INTERNATIONAL BANK FOR
 •   RECONSTRUCTION AND DEVELOPMENT
     1ei1e H STREET. N.W., WASHINGTON          D. C. 20433    TELEPHONE: EXECUTIVE 3-6360
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              Bank Press Release No. 70/22                   Subject: $44.S m:tllion power loan in
              April 22, 1970                                          The Republic of China
                   The Taiwan Power Company, the sole supplier of power in The Republic of
              China, will receive a loan of $44.5 million from t~e World Bank to assist in
              financing the installation of 555 megawatts of new generating capacity and
              associated high-voltage transmission facilities.
                   Demand for power in Taiwan rose at the rate of nearly 15% annually during
              the five years 1963-68 and is expected to continue to grow by about 131 a year
              through 1975.     Industry uses about 751 of the power generated but do~estic




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              demand is also rising as the power system is extended to cover more of the
              countryside and the use of appliances becomes more widespread.            Electricity
              sales to domestic and small-scale commercial consumers more than doubled
              during 1963-68.
                   The 'raiwan Power Company (Taipower) has been ~Ixpanding rapidly to keep
              pace with this rising demand and its large in~1estme11,1ts have prevented serious
              power shortages.    However, it operates with,less than adequate reserve capacity
              to meet unforeseen load and maintenance requirement_s.         Tai power I s development

              program for the four years 1970-73, which will cost the equivalent of $740 mil-
              lion, calls for an increase in generating capacity from 2,200 MW to 4,100 MW
              and a large expansion and improvement of its tranamiJuaon and distribution
              'Systems.   The project for which the Bank loan will be made·':Jforma pa~t of this
              program •



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Bank P.R. No. 70/22 - China-Power

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     The project consists of the installation of a 375-MW unit at the existing

Talin thermal plant in southern Taiwan which, together with other units in

operation or to be installed, will give the plant a capacity of 1,35'0 MW by
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late 1973.   Two additional 90-MW generators will be installed at the lower

Tachien 180-MW hydroelectric station, which was financed by the United States

Agency for International Development.     It is about 25 miles downstream from

the site of the new 234-MW station being built with the assistance of a $50 mil-

li.on World Bank loan made in December 1968.    The pro.iect also includes the con-

struction of a second 345-kv transmission line which will extend 205 miles from

the northern to the southern end of the island.

     The total c~st of the installations bej~ng financed 1 by the Bank is estimated

at the equivalent of $72.1 million.     The Bank loan of' $44.5 million will cover

the foreign exchange requirements; Taipower and the Gc)yernment will provide the

necessary local currency.

     The Bank loan to the Taiwan Power Company will be for a term of 20 years,
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including 5 years of grace, with interest at 7%.     It will be guaranteed by The

Republic of China.

     Bank of China, New York Agency, New York; The Bank of Tokyo Trust Company,

New York, and Banque de 1 1 Indochine, Paris are participating in the loan for a

total amount of $175,odo.

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