SOVIET BLOC AID TO UNDERDEVELOPED COUNTRIES IN THE FIELD OF ELECTRIC POWER

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• Collection: General CIA Records
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• Original Classification: S
• Document Page Count: 44
• Document Creation Date: December 23, 2016
• Document Release Date: August 28, 2013
• Sequence Number: 1
• Publication Date: March 1, 1963
• Content Type: REPORT

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SECRET
Economic Intelligence Report
N? 2
SOVIET BLOC AID
TO UNDERDEVELOPED COUNTRIES
IN THE FIELD OF ELECTRIC POWER
CIA/RR ER 63-6
March 1963
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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SECRET
GROUP
Excluded from automatic
downgrading and
declassification
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SECRET
Economic Intelligence Report
SOVIET BLOC AID
TO UNDERDEVELOPED COUNTRIES
IN THE FIELD OF ELECTRIC POWER
CIA/RR ER 63-6
WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
SECRET
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FOREWORD
The present report was undertaken to determine the amount of Soviet
Bloc aid to underdeveloped countries in the field of electric power; to
evaluate the progress, problems, and prospects of this aid program; and
to assess the effects of the' aid on the countries involved. Discussion
is confined to aid from the USSR and the European Satellites. Although
Communist China had completed aid agreements with several African and
Asian countries by 1962, none of this aid has resulted in a contract
for construction of an electric power project.
For the purposes of this report, the term underdeveloped country
refers to a country that is so defined in the semiannual reports of the
Economic Intelligence Committee on Sino-Soviet Bloc Economic Activities
in Underdeveloped Areas. Cuba is therefore included as a recipient coun-
try rather than as a member of the Bloc. All dollar values mentioned re-
fer to current US dollars.
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CONTENTS
Page
Summary and Conclusions .. ... 0-00.0 OOOO
I. Introduction 00??.???.?OOOOOOO 0.0???
110 Use of Electric Power Aid to Pursue Goals of the Compre-
hensive Economic Aid Program for Underdeveloped Areas
III. Soviet Bloc Electric Power Aid Programs
A. Soviet Program OOOO 0 OOOOOOO 0 ? ? ? 0 ?
1
5
6
9
9
10 UAR O OOOO 0 0 ? 0 0 ? ? 0 OOOOO 0 0
?
?
?
10
2. India ? ? ? . OOOOOOOOOOOOOO 0
?
?
?
13
3. Cuba
14
B.
European Satellite Programs
15
C.
Effects of Aid Projects on Recipient Countries
?
?
16
IV. Problems and Prospects . OOOOOOOO 0 ? ?
?
?
?
19
A.
Problems ________ OOOOOOOOOOO ? ? ?0?000?
?
.
19
B.
Prospects . . 0 OOOOOOOOOOOOO ? ?
?
?
20
Appendixes
Appendix A. Electric Power Projects in Underdeveloped Coun-
tries Undertaken with Soviet Bloc Aid as of
1 July 1962
23
Tables
1. Sources of Soviet Bloc Aid to Underdeveloped Countries
for Electric Power Projects as of 1 July 1962 2
2. Shares of Underdeveloped Countries in Soviet Bloc Aid for
Electric Power Projects as of 1 July 1962 6
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3. Estimated Soviet Bloc Financial Aid to Underde-
veloped Countries in the Field of Electric Power
as of 1 July 1962
4. Soviet Bloc Aid Related to Total Installed and
Planned Generating Capacity in Underdeveloped
Countries
Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
Maps
Page
11
18
Following Page
Electric Power Projects Undertaken with
Soviet Bloc Aid in the Middle East 6
Electric Power Projects Undertaken with
Soviet Bloc Aid in South Asia 6
Electric Power Projects Undertaken with
Soviet Bloc Aid in the Far East 6
Electric Power Projects Undertaken with
Soviet Bloc Aid in Africa 6
Electric Power Projects Undertaken with
Soviet Bloc Aid in Latin America 6
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SOVIET BLOC AID TO UNDERDEVELOPED COUNTRIES
IN THE FIELD OF WIF,CTRIC POWER*
Summary and Conclusions
Soviet Bloc aid to underdeveloped countries in the field of electric
power is an important part of the technical assistance program of the
Soviet Bloc that was undertaken after Stalin's death to establish con-
tacts with underdeveloped countries of the Free World, to reduce the in-
fluence of major Western countries in these areas, and to tie the under-
developed countries more closely to the Bloc. Total Bloc aid to under-
developed countries has been extended for two types of projects: the
impact type, which has a strong immediate appeal to the local populace,
and the type that provides a basis for long-range economic development
of the recipient country. Aid in the field of electric power, almost
without exception, has been extended for long-range development. Elec-
tric power projects have included surveys to locate and map hydroelec-
tric resources as well as the actual construction of powerplants, both
hydroelectric and thermal electric, which will support general indus-
trial growth and supply power for steel mills, oil refineries, cement
plants, and other industrial establishments, some of which also are
being built with Bloc aid. Good examples of aid for long-range devel-
opment are afforded by the Aswan High Dam and Hydroelectric Powerplant
in the United Arab Republic (UAR Egypt) and by India, where one-third
of the 7,000 megawatts (mw) of new capacity to be added during the Third
Five Year Plan (1961-66) is scheduled to be built with Bloc assistance.
The Bloc has been quite successful in using aid for electric power
development as a means of establishing contacts in underdeveloped coun-
tries. During the 8 years since aid was first extended, contracts have
been signed with 19 underdeveloped countries in Africa, Asia, Europe,
and Latin America providing for aid in the construction of 52 powerplants
and the completion of 10 hydroelectric surveys. For these projects, Bloc
countries have obligated $775 million, which is about 17 percent of the
total economic credits extended by these same Bloc countries to underde-
veloped countries since 1953. Of the $775 million, 71 percent has been
obligated for projects in the UAR and India. The bulk of the aid in the
field of electric power has been furnished by the USSR (79 percent) and
Czechoslovakia (13 percent), with Poland, East Germany, and Hungary pro-
viding the rest, as shown in Table 1.** Thus far, 10 powerplants, with
* The estimates and conclusions in this report represent the best judg-
ment of this Office as of 1 February 1963.
** Table 1 follows on p. 2.
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Table 1
Sources of Soviet Bloc Aid to Underdeveloped Countries
for Electric Power Projects 2/
as of 1 July 1962
Credits Obligated
Capacity Contracted
Million
Percent
Percent
Country
Current US $
of Total
Megawatts
of Total
USSR
614
79
4,663
76
Czechoslovakia
104
13
921
15
Poland
43
6
450
7
East Germany
6
1
30
Negl.
Hungary
7
1
6o
1
Total
775
100
6 124
loo
a. For a detailed list of recipient countries, see Table 3, p. 11, be-
low. Because of rounding, components may not add to the totals shown.
a total capacity of 198 mw, have been completed with Bloc assistance --
in Afghanistan, Cambodia, Iceland, India, Turkey, the UAR, and Yemen --
and construction has been started or planned for 42 more powerplants
with a total capacity of more than 5,900 mw.
The execution of the program, however, has not been entirely suc-
cessful. As projects have advanced from negotiation to the construction
stage, the Bloc has found itself in the position of trying to save the
favorable impression created initially by its offers of assistance. The
failure to complete powerplants on schedule and within estimated cost
limits, the poor quality of some of the equipment supplied, and the ex-
cessive period required to complete hydroelectric potential surveys have
led to disillusionment and have even engendered ill will toward the Bloc
in some of the recipient countries.
The delays and equipment problems that have arisen in connection
with the aid projects probably are no more serious than the Bloc coun-
tries normally experience in construction of their own powerplants,
but the underdeveloped countries, perhaps oversold during the propa-
ganda and negotiation phase of the program, are impatient. Many of
the problems can be attributed to the fact that Bloc countries have
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not undertaken aid projects on a turnkey basis* as has the US. Bloc
countries have provided plans, equipment, technical supervision, and
foreign exchange credits, but each recipient underdeveloped country
is responsible for administrative supervision of construction and in-
stallation work, for providing local labor and supplies, and for ob-
taining funds to cover these local costs. Local shortcomings in per-
forming these responsibilities have contributed to the slow progress
on the Aswan Dan project in the UAR and on powerplant projects in
other underdeveloped countries.
With its prestige at stake in the underdeveloped countries, the
Bloc is confronted with a necessity greater than usual for setting
priorities and making sacrifices in the allocation of its resources.
The program for production of electric power generating equipment for
underdeveloped countries was superimposed on a program for expanding
the capacity of the power industries of the Sino-Soviet Bloc which was
already so ambitious that an attempt to fulfill it would have badly
overcommitted Bloc capabilities for building and equipping powerplants.
Addition of the program for aid to underdeveloped countries would have
overcommitted the Bloc resources further were it not for the fact that
shipments of power equipment to Communist China have been reduced Sharply
aince 1960, thus reducing the burden on Soviet Bloc suppliers of equip-
ment. Although aid to China is now being increased, it has not presented
thus far a serious problem for Bloc suppliers of equipment. Czechoslo-
vakia has been meeting its commitments abroad and probably will continue
to do so. The installation of new generating equipment in Czechoslovakia,
however, has been falling behind schedule, and much of the existing equip-
ment is old and in frequent need of repairs. Any relief for the domestic
industry will depend on revision of priorities. The USSR, in order to
(meet its commitments both to other Bloc countries and to underdeveloped
countries, will have to cut back its program for installation of equip-
ment at home from the rather ambitious levels planned to a level more
in keeping with the electric power that probably will be required.
There are several indications that the Bloc takes the matter of
saving its prestige very seriously and that it is willing to make sac-
rifices to fulfill its obligations to the underdeveloped countries.
There may be some stretching out of construction schedules within Bloc
countries to permit extra effort on selected aid projects in underde-
veloped countries, although it is probable that first priority will be
given to the Bloc electric power industries. By straining the capabili-
ties of its construction and equipment industries, however, the Bloc
probably will be able, in general, to make good on its commitments to
underdeveloped countries, although projects probably will continue to
be late and quality may not be entirely satisfactory.
* Assumption of all risks and responsibility for turning over to the
recipient country a completed, operable plant.
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I. Introduction
During the Stalin regime the USSR and the European Satellites had
little contact with countries outside the Soviet Bloc. After Stalin's
death the Soviet Bloc undertook, in 1954, a technical assistance pro-
gram designed to establish contacts with the underdeveloped countries
of the Free World and, once the initial contacts and relationships were
established, to reduce or if possible to eliminate the influence of the
major Western countries in these areas. The experience that the USSR
and Czechoslovakia had gained in aiding the reconstruction and further
development of Communist China in the early 1950's undoubtedly furnished
a basis for further foreign operations.
Electric power is one of the major fields in which Soviet Bloc coun-
tries are giving economic and technical assistance to underdeveloped
countries. Aid obligated by the Soviet Bloc countries for the construc-
tion of electric powerplants amounts to $775 million, which is about 17
percent of the total credits extended to underdeveloped countries by
Bloc countries that are giving aid in electric power development.* It
is planned that this aid will help build power projects with a total ca-
pacity of about 6,100 mw. In addition to projects for which contracts
have already been concluded, a number of technical surveys for hydro-
electric power projects have been or are being made. These surveys
could lead to the construction of considerable additional capacity for
power generation.
The first Soviet Bloc contracts for the construction of electric
powerplants in underdeveloped areas were signed in 1955. During
1957-62, Soviet Bloc countries placed 11 powerplants in operation in
the underdeveloped countries of the world. By the middle of 1962,
Soviet Bloc officials were active in at least 19 countries, making
surveys, drawing up technical plans, supplying equipment, and provid-
ing technical supervision for the construction of electric powerplants.
Data on electric power projects undertaken in underdeveloped countries
with Soviet Bloc aid are given in Appendix A. The approximate loca-
tions of the electric power projects which have been undertaken are
shown on the maps, Figures 1 through 5,** and the amount of aid that
has been extended by Bloc countries to the underdeveloped countries of
the Free World is shown in Table 2.*** The USSR and Czechoslovakia
have been most active in furnishing electric power aid, while East
Germany, Hungary, and Poland have offered assistance to a much lesser
degree.
* Albania, Bulgaria, Rumania, and Communist China have not supplied
any aid in the field of electric power.
** Following p. 6.
*** Table 2 follows on p. 6.
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Table 2
Shares of Underdeveloped Countries in Soviet Bloc Aid
for Electric Power Projects
as of 1 July 1962
Recipient Country
Credit Obligated
Capacity Contracted
Million
Current US $
Percent
of Total
Megawatts
Percent
of Total
Afghanistan
26
3
80
1
Argentina
7
1
50
1
Brazil 2/
36
5
314
5
Cambodia
5
1
21
Negl.
Cuba
71
9
656
11
Ghana
8 i2/
1
o 12/
o
Guinea
5 12/
1
o 12/
o
Iceland
2
Negl.
25
Negl.
India
258
33
2,342
38
Indonesia
27
3
80
1
Iraq
11
1
100
2
Mali
Negl. 1)./
Negl.
0 12/
0
Nepal
3
Negl.
2
Negl.
Somali
2 12/
Negl.
0 ID/
0
Syria
16
2
-J
58
1
Tunisia
2
Negl.
2
Negl.
Turkey
1
Negl.
15
Negl.
United Arab Republic
294
38
2,378
39
Yemen
Negl.
Negl.
1
Negl.
Total 2/
775
loo
6,l21.
loo
a. Including credits extended by Poland to Brazil in an agreement
sighed in December 1962.
b. Under survey only.
c. Because of rounding, components may not add to the totals shown.
II. Use of Electric Power Aid to Pursue Goals of the Comprehensive
Economic Aid Program for Underdeveloped Areas
The electric power aid program has served the Soviet Bloc as a
means of entry into some underdeveloped areas and as a means of*
* Text continued on p. 7.
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ELECTRIC POWER PROJECTS UNDERTAKEN
WITH SOVIET BLOC AID IN THE MIDDLE EAST
RUMANIA 0
BULGARIA
ALB,'
GREECE,. 6C
TURKEY
_
:RATA
? USSR
IK? IZ^ DERE
?
Figure 1
LEBANON
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SUDAN
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SOMALI
REP. 1,
37106 2-63
ETHIOPIA
THERMAL
ELECTRIC HYDROELECTRIC
O 0 Completed
O 0 Under construction or planned
A Under survey
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ELECTRIC POWER PROJECTS UNDERTAKEN
WITH SOVIET BLOC AID IN SOUTH ASIA
Figure 2 50X1
USSR
PUL-I-KHUMRI
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4
THERMAL
ELECTRIC HYDROELECTRIC
? ? Completed
0 0 Under construction or planned
37107 2-63
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ELECTRIC POWER PROJECTS UNDERTAKEN
WITH SOVIET BLOC AID IN THE FAR EAST
C HI NA
Figure 3 50X1
INDIA
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TE R.
WEST
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NEW GUINEA GUINEA
0
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? Completed
0 0 Under construction
or planned
A Under survey
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Figure 4 50X1
ELECTRIC POWER PROJECTS UNDERTAKEN WITH SOVIET BLOC AID IN AFRICA
MOROCCO
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A Hydroelectric potential under survey
37109 2-63
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REPUtiLIC
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ELECTRIC POWER PROJECTS UNDERTAKEN
WITH SOVIET BLOC AID IN LATIN AMERICA
UNITED STATES toff7
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LLAVA)LLO
ARGENTINA
BIO : 0 Thermal electric power plant under construction 1
0 Hydroelectric powerplant under construction
37110 2-63
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competing with Western powers for prestige and influence in other areas.
The largest credits have been extended in areas where the Bloc is in
strong competition with Western countries. The usual Soviet Bloc pro-
cedure is to negotiate with the country receiving aid a general agree-
ment that stipulates the total amount of the line of credit to be made
available, the credit terms, and sometimes the general types of projects
to be undertaken. The actual implementation of the line of credit re-
quires further negotiation and signing of protocols for detailed project
agreements and, at a later stage, the signing of contracts for each proj-
ect. This procedure furnishes numerous opportunities for propaganda at
each stage of the negotiation long before work on the project has begun.
The Soviet government has offered and has highly publicized very
favorable credit terms. By underbidding on project costs and offering
better credit terms, Soviet officials have managed to obtain contracts
for electric power projects that otherwise would have been awarded to
Western countries. The usual interest rate charged by the USSR is 2.5
percent, with repayment extending over a period of 12 years from the
completion of the project. In some cases, more favorable terms have
been offered, as in the case of a $100 million credit to Afghanistan,
to be repaid over a period of 30 years. Repayment of these loans
usually is specified to be in local currency or local goods. These
long-term loans, while immediately advantageous to the recipient,
afford Soviet Bloc countries a long-term advantage by keeping the re-
cipient country tied to its creditor economically and financially for
a prolonged period.
The largest single Soviet Bloc aid project is the construction
of the Aswan High Dam and Hydroelectric Powerplant, with a capacity
of 2,100 mw, in the UPR. Of the total Soviet loan of $325 million
for the project, it is estimated that $250 million may be allocated
to electric power and $75 million to irrigation.* This single proj-
ect represents 34 percent of the electric power capacity being built
in underdeveloped countries with Soviet Bloc aid and 32 percent of
the credits that have been extended for this purpose. The Soviet
government moved into the vacuum left when the International Bank for
* There is no known contractual agreement on the Aswan project that al-
locates the cost of the dam and other multipurpose aspects of the project
to electric power or irrigation. It has been estimated, on the basis of
planning figures, that the foreign exchange required for power facilities
will be $200 million; for irrigation facilities, $60 million; and for
multipurpose aspects, including construction of the dam and powerhouse,
180 million. 1/
If it is assumed that the Soviet credits of $325 million for
the Aswan project should be allocated in the same manner as the foreign
exchange requirements for power and irrigation, then $250 million of the
Soviet credits are for power development and $75 million for irrigation.
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Reconstruction and Development broke off negotiations to finance the
Aswan High Dam in 1956. A contract was signed in 1958 providing for
Soviet aid in the construction of the High Dam. The colossal size
of the project, its importance to the UAR, and the publicity that it
had already received offered the USSR an opportunity to make this a
major propaganda showpiece of Soviet generosity and technical com-
petence.
The most extensive Soviet Bloc aid program in terms of the number of
plants and integration of Bloc assistance with the program for general
economic development has been undertaken in India. The Western powers,
especially the US, had already embarked on extensive programs of aid to
India in its First and Second Five Year Plans (1951-61) and were offer-
ing major economic assistance for the Third Five Year Plan (1961-66).
The nearness of India to the USSR and Nehru's influence as a statesman
made it highly desirable for the USSR to attempt to offset Western in-
fluence by offering an aid program of its own. India's planned indus-
trial expansion demanded an increase of 7,000 mw in electric power ca-
pacity during the Third Five Year Plan. Soviet Bloc technicians pre-
sented and India accepted offers for the construction of 10 powerplants
with a total capacity of approximately 2,300 raw, or 33 percent of the
total capacity to be installed during the plan. Soviet Bloc plans in-
clude construction of the two largest thermal electric powerplants to
be built in India.
In the new republics of Africa the offering of economic assistance
for development has served as an opening wedge for Soviet Bloc influence.
In Ghana, Guinea, Mali, and Somali, Soviet engineers are making surveys
for large hydroelectric projects. These surveys provide an opportunity
for sending large numbers of Soviet technicians into the countryside.
In Ghana, for instance, the Soviet officials had planned to send 66 en-
gineers to carry out the survey, but at the insistence of the Ghana
government the number was reduced to 44.
In some areas the Soviet planners have pushed projects that if car-
ried out would eclipse and reduce the usefulness of projects already
under construction (or well along in the planning stage) with Western
assistance. The best example of this technique is the Bui hydroelectric
project on the Black Volta River in Ghana. The Bui project was con-
sidered to be the third stage of the over-all Volta River scheme. The
first stage was to be the Akosombo project, which was to be financed by
the International Bank and built by Western engineers. The final agree-
ment for the Akosombo project was about to be signed at the end of 1960,
when the Soviet mission proposed the Bui project. It was felt by many
that the Bui project was designed purely to sabotage the Akosombo proj-
ect, as there was no economic justification for the Bui project. The
investment per kilowatt for Bui would be almost double that of Akosombo,
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and there would be no market for the power from Bui if the Akosombo
project were completed. 2/ Nevertheless, the contract was signed for
Soviet technicians to proceed with the survey and technical planning.
A work camp is now under construction at the Bui Dam site to accommo-
date the Soviet engineers and 200 Ghanaians who will be engaged in
this operation. In the meantime, the contract providing for construc-
tion of the Akosombo project by Western engineers was signed and con-
struction got underway in 1961.
III. Soviet Bloc Electric Power Aid Pro rams
A. Soviet Program
The USSR has extended an estimated total of $614 million in aid
to underdeveloped countries for electric power projects, an amount that
is 18 percent of the total Soviet aid to these countries and 79 percent
of the total Bloc aid to underdeveloped countries in the field of elec-
tric power. Underdeveloped countries are receiving aid from the USSR
in the construction of 21 powerplants with a total capacity of 4,663 mw.
This amount is 76 percent of the total capacity being installed in un-
derdeveloped countries, 23 percent of the approximately 20,000 mw of
powerplant capacity that the USSR is committed to build for foreign
countries, and 7 percent of the 65,000 mw of capacity being built by
the USSR at home and abroad. 2/ The other 15,000 mw of capacity being
built abroad is committed to Bloc countries.
The 21 powerplants have been or are being built in the following
countries: Afghanistan, Cuba, Egypt, India, Indonesia, Nepal, Syria,
Tunisia, and Yemen. (See the accompanying photograph of the 9-mw hydro-
electric powerplant at Pul-i-Khumri, Afghanistan -- the first powerplant
to be completed in an underdeveloped country with Soviet aid.)
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In addition to the powerplants that are under construction, technical
surveys for major hydroelectric projects have been undertaken in Cam-
bodia, Indonesia, Syria, Iraq, Ghana, Guinea, Mali, and Somali. If
these surveys lead to construction of powerplants, a considerable ad-
dition to the financial and technical aid extended by the USSR in the
field of electric power would be required. The amount of aid being
extended by the USSR to each of the recipient countries is shown in
Table 3.*
About 87 percent of the aid extended by the USSR to under-
developed countries for electric power development is concentrated
in three countries -- the UAR, India, and Cuba.
1. UAR
The UAR is the recipient of the largest amount of assist-
ance -- 42 percent of the aid that the USSR is supplying for electric
power projects -- the bulk of this aid being for the Aswan High Dam
and Hydroelectric Powerplant. Soviet economic penetration of the UAR
began in 1955 when the USSR began to make efforts to obtain the con-
tract for construction of the High Dam at Aswan. In 1958 a contract
was signed providing for Soviet aid in the first phase of the High
Dam, which included the construction of two cofferdams, a system of
communications and roads in the Aswan area, a canal, and other local
facilities. Construction of the first phase began in January 1960,
and in October 1960 the contract for the second phase of the project
was signed. The second phase includes the construction of the High
Dam, a hydroelectric powerplant with a capacity of 2,100 mw, two trans-
mission lines to carry the current from Aswan to Cairo, and a power net-
work from Cairo to other locations in lower Egypt. The powerplant will
have twelve 175-mw hydrogenerators that will be larger than any others
in operation outside the USSR. The powerplant itself will be of the
same general size as the hydroelectric powerplants at Kuybyshev and
Volgograd in the USSR.
Progress on the first phase of the High Dam project has been
behind schedule because of the poor quality of some of the Soviet con-
struction equipment, delays in receiving equipment, administrative in-
efficiency on the part of the Egyptians, and disagreements on details
by Soviet and Egyptian officials. Soviet drilling equipment was found
to be so inadequate for drilling rock on the dam site that it was re-
placed early this year by Swedish drills, at the insistence of an Egyp-
tian contractor.II/ Officials of the UAR Electricity Commission re-
cently asked for quotations on generating equipment for the powerplant
from Westinghouse Electric International, although Soviet designers have
completed the technical specifications for the equipment. V
* Table 3 follows on p. 11.
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Table 3
Estimated Soviet Bloc Financial Aid to Underdeveloped Countries
in the Field of Electric Power
as of 1 July 1962
Million Current US $
Bloc Country
Recipient
Estimated
Electric
Power,
Aid 2/
Electric Power Aid
Estimated as a Percent
of Total Aid
USSR
Afghanistan
26.1
5
Cambodia
1.0 12/
14
Cuba
4o
13
Ghana
5 12/
5
Guinea
512/
7
India
235.1
29
Indonesia
18.5
5
Iraq
2.512/
1
Mali
0.2 12/
Negl.
Nepal
2.8
27
Somali
2 12/
3
Syria
12.7
8
Tunisia
2
7
UAR
261
51
Yemen
0.5
2
Total
614.4
18
Czechoslovakia
Argentina 2/
7
65
Brazil 2./
10.2
87
Cambodia
3.8
45
Cuba
31
78
Ghana
312j
12
Iceland
1.5
100
India
6
6
Indonesia
8.7
14
Iraq
8.4
25
Syria 2/
3.8
15
UAR
20.8
21
Total
104.2
21
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Table 3
Estimated Soviet Bloc Financial Aid to Underdeveloped Countries
in the Field of Electric Power
as of 1 July 1962
(Continued)
Million Current US $
Estimated
Electric Electric Power Aid
Power Estimated as a Percent
Bloc Country Recipient Aid 2,/ of Total Aid
Poland Brazil 2/ 26.0 36
India 17.3 58
Total 43.3 16
East Germany UAR 6.2 17
Total 6.2 9
Hungary Turkey 1 91
UAR 5.7 25
Total 6.7 8
Grand total 774.8 17
a. From Appendix A.
b. Under survey only.
c. Including a few commercial agreements that may not be considered
aid in the form of long-term credits.
d. Including credits extended by Poland to Brazil in an agreement
signed in December 1962.
Construction of the hydroelectric plant also is to begin
in 1962, with initial production scheduled for 1967 and full capacity
to be reached in 1970. g In June 1962, Soviet officials recalled the
Soviet director of the project and replaced him with the top Soviet
engineer in the field of hydroelectric construction, Alexander Alexan-
drov, // who supervised the construction of the Volgograd Hydroelec-
tric Powerplant, at present the largest hydroelectric powerplant in
the world. The Soviet government also has shipped additional special-
ized equipment to Egypt and has doubled the cadre of Soviet engineers
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and technicians. To match these Soviet moves, Egypt has placed its
army officers, technicians, and engineers at the disposal of the High
Dam Authority. 11/ The added inputs of managerial and technical com-
petence, labor, and equipment may be sufficient to get the project
back on schedule.
In addition to the Aswan project, the USSR has agreed to
assist in the construction of another powerplant in the UAR. In 1958
a contract was concluded for construction of a thermal electric power-
plant at Suez that is to furnish power to the oil refinery and to the
city of Suez. Three 25-mw units for this project were to have been
shipped during 1961 and 1962, but shipments are behind schedule. 2/
2. India
India is the recipient of the second largest amount of
Soviet aid, being exceeded only by the UAR. The USSR has contracted
to aid in the construction of seven powerplants in India, which ac-
count for 38 percent of the total credits extended by the USSR for aid
on electric power projects. The first power project to be started in
India with Soviet assistance was the Neyveli Thermal Electric Power-
plant, in Madras State (see the accompanying photograph of a model of
the first phase -- 250 mw -- of this installation). The powerplant is
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part of the comprehensive Neyveli lignite project, which is to include
coal mines, a fertilizer plant, and other enterprises. The first 50-mw
unit went into operation in August 1962, about a year behind schedule.
It is planned to reach its full capacity of 400 mw by the end of 1965.
Three other large thermal electric powerplants are to be
constructed in India with Soviet assistance. These are the Pathratu
Thermal Electric Powerplant, in Bihar State, which will meet the power
requirements of the Soviet-aided heavy machine building plant and the
Czechoslovak-aided foundry-forge plant; the Korba Thermal Electric
Powerplant, which will supply power to the Soviet-aided Bhilai steel
plant as well as the Kbrba coal mines and iron ore mines in the area;
and the Singraul Thermal Electric Powerplant, which will supply the
power needs of industry in Uttar Pradesh State. The four thermal elec-
tric powerplants being built by the USSR, together with a thermal elec-
tric powerplant being built by Poland, will be the largest in India.
They are scheduled for completion by April 1966, but the Indian govern-
ment was informed recently that the USSR will be able to supply only
about half of the equipment within the scheduled time. 12/ This situa-
tion brought strong protests from Indian officials and was the subject
of a discussion with Soviet Deputy Premier Mikoyan on his brief visit
to India in July 1962.
In addition to thermal electric powerplants, Soviet aid is
helping to construct three hydroelectric powerplants: the BliRkra River
Right Bank Hydroelectric Powerplant, the Mettur Tunnel Hydroelectric
Powerplant, and the Hirakud II Hydroelectric Powerplant. The total ca-
pacity of these three hydroelectric powerplants, all of which are sched-
uled to be completed by April 1966, is 782 mw. The USSR changed the
original plans of the Bhskra Right Bank plant so that the capacity would
be greater than the Left Bank plant, which is to be completed this year
with aid from the US and Japan. 11/
3. Cuba
Cuba is the only Latin American country thus far that has
accepted assistance from the USSR in the field of electric power. The
assistance program in Cuba is being shared almost equally by the USSR
and Czechoslovakia. The USSR has extended about $40 million in cred-
its 12/ to aid in constructing two large thermal electric powerplants
at Mariel and Santiago, with a total capacity of 300 mw, and a small
12-mw powerplant at the Antillana de Acero Steel Plant in Havana. The
Santiago plant probably will be completed in 1965, and the Mariel plant
will begin operation in 1965 but will not be completed until after 1966.
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In addition to the assistance given to the UAR, India, and
Cuba, the USSR has extended small amounts of aid for the development of
electric power in countries of Asia, the Middle East, and Africa.*
B. European Satellite Programs
The European Satellites have extended credits of $160 million to
underdeveloped countries to aid in the construction of electric power-
plants, thus accounting for about 17 percent of the total Satellite aid
effort. The total capacity to be installed in powerplants built with
Satellite aid is 1,461 mw, equal to 24 percent of the total capacity
being installed with Soviet Bloc aid. Loans offered by European Satel-
lites initially carried higher interest rates and required repayment
within a shorter period than did those offered by the USSR. They have
gradually been brought into closer alignment with Soviet loans, however,
in order to compete in bidding for contracts.
Among the European Satellites, Czechoslovakia has the greatest
economic and technical ability to offer assistance to underdeveloped
countries and consequently has obligated itself most heavily for con-
struction of powerplants and delivery of equipment. Of the credits
extended to these areas, the Czechoslovak government is estimated to
have obligated $104 million, or about 21 percent of the total Czecho-
slovak aid, for electric power facilities.xx The assistance coming
from Czechoslovakia is principally in the form of equipment for power-
plants, as only limited technical assistance has been given. The total
electric power capacity that Czechoslovakia has contracted to supply
to underdeveloped countries at present is approximately 921 mw. Com-
pared with the programs offered by the USSR and Czechoslovakia, those
of Poland, Hungary, and East Germany are insignificant, comprising to-
gether only 7 percent of the total Bloc credits extended for electric
power aid to underdeveloped countries.
In spite of the greater publicity given Soviet aid to under-
developed countries in the field of electric power, Czechoslovakia,
Hungary, and East Germany each placed one or more powerplants in op-
eration in underdeveloped areas before the USSR did so. Czechoslovakia
became the first Soviet Bloc country to complete a powerplant project
in an underdeveloped country when a small powerplant was put into op-
eration in India as scheduled in 1957. Hungary and East Germany com-
pleted thermal electric powerplants for Egypt a year behind the sched-
uled 1959 opening but well ahead of the completion in May 1962 of the
hydroelectric powerplant at Pul-i-Khumri, Afghanistan.
* For details concerning these smaller aid projects, see Appendix A.
** For the amount of aid extended by individual countries of the Soviet
Bloc, see Table 3, p. 11, above.
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Czechoslovakia's most extensive aid program in the field of elec-
tric power is being conducted in Cuba, for which $31 million in credits
have been extended. Czechoslovakia plans to construct two thermal elec-
tric powerplants, one at Nuevitas and one at Punta Martino, with a total
capacity of 150 mw; to expand three additional thermal electric power-
plants by a total of 180 mw; and to add a 14-mw unit to an existing hydro-
electric powerplant. 12/ The aid program probably will extend well past
the planned completion date of 1965, as none of the planned additions to
capacity has been started.
Czechoslovakia's second largest electric power aid program is
in the UAR. Credits amounting to $20.8 million have been extended to
the UAR for construction of three thermal electric powerplants, total-
ing 93 mw, and for 69 diesel generating sets totaling 35 mw in capa-
city. A powerplant at El Mahalla el Kubra was completed in 1960, and
a small powerplant at the sugar mill near Luxor was completed in 1961.
The Talkha Thermal Electric Powerplant, originally built by Westing-
house International, is being expanded by 60 mw and is to be in opera-
tion by 1964. The contract for the diesel generating sets was signed
in 1961, and the generators were scheduled to begin operating in 1962.
Satellite activity in extending aid to Latin American countries
other than Cuba is increasing. Czechoslovakia has contracted to supply
electric power equipment worth $17 million to Argentina and Brazil and
recently has offered free assistance to Bolivia in developing its hydro-
electric resources. The offer to Bolivia includes surveys, drawing up
of plans and technical studies, undertaking of initial construction work
on dams, and exploration for local construction materials. 1L1/ Czecho-
slovakia usually does not offer free assistance and probably extended
this offer merely as a means of gaining a foothold in Bolivia. It is
likely that only limited technical assistance will be provided if the
offer is accepted. Poland signed an agreement with Brazil on 1 Decem-
ber 1962, according to which it is to provide $26 million in credits
for the construction of a 200-mw thermal electric powerplant in the
state of Rio Grande do Sul, with construction to begin in about 6
months. 12/
In addition to assistance given the UIP and Latin American
countries, the European Satellites have extended smaller amounts of
aid for electric power projects in India, Cambodia, Indonesia, Iraq,
Syria, Turkey, Iceland, and Ghana.*
C. Effects of Aid Projects on Recipient Countries
The recipient countries of the Bloc aid projects are industrially
underdeveloped and have a very low degree of electrification. The new
* For details concerning individual aid projects, see Appendix A.
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industries that are now being developed will require a great expansion
of electric power facilities. The powerplants that are being built
with aid from Bloc countries in many cases will supply power directly
to other industrial projects that are being built with Bloc aid. This
is particularly true in India, where five large thermal electric power-
plants are being built by the USSR and Poland to supply power for a
steel plant; an oil refinery; a heavy machine building plant; a foundry-
forge plant; coal mines; a chemical plant; and other enterprises, all
being built with Bloc aid.
Cuba has become more dependent on Soviet Bloc assistance than
has any other country. Aid from Bloc countries will be essential to
offset the deterioration in Cuba's present power industry, which is
largely dependent on the availability of parts from the West. New ca-
pacity will be necessary to support any further economic growth, such
as the steel mill and oil refinery to be built at Santiago. The new
capacity also will be used to bolster the existing power system, giving
it a greater degree of reliability and enabling the older equipment to
be used to cover peak loads and as a reserve.
The Aswan High Dam and Hydroelectric Powerplant in the UPR prob-
ably will have the greatest effect on the local economy of any of the
Bloc power projects. Most of the cultivated land in the UPR is dependent
on irrigation. The dam will make it possible to irrigate a million ad-
ditional acres of land and also will control the floods in the Nile Val-
ley. The hydroelectric powerplant, which will almost triple the UAR's
supply of electric power, will furnish power for pumping stations along
the irrigation canals and will open up opportunities for a great expan-
sion of industry in the UAR.
Surveys are being conducted by Soviet Bloc technicians in a
number of countries to select sites for hydroelectric projects. Some
of these projects are tied in with planned development of major indus-
trial projects, such as an aluminum plant in Indonesia, a ferromanganese
plant in Ghana, and an aluminum plant in Guinea.
The importance of Bloc aid as a means of increasing the capacity
of the electric power industries of the underdeveloped countries is il-
lustrated by the fact that additions to capacity to be accomplished with
Bloc aid will increase the installed capacity of the UPR by 203 percent,
will increase the capacity of Afghanistan by 178 percent, and will con-
stitute substantial increases in the capacity of a number of other coun-
tries. Capacity constructed with Bloc aid is to account for 91 percent
of planned increases in capacity in Cuba, 87 percent in Afghanistan, 33
percent in India, and 25 percent in Indonesia. For a comparison of the
capacity to be added by Bloc aid projects with existing capacities and
with planned expansion of capacity in underdeveloped countries, see
Table 4.*
* Table 4 follows on p. 18.
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Table 4
Soviet Bloc Aid Related to Total Installed and Planned Generating Capacity
in Underdeveloped Countries
Installed Capacity
at End of 1960
Total
Tal
Planned Increase in Capacity from Bloc Aid
Total
Planned
Increase
As a Percent
of Installed
Capacity
As a Percent
of Total
Recipient Country
(Megawatts)
Planned Increase
(Megawatts)
at End of 1960
Planned Increase
Afghanistan
45 2/
92 1./
80
178
87
Argentina
3,01012/
N.A.
50
2
N.A.
Brazil
4,555 12/
N.A.
314
7
N.A.
Cambodia
66j
N.A.
21 I/
32
N.A.
Cuba
850 12/
724
656
77
91
Iceland
155 12/
N.A.
25
16
N.A.
India
5,700 2/
7,000 2/
2,342
41
33
Indonesia
400 12/
325
8o/
20
25
Iraq
275 12/
N.A.
100 2/
36
N.A.
Nepal
7 I/
35
2
29
6
Syria
111.0 12/
N.A.
58 Id/
41
N.A.
Tunisia
146 12/
N.A.
2
1
N.A.
Turkey
1,33212/
N.A.
15
1
N.A.
UAR
1,169 12/
N.A.
2,378
203
N.A.
Yemen
N.A.
N.A.
1
N.A.
N.A.
Total
17,850
6124
34
d. Additional hydroelectric
e. 12/
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surveys are being made.
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IV. Problems and Prospects
A. Problems
Both Bloc donors and underdeveloped recipient countries have
met with many problems in the process of carrying out the terms of aid
agreements in the field of electric power. These problems can be at-
tributed basically to the fact that, although the governments of the
Soviet Bloc are providing plans, equipment, technical supervision, and
foreign exchange credits, the local government is responsible for ad-
ministrative supervision of construction and installation work, for pro-
viding local labor and supplies, and for obtaining the funds to cover
these local costs. As most of the Bloc aid projects in the field of
electric power are still in the early stages of construction, problems
arising from local shortcomings in furnishing funds, labor, materials,
and management have been of great importance.
The local financing that must be provided by the recipient coun-
try may amount to as much as 50 percent of the cost of a powerplant. As
a consequence, the lack of local funds has delayed the construction of a
number of electric power projects. In the case of both Afghanistan and
Nepal, the Soviet government offered to ship consumer goods for resale
in the recipient country, chargeable to the Soviet line of credit, to
permit the local government to raise the necessary funds. The govern-
ments of Afghanistan and Nepal had doubts that the local consumer goods
markets could absorb Soviet goods in sufficient quantities to raise the
necessary funds and thus were reluctant to accept the proposal, but they
had no alternative means of raising the funds Li and therefore agreed.
Outmoded or inappropriate construction equipment, inferior con-
struction materials, and the lack of skilled labor in most underdeveloped
countries have been additional factors retarding progress in the con-
struction of powerplants. Soviet engineers have had difficulties in
training local workers and in obtaining an adequate labor force to main-
tain the construction schedules. Further problems are involved in train-
ing local engineers to operate the powerplants when construction is com-
pleted.
Dissatisfaction with the slow progress on the Asahan project and
the limited responsibility that the USSR will assume for carrying out a
project has led the Indonesian government as well as other countries to
urge the USSR to undertake aid projects on a turnkey basis, as the US
has done. The Soviet refusal to do so has been the cause of a basic
disagreement between Soviet and Indonesian officials.
As the aid projects progress to the stage in which equipment
will have to be furnished in greater amounts, there is every indication
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that delays in shipment, incomplete shipments, and faulty operation of
equipment will become more of a problem. Such difficulties have al-
ready been noted in connection with the Soviet program in the UAR and
India.* The East Germans in their construction of the Damanhur Power-
plant in Egypt exceeded the costs originally agreed on by almost $3 mil-
lion as a result of delays, haphazard planning, and mismanagement. 2E/
The East Germans also lost a pending contract to supply equipment for
the Alexandria Powerplant and recently have had to default on a new
contract to expand the Damanhur Powerplant because of lack of equip-
ment. 2.3./ Hungary also experienced difficulty in getting the Al Tabbin
Thermal Electric Powerplant in the UAR into operation in 1960, largely
because of the poor quality of Hungarian equipment installed and prob-
lems in training Egyptian personnel.2/2/
B. Prospects
Up to this point, the powerplant construction program of the
Soviet Bloc in underdeveloped countries has been limited largely to
the planning and initiation of projects. The program has now reached
a stage, however, in which sizable shipments of equipment to recipient
countries must be scheduled and coordinated with plans for production
of equipment, for domestic construction of powerplants, and for export
of equipment to other Communist countries. The Bloc countries that
have contracts for future shipments of equipment to underdeveloped
countries are Czechoslovakia, Poland, and the USSR.
Czechoslovakia generally has been able to maintain its schedule
and as of late 1962 had built 5 of the 11 powerplants put into opera-
tion in underdeveloped countries by the Bloc. Its heavy equipment in-
dustry is capable of producing good-quality electric generating equip-
ment and has maintained a high level of exports, to some extent at the
expense of the domestic electric power industry. The installation of
new generating equipment in Czechoslovakia has been falling behind
schedule. Much of the existing equipment is old, is being operated at
excessively high rates of utilization, and is in frequent need of re-
pairs. Plants capable of constructing additional generating equipment,
however, are at present committed to produce other types of heavy equip-
ment, some of which -- such as diesel and diesel-electric locomotives,
mining and construction equipment, and heavy machine tools -- also en-
joy high priorities for export. Consequently, any move to increase the
availability of electric generating equipment, either for expansion of
domestic capacity or for export to underdeveloped areas, would involve
substantial revision of existing priorities.
* See III, A, p. 9, above.
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In Poland, requirements for generating equipment are approxi-
mately in balance with the capacity for manufacturing such equipment.
Some disruption of scheduled production for domestic use may be neces-
sary to permit production of equipment for powerplants in India and
Brazil.
Most of the contracts for aid projects that the Soviet government
has signed were not included in the Soviet Seven Year Plan (1959-65).
Soviet capacity for production of generating equipment was so fully com-
mitted by Bloc plans that there was not much leeway for making additional
equipment available to the underdeveloped countries. Consequently, sched-
ules for shipping power generating equipment are beginning to be dis-
rupted, with resulting bottlenecks and unfulfilled promises of delivery
to recipient countries. Although some domestic programs may be stretched
out to enable key aid projects to be completed on time, it is believed
that, in general, domestic commitments will be given priority and that
the aid program will not be permitted to hinder the growth of the Soviet
electric power industry. The chances of success of the aid program in
underdeveloped countries have been improved greatly by the fact that ship-
ments of power generating equipment to Communist China over the next 5
years probably will be about 6,000 mw less than originally planned.*
As a result of a sharp reduction in shipments to Communist
China since 1960, exports of power generating equipment from the USSR
decreased somewhat, from 1,500 mw in 1959 and 1,400 mw in 1960 22/ to
1,200 mw planned for 1962. 2g As a result of the reduction in ship-
ments to China, original commitments to underdeveloped countries (which
would have been hopelessly beyond the capabilities of the Soviet power
equipment industry) may be fulfilled with only a 2-year or 3-year stretch-
out in commissioning dates.
The planned destinations of Soviet exports may change from year
to year as a result of changing priorities. Shipments to Cuba of six
50-mw units necessary for the construction of two thermal electric power-
plants provided for in contracts concluded with Cuba within the past year
undoubtedly have a high priority. There now is evidence that shipments of
thermal electric generators to China are being increased but are still at
substantially lower levels than originally planned in 1957-58. These re-
scheduled shipments to China also may be receiving a high priority. Hence
the shift in priorities for scheduled shipments to Cuba and China could
have necessitated the cutting back of planned shipments to India. 22/
This change probably is the reason that Soviet officials informed India
* It is estimated that 8,000 to 9,000 mw of the 15,000 mw committed by
the USSR to Bloc countries were allocated to Communist China. The indus-
trial stagnation in China, however, probably will enable Soviet shipments
to China to be cut to no more than 2,000 to 3,000 mw during the next 5
years.
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that scheduled shipments of equipment would have to be cut in half and
also explains Mikoyan's later statement to Indian officials that he
would investigate the possibility of diverting thermal electric power
equipment to India from Soviet internal projects. 2,p2/ It is estimated,
however, that the planned goals for installation of generating equip-
ment in the USSR are far greater than the capacity that will actually
be needed for the electric power production required and are greater
than the capacity that actually will be installed. Therefore, a cut-
back in the planned program for domestic installation of equipment
would work no real hardship in the Soviet economy. It may become ap-
parent to Soviet planners in the next few years that they need not have
cut commitments to India as much as was believed to be necessary at
first, but by that time it will be too late to meet the original sched-
ule. Consequently, the original commitments to India probably will be
met but after considerable loss of valuable time. The problem of allo-
cating priorities for generating equipment probably will continue for
some years before production of generating equipment will exceed inter-
nal requirements sufficiently to remove the need for tight scheduling.
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APPENDIX A
FIECTRIC POWER PROJECTS IN UNDERDEVELOPED COUNTRIES
UNDERTAKEN WITH SOVIET BLOC AID
AS OF 1 JULY 1962
Recipient Country
Soviet Bloc Aid
Name or Location Capacity Amount
of Powerplant Type (Megawatts) Supplier (Million Current US $)
Afghanistan Pul-i-Ehumri
Argentina
Hydroelectric
9 USSR
Status and Purpose
4.1 Completed in May 1962. To supply a
cement plant and a textile plant. This
was the first powerplant completed with
Soviet aid in an underdeveloped coun-
try.
Naghlu Hydroelectric 60 USSR 19 To be completed in 1965. To supply ex-
panding industry and municipal needs
in the city of Kabul.
Jalalabad Hydroelectric 11 USSR 3 Completion planned for the end of 1963.
Behind schedule. To provide current
for pumping stations of irrigation
system and the city of Jalalabad.
Total 80 26.1
Rio Turbio Thermal electric 24 Czechoslovakia 3 al* Completion planned for 1961, but the
plant was not yet finished in 1962. To
provide power for the coal industry.
Llavallol Thermal electric 13 21 Czechoslovakia 2 h/ Equipment shipped in 1960. To supply a
military armaments plant.
* Footnotes follow on p. 33.
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Name or Location
Capacity
Soviet Bloc Aid
Amount
Recipient Country
of Powerplant
Type
(Megawatts)
Supplier
(Million Current US $)
Argentina
San Luis Province
Thermal electric
13 E/
Czechoslovakia
212/
(Continued)
Total
50
7
Brazil
Bariri, Rio Tiete, Sao
Hydroelectric
90
Czechoslovakia
7.2"L./
Paulo State
Porto Alegre, Rio Grande
do Sul State
Hydroelectric
24
Czechoslovakia
3 2/
ljui, Rio Grande do Sul
Thermal electric
200
Poland
26.0
State 2/
Total
Cambodia Phnom Penh
Thermal electric
314
3
Czechoslovakia
36.2
0.3
Provincial plants
Thermal electric
0.4
Czechoslovakia
0.1
Phnom Penh
Thermal electric
18
Czechoslovakia
3.4
Kamchay, Kampot
Hydroelectric
Survey
USSR
1.0 2/
Total
21.4
4.8
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Status and Purpose
Equipment shipped in 1960. To provide
power for the oilfields.
To go into operation in 1963. To pro-
vide power for the general supply.
Czechoslovakia is to furnish two 45-mw
hydrogenerators and Brazil is to manu-
facture a third, using Czechoslovak
plans.
Equipment shipped in 1962. To provide
power for the general supply.
To provide power for the general supply.
Completed in June 1960. Contains two
1.5-mw generators, one a gift from
Czechoslovakia and the other purchased
from Czechoslovakia. Supplies power
to new hospital and radio station.
Two 180-kw generators were presented by
Czechoslovakia to be installed in the
provinces.
Completion planned for the end of 1964.
Surveys being made for a 30-mw to 40-mw
powerplant.
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Recipient Country
Name or Location
of Powerplant
Type
Capacity
(Megawatts)
Soviet Bloc Aid
Status and Purpose
Amount
Supplier (Million Current US $)
Cuba
Mariel, Pinar del Rio
Province
Thermal electric
200
USSR 24
Probably will go into operation at the
end of 1964. To transmit power to
Havana.
Santiago, Oriente Province
Thermal electric
100
USSR 13
Probably will go into operation in 1965.
To supply power to a new refinery and a
steel plant.
Antillsna de Acero Steel
Plant, Havana
Thermal electric
12
USSR 3
In the planning stage. To supply the
steel plant.
Nuevitas, Camaguey Prov-
ince
Thermal electric
120
Czechoslovakia"
In the planning stage. To have two
60-mw units.
Tallapiedra, Havana
Thermal electric
60
Czechoslovakia
Expansion planned. Probably will be
started soon. To have one 60-mw unit.
O'Bourke Powerplant,
? Cienfuegos, Las Villas
Thermal electric
90
Czechoslovakia
Expansion planned. To have one 30-mw
unit and one 60-mw unit. Construction
Province
31
probably will begin in 1963.
Punta Mart illo Plant,
Manzanillo, Oriente
Thermal electric
30
Czechoslovakia
Preliminary plans underway. To have one
30-mw unit.
Province
Hanabanilla, Las Villas
Hydroelectric
14
Czechoslovakia
One additional unit to be installed by
Province
1964, increasing the capacity of the
plant to 42 mw.
Camaguey or Santiago
Plant, Camaguey or
Thermal electric
30
Czechoslovakia
An expansion by one 30-mw unit planned,
probably one of these plants.
Oriente Province
Total
656
71
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Soviet Bloc Aid
Name or Location Capacity Amount
Recipient Country of Powerplant Type (Megawatts) Supplier (Million Current US $) Status and Purpose
Ghana Bui Dam Hydroelectric Survey USSR
Small Rivers
Total
Hydroelectric Survey Czechoslovakia
Guinea Konkoure River Hydroelectric Survey USSR
Iceland
India
5W/
3W/
8
5/1
Agreement signed in September 1961 for
survey and design work only. Survey
begun in mid-1962. Decision whether
or not to go ahead with the project
awaits the results of the survey. The
project is based on the planned devel-
opment of a ferromanganese industry.
The powerplant would have a capacity
of approximately 200 mw.
Survey was completed at end of 1961, and
two locations were recommended for con-
struction of small hydroelectric power-
plants. Detailed studies of these sites
are now to be made.
Survey was completed in February 1962,
and a design is being prepared for a
500-mw hydroelectric powerplant, based
on the planned development of an alu-
minum industry. A contract for con-
struction has not been signed.
Total 5
Five generating units Hydroelectric 25 2/ Czechoslovakia 1.5 Contract awarded in 1956. The first
three units had started operating in
1959.
Total
2.2 1.5
Neyveli, Madras State Thermal electric 4o0 USSR
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44
To contain six 50-mw units and one 100-mw
unit. First unit went into operation in
August 1962. To be completed by the end
of 1965. To supply power to the Neyveli
Lignite Project, including coal mines, a
fertilizer plant, and other enterprises.
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Soviet Bloc Aid
Name or Location Capacity Amount
Recipient Country of Powerplant Type (Megawatts) Supplier (Million Current US $) Status and Purpose
India (Continued) Pathratu, Bihar State Thermal electric 400 USSR
Korba, Madhya Pradesh Thermal electric 200 USSR
State
Singraul, Uttar Pradesh Thermal electric, 250 USSR
State
Bhakra Right Bank, Punjab Hydroelectric k80 USSR
State
Mettur Tunnel, Madras Hydroelectric 227 USSR
State
Hirdkud II, Orissa State Hydroelectric 75 USSR
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4-0
Construction work underway in 1961.
Final contract was signed in September
1962. The first 100-mw section is to
be completed early in 1964. To supply
power to a heavy machine building plant
and a foundry-forge plant.
23.6 Contracts signed in August 1962. The
first 50-mw unit was to be delivered to
India by the end of 1962. To supply
power to the Bhilai Steel Plant, the
Korba coal mines, and iron ore mines.
29 Agreement signed in February 1960. The
first two 50-mw units are to go into
operation in 1964. To supply power to
industry in Uttar Pradesh State.
75 2/ Technical plans completed in mid-1962.
The first unit is to go into operation
in June 1965, with the other three to
follow at 3-month intervals. To have
four 120-mw units.
21.6 Construction work underway in 1960. The
first two units were to be shipped to
India in 1962 but will not be shipped
until 1963; they are scheduled to go
into operation in 1964. To have four
56.7-mw units.
1.9 USSR supplying equipment only. The
first of three 25-mw units was being
installed in mid-1962. To be completed
during 1963-64.
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Recipient Country
Name or Location
of Powerplant
India (Continued) Barauni, Bihar State
Indonesia
Paras and Bhusaval
Utran, Surat, Gujerat
State
Shapur, Gujerat State
Jamnagar, Gujerat State
Type
Soviet Bloc Aid
Capacity
(Megawatts) Supplier
Thermal electric 250
Poland
Thermal electric 0 Poland
Thermal electric 45 Czechoslovakia
Thermal electric 10 Czechoslovakia
Thermal electric 0.5 2../ Czechoslovakia
Gazibad, Uttar Pradesh Diesel
State
Total
Tjilegon
Tjilatjap
4.5 Czechoslovakia
2,342
Thermal electric 36
Thermal electric 12
USSR
USSR
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Amount
(Million Current US
$)
11
6.3
4 2/
1W
0.5W
0.5W
258.4
10 2/
3.5W
Status and Purpose
Contract signed in May 1962. The first
section, consisting of two 50-mw units,
is to be completed in 1963. To supply
power to the Barauni refinery.
Poland is to supply boilers for these
two plants.
Equipment was shipped in 1958, and the
plant was completed in 1960. Has three
15-mw units.
Contract was signed in 1960. Equipment
was to be shipped in 1961 but was not
shipped until 1962.
Completed in 1957.
Equipment produced in 1961, to be shipped
to India. To supply power for irriga-
tion during the dry seasons.
A heat and powerplant with three 12-mw
units being built as part of the Tji-
legon Steel Plant complex. Preliminary
plan was completed in 1961. Should be
completed by 1984.
A heat and powerplant being built to
serve the Tjilatjap superphosphate plant
and the city of Tjilatjap. Should be
completed by 1964.
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Name or Location
Capacity
Soviet Bloc Aid
Amount
Recipient Country
of Powerplant
Type
(Megawatts)
Supplier
(Million Current US $)
Indonesia
Sigura-gura, Asdhan River
Hydroelectric
Survey
USSR
5 21
(Continued)
Timo
Hydroelectric
12
Czechoslovakia
5.6
Tjurug
Hydroelectric
4 2/
Czechoslovakia
0.6
48 generators
Diesel
16
Czechoslovakia
2.5
Total
80
27.2
Iraq
Tigris and Euphrates
Hydroelectric
Survey
USSR
2.5 g
River Basin
Samarra Dam
Hydroelectric
100
Czechoslovakia
8.4
Total
100
10.9
Status and Purpose
A survey being made for a hydroelectric
plant, to be part of the large Asdhan
Project, which will include an aluminum
plant scheduled to produce 70,000 tons
of alumina and 18,000 tons of aluminum
and a rolling mill with a capacity of
12,000 tons of rolled aluminum goods
per year. First stage of the power-
plant, 120 mw in three 40-mw units,
probably will be started in 1966.
Contract was signed in 1958. Equipment
was to be shipped in 1961.
Agreement signed in 1960. It is not
known whether construction has actually
begun.
Deliveries were completed in 1962. Ca-
pacities of generators vary from 50 kw
to 1,000 kw.
Survey began in 1962. If carried out,
this project is estimated to cost $150
million.
Preliminary survey completed, technical
plans and specifications now being pre-
pared. To have 25-mw units and to be
completed in 1965. This plant will in-
crease the total power capacity of Iraq
by 24 percent and will be needed to
meet Iraq's electric power require-
ments through 1967.
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Soviet Bloc Aid
Name or Location Capacity Amount
Recipient Country of Powerplant Type (Megawatts) Supplier (Million Current US $) Status and Purpose
Mali Sotouba, Niger River Hydroelectric Survey USSR 0.2 1/ Preliminary survey requested in Septem-
ber 1961. No decision has been reached
regarding the construction of the dam
and powerplant.
Nepal
Somali
Syria
Total 0.2
Panaoti, Rosi River Hydroelectric 2.4 USSR
Total
Giuba River
Total
Rastan Dam
2.8 aj
2.4 2.8
Hydroelectric Survey USSR 2
Hydroelectric
10.5 USSR
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2
Plant and a 25-kilometer transmission
line to Katmandu were planned for com-
pletion in 1962, but at the end of 1961
almost no work had been done because of
numerous difficulties in starting the
project. When completed, it will sup-
ply power to Katmandu, Where the total
electric power capacity available in
1961 was 4 mw.
Survey being made for a planned 25-mw
plant.
8.7 Plans for the dam and hydroelectric
plant were prepared by Soviet tech-
nicians. A construction contract was
awarded to Bulgaria under the USSR-
Syria aid agreement. Soviet engineers
reportedly were brought in to assist,
and the equipment was supplied from the
USSR. Went into operation in August
1961.
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Recipient Country
Soviet Bloc Aid
Name or Location Capacity Amount
of Powerplant Type (Megawatts) Supplier (Million Current US $) Status and Purpose
Syria (Continued) Euphrates River
Horns
Hydroelectric Survey USSR 4 1/ Preliminary survey completed in 1958.
By January 1962, Soviet engineers com-
pleted plans for dam and powerplant.
Plant capacity to be 345 mw. Contract
for construction of the project not
awarded as yet. The cost of the proj-
ect reportedly would be $195 million,
so additional credit would be required.
Thermal electric 45 Czechoslovakia 3.4 12/ Construction began in March 1961. The
first unit is scheduled to go into op-
eration in March 1963. To supply power
to a Chemical combine to be built with
Soviet aid.
46 generators Diesel 2 2/ Czechoslovakia 0.4 Contract signed in 1961 for delivery of
diesel generators.
Total 21:2 16.5
Tunisia Oued Kasseb River Hydroelectric 2 USSR 2 An agreement has been signed providing
for aid in construction of five dams
and the small hydroelectric powerplant.
Soviet technicians were preparing plans
in 1962.
Turkey
Total
Ikizdere
Total
Hydroelectric
2
15 Hungary
15
2
1
1
Completed in 1959.
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Recipient Country
Soviet Bloc Aid
Name or Location Capacity Amount
of Powerplant Type (Megawatts) Supplier (Million Current US $) Status and Purpose
UAR Aswan High Dam Hydroelectric 2,100 USSR 250 Initial work underway. Construction of
dam and powerplant to begin by end of
1962. Initial production of powerplant
scheduled for 1967, to be completed by
1970. Dam and powerplant will provide
for irrigation of 1 million acres of
land, will control the floods in the
Nile Valley, and will almost triple
the supply of electric power, enabling
a great expansion of industry. To have
twelve 175-mw hydroelectric generators.
Additional Soviet aid of $75 million is
for irrigation making total Soviet
credits for this project of $325 mil-
lion.
Suez
Thermal electric
75
USSR
11
Three 25-mw units were to be shipped to
Egypt in 1961 and 1962, but shipments
are behind schedule. To supply power to
the oil refinery and the city of Suez.
El Mahalla el Kubra
Thermal electric
24
Czechoslovakia
3ai
Two 12-mw units were shipped in 1958-59.
Completed in 1960. Supplies power to
the largest Egyptian textile mill.
Sugar Mill, Luxor
Thermal electric
9
Czechoslovakia
1 pi
Three 3-mw units were to be shipped in
1961. To supply power to the sugar
mill.
Taikha
Thermal electric
60
Czechoslovakia
2.8
Plant, originally built by Westinghouse,
is being expanded by two 30-mw units,
which are to be in operation in 1964.
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Soviet Bloc Aid
Name or Location Capacity _ Amount
Recipient Country of Powerplant Type (Megawatts) Supplier (Million Current US $) Status and Purpose
DAB (Continued) 69 generating sets Diesel 35 Czechoslovakia 14 Contract signed in 1961. To start op-
eration in mid-1962 along the Nile, at
the Red Sea coast, and at the Suez
Canal.
Al Tabbin
Thermal electric 45 Hungary 5.7 Project was begun in 1956 and turned
over to the Egyptians in 1960. Has
three 15-mw units. The Hungarian
technicians had difficulty in putting
their own poorly made equipment into
operation and in training the Egyptians
to run the plant.
Damahhur Thermal electric 30 East Germany 3.3 Completed in 1960. Has two 15-mw units.
Because of inefficient and haphazard
planning, delays in the delivery of
equipment, and mismanagement, the agreed
cost was exceeded by almost $3 million.
Lebon Thermal electric 0 East Germany 2.9 A boiler for the Lebon powerplant was
scheduled for delivery by June 1957
but was not delivered until 1958.
Credit included a transmission network.
Total 2,378 293.7
Yemen Al Hudaydah Port Diesel 1.2 USSR 0-5 2../ Completed by the end of 1961. To supply
power to the Al Hudaydah Port. Contains
three diesel generators.
Total 1.2 0.5
Total, all recipients 6 124.5 774.8
a. Estimated.
b. Including a few commercial agreements that may not be considered aid in the form of long-term credits.
c. Credits for this project were extended by Poland to Brazil in an agreement signed in December 1962.
d. Under survey only.
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