de Bogota (EEEB), one i of the sponsors of Interconexion Electrica S.A. (ISA), initiated with their Colombian con- sultants Ingetec Linitada the investigations on the Guavio River, including its possible future diversion to the Chivor reservoir on the Bata, a tributary of the Guavio. It was con- cluded that the Guavic presents more economic possibilities of its own for a power developreni of the order of 1,200 NW. ISA would be the executing agency for the new stucy and the future 4 psnject. 5. TIMING: (a) Duration and Phasing of Studs (b) Desired Starting Date 1 971 Total duration: 20 months 6. COMMENT ON POTENTIAL STUDY SPONSORS: ISA, the executing agency for this study, has requested the I.B.R.D. to finance 50% of the cost of the study with proceeds of Loan 575-CO and EDNADE to finance another 25%. ISA would finance the remaining 25%. The present termination date of oan 575-00 is Febr4ary t972 the requested financing from this loan would therefore depend or tne actual tltinzg ot te studv. 7. PROJECT(S) EXPECTED TO RESULT FROM STUDY (if known): (a) Description A hydroelectric development (b) Estimated Investment (US$ equivalent) of several dams and reservoirs and one or Not known. more generating stations, and related high (c) Financing Need and Potential Source voltage transmission facilities. 8. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): 580 0oo Sheet Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD Date: May 13, 1970 9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Sheet Revised by: Item(s) Revised: ';ee page (2), item 3. Dept. or Agency: Date:- FORM No. 386.01 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATICNAL FINANCE (11-69) ASSOCIATION RECONSTRUCTICN AND DEVELOPMENT CORPORATION PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 5-6 (2) (to be filled in when possible) I TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months (a' Professional Staff: Project Manager 1 20 &Eigineers 5 60 Assist. Engineers 5 60 Foreign Advisers: Dam and Power Plant Specialist 1 2 Geologist 1 2 Total: 13 11 (b) Local Supporting Staff Topographers, draftsmen, adminis- tration. etc. 1hO 2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local Totat Currency Currency _T _ (a) Professional Staff Costs 10,000 169,000 1 714, 000 (b) Equipment 103,000 17,000 120,000 (c) Other (Travel, non-prof. staff, etc.): 290,000 290,000 (d) Total 113,000 471,000 58L4,000 3. OTHER CO*MENTS ISA sent to the Bank, with its request for financing 50% of the study, a proposed contract with the Colombian consulting firm Ingetec Limitada to carry out the study. Ingetec performed for EEEB preliminary investigations and studies on the Guavio River. ISA proposed to start the study in mid- 1970, but it would seem advi3able to defer the study until some time in 1971. Staff's Comment on Priority Ranking of Study (from page (1), item 9) Because of its location close to Chivor, it is expected that the use of the Guavio Development would not be needed in the near future, specially if the good prospects for the Chingaza Project are confirmed by the study recommended (No. 5-3). Therefore, it is not urgent to start the Guavio study, which should definitely be carried out by ISA, but could be started at about mid-1971, when the conclusions of the Chingaza study, which might affect the bases for the Guavio Development, would be known. Supplement Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD Date: May 13, 1970 Supplement Revised by: Item(s) Revised: Dept. or Agency: Date: ,,9v No. 356 INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL 'INANCE I11II9 69) ASSOCIATION RECONSTRtUCTION AND DEVELOPMENT CORPORATION PRE INVESTMENT PROGRAM - STUDY DATA SHEET No.: 5-7 (1) Area: Country: Sector(s): SOUTH AMERICA COLOMBIA POWER 1. NAME OF PROPOSED STUDY: CORELCA SYSTEM INTERCONNECTION TO ISA SYSTEM 2. PURFOSE: To prepare and evaluate alternative programs of projects for the interconnection of ISA and CORELCA systems, to serve as the basis for a subsequent comprehensive analysis by ISA/CORELCA to determine the most economic schedule of construction of transmission and generation projects to carry out the electric integration of both systems. 3. SCOPE: 1) Review of power market data and forecasts for CORELCA and ISA systems, and of generation and transmission capacities installed, uilder coudtruction and planned in both sycstems; 2) Selection of prospective projects and alternative project construction shedulesl to carry out the interconnection of the two systems; 3) Technical feasibility analysis of the selected project schedules,and determination of the main parameters of the respective projects; 4) Preliminary basic designs and cost estimates of the projects in selected schedules. 4. BACKGROUND: (a) Related Studies (b) Other Available Data (c) Expected Data Problems In addlition to the power projects under construction and planned in ISA, Nordeste and MORELCA 1 systems, there are other prospective developments, particularly new power supplies to large industrial consumers in those areas, which are likely to influence the schedule and nature of projects to carry out the future interconnection of the CORELCA system to the integrated ISA- Nordeste system. It is expected that by 1972 these developments will have been sufficicntly defined to undertake a technical and economic feasibility study of prospective alternative projec-ts Cor the interconnection. 5. TIMiNG: (a) Duration and Phasing of Study (b) Desired Starting Date 1972 Total Duration: 12 months 6. COMMENT ON POTENTIAL STUDY SPONSORS: It is exDected that the study will be jointly undertaken by ISA and CORELCA. 4 7. PROJECT(S) EXPECTED TO RESULI FROM STUDY (if known): (a) Description (b) Estimated Investment (US$ equivalent) Not knowri A program of transmission lines and (c) Financing Need and Potential Source some generation expansion projects 8. ORDER OF MAGNITUDE OF STUDY COST (US$ equivalent): 300,000 Sheet Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD _____-_____________________________________________ Date: June 16, 1970 !9. STAFF'S COMMENT ON PRIORITY RANKING OF STUDY: Sheet Revised by: The prospects are that this study will be of Item(s) Revised: i high priority in 1972. Date: l FoPM No. 386.01 INTERNATIONAL DEVELOPMENT INTERNATIONAL 8ANK FOR INTERNATIONAL FINANCE (11-69) ASSOCIATION RECONSTRUCTION AND DEVELOPMENT CORPORAIION PREINVESTMENT PROGRAM - STUDY DATA SUPPLEMENT No.: 5-7 (2) (to be filled in when possible) I. TENTATIVE STAFFING Type of Specialist Number on Team Total Man-Months (a) Professional Staff: Project Manager 1 12 Ehgineers 4 40 Assistant EMgineers 8 80 Total: 13 132 (b) Local Supporting Staff : Topographers, Draftsmen, Acjinistrative ._._.___ 1 to 2. TENTATIVE STUDY BUDGET (US$ equivalent) Foreign Local Currency Currency Total (a) Professional Staff Costs 180, 000 180,000 (b) Equipment 20,000 20,000 (c) Other (Travel, non-prof. staff, etc.): 100,000 100,000 (d) Total 300,000 300,000 3. OTHER COWMENTS Supplement Prepared by: Manuel Isla Dept. or Agency: IBRD/PUPD Date: June 16, 1970 Supplement Revised by: Item(s) Revised: Dept. or Agency: Date: PART B TELECOMMUNICAT IONS - 18 - I. INTRODUCTION 1. The topography of Colombia has great bearing on the importance of communications to the economy. The western portion of the country is divided by three mountain ranges, in some places reaching a height of 5,000 meters. The southeastern portion is a vast jungle area with very few inhabitants. The telecommunications sector1! is therefore both an important supplement and in inaccessible areas a crucial alternative to such forms of transport and communications as railways, roads, postal services, etc. 2. Colombia is divided administratively into the Federal District of Bogota, 22 regional departments, and numerous municipal governments in the cities and towns within each region. For purposes of economic planning the country has recently been divided into eight regions by the Regional and Urban Development Division of the National Government's Planning Department - "Departamento Nacional de Planeacion" (PLANEACION).Z/ 3. This report covers (a) the role of Government in the telecommunica- tions sector, (b) the present facilities, (c) plans for expanding them, and (d) reorganization of the sector to cope with difficulties arising from its fragmentation into independent entities operating telephone services in various parts of the country. 1/ The sector in the context of this report covers telephone, telegraph, and telex services. Other communication services such as radio, television, and postal services lie outside its scope. 2/ PLANEACION - "Planes y Programas de Desarrollo, 1969-72.tt - 19 - II. THE SECTOR - DELINEATION OF ROLES The Role of Governrient 4. The Ministiry of Communications exercises governmental authority over the sector. 'Its powers consist of policy-making, licensing, and regula- tiDn of the various entities. Policy-Making 5. By law, the Ministry is responsible for formulating sector policy. Article 1, Decree No. 3049 of December 1968, which reorganized the Ministry, states: "It shall be the responsibility of the Minister of Communications, in agreement with the President of the Republic, to adopt the national communications policy in harmony with the overall development policy." This Decree also provided for a planning office to be set up within the Ministry to make a broad study of the state of the sector and its defects, to get abreast of telecommunication advances in other countries, and to make recommendations to the Minister. Licensing 6. The Ministry is the licensing authority for all telephone, telegraph, anrd telex services. Before the 1930's many local services were licensed to an(d operated by expatriate companies, which often were suppliers of tele- communications equipment. Over the past three decades, however, these licenses have been given to the various municipalities and to the Empresa Nacional de Te.lecomunicaciones (TELECOM), whose main operations are international and national long-distance telephone, telegraph, and telex services. 7. Annex 1 lists 61 entities, including TELECOM, that have been licensed by Government to provide local services. About 109 centers are being served by these entities. The centers are listed in Annex 2 along with pertinent da-ta on the present and future size of their automatic exchanges (the data wi:ll be discussed in Sections III and IV). 8. A municipality can waive the right to provide telephone services in its area in favor of TELECOM. Operating as a Government-owned national entity, TELECOM is licensed to provide international and national long- distance telephone, telegraph, and telex services in Colombia and to provide local telephone services in any area where the local administrative authority permits it to do so. Thus, with prior local and ministerial approval, TELECOM is allowed to take over an existing entity or to develop telephone services in an area where there are none. Decree No. 1184 of July 21, 1969, which con- so.lidated TELECOM'S statutes, states that TELECOM -- - 20 - "may assume responsibility for and provide other com- munications services whenever the Government shall so decide, in association with official or private institutions ... without prejudice to any rights that may be held in this connection by Departments or Municipalities." Regulation 9. The Ministry exercises regulatory powers in two ways: (i) It has to approve the investment plans of the various entities. Procurement in excess of 40 percent of existing capacity must be by open competition. Besides its regulatory powers, the Government has this power over TELECOM's investment plans since it is the owner of TELECOM. (ii) Applications by the entities for tariff revisions must be approved by the Ministry, which requires that the proposed tariffs be necessary with respect to internal cash generation and debt service requirements. The Ministry does not initiate tariff revisions, nor can it force the introduction of revised tariffs that it might have approved. 10. In addition to the Ministry's role, the Government's Planning Department -- PLAFACION -- exercises a role in the approval of the entities' expansion plans and their contracting of foreign debt. PLANEACION's role includes policy-making for the sector. 11. Nearly all of the local telephone entities are members of Associ- acier. Nacional de Empresas Telefonos de Colombia (ANET), which was set up to coordinat,e the interests of the members and to give them technical and other advice. ANTh' maintains a permanent secretariat in Bogota and employs two telecommunications experts on a full-time basis. As a result of internal disagreements, some entities have withdrawn their membership at times; for example, Barranquilla did so in 1969 and Medellin in 1970. - 21 - III. PRESENT FACILITIES General 12. The number of automatic telephone lines in Colombia has about cloubled -- from 270,000 in 1960 to 560,ooo in 1969. All but 17,200 lines are automatic; i.e., they do not require an operator when local calls are placed. The telephone density in the country has increased from 1.75 in :L960 to about 2.75 telephones per hundred population in 1969. This compares with approximate figures of 4.2 for Panama, 3.8 for Venezuela, and a range of 30 to 54 for the developed countries. 13. About 109 cities and towns have automatic telephone services. In an additional 360 towns there are a total of 17,200 manual lines. The table below classifies the population centers with telephone services. The break- down (into four groups of centers plus the rural population) is very apprixi- nate. DISTRIBUTION OF TELEPHONE SERVICES ACCORDING TO POPULATION Centers in Total Number Number Population Population of with Range (million) Centers Telephones Greater than 20,000 9.5 79 60 10,000 - 20,000 1 62 27 5,000 - 10,000 1 136 12 100 - 5,000 1.5 639 10 Rural 8 - - Total 21 916 109 Source: Population estimates by Government Census Depart- ment. The table shows that only about half of Colombia's approximately 21 million people live in areas with telephone services. There are about 19 areas of greater than 20,000 population that do not have any local telephone services. Less than half of the towns between 10,000 and 20,000 population and very few of the remaining 775 centers have local service; in these areas there are only a long-distance office, a telegraph office, and a small number of manual lines. Some of the commercial enterprises maintain private radio systems, however, with circuits to the nearest telephone exchange. For example, in the area around Barrancabermeja in the northeast corner of Antioquia Department and Santander, due to insufficient local services, 25 private companies mostly in the petrochemical industry are licensed by the Ministry of Coummnications to operate 250 circuits to Bogota. - 22 - Local Telephone Services 14. Data on local services are detailed in Annex 1 and 2, which list the 61 entities and the 109 centers they serve. In some of the larger cities such as Bogota (190,000 lines at present) and Barranquilla (30,500 lines), the municipality has created a separate telephone entity to admin- ister and operate the local telephone service, whereas in the smaller cities and towns the telephone service is often operated in conjunction with such other public services as water supply and electric power. The eight largest entities, ranging from Bogota to Cartagena (9,000 lines), are large enough to be financially viable and are providing good service at reasonable tariffs. The same can be said for TELECOM's local telephone services -- 5,400 automatic lines in 12 towns and another 6,009 lines of manual exchanges in some 210 small localities throughout the country. However, about half of the 61 enti- ties, each of which operates 1,000 lines or less, are in financial and technical difficulties because of the small scale of their operations. 15. Annex 3 lists the local telephone tariffs of 14 cities and the TELECOM tariffs that apply to all of its 12 automatic exchanges. Without a detailed study, however, it is difficult to comment on the adequacy of tariffs in these local areas. Up to now this has not been done, although PLANEACION is now reviewing those tariffs. Its aim is to propose some reforms of the rate structure and to systematize the method for setting the rates. Some of the special features to be noted in the list of tariffs in Annex 3 are: (i) Bogota requires a capital contribution from its new sub- scribers that varies depending on whether they are residential (Col$500) or business (Col$2,400). The amount that residential subscribers are required to pay in Bogota also varies in relation to the value of their homes. (ii) TELECOM's tariffs also provide for a capital contribution. (iii) The deposit, which all the cities require, is ostensibly to protect the entities in the event of unpaid bills. (iv) Only five cities provide free calls as part of the rental charges, the numbers are shown in brackets -- Cali (100 - 210), Barranquilla (200), Bucaramanga (150), Ibague (150) and Neiva (150). (The tendency is to discontinue these free calls.) (v) Cali and Barranquilla provide good telephone services at very low tariffs. In those cities a rental of about US 30 cents per month can bring up to 210 free calls. They are able to provide such good service without subsidies because of their operating efficiency. - 23 - 16,. As in most countries, developed as well as less developed, the installation of new subscriber lines in Colombia has not kept pace with demand for telephone connections. In Bogota 70,000 applicants await connections, and the average waiting time is four years. Long-Distance Services 17. Responsibility for international and national long-distance tele- phone, telegraph, and telex services lies with TELECOM (TELECOM's license is discussed in Section II). Created in 1945, this Government-owned public entity began operations two years later with the pucrnhase of Compania Tele- fonica Central, a Government-owned company that provided international and national long-distance services. In 1958, with the end of a concession to an expatriate company (All America Cables C.L.), all international telephone and telegraph services were constituted under TELECOM. In 1964, all of the national telegraph services together with 3,500 telegraphic staff were placed unier TELECOM. 18. An IBRD :Loan to TELECOM in 1967 provided for the expansion of national long-distance communications by means of micro-wave radio links and automatic switching equipment, and the expansion of international links by high-frequency equipment. The loan included equipment for a few local tele- phone exchanges (4,500 lines). An Earth Satellite Station, financed by supplier credits, was completed in March 1970, making for quick and high- quality international connections. Subscriber trunk-dialing (STD) is avail- ab:Le in Colombia, although many subscribers prefer to place their calls manually through the operator because the periodic pulse-metering system does nolt provide details of the long-distance calls. 19. TELECOM maintains seven large regional offices to coordinate its long-lines network, and also hundreds of small offices throughout the country to handle its long-distance telephone, telegraph, and telex connections. The head office in Bogota does all the major planning. Development programs have be'e!n financed by the IBRD loan, supplier credits, and internal cash genera- ti.onC. - 2h - IV. FTJTRE EXPAiNSION PLANS 20, In telleconmrunications there are two clear criteria with respect to expansi on: (a) An entity must maintain good service to its subscribers by continually adding more equipment and circuits in line with the growth of demand. (b) Having made provision for this maintenance of good ser- vice, the entity must seek to expand its service to new subscribers. These two criteria apply to both local and long-distance services. Expansion plans shouild be drawn ulp for, say, a five-year period and should be revised annually. 21. In Colombia planning is being done by each of the local entities a-nd by TELECOM. While by and Large within the present framework the planning is reasonably adequnte in the :arger ertities including TESLECOR, the planning i-n the smaller antitie5 very often reflects lack of competence in the tech- rmical and financial areas. ,ocal Services 2. oAs part of their ongoing operations the larger entities sucn as Bogota (ETB, Medel-lin, and TECOCM have been drawing up plans for exranding local telephone services. SnrM -in Knnex 2 are the present and projected number of telephone lines in 1975 in each center, together with the present and projteca -urban populatior, These figureE were compiled by PLKFAACIOK from each entity's expansion plan. The total number of automatic telephone lines in Colombia is projected to increase from the present 55t6,ooo to 986,oco a growth of 78 percent over the next five years. A few known features with respect to financing are: (i) Bogota (FTB) has recently placed a contract for 92,000 new lines to be installed over the next three years. ETB now has 190,000 lines and by 1975 expects to have 375,0C0. This expansion will be financed out of supplier credits and internal cash generation. (ii) EXCALI expects to increase the number of lines from the present 64,800 to 116,200 by 1975, with financing provided by supplier credits. (iii) TELECOM has applied to the Bank for a second loan, about a third of which would be for installing over the 1971-74 period some 270 local exchanges with a total capacity of 30,000 lines in various parts of the countrv. - 25 - (iv) Corporacion Autonoma Regional de la Sabana de Bogota (CAR) will be installing over the 1971-73 period about L0 exchanges, with a capacity of about B,ooo lines, in the Bogota Plain area. There already are 2,500 lines in operation in that area. CAR's development program is proposed to be financed out of supplier credits. Long Distance Services 23. TELECOM has applied for a second IBRD loan to cover the foreign exchange costs of additional long-distance channeling and switching equipment, t;oll-ticketing equipment, and television links, besides the equipment for local exchanges mentioned above. The additional circuits will relieve the present congestion in the circuits and thus enable TELECOM to provide good lcng distance telephone service to its subscribers for the next five years. Toll-ticketing equipment is being installed in Barranquilla under the first loan and would be installed under the proposed second loan in nine other cities. This will overcome the billing problems and thereby encourage more subscribers to use the subscriber trunk-dia'ling (STD). - 26 - V. REORGANIZATION OF THE SECTOR 24. The major problem to be dealt with in Colombia's telecommunications sector is its fragmentation. The proliferation of small telephone entities makes for duplication of planning efforts, and complicates the technical integration and interconnection of the sector. The smaller entities are not financially viable, nor are they able to employ experienced engineers to do their planning since most of the engineers are working in the large entities. There is a great need for the technical skills needed in planning and develop- ing the sector to be available to all of the entities regardless of size. 25.. Another major weakness in the sector is that there is no clearly defined commitment as to who is responsible for undertaking the development of services to the unserved areas. At present TELECOM is the only entity >hose license permits it to develop those areas throughout the country. In the 1971-75 period TEILECOM proposes to extend local telephone services amounting to 270 exchanges with a capacity of 30,000 lines. Some of these exchanges will be for sizable towns; 19 have more than 20,000 population with no local telephone service. 26. What kind of structure is necessary in Colombia's telecommunica- tiOnls sector -- one national entity, a few regional entities, or continued operation by some 60 entities? In most other countries there is a single national entity that operates all local and long-distance telephone services. This is because of the administrative, technical, and economic difficulties that are encountered whenever there is a fragmentation of the sector, as in the case of Colombia. This situation not only creates economically non-viable entities, but also makes it difficult to administer the sector from the point of view of unified policy and procedures. Economies of scale cannot be attained i-n bidding and procurement, moreover, and there are substantial tech-nical problems in integrating circuits and switches made for different systems into a national network. 27. Although a single national entity for the whole sector should be the long-term objective for Colombia, several factors inhibiting such re- organization have to be tak en into account. For example, the largest and financially viable entities are reluctant to merge with the smaller entities, and with local and regional political influences very strong any form of merger is likely to be resisted by those entities that cherish their autonomy. 28. There are two possible approaches to rationalization of the sector: (i) TELECOM could grow toward a national monopoly in tele- comrunications by installing new exchanges in the unserved areas, and by absorbing those small entities that are in financial difficulties and are amenable to the idea of merging with others. Larger entities such as the ETB may remain independent or may merge at a later time if they are so willing. - 27 - (ii) About eight of the largest centers could expand progressively lby developing unserved areas and absorbing the entities around them, until eventually the country is practically covered by eight Regional Authorities. 29. The evolution of the sector in the next 10 years will probably follow both of the above approaches. In the short run, the important aspect of re- organization is not so much that there should be no more than one entity in the sector, but that the entities should be large enough to be financially and technically viable. 30. The Ministry of Communications and PLANEACION are studying the sector with a view to determing the structural changes that could be made. During this year, PLANEACION has been working on a study to come up with proposals and procedures for merging the small local telephone entities. The Urban and Regional Development Division of PLANEACION proposed eight Regional Authorities.- Similarly, the Communications Division has been studying the possibility of establishing Metropolitan areas first and Regional areas later. 31. For the short term, PLANEACION is studying a proposal to set up a National Development Fund for Local Telephone Entities, which would channel funds to the small entities and plan and control their expansion. The objec- tives are to improve national and regional planning to facilitate investment where necessary and to avoid unnecessary investment. It is proposed that the Fund have a Board of Directors made up of technical advisors, representatives of the major local telephone entities, and TELECOM representatives. The pro- posal together with the draft legislation is expected shortly. 1/ PLANEACION - "Planes y Programas de Desarrolle, 1969-72."U - 28 - VI. CONCLUSIONS 32. The major problem confronting the telecommunications sector in Colombia is the fragmentation caused by the many independent entities operating telephone services. The administrative, technical, and economic difficulties being experienced are aggravated by this fragmentation. 33. Two alternative approaches for reorganizing the sector are set out in paragraph 28. It is desirable and urgent that the 52 entities which now have 80,000 lines, outside of the eight largest entities and TELECOM, be merged at an early date. This would not be difficult from the technical or financial point of view. Estimated value of the total assets of the 52 entities is US $32 million, and appropriate compensation could be paid to them. The difficulties in achieving the merger are due primarily to the factors given in paragraph 27. With the expansion of TELECOM's operations to cover additional areas and with the expansion of the metropolitan areas around the big cities, the sector fragmentation will tend to become less of a problem within a few years. But it is essential that all future action be directed toward achieving a reasonable degree of consolidation, leading in the long run to a single national entity serving all of Colombia. ANrEX 1 Page 1 Providing local Telephone Service (Automatic Exchanges) Niumber Name of Ehtity Number of lines (as of December 1968) 1 Empresa de Telefcnos de Bogota 15B,00O 2 Empresas Publicas de Medellin 112,600 3 Empresas Municipales de Cali 54,800 4 EnEpresa Municipal de Telefonos - Barranquilla 30,500 5 Empresa Municipal de Telefoncs - B/manga 15,60o 65 Empresas Publicas de Manizales 15,400 7 Ehpresas Publicas de Pereira 11,050 lB Compania Telefonica de Cartagena S.A. 9,000 97 Empresa de Telefonos Dptales. N/Santander 6,8oo 10 Empresas Publicas Municipales - Palmira 6,250 :11 Empresas Publicas de Armenia 6,000 1?' Empresa Departamental de Telefonos Boyaca 5,800 13 Empresas Publicas Municipales de Ibague 5,000 lt Telefonica Municipal de Santa Marta 5,000 15' Empress Nacional de Telecommunicaciones 4,600 16 Compania Telefonica del Hnuila S.A. 4,000 r Empresas Municipales de Zartago 36P 9 00 1iS Empresas Municipales de Girardot 3,600 15 Eipresa Dptal. de Telefonos de Narino 2,B00 20 Telefonica Municipal de Popayan 2,800 21 ampresa Municipal de Telefonos B/bermeja 2,100 22 Empresas Municipales de Buga 2,000 23 Empresas Municipales de Tulua 2,000 2i Rnpresas Departamentales de Antioqui.a 16500 25 Empresas Municipales de Calarca 1,500 26 Planta Telefonica Departamental - Meta 1,500 27 Empress Telefonica de Bolivar 1,200 28 Empresa Municipal de Telefonos de Armero 1,000 29 Telefonica Municipal de Caicedonia 1,000 30 Empresa Telefonica de Fusagasuga 1,000 31 Ehpresa Municipal de Telefonos de Ipiales 11,000 32 Empresa Municipal de Telefonos de Rio Sucio 1,000 33 Compania Telefonica de San Gil S.A. 1,000 34 Fbnpresa Municipal de Telefonos del Socorro 1,000 35 Empresas Publicas Municipales - Sta. Rosa Cabal 980 36 Telefonica Municipal de Yarumal 980 37 ½mnpresas Fablicas Municipales de Sevilla 900 3 8 Telefonica. Inicipal - Espi-nal 800 39 Telefonica Municipal de Zarzal 800 hgo E&presas Publicas Municipales de Honda 700 ANNEX 1 Page 2 Number Name of Entity Number of Lines (as of December 1968) 41 Empresa Municipal de Telefonos de La Dorada 700 42 Empresa Telefonica Municipal de Salamina 700 43 Empresa Municipal de Telefonos - Garzon 600 44 Planta Telefonica de Valledupar 560 45 Telefonica Municipal de Aguadas 500 46 Planta Telefonica de Cionaga 500 47 Telefonica Municipal de Mariquita 500 48 Telefonica Municipal de Zipaquira 500 49 Telefonica Municipal de Jerico 450 50 Telefonica Municipal de Florencia 420 51 Telefonica Municipal de Chia 400 52 Empresa Municipal de Telefonos de Riohacha 400 53 Telefonica Municipal de Boldanillo 400 54 Telefonica Municipal de El Cerrito 300 55 Empresa Municipal de Telefonos de Fundacion 300 56 Telefonica Municipal de Cajica 200 57 Telefonica Municipal de Guacari 200 58 Telefonica Municipal de Tumaco 200 59 Telefonica Municipal de Urrao 200 60 Telefonica Municipal de Ginebra 130 61 Telefonica Municipal de Yotoco 50 Total Lines 522,670 Total Entities 61 In addition, there are the following manual lines in service: Operated by TELECOM 6,009 Operated by departmentals (regional governments) 1,569 7,578 ANNEX 2 Page 1 List of Centers with Automatic Local Telephone Service Center Urban Population Numnber of Telephone Subscriber Densitf Lines 1969 1975 1969 1975 1969 3975 1 Bogota 2,148,387 3,105,000 190,500 375,000 8.86 12o07 2 Nedellin 967,825 1,450,000 115,600 196,000 11.94 13.51 3 Cali 898,000 1,359,031 64,800 116,200 7.21 8.55 4 IBarranquilla 662,245 857,968 30,500 48,700 4.60 5.67 5 I3ucaramanga 297,982 414,859 15,600 25,200 5.23 6.07 6 lManizales 260,507 364,956 15,500 25,000 5.94 6.85 7 IPereira 189,526 254,273 11,050 17,700 5.83 6.96 8 Cartagena 281,342 379,401 9,000 15,500 3.19 4.06 9 P'almira 137,600 185,665 7,050 10,750 5.12 5.78 10 Armenia 168,424 238,372 6,ooo 11,250 3.56 4.71 11 Cucuta 194,836 270,333 5,800 10,500 2.97 3.88 12 Ibague 172,016 248,882 5,000 10,000 2.90 4.02 13 Santa Marta 124,563 183,709 5,000 10,150 4.01 5.52 14 Girardot 101,253 133,762 5,000 7,500 4.93 5.60 15 Neiva 104,105 150,370 4,000 6,750 3.84 4.48 16 Cartago 69,527 90,231 3,900 5,700 5.60 6.31 17 Popayan 73,701 96,641 2,800 4,500 3.79 4.65 18 Pasto 100,766 127,428 2,800 4,500 2.77 3.53 19 Barrancabermeja 82,919 123,177 2,100 3,800 2.53 3.04 20 Buga 86,053 118,317 2,000 3,600 2.32 3.04 21 Tulua 73.152 98,874 2,000 3,200 2.73 3.24 22 Tunja 50,131 64,500 2,000 3,000 3.98 4.65 23 Villavicencio 65,527 100,509 1,500 3,000 2.28 2.98 24 Buenaventura 91,164 123,995 1,300 3,000 1.42 2.41 25 Sogamoso 49,777 73,001 1,250 2,400 2.51 3.29 26 Monteria 106,805 172,331 1,000 4,500 0.93 2.61 27 Calarca 38,974 52,631 1,500 2,200 3.86 4.16 28 Fusagasuga 25,518 36,527 1,000 1,450 3,91 3.97 29 :R:iosucio 13,257 16,052 1,000 1,000 7.54 6.22 30 I:piales 30,443 41,572 1,000 1,500 3.28 3.60 31 Duitama 54,620 100,953 1,000 2,600 1.83 2.57 32 San Gil 23,281 30,457 1,000 1,500 4.29 4.92 33 Caicedonia 19,186 23,218 1,000 1,250 5.21 5.38 34 Santa Rosa de Cabal 43,860 64,106 980 1,750 2.23 2.72 35 Sevilla 31,645 38,585 900 1,200 2.84 3.10 36 Espinal 31,931 47,225 800 1,400 2.50 2.96 37 La Dorada 32,688 42,446 700 1,100 2.14 2.59 * Telephone Density - Number of lines (not telephones which is sometimes higher) per hundred population Source: Planeacion. ANNEX 2 Page 2 Center Urban Population Number of Telephone Subscriber Density* _________ _____________________ Lines 1969 1975 1969 1975 1969 1975 38 Honda 21,662 23,897 700 900 3.23 3.76 39 San Andres 16,018 26,716 700 1,500 4.37 5.61 40 Facatativa 24,436 29,657 600 1,000 2.45 3.37 41 Garzon 15,872 21,997 600 900 3.78 4;.09 42 Valledupar 79,284 156,325 560 4,000 0.70 2.55 43 Zipaquira 28,213 36,509 500 1,000 1.77 2.73 44 Ocana :31,923 40,58o 500 1,000 1.56 2.46 45 Pamplona I30,166 36,782 500 1,000 1.65 2.71 46 Chiquinquira 20,564 25,855 500 800 2.43 3.09 47 Quibdo 27,060 38,516 500 1,000 1.84 2.59 48 Cienaga 61,622 83,100 500 1,700 0.81 2.04 49 Florencia 23,822 33,658 420 800 1.76 2.37 50 Sincelejo 57,645 79,032 400 2,000 0.69 2.53 51 Maganlgue 32,694 40,353 400 900 1.22 2.23 52 Cerete 15,194 20,327 200 500 1.31 2.45 53 Chirichina 21,157 29,439 1,000 1,400 4.72 4.74 54 Socorro 14,504 15,506 1,000 1,000 6.89 6.h4 55 Armero 21,432 27,212 1,000 1,300 4.66 4.77 56 Yarumal 20,236 25,150 980 1,900 4.84 7.55 57 Zarzal 24,797 36,530 800 1,200 3.21 3.28 58 SalEaiina 17,821 23,141 700 1,000 3.94 4.32 59 Bolivar 11,280 13,762 600 1,100 5.31 8.0o 60 Pitalito 16,410 26,522 500 800 3.04 3.01 61 Mariquita 11,386 13,972 500 650 4.39 4.65 62 Andes 13,354 16,540 500 800 3.74 4.84 63 Aguadas 12,103 13,824 500 600 4.13 4.34 64; Jerico 9,407 11,272 450 900 4.78 7.98 65 Chia 7,493 10,502 400 560 5.33 5.35 66 Riohacha 15,142 20,455 400 700 2.64 3.30 67 Sonson 20,047 24,429 400 1,200 1.99 4.91 68 Puerto Boyaca 10,895 13,009 400 550 3.67 4.22 69 Cerrito 17,413 26,309 300 600 1.72 2.28 70 Santander 14,195 20,367 300 450 2.01 2.20 71 Fundacion 18,848 26,375 300 600 1.59 2.27 72 Maicao 12,086 16,326 200 300 1.65 1.83 73 Guacari 8,428 11,529 200 300 2.37 2.60 74 Cajica 3,781 5,809 200 250 5.28 4.30 75 Corozal 17,990 24,122 200 500 1.11 2.07 76 Lorica 15,139 18,320 200 500 1.32 2.72 77 Tumaco 32.610 44,202 200 900 0.61 2.03 78 Mompos 11,726 12,701 200 350 1.70 2.75 79 Paipa 4,332 6,378 150 250 3.46 3.91 80 Pradera 14,158 18,597 100 400 0.70 2.15 * Telephone Density - Number of lines (not telephones which is sometimes higher) per hundred population Source: Planeacion. ANNEX 2 Page 3 Center Urban Population Number of Telephone Subscriber Density* Lines 1969 1975 1969 1975 1969 1975 81 Florida 18,019 26,620 100 550 0.55 2.07 82 Ubate 7,542 9,390 400 400 5.30 4.25 83 Ro:Ldanillo 11,966 16,247 400 400 3.34 2.46 84 Leticia 5,335 7,502 200 200 3.74 2.68 85 Urrao 8,507 9,558 200 600 2.35 6.28 86 MeiLra 8,981 10,849 200 250 2.22 2.30 87 Bolivar 4,326 5,305 100 100 2.31 1.88 88 Garagoa 4,098 5,445 100 100 2.44 1.83 89 Is1;mina 4,603 5,442 100 100 2.17 1.83 90 Caxndelaria 7,958 12,412 100 150 1.25 1.20 91 Melgar 5,247 8,689 100 150 1.90 1.72 92 Trujillo 7,671 8,860 100 100 1.30 1.12 93 Guateque 5.965 7,994 100 100 1.67 1.25 9L1 Ginebra 3,758 4.210 130 130 3.45 3.08 95 Belen 2,564 3,612 50 50 1.95 1.38 96 Boavita 2,203 2,735 50 50 2.26 1.83 97 El Cocuy 2,830 2,786 50 50 1.76 1.79 98 Miraflores 3,626 4,120 50 50 1.37 1.21 99 Mortiquira 5,712 6,876 50 100 0.87 1.45 100 RaxLiriqui 1.676 2,073 50 50 2.98 2.41 101 Sta. Rosa de V. 4,414 5,533 50 50 1.13 0.90 102 Soata 4,956 5,768 50 100 1.00 1.73 103 Bugalagrande 8,079 11,902 50 100 0.61 o.814 104 Yctoco 2,084 3,323 50 50 1.78 1.50 105 Restrepo 5,919 7,280 50 50 0.84 0.68 106 Ric,frio 1,713 1,797 50 50 2.91 2.78 107 San Pedro 1,798 2,181 50 50 2.78 2.29 108 Andalucia 7,658 10,644 50 100 0.65 0.93 109 Darien 8,548 12,607 50 100 0.58 0.79 * Telephone Density - Number of lines (not telephoneswhich is sometimes higher) per hundred population Sourw e: Planeacion. September 1970 Local Tariffs in Selected Cities (Colombian Pesos) Present Cost per Capacity Monthly Number of Subscriber Connection Subscriber Capital in Lines Rental Free Calls Call Charge Deposit Contribution Bogota 190,000 10 - 30 nil .10 300 900 50 0 - 2,L00 Medellin 115,6oo 5 - 30 nil .20 300 250 nil. Cali 64,800 6 - 35 100 - 210 .05 150 500 nil. Barranquilla 30,500 5 - 30 200 10 25 - 50 250 nil. Bucaramanga 15,600 12 - 32 150 .C5 150 500 nil. Manizales 15,500 10 - 30 nil. .10 300 900 nil. Pereira 11,050 15 - 28 nil. .10 300 900 nil. Cartagena 9,000 10 - 30 nil. .G5 300 900 nil. Armenia 6,ooo 10 - 20 nil. .10 300 900 nil. Ibague 5,000 15 - 20 150 .05 70 250 nil. Girardot 5,000 10 - 15 nil. .10 300 900 nil. Neiva 4,000 8 - 20 150 .05 100 250 nil. Pasto 2, 800 10 - 20 nil. .10 300 900 nil. Honda 700 10 - 15 nil. I I10 300 900 nil TELECOM 4,600 25 - 30 nil. .10 350 800 1,000 - 1,200 Source: PLANEACION.