Audit of micro/mini hydroelectric project USAID/Thailand, project no. 493-0374

Program results audit covers the period 9/82-4/87 and was based on document review and interviews with involved personnel. One purpose of the project will be achieved. The project will succeed in providing hydroelectric energy to many areas in Thailand, making Thailand less dependent on fossil fuels. However, (1) the issue of sustainability has not been fully addressed, and (2) project monitoring needs improvement. (1) Numerous changes to project design have been made during project implementation. These changes are reflected in the number and type of hydroelectric projects to be constructed, the cost of each subproject, and the project time frame. these changes failed to readdress the issue of institutionalization, a very important component of the original design. Nor were the changes properly documented. (2) USAID/T"s project monitoring was neither effective, nor properly documented. Progress reports were not submitted as required and site visits were not documented for management use. It is recommended that USAID/T specifically identify those changes that prevent institutionalization from being implemented in a manner consistent with project planning documents and readdress whether the impact of such changes are in accordance with A.I.D. policy. In addition, all changes should be approved and documented, and monitoring procedures should be documented and implemented over the remaining life of the project. (Author abstract, modified)