Joint evaluation of the energy sector assistance project

Special evaluation covers the respective periods 9/81-11/85 and 7/83-11/85 and is based on document reviews and interviews with key personnel. Under Phase I, the Ministry of Mining, Energy, and Tourism's (MMET) Energy Division (ED) was to be strengthened by recruitment of a qualified, professional staff. This purpose has still not been met due to a constant staff turnover attributed to a low Government of Jamaica (GOJ) salary scale and a lack of both career development opportunities and project job satisfaction. By contrast, the alternative energy component of Phase I is meeting expectations; notable achievements include: establishing an Energy Center at College of Arts, Science, and Technology (CAST); establishing a demonstration center at Knockalva, with a second underway at Bodles; installing 20 solar- and wind-gathering stations (11 completed and 9 in progress); installing the revised target of 32 solar water heaters (vs. an original target of 24); and evaluating/investigating the potential of fuelwood and bagasse as renewable energy sources. The Phase I energy conservation component has also been successful, notably in its establishment of a public education program which exchanges information through seminars, communication media, and a fully equipped mobile unit; the training of energy auditors and their conduct of audits in excess of the number programmed; the retrofitting of private businesses' facilities; and the construction of energy conservation components below estimated costs. In Phase II, loan activity under the Energy Credit Fund (ECF) has remained relatively low due to a variety of factors such as the depressed state of the economy, a lack of incentive in the private sector for assuming non-productive financial burdens, delays in loan application processing, and the high duties placed on imported materials. The project should be completed 9/30/86 as planned, except for training, although completion of ED institutional strengthening could require an extension. Recommendations are to: (1) reorganize ED, provide it loan funding to cover project implementation costs, and establish a professional salary structure to make ED competitive with other GOJ parastatals; (2) waive import duties on ECF foreign exchange-funded procurement; (3) make project extensions (other than for training and possible funding deobligations) subject to a favorable results of a planned 6/86 review of progress in project activities and disbursements; and (4) terminate the META Systems TA contract and focus future TA on short-term, highly specialized services.