Energy conservation and resource development : industrial conservation component

The evaluation was based on document review, interviews with 50 individuals, and site visits. The institutional arrangement of the implementing agency, the National Energy Policy Commission (COENER), seems adequate - although its autonomous status should be restored - and COENER has been reasonably successful in raising awareness of the need for energy conservation. However, government austerity measures have made it impossible for COENER to provide the agreed to - and vital - personnel and logistic support. For example, the salary of energy audit engineers is reportedly only 50% of industry level, leading to high attrition and difficulty in recruiting qualified, experienced engineers. Also, COENER has not projected an image of efficiency to its industrial audience, although its image has improved since the evaluation was conducted, as evidenced by the achievements noted below. To date, COENER and private firms have conducted 35 of the planned 50 energy audits. COENER has approved 3 pilot projects, one of which is being carried out; conducted seminars and workshops throughout the country; and co-sponsored a national conservation seminar. Classroom and on-the-job training in energy auditing have been provided and workshops have been conducted both in and outside the country; also, two groups of 5 persons, including private sector representatives, have received training in the United States and Costa Rica, respectively. Finally, the $1.6 million industrial conservation credit fund within the Investment Fund for Economic Development (FIDE) has been established in the Central Bank and has made two loans totaling RD$1.5 million for capital energy conservation improvements. Although the resident advisor has performed satisfactorily, administrative demands have kept him from providing the required level of TA; short-term TA, which has been uneven in quality, has only partially filled this gap. Also, due to heavy, unplanned expenditures for administrative and logistic support by the contractor"s U.S. office, all TA funds were expended prematurely and TA had to be extended for 18 months. Lessons learned are: (1) investments to develop the capacity to conduct energy audits and to install audit recommendations are better made in the private than in the public sector; and (2) special efforts must be made to avoid duplicating reviews when intermediate credit institutions are part of project implementation. Six recommendations made by the evaluators have been fulfilled.