HD 198829602143 859669
“THE SWITCH TO GAS FIRING IS SoHEOULEC 10

DANE

Cneieaee case
PRIORITY UNCLASSIFIED
DEPT TREASURY COM
PH 622-2222 RM 11 Mi
FARE OL NDe19982368R143 9369 DAME
CAVEAT ® ‘WITH DIESEL.
PANDLE WIA

ACTVOW = (1RSIBO! C1 GE AND HOM AD LOG «1B OV ML Le hed
VTE CL) OU MF (11 76 (1) o SEM (+1 + KAA C120 90 1 (L)
(RC + 5B

FP RUEATRS

CE RUEMC #791) 2961537

we Guu) 22H

P 2ILSIG2 OCT 94

AM SECSTATE wssioc

TO APENBASSY LA PAZ PRIORITY Gt18
ii

UWCLAS STATE 197013

£0. 12958: NA
TAGS: EINW BL

SUBJECT: REQUEST FOR EMBASSY COMMENTS ONTHE CUIABA PovE! ) e

PROJECT OR THE “PROVECTTM —— (

PLEASE FREAT TRE FOLLOWING INFORMATION AS PROPRIETARY

BUSINESS INFORMATION:

1. THES 18 AN ACTION CABLE, ACTION |S REQUESTED 1M
PARACRAPH 8,

1. OVERSEAS PRIVATE INVESTMENT CORPORATION PIC) REQUESTS
EMBASSY COMMENTS AND RECOMMENDATIONS REGARDIMG THE
POSSISIITY OF OF1C PROVIDING AK INVESTHENT GUARANTEE OF
APPROXIMATELY USO 288 MILLICN,

3, TRE PROJECT COMPRISES § 480 MEGAWATI GAS-+ Hae
COMBINED CYCLE POVER PLANT “POvER PLANT”. i
IRANSMASSION LIKES THE “TRANSHISSIGN LINES'=AND TWO
CONNECTED PIPELINES SEGMENTS TOTALING 626 KILOMETERS - THE
“PROJECT PIPELINES"= THAT SUPPLY GAS TO THE POVER PLANT.
THE POVER PLANT IS TRE FIRST LARGE GENERATING PLANT 10 BE
CONSTSUCTED IN MATO GROSSO, OME CF BRAZIL'S FASTEST GROWING
SJAIES IM GAOSS DOMESTIC PRODUGTS TERS. THE POWER PLANT
VS SITUATED AT THE STATE'S LOAD CENTER (N QUIABA AND WILL
SELL LBD PERCENT OF 1TS OUTPUT 10 ELETROMORTE, AL
ELECTRICITY GEMERATING COMPANY: FOR OX-SALE 10 CEMATs TRE

“6. THE PROUECT SPONSORS ARE SABSUDIARLES OF sO \
‘OIL AO SUBSIDIARIES: iSRELES. Zo

OCCUR UPON THE CAPACITY INCREASE TO 00 tv AN) COMPLETION
OF THE PROJECT PIPELINE. MOBILIZATICH FOR COWSTRUCTION FOR
THE POWER PLANT COMMENCED IN GECEHBER 1297. ENTRY INTO
COMMERCIAL CPERATION OF IME FIRST ISB MW 1S EXPECTED 18
HATE 1998. OVERALL PROJECI COMSIRUCTION iS EXPECTED 10 BE
COMPLETED BY FARCE 2096.

$. THE PROJECT PLPELINE CONNECTS WITH THE 801 (VIA.
PIPELINE "BBP" AND CROSSES BOLIVIA AND ERATIA TO SUPFLY GAS
TO TRE POWER PLANT, AN EGREEMENT FOR THE PURCHASE OF GAS /
WAS SEEN SJOSTANT ALLY NEGOTIATED WITH

[(o)(4)]

BEFORE ENTERING THE PROJECT
PIPELINE, pn aR

COLLES) a c 4 as

7. OPic aS BEGUN VTS OUE DILIGENCE OH THE PROUECT AND

EXPECTS TO SEEK APPROVAL FROM @PIC'S CREDIT AND INVESTIENT
CONN! FTEES GY MID-WOVEMBER L$88 AND THE OPIC BOARD OF
DIRECTORS SY FID-DECENBER 1968 TO MAKE & FIRANCING

COMM) TRENT 10 THE PROJECE, ANT OPIG FINANCING COMI IMENT)
HOWEVER, WOULD BE SOQJECT 10 COMPLETICN OF ALL DUE
DILIGENCE - INCLUDING SITE VISITS AND LOCAL LECAL OUE
DILIGENCE 1N GOTH BRAZIL AND BOLIVIA ~ TO OPIS
SATISFACTION.

5, OPIC MOULD APPRECIATE EMBASSY'S COMMENTS AT THE
EABLIEST POSSIBLE CONVENIENCE AS TO: (1) POST'S OPINION
WETHER OPIC SUPPORT OF THE PROJECT WOULD BE CCHSIDERED
FAVORABLE, (2) INFORMATION REGARDING THE REPUTATION OF THE
PROJECT SPONSORS AND AFFILIATES, AND ANY OTHERS ASSOCIATED
VITH THE PROJECT. T4AT MIGHT BE MATERIAL TO OPIC'S SuPPORT
OF THIS PROJECT; AND (3) TRE STATUS OF THE LEGISLATIN
REQUIRED 10 PERMIT CONSTRUCTION OF THE BOL|YIAN PORTION OF
TWE PROJECT PIPELINES AND (4) ANY OTHER MATIERS CCRMANC TO
OPCS ANALYSIS.

3. OPIG THANIS EMBASSY IN ADUANCE FOR ASSISTANCE,

LOGAL ELECTRICITY DISTRISUTICH CORPAHE, PURSUANT TO AM TALBOTT

APPRODIMATELY 21-YEAR POWER PURCHASE AGREEMENT “Pp3*, uw

ELECTROERAS 15° ACTING AS GUARENI LETROSORTE’S_ m2

arIaTiONs UNDER TRE ia a $998
eave ne win

4, TRE POWER PLANT WILL BE BUILD IN THREE CONSECUTIVE

PHASES: PROVIDING IS@ KW AT THE END OF PHASE 1 OF

SONSTRUCT OMe 388 PW AT TRE END OF PHASE 2s 4KD A it

$9.9 GHRACI AL TE 0 OSE ITS INITIAL

re e i # PLANT WILL GE FIRED

UNCLASSIFIED

00500000000546