Alternative energy sources

PES covers the period 9/79-2/81 and summarizes an attached mid-point external evaluation based on document review and interviews with IRHE, USAID/P, and other knowledgeable personnel (XD-AAT-161-A). Progress is being made in all areas with one exception: planned studies on agricultural wastes have been cancelled. The development of two micro-hydroelectric plants has been added to the demonstration activity, however, and is on schedule. IRHE"s potential institutional development remains something of a question mark, although progress is being made in this area as well. IRHE"s operating budget has been increased, but it is doubtful that the desired annual scale of $200,000 will be reached, and IRHE staff, now composed of 9 full-time and 8 part-time employees, remains short of the planned total of 12 full-time professionals. Technical staff members, however, are dedicated, enthusiastic, and growing in experience and knowledge; USAID/P feels that project goals can be achieved with the current staff, but will monitor their effectiveness as the workload increases. IRHE has developed working relationships with public and private sector agencies in the energy industry both in Panama and in the Latin American region. Two of the agencies that have begun to work with IRHE are Panama"s National Energy Commission (CONADE) and OLADE (a regional group). Finally, a Master Plan has been developed through which public or private agencies will help to implement 50 additional project activities. After much deliberation, it has been determined that the Yaviza wood-fueled electric generating plant is a valuable demonstration effort which may offer an important energy option for Panama"s future development; funds for this activity have been increased. Several other donors have recently initiated energy activities in Panama; increased motivation on the part of the government to address energy issues is a likely result. An important lesson learned is that the managerial and technical capability and the commitment of the host government must be carefully assessed in multifaceted energy projects.