Small Hydro Development Project in Peru

The project consists of institutional development, small hydroelectric power plant construction, promotion of electricity use in target communities, training of preventive maintenance mechanics for small-scale, standardized hydroelectric installations, and provision of technical assistance to RELPE. The project is authorized for a period of five years, with a total planned obligation of not to exceed $6,000,000 in loan funds and $1,000,000 in grant funds. The cooperating country, Peru, shall repay the loan to AID in U.S. dollars within twenty-five years from the date of first disbursement of the loan, subject to a grace period of not to exceed 10 years. Peru shall also pay interest to AID from the date of first disbursement of the loan at a rate of 10% per annum for the first 10 years and 3% per annum thereafter on the outstanding balance of the loan and on any due and unpaid interest accrued thereon. The project requires that goods and services, except for ocean shipping, financed by AID under the loan shall have their source and origin in the cooperating country or in countries included in AID's Geographic Code S41, except as AID may otherwise agree in writing. Ocean shipping financed by AID shall, except as AID may otherwise agree in writing, be financed only on flag vessels of the United States and the cooperating country. Prior to any disbursement, or the issuance of any commitment document under the loan, the cooperating country shall, except as AID may otherwise agree in writing, furnish to AID in form and substance satisfactory to AID: a staffing plan for project activities for the Office of the Project Director and Technical Advisor; a maintenance plan for the institutions to be constructed under the project; a description of the lamp post which will be installed in communities using electricity; a time-sequenced plan for the construction component of the project; a regulatory statement setting forth the policy according to which the electric rate structure for ELECTROPERU is set; and provision of adoption by ELECTROPERU of methodologies acceptable to AID for carrying out feasibility and feasibility studies for the construction of small-scale standardized hydroelectric installations.