AID grant no. 596-0146-A-00-7022-00 to the National Rural Electric Cooperative Association (NRECA) for a program of cooperative regional rural electrification support in Central America

The National Rural Electric Cooperative Association (NRECA) will implement the project, which consists of institutional and policy reform, institution building, and promotion of least-cost rural electric systems and productive uses of electricity. Project TA and training will support adoption of policies and institutional reforms to strengthen the organizational and financial bases for rural electification in the region. The organization of rural electric supply, demand, and distribution in participating countries will be analyzed and guidelines delineating the roles of the decentralized public sector, cooperatives, and investor-owned utilities developed. Country-specific proposals will identify targets of opportunity and areas of reform. A comprehensive technical and managerial training program will be implemented. The program will combine the efforts of local institutions with outside expertise and will include on-the-job training, academic instruction, workshops, and overseas internships. TA, training, and demonstrations will promote the adoption of standardized designs, equipment specifications, and construction standards for rural electrifiation systems (including small hydropower systems). This effort will be closely coordinated with ongoing activities of the electric utilities and of the region"s engineering and technical schools. National programs will receive TA and training to promote the productive uses of electricity; a regional training/demonstration facility for this purpose is possible. Activities will be to: (1) assess the demand for electricity in productive activities in rural areas; (2) increase rural development agencies" awareness of the importance of promoting productive use; (3) conduct national or regional workshops on productive use promotion; (4) improve the capability of utilities" personnel to develop promotion programs; and (5) design follow-up activities in training, research, credit, etc. Amendment of 8/07/90 extends the PACD to 3/94 and authorizes an additional $5 million in Congressionally earmarked funding. Activities and purposes remain unchanged, except that it is expected that Panama and Nicaragua will now participate in the project and that new activities will be initiated with the private sector (e.g., assistance to the newly formed Consortium of Costa Rican Electric Utilities -- CONELECTRICAS). (PD-KAT-498) Amendment of 9/17/93 and adds a renewable energy component to expand project efforts to promote photovoltaic and wind energy in isolated areas where the power grid cannot be extended; pilot projects will be conducted in national parks and their buffer zones. Of the original components, two (policy/institutional reform, and enhancement of operational efficiency) will continue, while the other two (least cost rural electric design, and productive uses of electricity) will be de-emphasized. Activities under the amendment will include initiatives to promote private sector energy delivery and the creation of decentralized utilities. A PASA will be signed with the U.S. Department of Energy/Oak Ridge National Laboratory for project monitoring and evaluation. (PD-ABH-243)