AGUAN VALLEY RURAL ELECTRIFICATION

Evaluation covers the period 7/79-6/80 and is based primarily on the annual report prepared by Empresa Nacional de Energia Electrica (ENEE) (PD-AAG-586-C1), the Honduran implementing agency. The major obstacle to project implementation has been the year"s delay in funding contractors through the bid process. The first bid was declared void by ENEE in 11/78, and a second bid process had to be begun from the beginning. It was not until September and November 1979 that contracts with General Electric and Westinghouse were signed. Most of this delay was due to ENEE"s unfamiliarity with A.I.D. procurement regulations. Now that the contract issue has been settled, the project is proceeding well. Construction of four complete substations and expansion of one substation has begun. No major problems in procuring equipment and materials are anticipated. The 138 KV transmission line, which is 62% complete, is ahead of schedule. Construction of the distribution system will begun in 4/81, and house connections/internal wiring will begin 1/82. By the end of the project, about 25,000 low-income persons (6% of the Honduran population) will have household electricity connections. The major lesson learned is that, in cases where the borrower government has no previous experience in implementing A.I.D. projects, pre-project implementation training should be provided to the managing officers and key technical staff. In this way, delays such as those exhibited in this project could be avoided. Also, a well-established coordination and follow-up procedure is fundamental to expedite project execution. The following activities are scheduled to be completed by 9/81: (1) two distribution system contracts awarded; (2) 60 persons trained for transmission operation/maintenance and 40 persons trained for house installations and appliance repair; (3) contracts awarded for warehouse construction and internal wiring; and (4) need for a project extension reviewed.