Alternative energy sources

Evaluation covered the period 11/79-8/85 and was based in part on site visits and document review. The development impact of the project, which included both support for practical experiments with non-carbon fuel technologies and the development of an energy master plan, was limited mainly to IRHE as an institution. Two of the project"s pilot micro-hydroelectric plants were finished early on, but activities remain to be carried out by IRHE before the 5 plants installed later are operational and self-sustaining. USAID/P takes one exception with the recommendations of the consultants - a team of mini-hydroelectric specialists called in to correct deficiencies in the evaluation as first undertaken - concerning funding for further activities (such as equipment repair and cooperative development) and suggests that IRHE, as a profitmaking state-owned monopoly utility, fund these activities from its own resources. As IRHE is actively seeking funding from the InterAmerican Development Bank for an additional group of micro-hydro systems, USAID/P assumes that IRHE is strongly committed to this alternative for rural electrication, and moreover, that its commitment derives from experience gained on this project. USAID/P will maintain dialogue with IRHE and the Autonomous Panamanian Cooperative Institute (IPACOOP) in order to encourage and monitor implementation of evaluation recommendations. Specifically, IRHE should: (1) modify and repair micro-hydro equipment and civil work at Chitra and Buenos Aires; (2) install, test, and start up the San Juanito micro-hydroelectric systems; and (3) provide ongoing TA and training in maintenance and technical management of the micro-hydro systems to IPACOOP and to communities. IPACOOP should: (1) form community electric cooperatives in San Juanito, El Cedro, La Tronosa, Entradero de Tijera, and La Pintada; (2) provide the co-ops with TA and training in co-op development and in financial management of the individual systems; and (3) establish an institutional framework to support co-op management and administration and act as the link to IHRE technical support.