LOAN COMPLETION REVIEW AND REPORT 524-L-025-NICARAGUA : RURAL ELECTRIC COOPERATIVES (III)

EVALUATION, A LOAN COMPLETION REPORT, COVERS A PERIOD ENDING 6/30/76. NEITHER THE STARTING-POINT OF THE EVALUATION NOR ITS METHODOLOGY ARE INDICATED. THE EMPRESA NACIONAL DE LUZ Y FUERZA (ENALUF), A PUBLIC POWER UTILITY OWNED BY THE GOVERNMENT OF NICARAGUA, IS IMPLEMENTING THE PROJECT. MAJOR PROJECT ACHIEVMENT TO DATE HAS BEEN THE ESTABLISHMENT OF A NEW RURAL ELECTRIC COOPERATIVE FOR THE SEGOVIAS (CODERSE). CODERSE'S DISTRIBUTION SYSTEM IS IN PLACE AND OVER 24,000 PEOPLE ARE NOW CONNECTED TO THE SYSTEM. THIRTY MILES OF 69KV TRANSMISSION LINE; A 5,000KVA SUB-STATION; 410 MILES OF 14.4/24.9KV DISTRIBUTION LINES; AND 280 MILES OF 120/240 VOLT SECONDARY LINES AND SERVICE INSTALLATIONS WERE CONSTRUCTED. THE PROJECT WAS DELAYED NINE MONTHS BY THE FAILURE OF A GUATEMALAN SUPPLIER TO DELIVER POLES AND CROSSARMS AS CONTRACTED. LOAN FUNDS WERE USED TO PURCHASE TOOLS, POLES, AND TECHNICAL ASSISTANCE FROM THE NATIONAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA), INCLUDING ASSISTANCE NOT ORIGINALLY PLANNED FOR IN THE AREAS OF RATE STUDY, ACCOUNTING, EVALUATION OF POLE AND MATERIAL QUALITY, AND ADMINISTRATION. THE TRAINING COMPONENT, HOWEVER, HAS FALLEN FAR SHORT OF STATED OBJECTIVES. GENERAL MANAGEMENT OF OPERATIONS MUST BE UPGRADED. A CONTINUING TRAINING PROGRAM SHOULD BE IMPLEMENTED AT THE FIELD OPERATIONS LEVEL. AID HAS AUTHORIZED A GRANT AGREEMENT WITH THE NATIONAL ENERGY INSTITUTE (NEI) TO PROVIDE SUCH TRAINING. THE PROJECT LOAN ALSO FINANCED THE EXPANSION OF FOUR EXISTING RURAL COOPERATIVES, ENABLING THEM TO PROVIDE ELECTRICITY TO AN ADDITIONAL 4,700 CUSTOMERS. (APPROXIMATELY 22,000 FAMILIES ARE SERVED BY THESE COOPERATIVES.) IT IS CONCLUDED THAT A STRONG RURAL ELECTRIC NETWORK, SERVING OVER 150,000 PEOPLE AND A NUMBER OF IMPORTANT AGRO-INDUSTRIES AND LARGE AGRICULTURAL PRODUCERS, HAS BEEN DEVELOPED. ALTHOUGH IT WAS ANTICIPATED THAT THE MAJOR IMPACT OF THE PROJECT WOULD FALL ON THE MIDDLE INCOME FARMER, THE RURAL POOR ALSO BENEFITTED FAR BEYOND EXPECTATIONS.