US$33 million granted to EDELCA

(Caracas, April 28, 1993).-- A US$33 million loan was granted today to the Venezuelan utility CVG Electrificación del Caroní (EDELCA) for construction and start up of the Macagua II Hydroelectric Plant located in Puerto Ordaz, Bolívar state.

The agreement was signed in CAF headquarters in Caracas by CAF President & CEO Enrique García and EDELCA President Efraín Carrera Saud.

This project is one of CAF’s priorities because of its contribution to meeting the growing needs for electricity of the Venezuelan industrial exporting sector.

The CAF president said the project was important for the growth of productive sectors because they will now have the electric power they need to improve the efficiency and competitiveness of their products and thus generate more foreign currency.

He said the Corporation was interested in collaborating with the energy integration of its member countries, which includes electricity, oil and gas interconnections.

Industrial development Edelca is part of the Corporación Venezolana de Guayana (CVG) whose influence is considered decisive for the development of Venezuela.

CVG is an industrial group formed 33 years ago to develop various activities, including the most important hydroelectric plants in the country, as well as bauxite, aluminum, iron ore, river waterways and rail projects, among others.

To date, CAF has granted three loans to CVG companies (Venalum, Interalúmina and Edelca).

Edelca has been working for 30 years to develop the enormous electricity potential of the Caroní River, which rises near the border with Brazil and flows 600 km before converging with the Orinoco.

The objective of Edelca is to produce and distribute electric power in sufficient quantities and at competitive prices.

The utility currently owns and operates two hydroelectric facilities on the Caroní River: Macagaua I and the Raúl Leoni (Guri) plant, one of the largest in the world, with 9,587 MW of power.

These plants have made possible the development of Venezuelan heavy industry in the Guayana region, which consumes enormous quantities of energy. They also cover a high percentage of the needs of the rest of the country through the National Interconnected System.

There are also various projects in execution for the sale of electricity to Colombia.

Macagua II Edelca also generates 95% of the country's hydroelectricity and 70% of the electric power.

To increase this supply, the company is planning to build three new plants: Tocoma, Caruachi and Macagua II.

Execution of the latter plant began in 1987 and is currently very advanced. The first generating unit is scheduled to come online next year, and the last ones in 1997.

The total cost of the project is estimated at US$1.70 billion; over US$600 million has already been invested.

This plant with nominal power of 2,548 MW, which is planned as a continuation of Macagua I built in 1961, consists of works to control the Caroní River, form the reservoir and expand generating capacity in line with the flow regulation achieved in the final stage of Guri.

Environmental protection The project also contributes to environmental preservation and rational exploitation of renewable natural resources.

Construction of Macagua II includes the works needed to preserve the scenic beauty of the Cachamay and Llovizna waterfalls, which require construction of a machine room to control the water flow to preserve the falls.

A multidisciplinary team was formed to reduce the environmental impact of the project to the minimum, guaranteeing protection of the adjacent forests and wildlife.