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Folder ID: 1705808 Project ID THE WORLD BANK GROUP ARCHIVES PUBLIC DISCLOSURE AUTHORIZED Folder Title: Electric Power Development Project - Tokke Power - Norway - Loan 0138 - P037468 - Negotiations - Volume 2 Folder ID: 1705808 Project ID: P037467 Dates: 4/2/1956 – 5/2/1956 Fonds: Records of the Europe and Central Asia Regional Vice Presidency ISAD Reference Code: WB IBRD/IDA ECA Digitized: 7/19/2018 To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business. The records that were created by the staff of The World Bank are subject to the Bank’s copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers. THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org :NORWAY_ Res~ (138ND) rr 1 ~i~i "~<-- · \t 11111111111111111111 11 11111111 IIl ll/1 1111111111111 ~·~i 1706808 RETURN TO \\, . _..£Li Al 995-063 Other#: 5 Box# 170972B Electric Po~er Development Project- Norway - Loan 0138 - P037468 - RECORDS GENTER ROO,. 1; ~ 1 Negotiations - Volume 2 PPE 1966 MATERIAL ox ,_)t_; 2- • DECLASSIFIED WITH RESTRICTIONS WBG Archives THIS FILE IS CIDSED AS OF FOR FURTHER CORRESPONDENCE SEE : Records Center ~~ -~,~~- fay 2 , 1956 ~ - 1-l OTES 01' THE TOKKE PROJECT NORWAY ~J., sta..i4~ t.,,./ The project, which will be constructed by the NVEil-larwegian vatercourse and Electricity Boaro}, a Government institution, consists of a hich head hydro- electric plant with an underground power house in which 400, 000 kw in 4 units will be installed. Water for the operation of the plant will come from natural lakes and storage reservoirs in the water shed of the Tokke and Vinje Id.vers. The project can be expanded ultimately to 800, 000 kw by the further utilization of the water resources in the catchnent area. The proposed construction, therefore, may be considered to be the first sta~e of the ultimate development. The development has been under consideration for about 20 years and the Legislature has been periodically appropriating money for study and water rights for a number of years. The topograpriical and geological surveys have been largely completedo (0n April 23 , 1956, the Legislature approved the entire scheme of dev­ elopment~ Preliminar<J construction work , such as roads, a temporary power plant , ~ tfu.t s~ tnt:vi~ ~ etc., has been started. Construction of dams and tunnels~will be awarded to con- ~~~d.,;~'-~) ~ '/.oe,k,;i ' /.Jk~ k - tractors. po:w:oP aoY:ee, --fie~, ~ transmission fines and the installation i..£:.t.ivi ~l~~ c,J_ ,-Is 41~/f, -(~ ~ ~futf 1/t.w u~·i.c of equipment will be unde taken by the NVE fwo units of 100, 000 kw ea~h are ~J..~'t~~J· scheduled to be in operation by the end of 1961 and the remaining two unitsAby ~ '{-(~ ~ tklli 'i'~ the end of 1962 . The construction of the necessary transmission lines will keep -2 - p a~~ :UV fw f,U44~ 1&i;Jrvr- pace with the installation of generating units. A. "tbere will be international bidding on equipment, but Norwegian finns will be given preference if delivery dates are acceptableo The project is estimated to cost 500 million kroner (about ~O million) o ~~ouf~~ The cost per kw installedAis ~1137 'Rlilliea, a very reasonable figure . The cost will be financed by contributions from the National budget, by sales of bonds to municipalities and counties and by borrowing from the Bank. The Bank loan will provide for 24% of the total cost. wfl·dv .u ~ /{) it vf fl... ·I 1! { f'W'"'"'*"" · The 2 billion kwh ~ted to be produced annuall:y by the proJect,l..lrill be ~ . J- ~We~ ..,.. fed into the Southe~Grid which,.. consumes 55% of the electric energy produced in ~ Norway. Consumption in the area has been rationed in recent years owing to a shortage in generating capacityo It is estimated that the entire output of ~~~ the project will be utilized by"- 1963, practically as soon as it is completed. With the increase in rates proposed, the NVE should earn net operating revenues, before interest, equivalent to a return of about 4% on fixed assets. The net /,-uJ profits will be very small, but as ehe&p power is so important in the Norwegian economy, the rate of return is considered to be ~ in the circumstances. FORM No . 57 (5- 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: May 1, 1956 FROM: J . Trempont SUBJECT: Working Party Meeting on Norway, April 19, 2:45 p.m. Side-Letters Agreement was reached on all the drafts. Loan Agreement Section 8.01 - The closing date to be inserted in the draft is June 30, 1961. Agreement was reached on the draft. Amortization Schedule Agreement was reached on the draft. JTrempont FORM NO. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUN! CATION: Memorandum DATED: April )0• 1956 TO: Kr. S.R. Cope FROM: George L. Martin• New York Office. F1LED UNDER: Austria • Third loan operations. SUMMARY: Have been turned down by First National City and Banlc of .America on both Finland and Norwq. Expect to hear tomorrow from Jlanuf'acturera Truet on F1nl&nd & they will probably come along and New York Truet is aleo conaidering Finland loan. but Norn.ya juat too long. t. DET KONGELIGE DEPARTEMENT FOR HANDEL OG SKIPSFART April .30, 1956 International Bank for Reconstruction and Develop!Tlent 1818 H Street, N.w. Washington 25, D .C. Gentlemen& In connection with the proposed Loan Agreement (Tokke Project) to be entered into between the Kingdom of Norway and the International Bank for Reconstruction and Development, I 8Jl'I writing on behalf of the Kingdom ot Norway to SU1Tl!!\arlze am reaffirm certain facts relating to the external debt of the Kingdom of Norway, as follows: (1) We have subnitted to you with our letter of February J, 1956 the following: Farm la List of external pu~licly-issued privately-held bonned debt and debt p~yments during six months' period ended.a Dece~ber 31, 1955• Form Bi List of other external public debt and debt payments during six months' period ended: December Jl, 1955• 1t various times in the past we have also sub~itted to you Form Ca Description of Individual Debt, covering each or the items of debt listed in Fonns 1 and B. (2) Except as indicated in Annex l attached hereto, such forms accur­ ately set forth the amounts and principal terms and conditions ot all outstanding public debt of Norway, Bank or Norway and or the political subdivisions as of December 31, 1955• There has been no substantial increase in suoh external public debt since t h~t time except as 1ndic~ted i n t he memorandur.t attached marked lnnex &. • - 2 - (J) Kxcept aa stated in suoh rorms and annex, no mortgages, pledge•, charges or other liens enet in ra~or of any such debt. It is our mutual understanding that, in making the proposed loan, -,o.xr Bank mq re~ on the atataente and tacts sat forth herein and in the document• mentioned above• Very trul,Y yours, D:NGDOM 0, IORWlY BTff./{. 1· • lttaohllents • lnnex l to letter of &.pril .30 , 19'6 to International Bank tar Recon­ struotion and DeTelopment tram Kingdom or N CJrW&1' S t a t e m e n t or the terms &nd comitions or external public debt not included in Forms 1, Band C subffli.tted to International Bsnk rar Reconstruotion and DeTelopment with letter dated lebruary J, 1956 from the Norwegian Ministry or Commeroe and Shipping. I. Publlely-1Asued priv'.!ltely-beld bonded debt• Title apd I11usz Date or kr:•mnt 5 % Loan or 1956 City or Trondheill Janu&r7 23, 1956 lwed.1111 lrCll'lor 32,000,000 4 1/2% Loan ot 1956 &.pril 16 UM! 19, hi•• Prana1 City of Oelo 19'6 25,000,000 See enclosed forma C n. other external public debt luropean P~ents Union Credit. 25% accounting deficits ot Pebruary an&! llareh 1956 1,713,000 unite ot a/o less 25 % aeoounting surplus or Janu&t"J' 1956 32,000 and repsy,mnte or funding agre•ente ..1.. ,&.l71.-,lliilooo ...______ 1.... 4... 9.~ ..... ooo _____ •__ _ Net increase Jl0.000 ppjta or sic III. llatured but unredened IIUl.tiple currencie1 bond• whioh are the subject of a1spute with :rrench bondholders Norwegian Ironer race amount as or lhrch 31, 1956 Norwegian Government Loans (D1reot losn issues of 1896, 1900, 1902, 1903, 1904, &nd 1905 1,215,588 The lgrieultural Properties Bs.nk or Norway (Issue guars.nteed by the Norwegian Gm-ernment - 1904) S24,520 Mortgage B1.nk or the Kingdom or 1'orwa7 (Issues guaranteed by the Norwe1ian GoverDment - 1B8~, 1886, 1887, 1889t 1891, 1892, 1895, 1898, 1900, 1902 1905, 1907, 1909 J ___5.,.'.j.,.J .. 29..,. 1._ooo.....,_ Total I •s: · 1,WJ,108 1pc1oaw:11 1'0RJI C 1. Official titles City of Oslo 4 1./2% Loan ot 1956 2. Nmne o~ borrowers City or Oslo J. Guarsnteed. statues Direct obligation or the City 4• Creditors Holders or bearer bonds ' 5• Purpoeea For the expansion of the electrical plants or the City 6. Interest rates 4 1./2% 7. Date or loans April 16 and 19, 1956 8 • Date of final prinei,al Jl&y 1, 1971 payments 9 • Interest p&Jffient d!.tess )lay 1 (Beginning 11&7 .
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