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Luxembourg - Viandem Pumped Storage Hydro Power Project (English)

This paper concerns about the hydroelectric development at Vianden on the river Our, which forms the border between Luxembourg and Germany, was informally brought to the attention of the Bank as far back as 1949. The project was conceived as part of the electricity generating and distributing system of the Rheinisch-Westfaelisches Elektrizitaetswerk, A.G. (RWE), the largest German utility company. At the 1953 annual meeting of the Bank the project was raised officially by the Luxembourg Government and the management indicated that, in principle, it was prepared to consider it. Since then, the Government has maintained contact with the Bank, while Societe Electrique de l Our (SEO) proceeded with the preparatory work on the project. The project would be a pumped storage installation with a generating capacity of 320,000 kw. Which could in future be expanded to 640,000 kw. Off-peak energy would be used to pump water from a lower reservoir, formed by a dam across the river, into an upper reservoir built on a hill, and power would be generated in the hours of peak demand by releasing the stored water through the turbines into the lower reservoir. The main function of the project would be to help meet the need for peak power in the RWE system. RWE would supply pumping power and would take all power generated by the project into its grid through transmission lines built by it for this purpose in German territory. In the spring of 1950, author informed the Minister of finance that the Vianden project could become a basis for a loan and asked for additional information on costs and financing. The Loan and Guarantee Agreements were negotiated in Luxembourg at the end of October 1958 with a view to signing them in early December together with the underwriting agreement with First Boston and the European Investment Bank (EIB) agreements. However, because of the delay in passing the necessary legislation, due mainly to the dissolution of the Luxembourg Chamber of Deputies, the New York bond issue had to be postponed and with it the signing of the Bank and EIB loans. The Dresdner Bank, which heads the German underwriting syndicate, had intended to have SEOs German bond issue secured by an assignment of revenues, but it has now decided to give this up. As a result, the other lenders, including the Bank, are not taking security.

Details

  • Document Date

    1959/04/30

  • Document Type

    Memorandum & Recommendation of the President

  • Report Number

    P193

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Luxembourg,

  • Region

    Europe and Central Asia,

  • Disclosure Date

    2010/06/24

  • Disclosure Status

    Disclosed

  • Doc Name

    Luxembourg - Viandem Pumped Storage Hydro Power Project

  • Keywords

    bond issue;authorized capital;peak power;amount of power;public bond issue;corporate income tax;condition of effectiveness;assignment of revenue;public external debt;Foreign Exchange Reserve;minister of finance;amounts of energy;payments on account;quantity of power;Electricite de France;majority of vote;interest loan;loan account;share capital;thermal plant;loan equivalent;registration statement;transmission line;public offering;Financing plans;public issue;utility company;seasonal demand;export earnings;power requirement;steel mill;peak demand;administrative expense;board resolution;stored water;hydroelectric development;public debt;riparian country;pump storage;future demand;steel industry;swiss franc;monetary reserve;loan service;capital need;small country;domestic saving;government investment;bank lending;debt limitation;construction cost;bond guarantee;sinking fund;bank syndicate;Exchange Rates;

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Citation

Luxembourg - Viandem Pumped Storage Hydro Power Project (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/525061468055771298/Luxembourg-Viandem-Pumped-Storage-Hydro-Power-Project