Desarrollo energético en América Latina y la economía mundial

DESARROLLO ENERGÉTICO EN AMÉRICA LATINA y LA ECONOMÍA MUNDIAL the Board of Executive Directors on the recommendation of the World Bank Group's President. Before sumissíon for approval, staff members make a thorough examinatíon of all aspects of a project-including technical, financial, institutional, and economic evaluations-and of the conditions for financial support. Their findings are incorporated in a detailed appraisal reporto This is followed by formal negoüations with the prospective borrower, and the drafting of a loan or credit agreement. After the agreement has been approved and signed, staff members monitor the project to help overcome ploblems as they arise and to assure that Íts purposes are achieved. The Program for Financing Petroleum Projects. Based on this background about the Word Bank, 1 will now outHne its past actívities and its present plans for financing energy projects. Up to 1976, commitments by the World Bank Group for energy deve– lopment totalled almost 8.5 billion us dollars. This represented about 19% of the total financing commitments lat that date. Almost all of these energy projects were electric power projects, although a number of oil and gas pipelines also were financed. However, in JuIy 1977, the Executive Directors of the World B:ank approved a five– year program caUing for an expansion of lending for the development of the fuel and non-fuel mineral resources of member countries. The financing ofpetroleum production projects-defined for the purposes of this discussion to mean production of oil and natural gas-became a new activity for the Bank. After ayear and a half of experience, a further expansion of Bank lending for energy fueIs was approved in january 1979. In addition to petroleum production the financing of exploratíon and pre-development projects also became eligible. The lending program will be reviewed annually based on our experience. However, the tentative lending program is projected to rise to 1.5 billion dollars a year (in current dollars) five years from now. It would inelude about 1.2 billion dollars ayear for oil and gas projects 1 and the rest for coal projects. About 60% of the lending wouId be for production facilities and World Bank loans would cover up to 20% ol toval project costs. The balance 40% of the lending would be for pre-production activities with the Bank probably contributing a larger share of the costs, perhaps two-thirds on average. 'Rough estimates are that approximately 1.4 million additional barreis of oil equivalent daily would be produced from these projects, when in operation. 160